TRIN Alert

The TRINQ, which is the NASDAQ version of the TRIN, is now more overbought than it has been during this entire bear market. Take a look at this chart (click to enlarge):

The 3-day moving average for the TRINQ is now at 0.47 (black arrow), which is substantially more overbought than at the market peak on January 6th (red arrows). It hit 0.61 on January 2nd.

In fact, to find a more overbought reading, you have to go all the way back to September 4th, 2007 when it hit 0.40 during a raging bull market. But even then, the Q’s fell from 49.68 to 48.20 over the next four days.

So, even if this is a raging bull market, we have to expect a “sell the news” reaction to any “good” news that may appear in the next couple of trading days. I wouldn’t buy stocks at this point with Larry Kudlow’s money!

This entry was posted on Thursday, February 5th, 2009 at 6:16 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.