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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (6807)	10/20/1998 10:09:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 44573

<I recall you mentioning in the past that extreme TICK readings could be reversal signals?> No, that was not me. I recall perhaps in July or August some were saying that on TSO when the market was sailing down on Negative TICK. Also, at the same time I was picking up info from Mark Cook who postulated the same thing. By chance (on the same day), I got a phone call from Camp and I mentioned it to him. His opinion was that Extreme TICK could be misleading. In that case he was prophetic....the TICK was around -1250 that day. Two days later, -1500 and the third day -1700. I think conventional wisdom suggests a reversal signal but in practice it goes along the same lines as a market being oversold. An oversold market can get more oversold. An Extreme TICK can get more Extreme. That sort of thing. I have not looked at the DJIA carefully to try to get a handle on "why" it's only up 100 with the Cash and Futures up so high. Perhaps the DJIA outperformed the broader market in the past 4 days. Perhaps one issue is holding the DJIA down. Perhaps the Pros are just gunning the broad market. Any of a dozen things. But the Extreme TICK can be misleading, to my way of thinking.