MARKET INTERNALS. The Pulse of the Market

Transcription

1 MARKET MARKET INTERNALS INTERNALS The Pulse of the Market

2 Market Internals Gonzalo Peres September 25, 2018

3 Disclaimer Disclaimer: Neither TradersMeetup.net nor its organizers, hosts or presenters are licensed financial advisors, registered investment advisors, registered broker-dealer nor FINRA SIPC NFA-member firm. In accordance to the policies of TradersMeetup.net, this presentation does not provide investment or financial advice or make investment recommendations. TradersMeetup.net is not in the business of transacting trades, nor does TradersMeetup.net agree to direct your brokerage accounts or give trading advice tailored to your particular situation. The content of today s presentation does not constitutes a solicitation, recommendation, promotion or endorsement of any particular security, other investment product, transaction or investment. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. All rights reserved. This Material may not be reproduced or distributed, in whole or in part, any other reproduction in whatever form and by whatever media, is expressly prohibited without the prior written consent of TradersMeetup. No Soliciting. No Recording. No Photography.

4 Today s Agenda Market Breadth Advance/Decline Lines Tick Correlation, Arbitrage and Automate Systems References

5 NYSE (New York Stock Exchange)

6 What is under the hood?

7 Trading References TradersMeetup Chatroom

8 Short ES Trading References

9 Market Internals Symbols (*) Breadth AD Line Tick NYSE Exchange $VOLD $ADD $TICK NASDAQ Exchange $VOLQD $ADQD $TICK/Q S&P500 $VOLSPD $ADSPD $TIKSP Nasdaq 100 $VOLNDD $ADNDD $TIKND Russell 2000 $VOLRLD $ADRLD $TIKRL $VOLID $ADID $TIKI DJIA 30 (*) Thinkorswim Platform

10 Market Internals Availability Intraday 6:30 AM to 1:00 PM (PST) (Breadth, AD Lines and Ticks) Daily (Breadth and AD Lines)

11 Market Internals Advance/Decline Line: # of Adv - # of Dec Market Breadth: Up Volume - Down Volume Tick: # of stocks that last ticket up vs. down Trin or Arms Index: AD Ratio / Breadth Ratio

12 Market Breadth (Volume) Breadth NYSE Exchange $VOLD NASDAQ Exchange $VOLQD S&P500 $VOLSPD Nasdaq 100 $VOLNDD Russell 2000 $VOLRLD DJIA 30 $VOLID Bias and direction (Swing pattern: Range)

13 Market Breadth (Volume) Extreme Values >= 3:1 <= -3:1

14 Market Breadth (Volume) Extreme Values >= 3:1 <= -3:1

15 Advancing/Decline Line AD Line NYSE Exchange $ADD NASDAQ Exchange $ADQD S&P500 $ADSPD Nasdaq 100 $ADNDD Russell 2000 $ADRLD DJIA 30 $ADID Swing pattern

16 Advancing/Decline Line Extreme Values > 2000 < -2000

17 Advancing/Decline Line A B Extreme Values > 2000 < A B

18 Market TICK Tick NYSE Exchange $TICK NASDAQ Exchange $TICK/Q S&P500 $TIKSP Nasdaq 100 $TIKND Russell 2000 $TIKRL -400 $TIKI DJIA 30 0 Extremes (Pulse)

19 Market TICK B A Levels A B

20 Market TICK A Levels 1000 B A B

21 Correlation, Arbitrage and Automation In statistics, dependence or association is any statistical relationship, whether causal or not, between two or more random variables or bivariate data. Russell $ADRLD /NQ /ES $VOLRLD $TIKRL /RTY /RTY

22 B C A ABC

23 A A A

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25 Automated Systems "... is an automated system for day-trading the S&P e-mini market it uses Market Internals to generate buy and sell signals..."

26 References NOTE: These are not investment recommendations sources, but rather references for you to check (ie. get to know what is out there) by Greg Capra

27 ShadowTrader.net The Quad Peter Reznicek

28 Clue / Nugget Bollinger Band Keltner Channel Plot Histogram

29 THANK YOU Contact Info: Gonzalo Peres

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