Tuesday, May 13, 2014

TRIN Arms Index Daily Chart

The TRIN prints a low 0.67 number in the zone where a near-term market top should occur due to the over-the-top bullish euphoria. The cab driver took the day off today and decided to go to the stock exchange instead investing his entire life savings on the long side. The red circles show market tops and the green circles show market bottoms. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 9:42 AM: TRIN prints dead neutral at 1.00 to begin the day but now slips lower again down to 0.78 which fuels the bulls. SPX is only a hair away from 1900 as the TRIN heads lower. The 0.8-1.0 range is ideal for bulls since it represents steady-eddy buying and the 1.0-1.8 is ideal for bears representing steady-eddy selling. Under 0.70 and then under 0.60 and lower shows that the bulls are becoming too optimistic and market selling is needed to right the ship. Numbers above 1.8, 2.0, 3.0 and higher show that the selling is a panic style event requiring a recovery rally to relieve the negative pressure.

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