Hindenburg Omen

I was just watching CNBC this morning and caught a glimpse of Art Cashin mentioning the Hindenburg Omen. I had already read a report that we have had an unconfirmed Hindenburg Omen but hearing Art Cahsin (who is one of the few I admire on CNBC) mention it made me decide to go ahead and post it.

If you don't know what the Hindenburg Omen is you can view it here

http://www.safehaven.com/article/17836/the-recent-hindenburg-omen-observation

Perfect example of curve overfitting, lack of sufficient data sample, and fear mongering.

Zero Hedge was, I think, the first to report on this ( http://www.zerohedge.com/article/hindenburg-omen-here ). Here's an update, for those that think this topic is interesting:

http://www.zerohedge.com/article/second-hindenburg-omen-confirmation-many-days-third-ho-event-one-week

OK my turn to update. Here is a brief article stating how the creator of the Hindenburg Omen has exited the market now that we have a confirmed Omen

http://www.zerohedge.com/article/hindenburg-omen-creator-has-exited-market

Hey, Point, I saw that (I have ZH hard-wired into my brain now for automatic download so I don't even have to read it anymore...). Very curious he took the exit, huh?

Originally posted by jimkane

Hey, Point, I saw that (I have ZH hard-wired into my brain now for automatic download so I don't even have to read it anymore...

). Very curious he took the exit, huh?

Can't say I blame him. Watching CNBC lately the feeling of impending doom is almost palpable.

Although I find it hard to believe that we could have another crash just 2 short years later you just never know.

I remember discussing the Flash Crash in May when everyone was trying to figure out what caused it (fat finger, HFTs etc) and I pointed out that it didn't matter because it COULD NOT have happened unless sentiment was already down. If sentiment was up then the programs would have been setup to buy on dips not sell.

What I find worrisome is that all the markets are trading together unlike the days of oil up stocks down etc. This being the case I guess it wouldn't take much of a move to have a potentially devastating affect.

I too decided to play it safe and moved the 401k to cash awhile ago, it was heavy into bonds damn good thing I moved it.

It does make me think of '87 and 'portfolio insurance'. The market is all programmed by the machines now for certain reactions, and as the 'flash crash' showed, a similar reaction as in '87 can happen when no human intervention takes place and things line up in a given way. Just my opinion.