<< I thought it also breached on January 22nd and, if so, twenty trading days would extend to February 19th, assuming we don't breach it again between now and then.>>
The first breach of the ARMS Index (in a multiple set) carries the baggage, That second breach was created by the same wave of panic selling as the first. For that matter, should ARMS top 1.5 in this next week (currently 1.36), it would still be connected with the same selling wave.
ARMS > 1.5 has never failed to produce a significant intermediate-term buying opp. It seems to me that if ever it would fail, this might be the time. I believe that Enron, TYC, HC, ELN and all the other members of the accounting irregularities club have contributed significantly to the high daily TRINs that produced ARMS 1.5.
Then again, in defense of ARMS, all the other market indicators that I watch are coming on board with "intermediate buy" signals of their own. For example, the NASDAQ MacLellan oscillator would have very little direct impact from the shady-accounting stocks.
Of the other indicators, only the VIX hasn't come on board yet.
Warp |
