On a given day, 200 of the S&P 500 stocks were up, 300 were down. Volume for up stocks was 500 million, volume for down stocks was 700 million. The Trading Index or TRIN for that day wasA).48. B).70. C).93. D) 3.5.

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Business

Allan Hahn

7 May, 01:23

On a given day, 200 of the S&P 500 stocks were up, 300 were down. Volume for up stocks was 500 million, volume for down stocks was 700 million. The Trading Index or TRIN for that day wasA).48. B).70. C).93. D) 3.5.

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Mariela Cox · Answer 1

The TRIN for that day was 0,93. Option C)

Explanation:

This result arise from using the formula TRIN, that evaluates the ratio of variation in stocks against the ratio of variation in volume. The closer TRIN is to one (1), closer is the ratio of stock to the ratio volume. The importance for the market is because it gives an understanding of short term changes in trends. The gap between the exchange of stocks and the exchange in volume of those stocks give information about what is happening in the market intraday basis. If there is a significant gap, you can identify market sentiments are pushing to one direction (up or down). The gap measured is between supply and demand, and both forces are close in times of serenity and distant in times of rapid changes.