Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
Understanding the Hindenburg Omen [A Bearish Sell Signal or Mere Folly?]
By Dr. David Edward Marcinko MBA, CMP™
[Editor-in-Chief]
According to Wikipedia, the Hindenburg Omen is a technical analysis pattern that is said to portend a stock market crash. It is named after the Hindenburg disaster of May 6, 1937, during which the German zeppelin Hindenburg was destroyed. The Omen is said to have originated with Jim Miekka. Miekka, who was probably the foremost expert on the Omen, suggesting to his friend Kennedy Gammage that the pattern be dubbed the “Hindenburg Omen” after that ill-fated dirigible.
Historical Review
The HO rests firmly on the logic of Norman G. Fosback’s High-Low Logic Index; and indeed the HLLI is the most important component of the HO. The HLLI was developed in 1979 and published in chapter 20 of Mr. Fosback’s book “Stock Market Logic”, ISBN 0-917604-48-2. The raw value of HLLI is the lesser of the NYSE New Highs or New Lows divided by the number of NYSE Issues Traded. For daily data Mr. Fosback recommended smoothing with an 18% exponential moving average, for weekly a 5% exponential smoothing.
Source: http://en.wikipedia.org/wiki/Hindenburg_Omen
Readings:
- http://community.nasdaq.com/News/2010-08/hindenburg-omen-predicts-crash-should-you-sell.aspx?storyid=33072
- http://community.nasdaq.com/News/2010-08/bounce-but-hindenburg-omen-reappears.aspx?storyid=32703
- http://www.wealthmanagerweb.com/News/2010/8/Pages/Hindenburg-Omen-Reportedly-Returns-Will-Doom-Follow.aspx
- http://www.physiciansmoneydigest.com/your-money/Should-Investors-Be-Worried-About-the-Hindenburg-Omen
Assessment
DJIA = 10,400 2010
DJIA = 28,992 February 2020
***
***
Channel Surfing the ME-P
Have you visited our other topic channels? Established to facilitate idea exchange and link our community together, the value of these topics is dependent upon your input. Please take a minute to visit. And, to prevent that annoying spam, we ask that you register. It is fast, free and secure.
Conclusion
Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
****
8
****
Share this:
Filed under: Financial Planning, Investing, Portfolio Management | Tagged: "Stock Market Logic", High Low Logic Index, Hindenburg Omen, Jim Miekka., Kennedy Gammage, Norman G. Fosback | 17 Comments »
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 