Have no Hinderberg signal-based market disaster fear! They are poor predictors of downturns…
However, there are other things to worry about.
By Tomi Kilgore, MoneyBeat's Chart of the Day, WSJ
The Hindenburg Omen may be a cool sounding technical indicator, but determining its reliability is a whole other story.
Tom McClellan, whose McClellan Oscillator is among the technical indicators used to trigger a Hindenburg Omen signal, said the Omen is a great “warning,” since it successfully warned of every major declining since 1984. But as the chart shows, it’s not a great “sell” signal, since it has also flashed warnings, more often than not, especially at times when the market continued higher.
Keep reading: Chart of the Day: Fear the Hindenburg Omen? – MoneyBeat – WSJ.
