Market #'s @ Close:
SPY: -19 to 1,188
DOW: -161 to 7,785
NASDAQ: -25 to 2,153
RUS2K: -11 to 709
TSX/S&P: -105 to 12,532
VIX: +1.54 to 35.4
INTERNALS:
CORE SECTOR LIST: 15/1 Bears
NYSE
BREATH: 3.5/1 Negative
A/D LINE: -1400 Ticks
TRIN: 1.34
NASDAQ
BREATH: 2.7/1 Negative
A/D LINE: -950 Ticks
TRIN: 1.79
Chart of /ES Futures:
The market gave investors a lil of everything today...A nice pop off the opening bell, followed by an even more impressive push down establishing new lows for the week. Then after the lunchtime laggard session, we saw a couple of good bottoming signs followed by an impressive pop back up. However, late day theatrics once again stole the show as the market sold off heavily late in the trading session due to Congressional hearings held today concerning the bailout package, establishing a new low on the day and pretty much pegging the lows at the close.
Under the hood, the internals were going along with this story, painting a beautiful technical picture. I appreciate having access and possessing the knowledge to use internals in my everyday trading. With help from the Shadowtrader and Books like Mastering The Trade by John F. Carter (Click to buy), an investor can have an under the hood setup on their trade station in minutes. Better yet they can understand what they are looking at. Today's action under the hood painted the perfect picture in terms of examples of how they come in handy when you use them in context with your trading.
Above is an thumbnail (Click to enlarge) of my internal setup that I personally use, I have different setups but this one on the Thinkorswim platform is my favorite for watching volume, I setup the chart to have 4 different charts. At the top I put the Trin ($TRIN) and the NASDAQ Trin ($TRIN/Q) other platforms may list them otherwise so you may want to find out. These two indicators map out the volume of advancing or declining stocks on each owns relative index, but for a trader all you gotta watch out is how it is trending, is it trending up? then chances are its best to look for short setups, or sit out if you aren't comfortable shorting or using put options. The opposite is true if its trending down, then chances are the market is looking to push up, and you might wanna look out for long opportunities. At the bottom of the charts I have another volume indicator, The NYSE and NASDAQ Breath. The NYSE Breath (Chart: $UVOL Compared with $DVOL) and NASDAQ Breath (Chart: $UVOL/Q compared with $DVOL/Q) are very simple indicators to watch when you chart them out, and better yet provide good tools when taking notes at the end of the day. Breaking the chart down, the green lines represent advancing volume or volume pushed into stocking going up, the red line (also pink) represents the declineing volume or volume going into stocks heading down. I find it easiest to use a line chart for these as it gives a nice easy way to see where the big money is going intra day.
Keep in mind these are just for volume, my full internal chart, which can be seen in most of my past posts, uses the $TICK and the /YM and /ES futures to give me a full idea of whats going on.
__________________________________________________
Important Disclaimer! This website is for entertainment purposes only. Equities, Futures, Options, and Currency Trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell equities, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Absolutely consult your Registered Financial Adviser and your Risk Trading Plan before ever investing or trading any financial instrument!
Posts
No comments:
Post a Comment