"Miracles Out of Nowhere" is clearly wrong—to the point of being difficult to read (makes you think "out" is a verb, not part of the "out of" preposition). Or maybe it's a band name? Could be an album by the band Miracles Out from the town of Nowhere (it's in Oklahoma).
Personally, I'd pick "Miracles out of Nowhere"; the alternative would be "Miracles Out Of Nowhere". Why the former? It's a preposition, after all. And I'm pretty sure the length thing must be because long ones like before, throughout, etc. in lowercase look weird in titles to a lot of people. "Out of" is indeed 5 (or 6 counting the space), but each word is less than three.