If you’ve followed this BLOG or listened to the weekend videos for any length of time. you will appreciate the emphasis we place on TICK Cumulative to measure institutions buying and selling appetite. When TICK is green and rising institutions are buying more on the uptick than they are selling on the downtick. The reverse can be confirmed if the TICK cumulative is red and trending lower.
The markets started to see distribution at highs in the second week of August. This marked the level just below the February pre-Covid highs. TICK cumulative showed institutions were taking profits. The markets trended sideways for over a week, then drove higher. TICK moved sideways.
Last week, on Wednesday TICK rolled over signaling institutions were selling into strength again. The following day, the markets sold off hard. The selling resumed on Friday. For a brief time towards the end of the day TICK turned green.
Now we have a green signal. Only time will tell if this turns into a bullish trend. Our suggestion is to be patient and wait for a base to form.
For more on TICK Cumulative read this three part series by Brett Steenbarger. It’s well worth your time if you’re serious about trading.
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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