Today on the Marketbeat: Tripple Witching Redemption

Closing #'s

DOW: +400 to 11,010

S&P: +45 to 1,205

NASDAQ: +100(4.8%) to 2,193

RUS2K: +42.92 to 719

TSX/S&P: +321 to 12,199

VIX: -2.67 to 33.55

Internals @ Close:

- NYSE - 

BREATH: 7.5/1 +

A/D: +1500 ticks

TRIN: 0.42

- NASDAQ -

BREATH: 8.5/1 + 

A/D: +1400 ticks

TRIN: 0.37

CORE SECTOR LIST: 16/0 to the Bulls

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ES 2day 15min CHART (Click 2 Enlarge)

After 3 days of being pummeled with bad news, bail outs and price action coupled with volatility through the roof; one could of assumed that with such an oversold market, it was only a matter of WHEN would we retrace some of the immense losses the market took this week. Thankfully for any longs left out there it came earlier than later. But with 3x Witching this week one can wonder if this bear market rally will sustain its gains. It has been noted that a rally in the midst of a very bearish market comes fast and vicious, and with the rally only starting today at 1:15 pm today, you can't get much more vicious and/or fast...I mean this rally came in a blink of an eye, which leaves me to ponder this question...Will this rally fold its gains faster than Superman on laundry day? All jokes aside, technically this bounce looked nice, with internals and the core sector list giving it some backing. The market looked dim in the early hours making even lower lows on all the exchanges, (1136.25 on the ES, 10468 on the YM). However, once it cracked the lows and pivots it quickly changed directions and headed up for the remainder of the trading day, using the pivot points as stepping stools.

Under the hood, things looked as good as they could after the woodshed bear thrashing the markets took in the first 3 trading days. The core sector list gave it all it could coming in at 16/0 for the Bulls. The Breaths came in at a solid 7.5/1(NYSE) and 8.5/1(NASDAQ) respectively, while the TRINS closed the day @ 0.42(NYSE) & 0.37(NASDAQ). Rounding the numbers was the A/D lines coming in at +1500(NYSE) & 1400(NASDAQ) ticks 

Food 4 Thought to Use With Stocks:

- Using the $TICK to your full benefit - 

(Click 2 Enlarge)

Over the years I've come to use and dismiss many indicators and tools. In the beginning of this year I came across a tool called the $TICK. Since I found this it has become one of my market "under the hood" internals. What it does is give you a ratio of the Up/Down issues on the NYSE. Basically its a sentiment indicator. However with no guidelines to go with it, you might just find yourself scratching your head in confusion. An easy guideline to use with it is to only watch for readings above +/- 600, anything under or over that is just NOISE. I draw lines on my tick chart at the +/- 600, 800, 1000....these are the points you need to watch because when the tick enters into those zones its telling you where the market is moving. For example if you happen to see a quick move to +/-1000, it can give you a heads up to take some profits or adjust stops. 

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