How Important is the Hindenburg Omen?

I am taking a big sigh as I write this. Much ink has already been spilled in covering the Hindenburg Omen (HO) but there was an interesting table put out by SentimenTrader that I wanted to share.

Over the last few weeks there have been a handful of HO “sightings.” According to Jason Goepfert of SentimenTrader, since 1965 when there have been five triggers of the Hindenburg Omen in two weeks, the equity market reaction has been bearish. See the table below.

Is the Hindenburg Omen on the same level as who wins the Super Bowl and how long girls skirts are in relation to equity market performance? I’ll let you be the judge. Yes it’s interesting, and fun to talk – whether it’s more than that is up to you.

Source: Why Hindenburg Omen Matters Right Now (Wall Street Journal)

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