Trading Edges That Last
- You May Also LikeDid not post an update on the breadth readings for quite some time. My bad. The main theme so far over past 2 weeks is that since Tick16 long term has ...READ MORE
Trend buy day are the days where the stock market indices just keep going higher. Day traders are often trapped on the wrong side of the market on such days ...READ MOREHaven't got time to write an update til now. The sell off I was looking for til 3-day advance struck bottom was done in the beginning of last week. Not quite ...READ MORESince last update we got our pullback based on market breadth. Well, there were actually 2 pullbacks with one very fast melt up in between. 3-day advance issues gave us the extremes ...READ MOREThe current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Aug 17 Close. Readings 1. 3-Day Advance Issues having divergence top against S&P 2. Tick16 ST ...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 MOREThe current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Sep 18 close. Yes, am posting the chart 1 day late. ...READ MOREThe mega swings in the breadth have successfully forewarned and confirmed the swings of S&P over the past 5 swings. The challenge at this point is that 3-Day Advance Issues ...READ MOREAfter I posted the breadth bias warning last week. Someone asked for some samples of the potential outcomes from history. Here they are. First one, the one that simply go ...READ MOREWhile preparing for the next article on converting trading rules between eSignal and DTN IQFeed versions of NYSE Tick Index, I have been doing data comparison on and off among ...READ MOREMarket Internals 2012-05-14Trading With Tick Index: Early Detection Of TrendMarket Internals 2011-11-07Market Internals 2011-11-20Market Internals 2012-08-17Market Internals 2013-06-20Market Internals 2012-09-19Market Internals 2011-12-15Market Internals Update 2011-05-03Trading With Tick Index: A Short Summary of
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Market Internals 2013-12-23
Monthly update on market internals.
The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 Dec 23 close.
Review
Got the rally I was looking for since the last update.
Once we got Short Term Tick16 registered overbought, we had the sharp pullback expected into mid December.
The pullback led to Short Term and Long Term Tick16 stuck together below neutral produced a breakout setup.
We are in the upside breakout run right now.
Reading
1. Long Term Tick16 (yellow line) getting close to neutral zone from below is neutral.
2. Short Term Tick16 (red line) right below neutral zone without a clear direction is also neutral.
3. 3-Day Advance Issues (green line) produced a new high confirmed by new high in S&P is bullish.
Inference
a. #1 produces no useful reading
b. #2 produces no useful reading
c. #3 bullish short term
Long Term Outlook
Rally will likely continue into new year. Strength in 3-Day advance issues will drag Short Term Tick16 higher.
That, however, will make this rally very over extended by time to the upside with risk of a very sharp pullback.
Be carefully with long when Short Term Tick16 is back up to overbought area again.
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