I’ve gotten a lot of traffic for my post about the Hindenburg Omen. In the article I mention that there are various criteria out there for what constitute a trigger of the ominous omen. I think the fact that there are changing checklist for what people believe is a Hindenburg Omen adds credence to the notion that the Omen is more or less entertaining than tradable.
Nonetheless, I came across an article by Andrew Horowitz over at The Disciplined Investor that disagrees with the trigger of the Omen. He cites an email he received from Tom McClellan, who I have great respect for, in response to an article over at Stockcharts.com stating the Omen has in fact not been triggered yet.
“One of the criteria cited in that article is incorrect. He states that $NYA was above its 50MA, but that is not the correct criterion as published by James Miekka. Instead, the criterion is that this 50MA (or 10-week MA of weekly closes) has to be rising, which it was not.
This does not preclude the condition of NH and NL both exceeding the threshold from being bad news. It just means that it does not qualify as a Hindenburg Omen event.” Tom McClellan
I feel it’s important to show all sides of an issue, especially as I put little weight into the Hindenburg Omen and it’s prophecy. Take it as you will.
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.