With all the talking heads telling you to sell, the Heisenberg Indicator has said to do the opposite. One glance at a 5-year chart of the S&P500 will tell you who was right and who was wrong. The media happily promoted the Hindenburg Omen, an indicator that has never been right. The Heisenberg Indicator? It nailed it this year and has been 100 percent right since the market lows of over 4 years ago.
In the summer, with everyone fretting a Taper from the FED, the HI said investors would buy the Taper news. It also said the S&P would hit 1850 before year's end. Not too shabby.
According to the HI we are headed for -- drumroll please -- more gains and S&P 1850.
While the FED is looking to taper its injections of liquidity into the market, according to the HI, it won’t stop investors from taking it higher.
Who cares about the past? Where are stocks headed in 2014? With seemingly every analyst and talking head bullish these days the HI says we will see a pullback at the start of 2014. No sense listening to an indicator that has a flawless record. Stocks will pull back and everyone will be cheering the 150th Hindenburg Omen as the reason stocks fell.