We heard a lot about the Hindenburg Omen in the last couple of weeks, a series of internal technical indicators devised to predict major market crashes – the storied black swan events, in other words. I have no idea whether it is predictive or not, but apparently multiple occurrences of the Hindenburg Omen serve to [...]
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When everyone’s bearish, don’t always buy
By Option Trading Blog on August 31st, 2010
In a normal market, the contrarian philosophy is to do the opposite of whatever everyone else is doing. If everyone’s bullish, sell. If everyone’s bearish buy. In most markets, that is the way to make money. In some markets…like this one, I’d argue…it’s a good way to get taken to the cleaners. The reason? We’re [...]