She did? I hope so. The contrarian school of thought that I follow has as it's prime rule that 3 days after an outrageous news story, bullish or bearish, the market flips the other way hard a high percentage of the time.
I have examples but I have to hurry. Greenspan in December of '96, Garzarelli in '96, Cohen in Spring '97....
A secondary contrarian rule is "not" to short the low TRIN on a short-term trade. I was not going to go long this morning until I saw, with unbelieving eyes, the TRIN below 50.
In my opinion, again this goes back to my philosophy that most indicators aren't worth a damn if everyone uses them, is that every trader worth his/her salt was looking at the TRIN. They were short...of course, that's what the TRIN said they had to do. So everyone was short. Who is left to sell? So buy the sucker until the TRIN pops back up. Then short it. Sort of the inverse of "Buy the Pullback", I suppose.
The converse is true of high TRIN, in case you were wondering. |
