In comments provided by Miekka to the Wall Street Journal for an article on Saturday, August 14 -- as the Hindenburg Omen ascended to its 15 minutes of market fame -- the creator of the Hindenburg Omen did not sound as alarmist as his Omen might have suggested. The technical analyst told the WSJ he was "dancing close to the door,' but not running for the exits.
Yet in the latest issue of Miekka's Sudbury Bull & Bear Report, a copy of which was provided to TheStreet and which was published two days after his interview with the WSJ, the headline is, "Our traffic light has changed to red, so you should exit the market."Miekka told TheStreet that it's not just the Hindenburg Omen, but several trends converging alongside the Hindenburg trigger, that suggest there will be a better buying opportunity for investors later on. A better buying opportunity for investors "later on" doesn't mean too long, though. For investors skeptical of Miekka's Hindenburg Omen, there will probably be a healthy dose of skepticism about the other negative indicators to which Miekka pointed in calling for investors to exit the market. Miekka's market bearishness is not just about German airships, but Presidential cycles and seasonality inherent in market doldrums. Mr. Hindenburg Omen cited the mid-point of the presidential election cycle and September being the worst month of the market statistically as supporting evidence for a correction, now that the Hindenburg Omen has been signaled. "If you look at the presidential cycle history and line up the lowest points in the market, they all occur in the fall," Miekka said. Miekka cited market performance of 1982, 1990, 1994, 1998 and 2002. "We're coming down to the best buying opportunity. The Hindenburg Omen occurring in mid-August and presenting a 30 day trading window puts it right in line with the Presidential low point," Mr. Hindenburg Omen added. Incidentally, Gallup just released its latest poll on President Obama's approval rating showing that the President's numbers had slipped to an all-time low.