Friday, January 7, 2011
NYSE TICK & Emini Correlation Lesson (SPY)
By Sell Puts 1/07/2011 04:24:00 PM
As you can see from the chart to the left the buy programs started almost exactly as we made fresh lows on the day of 1257.75. From that point we melted higher all day all the way up to 1270 on mouse farts and buy programs. Clearly the business for the majority for the day today coming
off the heels of the jobs number was on the bids with relative higher volume in relation to previous trading days. Spy volume average was only off by 5 million shares today, compare off nearly 30 million yesterday. If you look at the volume bars of the chat above you can see the volume was on red candles in the AM.
Today is a very good example of how the TICK can be used to understand where programs are doing their business, and clearly this afternoon they were on the offers.
Have a good weekend. Lets hope for some volatility next week.