NYSE TICK Cumulative Cycle is Changing Direction; Watch for Follow-through
We watch TICK and TICKQ during the trading day. These “tools” are real-time cumulative indicators for the NYSE and COMPQ respectively. The sentiment derived tells us whether to be bullish, bearish or neutral based on what institutions are actually doing. Longer term daily and weekly charts assist with swing and position trading.
Trading approximately 1.46 billion shares each day, ($23 Trillion) in market cap, the New York Stock Exchange (NYSE) is the leading stock exchange in the world. The exchange trades stocks for some 2,800 companies, ranging from blue chips to new high-growth companies.
NYSE TICK Cumulative
TICK Cumulative spent most of Thursday trading above its moving average in “real-time.” This is significant as it tells us institutions have started buying more stocks on the “uptick” versus the number they are selling on the “downtick.” In other words, the cycle that started in late August is changing. A follow-through today and next week would confirm a bullish trend is starting.
Watch TICK over different time frames. Swing traders should watch the 60 minute and daily charts. Daytraders can and should use 5/15/60 minute charts. Watch for crossovers, then follow-through to give a directional trend confirmation.
If TICK and TICKQ close above their respective daily moving average, we’ll be adding to stocks that have shown relative strength over the past couple of weeks.
Johnson and Johnson (JNJ) is one example of a stock exhibiting relative strength.
An expanded explanation, written by Brett Steenbarger, can be found here.
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