Monday, October 26, 2009

Midday Briefing for October 26th: Persistent Selling

Above we see the NYSE TICK for the morning; note the steady weakening, particularly as the U.S. dollar broke higher a little before 11 AM CT. The multiple readings below -1250 in TICK show very significant and persistent institutional selling, as we broke below the multiday range led by financial issues. Echoes of the bear market: It's been a while since we've seen panicky selling led by the banks.

1 comment:

Vijay said...

Nice point Brett. was watching your 20 period mov. avg. on $TICK on a 30 min chart (just the day data from 9:30 to 4:15 EST) this morning. This 20 period avg. on the 30 min did not inspire confidence to the long side even after the strong early morning move up. Took a small loss on an unconvincing long.

Then, as the TICK was breaking to the downside with those big readings as you indicated, was able to participate in the short side.

As I watch the 20 period avg. on a daily chart of $TICK, the avg. is still comfortably above the low set in early July 09.

It remains to be seen, therefore, if this is a short-term correction or part of a more serious correction.

Thanks again for your excellent posts.