Tag Archives: Omen

Hindenburg Creator Takes Off

Even though the so-called Hindenburg Omen is, at best, an imperfect technical indicator and a work in progress in  most analysts vie, its latest appearance has prompted the Omen’s creator, Jim Miekka, to exit the stock market.

“It’s sort of like a funnel cloud. It doesn’t mean it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.”

Jim Miekka

“I’m taking it seriously and I’m fully out of the market now,” Miekka, the blind mathematician tells The Wall Street Journal 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,” he says.

The Omen has been behind every market crash since 1987, but significant stock-market declines have followed 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  is only one week away.

“It’s sort of like a funnel cloud,” he says.

“It doesn’t mean it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.”

He adds that 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.

Related by the Econotwist:

Feared Indicator Warns Of Catastrophic Stock Market Event

Wall Street: The First Hindenburg Omen Confirmed

Jm Cramer Shoot Down The Hindenburg Omen

Wednesday’s Market Action As Predicted By Jim Cramer

Jim Cramer’s Web Company Investigated By SEC

Jim Rogers Says CNBC Is A PR Agency


Christopher A. Farrell,Hardcover - Second, Edition: 2,Series: Wiley Trading Series, English-language edition,Pages:187,Pub by Wiley, John & Sons, Incorporated

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