Forget ‘Hindenburg’, Stocks Just Suffered The ‘Akron’ Omen

Sunday, November 13, 2016
By Paul Martin

Via Dana Lyons’ Tumblr,
ZeroHedge.com
Nov 13, 2016

Instances of simultaneously elevated numbers of New Highs AND New Lows have led to poor stock market returns.

Today’s post piggybacks on Wednesday’s topic, i.e., the current large numbers of both New 52-Week Highs and 52-Week Lows on the stock exchanges. Those readers familiar with this topic likely gathered that our use of the word “omen” in the title of the post was not random. There is an infamous market indicator ominously called the “Hindenburg Omen”. And while there are several criteria involved in the HO, the main concept deals with large numbers of New Highs and New Lows at a given time. And although the HO is the object of plenty of Wall Street ridicule, that can probably partially be attributed to its eccentric name. Because when you dig into at least the concept behind the HO, which we have, there is a lot of evidence pointing to its validation.

Today, we look at 2 unique milestones set yesterday dealing with the ramp up in both New Highs and New Lows on the NYSE. The first is the fact that both the number of New Highs and New Lows set 3-month highs yesterday. If that sounds odd, it is. In fact, it was only the 2nd day ever in which each set a 3-month high. And since 1970, only 18 prior days saw New Highs and New Lows set as much as a 1-month high.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter