The Arms Index measures how much volume is going into the advancing versus declining stocks. Low TRIN readings suggest an overbought tape where as high readings suggest an oversold tape.

10 Day Moving Average of TRIN/Arms Index
trin_2

Source: Redwood Technimentals Research

The tape was recently overbought and has quite a ways to go before it hits oversold levels again. If you look at the present reading (blue circle) as it compares to two of the more recent oversold lows (red arrows) March 2003 low March 2004 low, the recent test of DOW 10,000. This suggests the market has some more work to do.

Random Items:
Joy and worry in domain of ‘Oracle of Omaha’
Empire in denial
On The Contrary: Pay Taxes. Be Happy.
Sell the rumor, buy the news
Iran fears sharp drop in oil prices
What can’t you find on Google? Vital statistics*

Quote of the Day
“The years teach much which the days never know.”
-Ralph Waldo Emerson

Category: Finance

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.