Pages

Thursday, January 14, 2016

TICK Tick Index 10-Minute Chart Excessive -1400 Tick's

The TICK machine is printing uber negativity yesterday. As a rule, the +1000 and -1000 TICK's are key inflection points. A +1000 TICK signals uber euphoria so stocks will retreat. A -1000 TICK signals uber negativity so stocks bounce. You should time your long trade entries and cover any shorts when the TICK is down at -1000, that way you get more bank for your buck and save a few pennies each trade. If selling a position or putting on a short do that at a +1000 TICK to get more bang for your buck.

A +1200 of -1200 TICK does not happen often so it is a strong signal that markets will reverse. A +1400 or -1400 TICK is very extreme and rarely occurs. When the -1400 TICK's werre printing yesterday, Keystone was buying long index ETF's. As a rule, if you ever see a -1400 TICK, drop what you are doing and buy some index calls or long ETF's. Conversely, if you ever see a +1400 TICK print, go short the market immediately with reckless abandon.

The SPX rallied today gaining 32 points, +1.7%, to 1922.  The SPX prints a LOD this morning at 1878 with a low TICK at -1141 and then skyrockets 56 points to the HOD at 1934. The negativity was far too excessive and today reversed that sentiment. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.