TICK and SPX 1-Minute Charts

As the CDC (Center for Disease Control) tried to calm fears over Ebola by conducting a news conference, they only served to increase the panic. This is evidenced by the -1311 TICK that shows traders throwing out the baby with the bath water. This is exactly where you would want to jump in long especially with the VIX above 30. (There is blood in the streets.) You want to run towards the fire not from it. Sure enough, the SPX bounces from this extreme negativity.

Typically, you can use the +1000 and -1000 levels to time your entries and exits into stock positions especially if you day trade where every penny is important. Today is obviously a special day with a -1311 print. When the TICK machine drops to -1000 that tells you a reversal is on tap to the upside due to the extreme negativity. The -1311 is a big deal showing that several traders jumped from windows today--hopefully the windows were on the first floor. Conversely, when the TICK climbs to +1000 and higher that tells you the buying euphoria is out of hand and a spank down is needed.

To make it simpler, if you want to place a long position, you can wait until a -1000 TICK or lower occurs and then buy where you will buy the low. Same if you are covering a short. If you want to exit a long trade, wait for the +1000 TICK or higher, and then pull the trigger to give yourself every last penny. Same if you are going in shorting a stock or index since you will get the top print. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 2:06 PM: The TICK climbed to over +800 at 1:50 PM and 1:54 PM an elevated level showing a lot of buying enthusiasm (not the +1000 high but nearby). The SPX just topped in this very near term time frame at 1:51 PM at 1835.41 exactly when the TICK peaked at +800. You get the idea.

Note Added 2:16 PM: The TICK prints a spike low to -1000 as the Beige Book is released at 2 PM. This creates another near-term bottom at SPX 1826 and now price moves up to 1835. This is like watching ping-pong. Now a +1000 print at 2:18 PM, too much bulishness, so the SPX should drift lower again.

Note Added 3:32 PM: The SPX is at 1859 and trends higher ever since the low -1311 TICK. So the uber negative -1311 may have placed the near-term bottom. The SPX price may seek the 1848 starting year price moving into the closing bell.

Note Added 5:00 PM: The -1311 TICK created the intraday low. SPX ends at 1862.49 with LOD at 1820.66 and HOD 1874.18. An intraday range of 54 S&P handles. That will get your attention.