Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Hindenburg Indicator Gaining Altitude Again

By Keith SchneiderStock MarketsAug 30, 2021 12:15AM ET
Hindenburg Indicator Gaining Altitude Again
By Keith Schneider   |  Aug 30, 2021 12:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

This past week's markets regained their footing with risk gauges improving while the Hindenburg Indicator increased its reading to ominous levels as well. Market internals improved across key equity benchmarks to best levels since mid-June, benefitting small caps (IWM/Grandpa Russell) the most, up over 5% for the week while bumping both 3 and 6 month returns to positive territory.

Along that vein, gold also bounced and significantly improved its technical picture getting a tailwind from increased geopolitical stress, a dovish fed, and a weaker dollar. The takeaway is that the buy and hold crowd is most at vulnerable and (our) risk management is even more critical as we head into September.

The week’s market highlights

  • Risk Gauges improved from Risk off last week with IWM leading to risk on
  • IWM has rallied roughly 7.5% off the lows since the prior week, which bounced from oversold conditions, clearing both the 50 and 100-DMA

Big View Chart (IWM Chart)
Big View Chart (IWM Chart)

  • The SPDR® S&P 500 (NYSE:SPY) and the Invesco QQQ Trust (NASDAQ:QQQ) hit all-time highs and were not overbought based on our Real Motion indicators
  • Market internals improved significantly from oversold levels and looked the best since mid-June
  • Market Volatility (VIX) moved back into a bearish phase confirming the risk on scenario
  • On a cautionary note, the Hindenburg Omen indicator was showing an increased number so vigilance is key as risk on condition can reverse quickly
  • Volume patterns improved modestly
  • Soft Commodities—Invesco DB Agriculture Fund (NYSE:DBA), Copper—United States Copper Index Fund, LP (NYSE:CPER), and Gold (NYSE:GLD) rallied strongly on Jerome Powell’s dovish talks on rates.
  • Oil (NYSE:USO) bounced nicely, but still needs to take out the 6-month calendar range low and the 50-DMA.
  • Gold had a very strong move on Friday clearing its 200 and 50-DMA in one shot and getting tailwind from geopolitical stress and low rates at the same time
  • Long Bonds—iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) had price creating a channel/wedge formation in recent weeks, looking for a potentially significant breakout if the price closes over the $151 level
  • Growth—Vanguard Growth Index Fund ETF Shares (NYSE:VUG) maintained its leadership over Value—Vanguard Value Index Fund ETF Shares (NYSE:VTV) adding to the risk on market scenario
  • All members of the Economic Modern Family reversed last week's readings led by semiconductors—VanEck Vectors Semiconductor ETF (NASDAQ:SMH) to all-time highs, therefore confirming the risk on environment.
  • Emerging Markets—iShares MSCI Emerging Markets ETF (NYSE:EEM) bounced over oversold conditions highlighted from last week.

Crypto Corner

By Holden Milstein

Bitcoin (BTC) started last week with price getting over the $50,000 level on Monday before drawing back down to a weekly low at $46,300 later in the week and finding strong support at the 200-DMA. A Sunday close over $49,300 would have given Bitcoin a positive weekly close for the 6th week in a row, as well as place BTC's price back within the 2-month range that led to an over $64,000 all-time high earlier in 2021.

Ethereum (ETH) remained relatively flat last week while competing decentralized-finance projects Cardano (ADA) and Solana (SOL) both reached new all-time highs (both of which are top 10 coins by market cap).

NFTs (Non-Fungible Tokens) saw astronomical sales prices, as many within the cryptocurrency community were using these virtual items as new forms for storing value, similarly, to investing in a piece of art or a highly collectible piece of sports memorabilia. This diversification of investment types within the crypto space is indicative of the accelerating rate of adoption to the emerging technologies built on blockchain.

Hindenburg Indicator Gaining Altitude Again

Related Articles

Hindenburg Indicator Gaining Altitude Again

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email