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Friday had a High Nasdaq Arms Index


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#1 Apollo

Apollo

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Posted 12 October 2013 - 02:52 PM

I've been looking into this. According to stockcharts.com the Nasdaq Arms index was 1.73. The Nasdaq composite was up 0.83%. Add to that the fact that the Nasdaq composite is above its 10 day and 100 day SMA. I have started to back test these conditions to see how the Nasdaq has reacted to it in the past. At first I wasn't finding enough occurrences so I lowered the standards to: Nasdaq Comp. up at least 0.46%, closes day above 10 day and 100 day SMA; TRINQ 1.43 or greater. I don't have time to finish it now but so far I've found only seven other occurrences since 2009 and most of them seem to have happened near intermediate-term tops. The dates I have so far... 04/27/12, 10/26/11, 05/12/11, 10/18/10, 07/23/10, 06/26/09 and 05/08/09. If someone has time before I do to do a back test of these conditions for at least the last 12 occurrences and post the results here, I would greatly appreciate it and I think most of the group would to. If not I will try to do it tonight sometime and I'll post the results here.