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The CBOE Trins are a bit puzzling at times. It seems that if one is above 1.0
and the other below 1.0 the spread between them becomes useful as a direction
indicator. They don't always run a "mirror" of each other and sometimes one
will remain bearish or bullish throughout the day while the other one has
trend characteristics. They are a fascinating pair to watch.
BobR
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In a message dated 98-08-25 13:16:44 EDT, eadamy@xxxxxxxxxx writes:
<< Subj: Re: GEN - CBOE Trins
Date: 98-08-25 13:16:44 EDT
From: eadamy@xxxxxxxxxx (Earl Adamy)
Sender: owner-realtraders@xxxxxxxxxxxxxx
Reply-to: eadamy@xxxxxxxxxx
To: realtraders@xxxxxxxxxxxxxx (RealTraders Discussion Group)
Been keeping an eye on these (5min chart) for some time now while day trading
the S&P and they do indeed appear to provide useful information!
Are the CBOE Put and Call Trins calculated in a manner similar to the NYSE
Trin
where the trin value reflects a mix of a/d issues and a/d volume and low
numbers
indicate strength and high numbers weakness? What I haven't quite got my head
around is why a call trin below 1.0 and a put trin above 1.0 (reflecting
strong
demand for calls and light demand for puts) is bullish, however it does seem
to
work that way. Generally options are considered a contrary rather than
confirming indicator.
Earl
-----Original Message-----
From: BobRABCDEF@xxxxxxx <BobRABCDEF@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Friday, July 17, 1998 8:42 AM
Subject: GEN - CBOE Trins
>FWIW, here is a perspective on trend identification using the CBOE Put and
>Call Trins. There are four states based on levels of the Trins.
>
>Both above 1.0. Mixed trend
>Both below 1.0. Mixed trend
>Call trin above and put trin below = bearish
>Call trin below and put trin above = bullish
>
>These CBOE Trins tend to saturate when the broad mkt has strong trend and to
>chop around when the trend is indecisive. They seem to be much more alive
>than the NYSE TRIN.
>
>BobR
>
>>
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