Hindenburg Omen

Definition:

A technical indicator that purportedly predicts a bear market or a crash when there is a large number of 52 weeks highs and 52 week lows on the NYSE. There is disagreement on the threshold. Some say 2.5% or 2.8% of issues traded on NYSE in a day. Named after the German zeppelin that caught fire on May 6, 1937.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

FINEX

The Financial Futures and Options Division of the New York Cotton Exchange (NYCE), with a trading floor in Dublin, FINEX Europe, creating a 24-hour market in most FINEX contracts.

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