Trading Edges That Last
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Due to the way Tick indices are constructed, they can be called statistics themselves. Unlike technical indicators that are directly derived from price series, Tick indices are indirectly correlated to ...READ MOREBoth Tick16 ST and 3-Day Advance Issues are pushed down to slightly negative levels. If they continue to slide a bit more both will enter oversold territory. Since Tick16 LT is in ...READ MOREThe current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Jul 24 Close. Readings 1. 3-Day Advance Issues printing new low with S&P at the same ...READ MOREThe expected bounce happened. And based on 3-day advance issues and Tick16 Short Term the rally will be over quickly if not already. The divergence top on the 3-day advance issues ...READ MOREMy monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Dec 19 close. Reading 1. Long Term ...READ MOREMy monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 March 19 close. ...READ MOREIt is 1 am Eastern Time and the overnight market is down at the moment. Japan Nikkei is down more than 1% But as of close of yesterday Aug 17, the Tick16 ...READ MOREMy monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 Feb 17 close. Reading 1. Long Term Tick16 (yellow ...READ MOREMonthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 Jun 20 close. ...READ MORETick Index was originally created by New York Stock Exchange. It is a statistical measure of the current state of the stocks traded in the exchange as a whole. It ...READ MORETrading with Tick Index: Characteristics of Tick IndexMarket Internals 2012-04-08Market Internals 2012-07-24Market Internals 2011-08-25Market Internals 2012-12-19Market Internals 2013-03-19Market Internals 2011-08-18Market Internals 2013-02-17Market Internals 2013-06-20Trading With Tick Index: Introduction
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Market Internals 2013-10-22
Monthly update on market internals.
The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 October 22 close.
Reading
1. Long Term Tick16 (yellow line) bearish
2. Short Term Tick16 (red line) in breakout mode after spending days near Long Term Tick16
3. 3-Day Advance Issues (green line) divergence top against S&P new high
Inference
a. #1 is bearish
b. #2 volatility expansion coming
c. #3 a short term top in the making. If S&P does not pullback significantly while 3-Day Advance Issues going back down to neutral, it will turn into a powerful buy signal.
Review
Inference was correct from last update:
– 3-Day Advance Issues went negative and we got this 3 weeks selloff
– 5% drop with a new high printed right after, "extreme volatility" indeed!
Long Term Outlook
Dow has not make a new high with S&P and Nasdaq on this latest rally. This divergence has happened across the globe. Usually such setup points to the markets having these new highs being wrong.
2 historical scenarios similar to what we have now worth mentioning here. One is year 1929 and the other is year 1998. Both happened on unusual circumstances but having completely opposite outcomes. Check out the charts yourself to see what I mean.
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