Arms Index - TRIN

Advancing Issues over Declining Issues all divided by Advancing Volume over Declining Volume. That's the formula. What does it mean? Meh.

It's an index that is in theory a representative equation for how strong or weak the market is. The notion runs that when there is heavy volume, 'smart' buyers are putting lots of money into the system. So if you see a big up day with tons of volume, it signals, in theory, that "new money" is entering the market...i.e. cash that was sitting in money market accounts and mattresses by people who perceived more risk than reward in the marketplace have found a shift and decided to get invested.

Does it work? Is it real? Eih. Sorta. Sometimes. Kinda.