Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (28632)	3/25/2001 3:38:09 PM
From: jpdunwell	Respond to of 100058

Phoenix, two things: First, you were asking someone about a commentary on the Trin. I just received this from a trial newsletter (Option Investor) that I'm not sure how I got on the list for: "Dick Arms, Market Technician Award winner and market analyst for 35 years, (ArmsInsider.com) says the TRIN indicator hit numbers last week that have only been hit SIX times in the 32 years he has been tracking this data. Each time was a huge buying opportunity followed by a strong rally." Not a lot of specifics there, but perhaps that was what the earlier commentary was referencing. I think I have also seen this commentary on an interview with Dick Arms from Multex. Second, on the trading technique, as Burgermeister pointed out, the 400% return would be theoretical only, and as he has explained the computation, most of the risk of trading this system has been taken out (no loss on the crossovers). If you were able to achieve such instantaneous executions on every dip and rise, then I submit even better results could be obtained by using an even faster MA, with the ultimate results being achieved by selling when the instantaneous average dips, and buying back when it rises. Burgermeister and I have been discussing how to approach this, and I think it would be interesting to see the results for the method you outlined, as well as an even more ambitious end of day review. For these methods, I thought a comparison with a slower MA like the 50 would be interesting, as it might eliminate a lot of the false crossovers, though of course it wouldn't take you out as quick when the market turned down for a substantial correction. Best, JP