Barry Ritholtz does what few technical prognosticators do: follow-up. Last August, the “Hindenburg Omen” was all the rage. Let’s see what Ritholtz finds:
Here’s the thing about unproven “technical” tools: They are dangerous to your wealth.
Recall this article ‘Hindenburg Omen‘ exactly 7 months ago on August 26 2010. If you shorted markets due to the Hindenburg Omen back on August 26 seven months ago, you have now lost about 25% of your money as of yesterday’s close — almost 30% as of the pre-quake peak in February.
Read the full article here.