Monday, November 16, 2009

What A Strong Early Tick Has Meant In The Past

The market is off to a strong start today. The NYSE Tick did not post a negative reading for the 1st half hour of trading. This is fairly unusual, having happened only 64 times since the beginning of 2005. Below are stats showing how the SPY has performed the rest of the day after the TICK got off to such a strong start.



Nearly 2/3 of the time the market has managed to follow through with more gains from 10am until the close. Stats are a little skewed by the huge 7.5% gain that occurred on 10/13/08. The average loss was fairly small at around 0.5%. Overall, a very positive start like we’re seeing this morning has often been good news for the rest of the day.

Of course there is a little speech today from Chairmen Ben…

4 comments:

Sellputs said...

Great article.. very informative and eye opening..

Nilay said...

can you also post stats on buying SPY at 10:30am after full hour?

words said...

Interesting data. Might letting us know where you get the tick data from?

John Short said...

I know a blogger who said that and said to trade when first hour above 0 is buy the dips-day. He didn't tested it though, but a hunch. But its interesting first half hour is same.