With the Stock Markets at all-time highs, is Irrational Exuberance back on the cards? Are you ready for the next stock-market crash of the century?
The Hindenburg Omen was spotted by eagle eyes on April 15th. It was confirmed by a sighting on May 29th. It points to a stock market crash. Such a crash would also have a strong impact on currency markets: the dollar and the yen usually rise when traders flock to “safe haven” currencies. Is there a big trading opportunity here?
The Hindenburg is a technical analysis pattern that predicts highs and lows of the stock market based upon Norman G. Fosback’s High Low Logic Index (HLLI). It was invented by Jim Miekka in 1995.
It’s used as a way of predicting big turndowns, for more on the Omens criteria read the article about the Hindenburg Omen on ToTheTick.
Another reason for the stock market to fall is the lack of QE fuel. If the Fed tapers QE, as we’ve seen in recent hints, it will be hard for markets to continue rising.