Friday, August 7, 2009

08.07.09 - Jobs Up Trend Day

On the heals of our first back-to-back down series in nearly a month, such as it was, we are putting in what looks to be another powerful up trend day on the better-than-expected jobs report. While I note a modicum of resistance at SPY R2 (say $101.70), a rising dollar and an inability of 52-week new highs to expand, cumulative tick is nevertheless rocketing higher at the mid-day and up volume has been relentless. As has been the case during the last several days, the Financials (XLF) and Real Estate (IYR) continue to lead the charge.

4 comments:

Anonymous said...

I know this must be a tired question, but what do you use for an intraday cumulative tick? Is it just Steenbarger's indicator for an intraday value?

Thanks,

Bill

Jeff Pietsch CFA said...

Cumulative Tick is just adding $TICK closes at the end of each bar.

Obviously, I have modified the basics of this indicator.

If I recall, Steenbarger also compares this result to the last twenty days. That is interesting for swing trading/ looking at sea changes, but I find the slope of the more basic version is just as useful for day trading.

If this is Bill L, feel free to email me. Cheers, Jeff

David Varadi said...

do you think the divergence is being driven by hedging in the leveraged etfs?
dv

Jeff Pietsch CFA said...

I have to think about that. My first reaction is that it is catch up time for lesser quality, which remain relatively far from annual highs. I'll post more later, good question -- Jeff