News, analysis and personal reflections on the markets & the financial sector

Saturday, June 1, 2013

Hindenburg Omen triggered on Friday May 31, 2013

The Hindenburg Omen is triggered when, among other things, multiple stocks set new 52-week highs and lows simultaneously.

The phenomenon happens if both highs and lows are greater than 2.2 percent of the total issues that trade that day. That would translate into about 73 stocks each way. In Friday's trading, there were 156 new lows and 90 new highs, according to Thomson Reuters.

At its core, the Hindenburg Omen reflects market volatility—violent moves in either direction that are triggered during times of uncertainty.

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