Tuesday, April 06, 2010

Morning Briefing for April 6th: Mixed Signals



Note how we traded lower during pre-opening trade only to move back into the overnight range and then back into yesterday's range (top chart). Advancing and declining stocks are relatively even, and we're seeing little change in oil. Rates are lower, and USD is lower vs. Aussie dollar but up vs euro. All in all, the themes that were strong yesterday are mixed today. NYSE TICK (bottom chart) shows very little significant selling pressure for the second day running. We're also not seeing very strong buying pressure. As long as Cumulative TICK stays positive and we don't see significant selling pressure, I expect stocks to be able to drift higher in a low volatility mode.
.

3 comments:

Amit Kak said...

Sir,

If stocks do move higher in low volatility mode is that a bearish sign then?

TD said...

The tough thing about the market these past few weeks is that it doesn't give you too many chances. So, you're either right or wrong on a trade and there is a good possibility that is the only opportunity you'll see that day. That's what happens when it takes five hours to grind out six ticks.

OKL said...

and the volume in the ES has dropped so much I'm not sure if anyone's in the market lol