NYSE TICK Chart Indications

 TICK chart trend, it seems to be breaking the uptrend we have seen this morning.

 The 3C 5 min readings of the TICK chart have been supportive for the early trade today...

However, as per last night's post, I do expect a move lower in to the trading range and maybe below. The 10 min TICK chart, which represents a longer trend then the 5 min above has gone negative on today's strength, implying a reversal in the TICK chart to a downward trend. The NYSE TICK hart is a running tally of NYSE advancing issues on each TICK minus declining issues, thus a reading above zero tells us more issues are advancing then declining, a reading below zero tells us more issues are declining then advancing. However, this is PRICE ACTION ONLY and what we really pay attention to is the underlying smart money action which often contradicts price. This is possible because Wall Street knows which way the market is going in the short/intermediate term because they are controlling the direction. Wall Street typically plans these moves out hours, days, weeks, months and even years in advance. My chart of HOV showing a year and a half of accumulation while the tech bubble exploded, shows that they were taking on a Huge position in home builders nearly 3 years before the rally started going parabolic in home builders. If you remember, the tech revolution was a new way of looking at the market and most people assumed the next bull market would be led by tech 2.0. How many of you can honestly saw that after seeing IPOs of no name dot coms trading at P/E's of 400 with poor earnings, sometimes no earnings, really imagined that housing which has previously gained about 2-3% a year would be the next bubble? And ask yourself, "How did smart money know this years in advance and were so sure of it and committed to the idea that they spent over a year in pure accumulation which means their positions were enormous?" This is why they are called smart money and I doubt their analysts figured it out, more likely the FED let them know where the next gravy train would be so they could make up losses on the dot com bust.

Oops, I said Fed, I probably just got flagged. If I disappear over night, you'll know why.