Afraid to Trade Blog - Latest Comments in TICK Divergence Tuesday

Re: TICK Divergence Tuesday

Dominick — Wed, 15 Apr 2009 23:41:41 -0000

Fantastic analysis Corey. I spotted a lot of the patterns you regularly speak about and point out on the site. It gives great confidence. Thanks.

Re: TICK Divergence Tuesday

Corey Rosenbloom — Wed, 15 Apr 2009 13:19:28 -0000

Blue, Andrew Horowitz and I were discussing that article recently. The specific article is:

http://zerohedge.blogspot.c...

Certainly a decent possibility. Lower volume would mean volatility/range would be higher, bid/ask spreads would be wider, and ... well it wouldn't be a good thing, let's just leave it at that.

Re: TICK Divergence Tuesday

Blue — Wed, 15 Apr 2009 12:44:52 -0000

I bet what's going on with the vix is due to GS's control of 30-40% of the volume (read ZeroHedges blog for info). The volatility swings of last year are gone because the market is being DOMINATED by one major player driving the tape. That's my theory. Now that GS got their $123 a share dilution and once OPEX ends, I'm willing to bet we go back to the wild wild west like last year, but with less volume. Lots of people simply bailed on this stock market.

Re: TICK Divergence Tuesday

Corey Rosenbloom — Wed, 15 Apr 2009 11:09:58 -0000

Mark,

No problem - it was an interesting chart.

I really have no idea about the VIX - I noticed that in my end-of-day meeting but we just brushed it aside and noted it as strange. The VIX has been acting weird in my opinion lately, namely not confirming the March lows with a high VIX reading.

If any readers have any insights on this, please feel free to share.

Re: TICK Divergence Tuesday

Corey Rosenbloom — Wed, 15 Apr 2009 11:08:12 -0000

Anon,

Thank you for reading and sharing!

Re: TICK Divergence Tuesday

Corey Rosenbloom — Wed, 15 Apr 2009 11:07:26 -0000

Blue,

Good to hear from you! I love the GTM site - very in-depth and informative.

Yes, certain indicators/trade set-ups cycle in and out of favor. The gap-fade worked wonders in 2008 but it's not been so hot in 2009. There's a little bit of disconnect in the VIX and S&P; slightly at the moment which is odd.

It's all about finding that magic mix of indicators/trades that make sense to us (personally) and then the market continuing to deliver. But, like the old saying goes, once you figure out the key, they change the lock!

Re: TICK Divergence Tuesday

mark — Wed, 15 Apr 2009 08:44:32 -0000

Hi Corey, thanks for faz breakdown from yesterday, question, why was vix negative yesterday ? fridays option ex ? thanks mark

Re: TICK Divergence Tuesday

Anonymous — Wed, 15 Apr 2009 05:23:52 -0000

love your posts on spy. it's all i trade and you provide some great views and ideas. thanks so much and keep up the awesome blogging.

Re: TICK Divergence Tuesday

Blue — Wed, 15 Apr 2009 01:25:02 -0000

Oops, didn't mean to be anon. I'm Blue, Gaming The Markets brother.

Re: TICK Divergence Tuesday

Anonymous — Wed, 15 Apr 2009 01:23:39 -0000

Corey, thanks for the TICK lessons. I've added a 1min TICK chart under my S&P chart because I've found it so useful during the day. Hopefully I will be able to zoom out a little as the day progresses and catch these signals like you do. Last year VIX used to signal me like a bright flare in a moonless night, but this year it's been nearly useless during the day for me. Another reason TICK stands out.

I've also added CCI to my 1-5 min charts and find it VERY useful for confirming entries, even for quick scalps. I'm using shorter settings for CCI than standard and I'm still learning how it works.