Yesterday, June 16th, at 11:30am Eastern someone mashed the ‘risk on’ button with a semi-truck full of money, sending a statistically rare shock wave through the New York Stock Exchange.
THERE IT IS: HUGE NYSE TICK…
Biggest since 5/12 at 2:18pm
We have a big responsive bidder?
— Raul (@IndexModel) June 16, 2016
Naturally, a steam whistle blew on MotherShip alerting me to the disturbance.
The method of detection was NYSE TICK, which achieved outlier levels [3rd sigma, 99.7th percentile]. Let’s not forget, any one of you, that my NYSE TICK is a bit more raw then the packaged bits most traders see.
The best I can do is share my observations of past occurrences of extreme NYSE TICKS because I have not yet coded and tested these observations over a significant sample.
OBSERVATION 1:
You can ‘go with” the NYSE TICK, intraday and catch a rotation beyond where the TICK eruption initially peaked out, putting your risk down around where Fibonacci resides, working the same side of the tape as this whale.
OBSERVATION 2:
The exuberance of the massive NYSE TICK happens near the end of a move. A crescendo, if I may be so bold.
Herein lies the quandary. This massive uptick happened 6 days into the hole of a NASDAQ sell-off, a regular horror show of summertime tape. Something the models inside Exodus kept members clean out of with precision timing, to the week.
See Also – Research Reports from iBankCoin Laboratory Keep Investors One Step Ahead of June Markets
So it was a totally different animal than your normal NYSE TICK. Now, had it been an extremely negative TICK, sure, party pooper signal, the bear raid is nearly complete. It’s best we bears clear out, before the Brits catch wind of us with their hounds, horses, and rifles—and make way for a return to higher prices.
For these reasons, and MOAR, I stuck with my NASDAQ short into the weekend.
Trading nerds only: I Snapchat traded [username: VCali] AMZN $707.50 puts yesterday, and ended up scratching the position for a small loss. Short-dated options on super high price tag stocks suck. Literally, the suck you dry by the minute. Had I a less draconian way to short Amazon, I could have seen then position through to the $700 price target.
PS the headline photo was a grab from MikeDiva’s latest video. It is insane and brilliant:
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