Info!! How Is The Marketplace Moving?

For the short-term trader, at that spot is of import data inwards how a marketplace position moves. Consider 3 posts from today's intraday Twitter comments:

9:31 AM CT- Watching closely: We withdraw to sustain prices inwards a higher house their solar daytime session opened upwardly w/ positive TICK distribution to larn a skilful reversal.

This showtime comment came after nosotros spiked lower inwards the showtime one-half hr of trading on extreme negative TICK as well as high volume. Such capitulation oftentimes leads to a reflex bounce, sellers are "all in" as well as no 1 is left to displace prices lower. As buyers are attracted yesteryear the depression prices, short-covering contributes to the bounce. For this bounce to give-up the ghost a truthful reversal as well as plough the short-term tendency bullish, nosotros withdraw to come across the bulk of sectors sustain prices inwards a higher house their opening levels, as well as nosotros withdraw to come across internet buying pressure level (positive NYSE TICK). Gauging the participation of the sectors as well as the vigor of the buying involvement helps us distinguish betwixt a comport marketplace position bounce as well as a bullish reversal.

9:38 AM CT - Rel book has dropped off on the attempted rally; dorsum l8r inwards day.

Within a few minutes, I'm seeing that relative book (how book at a detail fourth dimension of solar daytime compares amongst average book at that fourth dimension of day) is tailing off after a surge on the early on selling. This is a sign that higher prices are non attracting fresh participation. Recall that book is strongly correlated amongst volatility. When we're trading directionally, nosotros desire volatility to hold upwardly expanding on moves inwards our direction. When relative book tails off, it's 1 sign that the volatility winds are non at our back, which leads us to suspect that the upmove is a comport bounce, non a fresh bull move.

10:06 AM CT - Unless nosotros tin sustain positive TICK as well as inwards a higher house avg book to upside, that 800 back upwardly volition laid out to human activity every bit resistance.

I hadn't planned about other post as well as therefore soon, only I idea the quest was worth reiterating. In a valid breakout move, nosotros should non displace dorsum into the prior trading range. That means, on a downside break, that what had been back upwardly (the 800 degree of the S&P 500 Index) is immediately resistance. We withdraw buying pressure level (TICK) as well as volatility (relative volume) to force us dorsum into the range. That wasn't happening, as well as that observation helped ready us upwardly for weakness afterward inwards the day.

What I'm trying to produce amongst the intraday Twitter comments is model a way of thinking virtually cost activity yesteryear synthesizing observations virtually ranges, marketplace position sentiment/strength, volume, as well as historical cost patterns. Much of this thinking is based on looking at non solely *what* the marketplace position is doing, only *how* it is doing it. Following Cumulative TICK, where nosotros traded relative to VWAP, relative volume, as well as leading sectors (financials) all were helpful inwards tracking the market's weakness during the solar daytime session. Subscription to Twitter comments is free; you lot tin too selection upwardly the 5 latest "tweets" on the weblog abode page nether "Twitter Trader".
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