Through 13:00 CT, I calculated the number of NYSE TICK readings that exceeded +800 and the number that were lower than -800.
For 800 stocks to uptick or downtick simultaneously, we need to see buy or sell programs executing.
The total number of +800 or -800 readings thus gives us a clue as to the relative activity of those programs.
So far today, as of 13:00 CT, we had zero readings above +800 and 61 readings (out of 270 minutes of trade) below -800.
Lots of program activity. Selling.
If we're to rally, we'll need to see significant positive readings to tell us that these lower prices are attracting institutional interest. In the absence of such signals, the bounces in TICK have represented opportunities to enter on the sell side.
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6 comments:
Thanks Dr. Brett. The institutions quit buying in mid Nov.
As far as I'm concerned, this is the Market That Thought It Was Woolworth. I freely admit I no longer understand anything that's going on anymore. I am just going to sit on the sidelines for a while.
I also notice in the first half hour, no TICK readings over -200, during that nice drop.
Re: Psych side and stress reduction, If I pretend that I am happy, maybe I'll forget that I am pretending. Hey, it worked for the past ten minutes :)
-nqtraderjay
Good blog.
I like to look at market internals(buying vs. selling pressure) on an hourly time frame. The indicator I use is this one:
http://bit.ly/axhMl7
the beauty of this much negative tick is that we are getting closer to the end of the correction. You are completely correct to count TICK this way. If you keep the tally going daily (indefinitely) you'll find it reaches extremes that quite accurately predict intermediate term trends. Great work! --maineman
mainemanmarketadvice.blogspot.com
Is 800 a number you derived by experience and observation, or by some calculation? Articles I've been reading lately about algorithmic trading say that institutions use a variety of cloaking devices such as trading in 100 share lots to disguise what they are doing. Can they also game your 800 tick number to fool you and us?
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