About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Monday, August 13, 2012

Stocks -- Confidence Veering Toward Complacency

The market is mildly overbought in the short run on the measures I use most often, but a couple
of indicators raise an eyebrow. Specifically, the 21 day m/a of the $TRINQ, which measures
net buying or selling pressure, is moving into overbought territory, while the $VIX or volatility
index has moved down near lows for this cyclical bull. So you have stronger buying pressure
as fear has progressively diminished. Before you check the chart, remember that when the
$TRINQ is below 1.00, there is net buying pressure in terms of positive breadth and the up -
volume behind it. $TRINQ Chart (NASDAQ Comp. is in the top panel.)

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