Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
Exclusive to OpEdNews:
OpEdNews Op Eds

Hindenburg Omen Misconceptions

By   Follow Me on Twitter     Message Shalom Patrick Hamou       (Page 1 of 3 pages)     Permalink    (# of views)   1 comment

Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; ; ; ; ; ; , Add Tags  (less...)
Add to My Group(s)

Must Read 1   News 1   Supported 1  
View Ratings | Rate It

opednews.com

Author 45748
- Advertisement -


The Hindenburg Omen has been a buzz on Wall Street since it occurred onAugust 12th, 2010 andAugust 20th, 2010. My purpose is not to check its statistical value as a lot of technical analyst have already done that and they almost all agree on the conclusion.

My purpose here is twofold: first to explain what those mean in term of decision making and second to put that in perspective by introducing another data the shape of the yield curve.


- Advertisement -

Google Trend for Hindenburg Omen

Yes Folks, Hindenburg Omen Tripped Again from the Wall Street Journal.

Hindenburg Omen on Wikipedia

- Advertisement -
Mixed Signals and the Hindenburg Omen from Forbes

Since its publications most of the bloggers and journalists have explained us that the Hindenburg Omen had no value because it gave false signals 75% of the time.

However:

This is probably true and even its creatorJim Miekkaadmits it:

- Advertisement -

"But the essential issue here is one of insurance, with a relatively modest premium, against a potentially catastrophic, very low probability event."


If all the crash were preceded by the Hindenburg Omen in 75% of its occurrences were false signal.

But still we must act as risk neutral investors so we must study the probability and the return of the two possible outcomes:

Next Page  1  |  2  |  3

 

- Advertisement -

Must Read 1   News 1   Supported 1  
View Ratings | Rate It

opednews.com

I have an engineer diploma from Ecole Centrale de Lyon (France) and a MBA from Boston University. Since 1986 till 1994 I have worked as a broker dealer on the French Domestic Fixed interest market. Since the spring of 1994 I have worked on the (more...)
 

Shalom Patrick Hamou Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Giving Tempo to the TWIST.

The Yield Curve Twist Omen

Bonds Hammer Bernanke at Jackson Hole

Twist n' Shout: It's a Trap!

2012 The Mayan Calendar Scam.

The Legends of Quantitative Easing