Thursday, July 30, 2009

NYSE TICK: A Look at Buying Sentiment in an Uptrending Market


One characteristic of trend days to the upside is that the NYSE TICK--the number of NYSE issues trading on upticks minus those trading on downticks--will persistently stay above zero, with many readings greater than +800. That shows that institutions--those that trade the baskets of stocks that will tick up or down in unison--are leaning strongly to the buy side. We see that so far in today's market, as we've yet to get a single TICK reading < -500.

In an uptrend day, the pullbacks in TICK to negative territory tend to be short lived and can be excellent short-term buying opportunities. Also in uptrend days, the moving average of TICK (green line) will tend to stay above zero (blue horizontal line) throughout the day.

Here is more on the topic of identifying trend days to the upside.
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11 comments:

Cap said...

Trend day ... not today ?
TRIN = 2.06 (up from 0.40)
VIX now green
Indexes starting to reak below trend.

Odds high for pullback IMO

Matthew C. said...

Now that we have seen some ticks less than -800 I have closed out my core long position. . .

Gro said...

Also, one could have a hint by realizing that the weak unemployment news failed to attract sellers ; the market actually went higher after the news. As you previously stated in other posts, the market did not confirm the bad news, letting us know it would go up after the open.

Ross said...

Dr. Brett,
Can you explain how your TICK chart is set up?

I've seen some -500 TICKs this AM, but don't see them on your chart. Also, I have not seen any +1000 but see them on yours.

Chart appears same, but scale is different, so I'm curious how your is different.

At 10:26 I register +764 (~8:55 as Hi Tick and -870 (~10:07) as low Tick

Thank you.s

BalaB said...

Dr. S,

hmmm...I'm seeing a discrepancy in my TICK readings. So far, I've yet to see a reading over +760. Furthermore, Volume drying up as TNX keeps increasing (now 4x times it pre-market level).

Failed trend day perhaps?

Brett Steenbarger, Ph.D. said...

Hi Ross,

My chart is not set up in any special way. I'm charting TICK as it comes through e-Signal; only the green moving average line is specially set up. Some people's readings of TICK aren't agreeing with mine apparently. I show no TICK readings < -500 thus far as of 10:34 AM CT.

Brett

ph4nt0m said...

Very odd, I was wondering all morning why you were saying the TICK was strong while we had many readings below -600 and a few coming close to -800

Gro said...

About the TICK issues : it looks like there is a discrepancy for several brokers. I have the issue using ThinkOrSwim but it appears people using IB have it as well.

My advice : use Quote.com's free data feed at http://www.quote.com/us/stocks/chart.action?s=$TICK
It probably won't replace your own data feed but at least they have the correct values (which match Dr Steenbarger's, anyway).

(by the way : Dr Steenbarger, I am the French guy who e-mailed you about this problem last week-end, thinking last Thursday's breakout was not genuine)

Adam said...

Anyone else surprised the gold price has not made it back above $1,000 with the dollar weakening so much, as shown by Gold Price

Cap said...

Took all day; but the selling pressure was there all day; even when Goldman's magic program kept juicing the indexes.

jordan said...

Dr Brett,
THe green line rep 20SMA?