Dick Arms has spent nearly half a century following, trading and writing about Stock Markets. Best known for his Arms Index, or TRIN, his other major contributions to Wall Street methodology include Equivolume Charting, Ease of Movement, Volume Adjusted moving averages, Volume Cyclicality, and a number of volume based indicators. These tools are revealed and explained in his six books, the most recent titled Stop and Make Money.
Dick has received many of the highest awards in Technical Analysis, including the Market Technicians Association award for lifetime achievement. He has been inducted into the Traders Hall of Fame. Located in Albuquerque, New Mexico, Dick advises a select group of institutions with his weekly letter and personal consultation package, priced at $8000 per year.
(reproduced here with permission of author)
rarms@swcp.com
505-293-4438
[...] Disclosures « Dick Arms: TRIN (Arms Index) at Extreme Levels [...]
It’s back down below 2.0 today
http://stockcharts.com/h-sc/ui?s=$TRIN&p=D&b=5&g=0&id=p39184957211
[...] what the mighty Paulson makes of this visual – IF ANYTHING? Alrighty, then. Ritholtz then goes on to offer the latest and greatest from one very well-respected, Dick Arms, who notes [...]
That’s kind of the camp that I am in – we have a nice little hop here and then rollover to the down side in a somewhat big way.
Great post.
Thanks.
Have the computers made this indicator unreliable?
Those days were buying opportunities because of secular bull market surrounding each event. Since it’s likely that the last rally from Mar 09 lows has been a part of a secular bear market, I doubt the relevancy of the index in today’s environment.
selloffs can remain “very overdone” longer than I can remain solvent.
???
Technical analyst Tushar Chande has improved the Arms Index by a few leaps and bounds — he calls the new measure “market thrust.” Info is right here: http://store.traders.com/-v10-c08-market-pdf.html
BR, From your recent posts one gets the feeling you are currently long.
Can you confirm?
~~~
BR: Nope. 75% cash, 25% long, fully hedged with QIDs
Kid Dynamite said:
“selloffs can remain ‘very overdone’ longer than I can remain solvent.”
True enough. And bubbles can remain inflated longer than I can remain solvent. lol.
Thank you very much for replying to this, I was really wondering.
I personally am long gold and the $us. That’s it. I better admit I’ve been long both for the last year and it hasn’t all been plain sailing. Base currency $NZ.
It’s not a long enough time span from which to draw a conclusion.
Lots of positive divergences in the charts last night. Out of one inverse doubler post-market last night, and out of the other doublers pre. Booking profits never made anyone look bad.
SOB/RBG
riverboatgamblerSTtrader.blogspot.com
[...] is definitely oversold. (Big Picture, Disciplined [...]
[...] you want a bullish case – or at least an interesting read – we’ll encourage you to review the commentary straight from Richard Arms about how oversold the market is at this point. It’s an esoteric tool, but one we use with [...]