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Chart of the Week: 10 Day Moving Average of TRIN/Arms Index

Posted By Barry Ritholtz On May 3, 2004 @ 4:40 pm In Finance | Comments Disabled

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 [1]

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:
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What can’t you find on Google? Vital statistics* [7]

Quote of the Day
“The years teach much which the days never know.”
-Ralph Waldo Emerson [8]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/05/chart-of-the-week-10-day-moving-average-of-trinarms-index/

URLs in this post:

[1] Redwood Technimentals Research: http://www.investech.com/

[2] Joy and worry in domain of ‘Oracle of Omaha’: http://www.newsday.com/business/ny-bzcov0503,0,7369632.story?coll=ny-business-headlines

[3] Empire in denial: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/05/02/RVGRJ6A6EI1.DTL&type=printable

[4] On The Contrary: Pay Taxes. Be Happy.: http://www.nytimes.com/2004/05/02/business/yourmoney/02CONT.html?ex=1398830400&en=87028feea6b7d692&ei=5007&partner=USERLAND

[5] Sell the rumor, buy the news: http://cbs.marketwatch.com/news/story.asp?siteid=mktw&dist=mktwmore&guid=%7B3DFC25E0%2D9646%2D4E1B%2DB92F%2D69D4907C0823%7D

[6] Iran fears sharp drop in oil prices: http://money.cnn.com/2004/05/01/news/international/iran_oil.reut/

[7] What can’t you find on Google? Vital statistics*: http://observer.guardian.co.uk/business/story/0,6903,1202522,00.html

[8] Ralph Waldo Emerson: http://www.rwe.org/

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