Hindenburg Omen Sighted As Stocks Suffer First Weekly Loss In 2 Months

Tyler Durden's picture

Credit markets to stocks this week...


Before we start - let's celebrate. As @BespokeInvest notes, we're making history today: first 12 month period in the history of the S&P 500 without a 3% drawdown. The VIX is also the lowest on record using a rolling 12 month average.


All major indices ended the week red. This is the Dow & S&P's first weekly loss in the last 9 weeks. Trannies were worst (worst weekly loss since July). Small Caps worst week since August.


This was VIX's biggest weekly rise in 3 months...


Russell 2000 VIX actually ended slightly lower with S&P VIX the biggest riser on the week...


Financials (green) were the week's worst performing sector, Utes (blue) and Retailers (black) outperformed...


On the week when the goivernment unveiled its tax plan, high tax stocks underperformed...


Bonds and Stocks fell on the week for the first time since June...


Which coincided with the worst drop in Ruisk-Parity funds since June...


All of which happens as a cluster of Hindebnburg Omens strikes...


Breadth in stocks remains weak...

HYG (High Yield Bond prices) tumbled most in 3 months...


High Yield continues to diverge from stocks...


VIX remains suppressed...


Treasuries sold off quite hard today - notable along with the equity weakness, suggesting Risk Parity problems - as the long-end underperformed, swinging the curve steeper...


The yield curve ended the week very marginally steeper after a v-shaped bounce midweek...


The Dollar Index fell for the first week in the last 4...



Crude was up for the 5th week in a row, copper lagged...


Gold and Bitcoin tumbled on the day...


One reason for the drop in Bitcoin is perhaps some wealth transfer from crypto to cash spending for Singles Day...



Gold was hit hard today a $4billion notional dump but remains higher on the week post-Saudi-chaos...


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BlueHorseShoeLovesDT's picture

Another day in Trumplandia

Solosides's picture

Dont forget to celebrate the weekend by ending the lives of at least 5 bankers.

SMG's picture

The Hindenburg Omen has not been a reliable signal at all for the past few years.   It's just not worth reporting on.

cossack55's picture

Unless one is long hydrogen

BennyBoy's picture


That Airship, Dirigible, Zeppelin or Blimp is more of an UFO.

Useless Financial Object.

D.r. Funk's picture

It works when normal market forces are present. Just another reason why there are (drumroll)


Worth reporting of course worth reporting. Offers the bullshit-paradox of "the past few years"

Albertarocks's picture

SMG and D.r. Funk are both dead on correct.  There are several very strict requirements needed in order for an HO signal to be issued.  And when it signals, what it's saying is that the market is on such thin ice that nobody has any valid reason to be expecting anything but a severe pullback.  What causes that is very few stocks doing the pulling uphill, while as many as 90% are falling.  Not only that, but there are very few new 52 week highs, but even more new 52 week lows.  It just stands to reason that a very hefty pullback (at the very least) should be happening very soon (the next day or maybe in the next week or so... imminent).  If I went into all the details about what makes it go off, you would agree that it is brilliant and just makes so much sense.

The only reason the HO has seemed like an epic failure of an indicator is because the plunge protection team sweeps in and absolutely refuses to let the market drop.  Under those circumstances, it LITERALLY is no longer a market.  It's a criminal enterprise.  It's not that the HO has failed... it's a case that the manipulators refuse to allow the market to drop.  That's all there is to it.

So what do we take from this latest signal?  Just realize that it has identified yet another instance where the stock market is in extreme danger and a crash should be happening any day now.  But that doesn't mean the market has to crash, just that it should.  Because with criminal interference... how can any technical analysis work anymore?  These bastards have literally broken the markets.  At the very least I'd be about as far from this market as possible, as in... not even in it at all.  100% in cash.

The HO IS NOT full of shit.  I should never be ignored.  Trust me... I wrote a column on the topic for four years on Seeking Alpha.  Four frustrating years when every time it issued a signal the PPT came roaring in and manipulated the markets so that they just could not drop.  Imagine 4687 stocks falling and 111 rising.  And the market just keeps chugging higher?  Are you shittin' me?  Ignore the HO at your peril... that's all I'm saying. 

Sanity Bear's picture

Based on many years of careful review here at ZH, it appears that a Hindenberg Omen signifies absolutely nothing at all.

Hell, we've probably even had a Hindenberg Omen in the chart of how many Hindenberg Omens we've had.

Albertarocks's picture

Please re-read my comment.  And this time pay attention.

D.r. Funk's picture

Supercharged. Talk about bringing an A game. Nice drop-in fly-by

yogibear's picture

Hindenberg, Smindenberg, just BTFD!

BlueHorseShoeLovesDT's picture

Or Amazonia depending on your point of view

Carl Panzram's picture

Were still shoveling the obamabushclinton shit, much economic pain awaits

Arnold's picture

Singles Day?

Had plenty of ass(et) shaking at the strip club?

Arnold's picture

Cool .
Participation Trophy s for everyone?

silverserfer's picture

shit, every day is singles day for crypto muppets. Once prostitutes figure out how to accept potcoinz then... they may have something.

Juggernaut x2's picture

"high tax corps"- whatevs

D.r. Funk's picture




SUB 11 VIX STREAK will die, after this round, once and for all


1% 3% DRAWDOWN LAPSE closer to ending, they know it


ADDITIONAL FORGED LEG closer to ending, they know it



BlueHorseShoeLovesDT's picture

Yeah, you figured out the “market” was manipulated 4 years ago and think you are a fucking genious. Slick, the “market” has been manipulated in one way or another since they were trading under a tree. I will say it again, you are the stupidest motherfucker on this site.

AR15AU's picture

Exactly... Spain said the whole Catalonia issue is only going to shave 3/10ths of a percent of GDP and yet Catalonia has ground to a halt and barricaded Spain at the border. So those Spanish banks and other Spanish bond ponzis are about to come crashing down. They can't fudge a 10% drop in GDP more than 1 quarter. So the fuse is absolutely lit. And that spells contageon in a big way, given the other European powers like Italy, France, and Belgium are just as larded up with debt and all have their own independence movements brewing.

Ignore the trolls. They are the same ones who will come on here and say to sell silver at $16 because it hasn't gone up since 2011. Million Dollar Bonus type deep state boot lickers. Spread truth and lets grab some popcorn as the socialist state's collapse picks up momentum. 

Jtrillian's picture

The Central Banks giveth, the Central Banks taketh away. 

There are no markets, only Central Banks. 

D.r. Funk's picture

Clownish force-illusioned vix



vix sub eleven has been negated



AR15AU's picture

See the desperate way in which trolls try to promote a central-bank omnipotence narrative. Sorry it won't work. The central bank's currencies are about to get wiped out. They can't print gold. Yet they must print their own currency every day to keep the ponzis afloat. There is no such thing as printable wealth, as Jtrillian might have you believe. There are markets and when a whale comes in and starts spewing credit, a credit cycle ensues. The consequences of that credit cycle cannot be swept away by more money printing and coordinated online trolling.

jamesmmu's picture
MARC FABER – Its About Power & Money. The Bubbles Will All End Badly


jamesmmu's picture

Altho the stocks did recovered half of the loss, but VIX still in green +6%. looks like ppl are buying puts again. Black Monday possible?

natxlaw's picture

If nö tax cut,  you have to at least erase the Trump bump

Arnold's picture

There is no tax cut, only a shake up in the revenue stream.
Still no talk of governance funding cuts

Arnold's picture

The possible exception is the ACA structure.

D.r. Funk's picture

There's no logic that the post-election 16 increase wasn't a ruse.

You are one-hundred percent correct except it was setup that way

Don't buy whatsoever that investors piled in methodically the entire 12 mos when even now the final tax process is not easily resolvably passable

buzzsaw99's picture

is this the exchange where i can buy stolen depreciating bitcoins with widely accepted and hard earned usd?  why yes, you've come to the right place, hackers are us dot gox com.  your money will be quite safe i assure you.

Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
"Relax, " said the night man,
"We are programmed to receive.
You can check-out any time you like,
But you can never leave! "

silverserfer's picture

more  like the journey of lemmiwinks getting out of cryptos..


right tmosley?

Proofreder's picture

We met up in Miami

Took a little risk

Send Lawyers, Guns and Money

and get me outta this !

WeJamEcono's picture

Louis C.K...lol...what a dope.

Swamp Yankee's picture

Doom on a FRIDAY!?  Damn….

Byrond's picture

Monday massive plummet in the works.

jamesmmu's picture

First tax reform is just a hope, never have materialized. but companies believe it will happen 100%.

Second stimulus package of 1T, its simply not realistic

third the rally NEVER was based on fundamental

Fourth we are in a financial tightening era now

Will will the turning point/crash happen sooner than later?



Honest Sam's picture

I've been looking at those pretty, coloful graphs and charts and reading and re-reading a dozen times  for the last hour and STILL cannot find one sentence to tell me if I should be long Triple ETFs or short.

Not even whether to bail on IBM, AMZN, or AAPL.

OR even what to do about oil, gasoline, or the Braziian real.

Not a syllable about BITCOIN, or ETH.

Can't find one prediction about the opening of the Dolluh vs the Pound on Monday.

What exactly are these things doing, takng up my precious few minutes on earth?


D.r. Funk's picture

You do realize zh is not primarily or predominantly a trading site? Offering exciting buy signals and sell signals and purported DO THIS ACT NOW wrapups?

adolphz's picture

You surely realize this article is pure clickbait

adolphz's picture

You surely realize this article is pure clickbait

adolphz's picture

You surely realize this article is pure clickbait

adolphz's picture

Hidden berg omen.   More magic on Zerohedge.com 


Hasn't been working for 8 years   I am moved on   Shepwave  recent reports and signals have been target on and no omens or magic beans. Just analysis and inside information.  The old fashion  way. 

FreeNewEnergy's picture

What? No Shepwave call?