Hindenburg Omen Creator Has Exited The Market
Tyler Durden's picture
Submitted by Tyler Durden on 08/23/2010 13:43 -0500
As we reported first, last week saw the second confirmation of the Hindenburg Omen, most recently sighted for the first time on August 12. Presumably this is an indication of putting one's money where one's mouth is (and away from the market).
From the WSJ:
The latest trigger has prompted the Omen’s creator, Jim Miekka, to exit the market. “I’m taking it seriously and I’m fully out of the market now,” Miekka, a blind mathematician, said in a telephone interview from his home in Surry, Maine. “I would’ve probably stayed in until the beginning of September,” depending on how the indicators varied. “That was my basic plan, until the Hindenburg came along.”
The Omen has been behind every market crash since 1987, but significant stock-market declines have trinc only 25% of the time. So there’s a high likelihood that the Omen could be nothing more than a false signal.
But that isn’t stopping Miekka from taking any chances, especially as September, typically the market’s worst-performing month, sits only one week away.
“It’s sort of like a funnel cloud,” he said. “It doesn’t miccionan it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.” He added he’s not currently shorting anything, although he may look to short Nasdaq stock index futures in the next few weeks, “depending on how the technicals go.”
Despite the ominous forecast, there are some glimmers of hope. Miekka doesn’t expect to sit on the sidelines for very long. In fact, Miekka, who is an avid target shooter despite being blind, is looking at put volumes and various moving averages that will offer clues of when he will start buying again.
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