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The Market's Other "Panic Indicator" Just Went Vertical (Again)
The Nasdaq was the last great hope holding on to positive returns in 2015... until this morning...
And as it hit unch year-to-date, TRIN surged (implying notably bearish contrarian sentiment)...
An Arms Index value above one is bearish, a value below one is bullish and a value of one indicates a balanced market. Traders look not only at the value of the index, but also at how it changes throughout the day. Traders look for extremes in the index value for signs that the market may soon change directions. The Arm's Index was invented by Richard W. Arms, Jr. in 1967. In essence, a sudden surge in the TRIN indicates a jump in trader lack of confidence, as everyone scrambles to either go long the 2-3 rising stocks, or to sell or short the biggest decliners, ignoring the bulk of the market..
Today's move was larger than Black Monday's panic and almost as high as the panic on 9/1
As we noted previously, the Arms index is an indicator of market breadth essentially tracks lemming like momentum-chasing behavior with respect to volume... meaning today saw panic-buying volumes which given that it was dip-buyers at the close, we suspect won't end well...
Charts: Bloomberg
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Um looks like -253 to me
Futures silly.
Teh we an angry bear... burn baby burn!
In what language is coinhead writing?
I need to know so I can tell Google translator.
Lower Cryptosian
http://finance.yahoo.com/news/economy-s-slow-growth-trend-will-likely-co...
'Teh'... You know, it's like 'Jeh' - as in 'Jeh' Johnson. Doesn't everyone know that...?
Is that anything like the hippy music teacher from Beavis and Butthead who ended every sentence with "M-Keh?"
God save the queen
We mean it man
And there is no future
In England's dreaming
no future, no future, no future for you!
This drop is nothing. Us stock market schadenfreude watchers watch a real drop, a drop that sends the plunge protection team rushing out from their two hour lunch breaks, leaving their meals so fast that they spill hot coffee on their laps. A Dow drop of 800 - 900 points in an hour, a jolt so bad it triggers panic and causes Obummer to dash out of the Oval Office, white powder still on his nose, to speak to union buster Jack Lew.
Looks shiny to me. I see the FED trying a new round of QE to try to plug the hole in the sinking ship, it won't work, but it's all they have......
They're going to stuff all the passenger into that hole.....THE SHIP MUST BE SAVED!
uh, since when did futures matter? except for HFT's gaming the system.
The actual DOW is down 250 or so.
Cramer sez buy (everything except physical gold...that's evil.)
This can't be real because China rallied last night....even if they destroyed their precious Yuan to do it.
What you can learn from the Taliban about investing http://www.decisiveinvesting.com/blog/general-en/what-can-you-learn-from-the-taliban-about-trading-and-investing/
Zero Hedge is now the most bloated site on the web.
My computer stalls out when ever I visit this place.
It is an older model and it just can't keep up with all the wonderful offerings from ZH.....no I don't want to get ZH in my email for the 150th time!
https://addons.mozilla.org/en-US/firefox/addon/noscript/
adblock.
Its been a fun ride...hilarity and frivolity abounded. So the sun is now setting on the Dow - S&P - Nasdaq. The party central of Western fiancial debaucery.
A huge bear flag on charts will be tough for Fed to erase unless they want to try more QE
...and they will...
And they won't have much choice.
Actually they have no choice, that is unless they want the great unwind of all that they've 'accomplished' since QE1.
All of these tricks may look like they work in the short term but over the long term they will have massive consequences, you can't avoid the laws of physics, you can defer them for a while but at great cost, and the cost of all this papering over will come home to roost at some point.
The day of reckoning approaches, can kicking can only work for so long...
if they think the data is so bad that another qe will come. this market might top the moon. another article showed that leveraged longs are at the same level as september 08
http://news.yahoo.com/video/chicago-mayors-budget-543m-property-12022633...
So buy the dip and pile up more soon to be worthless paper ASSets. ROTFL
When the commute on 101 from San Jose, to north of Redwood City begins to fade from a few hundred-thousand Twatter-industry & related lay-offs, I'll believe something is afoot... Probably by January.
http://www.bloomberg.com/news/articles/2015-09-22/chart-watchers-zero-in...
Chart-Watchers Zero In on More Warning Signals for U.S. Equities
by Anna-Louise Jackson
September 22, 2015 — 12:00 AM EDT
- Technical analysis patterns suggest further weakness ahead
- Head-and-shoulders, Dow Theory point to shifting trend
Equity investors rattled by last month’s correction, the prospects for the global economy and the Federal Reserve’s interest rate policy can add a few more reasons to worry.
Several technical charts are sounding warning signals that the worst of equities turmoil may not be over. So is the market headed toward another selloff? It may depend on how much stock you put into such omens. Some investors see technical analysis as only so much voodoo, claiming past market patterns give no insight into future movements.
The latest signals come after Wall Street early last month was fixated on another chart -- the “death cross,” in which the 50-day moving average of the Dow Jones Industrial Average fell below the 200-day average. The two lines crossed on Aug. 11, and less than two weeks later the gauge dropped 10 percent in four days for its first correction since 2011.
With that in mind, here’s what the chartists are seeing in the latest batch of data:
1. A downward sloping neckline in a head-and-shoulders pattern:
The Dow this year has formed “probably the most famous pattern in technical analysis” -- and it’s not particularly encouraging for stock bulls, according to Murray Gunn, head of technical analysis in London at HSBC Holdings Plc.
A so-called head-and-shoulders pattern is a formation comprising two peaks separated by a higher peak. This particular one -- marked by shoulders in March and July and a head in May -- could be “the first crack in the dam” and is special because of the rarity of its downward sloping nature, he wrote in a report Monday.
“It’s a bearish pattern which could be signaling a new bear market trend,” Gunn said in an e-mail. Investors should watch for increasing volumes on down moves in this benchmark index as the next indication that sentiment is becoming more negative, he said.
If the Dow -- which climbed 0.8 percent to 16,510.19 Monday -- were to trade above 18,137, a level last seen in July, that would provide more optimism, he said. Otherwise, “a new long-term and potentially powerful bear market has started; one that should end below the 2009 low.”
That low, on March 9, 2009, was reached after a head-and-shoulders pattern occurred during 2007 and 2008 at the start of the financial crisis, HSBC noted. The date marked the beginning of the current bull market.
2. Dow Theory sell signal
The signal that’s “causing the most angst” for Jeffrey Saut, chief investment strategist at Raymond James Financial Inc., in St. Petersburg, Florida, is one that happened last month.
When the Standard & Poor’s 500 Index fell to a nearly 10-month low on Aug. 25, two other indexes were below an October 2014 low that many chart watchers were closely monitoring. The Dow Jones Industrial Average and Dow Jones Transportation Average both breached this level, flashing a so-called Dow Theory sell signal. Such a signal occurs when the industrial and transport indexes fall below the low of a previous selloff.
What’s behind this angst? There’s only been one false Dow Theory signal in the last 18 years, Saut wrote in a report Monday, which gives him “cause for pause.” There is reason for optimism, he said, because that one false signal came in May 2010 during the so-called flash crash -- the last time the 30-stock gauge lost 1,000 points intraday, until it happened during the market upheaval in August.
Saut said he hoped this latest signal will prove faulty as well, but that if these two gauges breach their Aug. 25 lows again, this “suggests a change in trend that must at that point be honored.”
Another reason for optimism: the S&P 500 has yet to breach its October 2014 trough. True, that index has nothing to do with Dow Theory, Saut points out -- chartists may want to create a new theory.
Epinephrin injection directly into the heart is usually the last move in the ER.
uuuuummmm epinephrin, my drug of choice
The market is up in ARMS. The pitchforks for "All In II" are next.
Let them eat trillions in fiat digital debt-money credits!!! Cake is for peasants!!!
Indicators don't mean shiz when you have the PPT, algo's and funny money. It's like playing monopoly with extra monopoly bucks hidden in your sleeve.
Drowning men exhibit the same flailing about as these markets
Coming soon to a neighbourhood near you.....