The last few weeks the often quoted and seemingly always wrong Hindenburg Omen has been triggered. This isn't the first time we've heard about this omen. It's been about as right as a broken clock, and that's being generous. It's wrong until its right, and right until its wrong, but no one ever knows when those times are. I'd go on further to say, that even a broken clock is more reliable than the Hindenburg Omen. Let the talking heads in the media have their omen. Let them spew its graphic detail of how the market just might collapse, how each trigger of this Omen brings us one step closer to a complete collapse of the equity markets. Haven't we heard this before? Why don't we call it the Cyrpus Omen, the Fiscal Cliff Omen, the European Crisis Omen, or the How I just lost my ass Omen trying to short a market that keeps going higher. Get the point? The market is going higher omen or no omen.
There is one indicator that has only been triggered once. It gave one buy signal and has never been wrong.
The Heisenberg Omen.
It doesn't get triggered each day. It doesn't say maybe, if, when, or how. It doesn't rely upon a bevy of varying indicators that change on a daily basis. It only provides, after a buy or sell signal, potential degrees of movement in the market. It's only been triggered once in late 2008. It gave a buy signal and has not looked back yet.
The good news: The preliminary readings are in for August and the HI is showing a strong finish to the month and an overall rise of stocks into the fall.
What is the HI? https://www.optionmillionaires.com/2013/the-heisenberg-indicator/
Do you have a link to CNBC? If so, please tell them that their broken clock won’t be right for at least another few months. Great read =)