The Stock Sleuth

Detecting deep values in turbulent markets

The Hindenburg Omen media effect = buying opportunity

Recency Effect is the bias toward market euphoria or calamity caused by recent market events. It was thus pretty easy to see the Hindenburg Omen as pure nonsense, a media frenzy that provided nothing less than a buying opportunity. This along with all of the dreary predictions for a horrible September, made it pretty obvious that there was an excellent entry point for investors.

The main stream media loves to talk about horrible Septembers. A little homework and insight will yield that September equity performance historically has been a victim of:

-World War I beginning

-World War II beginning


-9 of the 10 worst hurricanes in U.S. history

-The fall of Lehman and market crash of 2008

If you remove these events, how would September rank in equity performance?

Filed under: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


  • @footballfacts Aaron Williams for the Bills should single-handedly knock down the team down on the CHFF intelligence index. 2 years ago
  • VIX and the VXX May Present a Short-Term Opportunity For a 200-300% Return 3 years ago
  • People are missing the China story. The whole vehicle lineup has been reworked to dovetail with the One Ford Global… 4 years ago
  • @grassosteve every yr for 33 yrs? Not quite. 08 there was no test, high was Jan 1. 09 yr was down til May. 03 same. 99,96, 95,93 no test. 4 years ago

The Masters of Investing-Must Reads

Jeff Augen-The Volatility Edge in Options Trading

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 51 other followers


Get every new post delivered to your Inbox.

Join 51 other followers

%d bloggers like this: