Friday, June 27, 2008

A Look at a Trend Day

Good trend days will show consistent buying or selling sentiment across the session. The NYSE TICK captures short-term sentiment by providing frequent readings of whether the broad list of stocks are trading on upticks or downticks.

Yesterday's market, as shown in the chart above, showed consistent downticking among NYSE issues. By cumulating the NYSE TICK, much as an advance-decline line is calculated, we can catch intraday shifts in sentiment. There were no such shifts yesterday.

As long as you see a trending cumulative NYSE TICK, it pays to fade countertrend moves in the index.


Cumulative TICK and Sentiment

Trading With TICK