Monday, June 01, 2009

Less Buying Does Not Make a Bear Trend

Here's a look at the NYSE TICK for the day so far. One topic I'm discussing with traders is that we're seeing less buying pressure as the morning has moved on, but we're not seeing significant selling pressure. It takes more than reduced buying to sustain a downward trend; traders not making that distinction have gotten hurt this morning.


Darren said...

Yep. Sideways action here gives the bulls the upper hand as support from the moving average fills in as they catch up to price.

JDMoodie said...

I only tried to fade once, it was a decent technical entry (sort of) but doomed from the start. I am holding long now, for over an hour waiting patiently for the move up that appears to be developing some steam. Very small loss if stopped now, good position to be in.

Patience is my weakness, good market day for some learning.


OKL said...

I remember the last Monday, where prices just went higher non stop despite the buyers easing off the pedal cos I presume, the sellers probably had a stiff one during the weekend lol.

I took a bit of a hammering back then, so if I make the same mistake again, I'll be quite the proverbial fool lol.

If prices are going to advance this manner, inching higher on less than admirable volume, I've already resigned myself to missing the whole lot of it.

Lots of stuff hitting the tape this upcoming week, so I'm not exactly concerned about this anemic volume continuing- the 3mth, 6mth, 3yr, 10yr, 30yr note/bond announcement on Thu is what I'll be watching for to see if the 'bondies' get more courage in calling the Fed's bluff... that being said, Bernanke's speaking this week and Geithner's in China too... no question that the bondies are wondering if these two might pull another rabbit out of the hat.

Wrapping things up will be the big momma report- jobs... the reaction to it will be an interesting one, whether it meets consensus or not.

Conserving ammo and energy is pretty darn important in this game... anyone up for a beer? =)

1304et; Hmmmm what is this? A first little bout of profit taking?

Gustavo's Trades said...

Your comments Today were invaluable to my trading.

Thanks to what I learned from your blog and twitter postings, I was able to recognize $TICK strengh. I'm also following the same stock basket you do, the picture was not in favor of going short.

Let's see how things develop, we already had a $TICK reading bellow -800, keep on watching.

Thank you again for helping everyone with your postings.