Jim Bryan, Trin NAZ is useless
from D Hays Q&A site
Question: I’m a new subscriber. My question is: Since the Arms index is based
on the NYSE, does it have validity for the NASDAQ? Same question regarding
the Smart Money Index?
That’s a good question, and all I can say is that even though I have not done the
study for the NASDAQ for the Smart Money Index, I did calculate the Arms index
for the NASDAQ for many years. I found it totally useless for the NASDAQ, and
my analysis came to the conclusion that the inaccuracy of the volume counting
on the NASDAQ (double counting) greatly distorted the message. Even though I no longer do that study, I have noted that Mr. Arm’s conclusions of the extremely
high readings on his NASDAQ Arms calculations in recent years has not yielded
very accurate predictions. This statement is not really fair, since I don’t read his
comments unless someone simply refers one of them to me. But in this regard,
many of you were telling me about 6-9 months ago when I was so bearish on the
NASDAQ of his wildly bullish comments of that time. So if I was misinformed,
and you are a regularly reader of his, please let me know and I will pass that
along. But for me, I don’t think I even care whether it is good or not. The one he
developed many years ago for the NYSE, and the one that is so bullish now, is enough for me. |
