In the comments today, we were discussing the TICK, and Dave brought up the TIKI, which is the Dow TICK. So here is an example of how I would use it (click chart to enlarge):
The daily closing $TIKI is the blue line at the top, and I have added Bollinger Bands. The candlesticks at the bottom are the daily SPX. I have put a purple arrow at each point where the $TIKI hit the bottom Bollinger Band. I have also put purple arrows at the next day’s SPX candle.
Buying the open and holding until the close the day after the $TIKI hit the lower Bollinger Band would have given you three winning trades over the past two months. This happens because TICK extremes usually reflect overbought/oversold conditions.
thanks Matt
GMAC receiving 5B in bailout monies had little effect on stock futures.
Thanks, Matt. one nice thing about the TIKI is that it can’t be more than +30 or -30. The parameters are finite & can’t shift as much as the TICK.
Matt, one thing i like about you is that like me you’re the trading equivalent of a gym rat. LOL
I enjoy my time off, but some Friday afternoons when i feel “dialed in” to the mkt i can’t wait til the opening bell Monday morning.
Interesting commentary on my favorite 2009 play SRS (I guess I am not the only one):
http://www.crashmarketstocks.com/
For Larry:
http://social.stocktock.com/profiles/blogs/a-bearish-look-on-energy