Friday, July 06, 2007

VIX, TRIN, Qs and DIA update

Time to fade the Qs? The Qs hit Carl Futia's target of 48.70 yesterday, rising to an incrdible R4 level just before the close on moderate volume. The TRIT (not shown) was very strong all day, hovering at .65 and dropping to .57 at 11:30 (PST) to signal the impended explosion up, up and away and closing at .62, (final TICK adjusted to .66). With 7 higher highs at it's back, the Qs are pushing the odds.
Although we did get a DOW retracement today it was very tame and controlled, with the TRIN running steady at .82 all day and the TICK commencing an upslope at 12:30 (pst) which continued right into the close. DIA opened at PP, falling to S2 at midday and closing close to the daily high right at PP. This is not a bearish pattern.
The TRIT, TRIN and TICK are very powerful indicators and I have learned (painfully) that trading against them only incurs pain and loss of equity.


Evan said...

Hi Bob,

I would really appreciate it if you would spend a minute and highlight the similarities, and the differences, of the NYAD, the TICK, and the TRIN.

I understand that TRIN is advance/decline divided by advance volume/decline volume, but they all seem closely correlated to me.

If you would differentiate the 3, and then point out strengths/weaknesses to using each in a strategy, it would be very helpful.


bzbtrader said...

I'll try to deal with some of these issues in a later post. It's going to take a lot longer than "a minute", though I'm honored to think you believe I can do justice to the subject in that time frame. Books have been written on this subject but I'll endeavor to touch on some of the points I think are relevant. Right now I'm in the process of updating and streamilining the BZB Dirty Dozen, which will consume most of my time for the next week or so.