Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Just a quicky


One of the things I track is the ARMS Index (originated by my friend Dick Arms), otherwise know as the TRIN indicator. This indicator measures price and volume of the NYSE. It is calculated using the following formula;

((advancing issues/declining issues) / (advancing volume/declining volume)). The calculation could be done for any exchange where price and volume are published, but I track it each day for the NYSE and NASDAQ markets - looking for extremes.

While I frankly don't know how much weight to put in it because of the holiday, the TRIN on the NYSE was 3.49 on Friday. That happened because declining stocks beat advancing stocks by a wide margin, but also because advancing volume was crushed by declining volume ((1048 / 2150) / (91845 / 657008)). I looked back over the year to see how many times it was above 3, which is indicative of a market getting killed and found there were only two prior readings above 3. Both instances were followed by a brief near-term respite and then further intermediate-term downside.

That would fit with the scenario of oversold bounce, but one that is not sustainable. Again, I don't know how much it means because of the holiday volume skew, but thought you would all want to know.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos