MARKET

MARKET INTERNALS
INTERNALS

The Pulse of the Market

Market Internals

Gonzalo Peres
September 25, 2018
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 Today’s Agenda

● Market Breadth

● Advance/Decline Lines

● Tick

● Correlation, Arbitrage and

Automate Systems

● References
NYSE (New York Stock Exchange)
What is under the hood?
 Trading References

TradersMeetup
Chatroom
 Trading References
Short ES
 Market Internals Symbols (*)

Breadth AD Line Tick

NYSE Exchange $VOLD $ADD $TICK

NASDAQ Exchange $VOLQD $ADQD $TICK/Q

S&P500 $VOLSPD $ADSPD $TIKSP

Nasdaq 100 $VOLNDD $ADNDD $TIKND

Russell 2000 $VOLRLD $ADRLD $TIKRL

DJIA 30 $VOLID $ADID $TIKI

(*) Thinkorswim Platform

 Market Internals Availability

Intraday
6:30 AM to 1:00 PM (PST)
(Breadth, AD Lines and Ticks)

Daily
(Breadth and AD Lines)
Market Internals

Advance/Decline Line:

# of Adv - # of Dec

Market Breadth:

Up Volume - Down Volume

Tick:

# of stocks that last ticket up

vs. down

Trin or Arms Index:

AD Ratio / Breadth Ratio

 Market Breadth (Volume)

Breadth

NYSE Exchange $VOLD

NASDAQ Exchange $VOLQD

S&P500 $VOLSPD
Bias and direction
Nasdaq 100 $VOLNDD (Swing pattern: Range)

Russell 2000 $VOLRLD

DJIA 30 $VOLID
 Market Breadth (Volume)

Extreme
Values

>= 3:1

<= -3:1
 Market Breadth (Volume)

Extreme
Values

>= 3:1

<= -3:1
 Advancing/Decline Line

AD Line

NYSE Exchange $ADD

NASDAQ Exchange $ADQD

S&P500 $ADSPD

Nasdaq 100 $ADNDD

Swing pattern
Russell 2000 $ADRLD

DJIA 30 $ADID
 Advancing/Decline Line

Extreme
Values

> 2000

< -2000
 Advancing/Decline Line

Extreme B
Values

> 2000

< -2000
A

B
 Market TICK

Tick

NYSE Exchange $TICK

1000
NASDAQ Exchange $TICK/Q
400
S&P500 $TIKSP
0
Nasdaq 100 $TIKND
-400
Russell 2000 $TIKRL
-1000
DJIA 30 $TIKI
Extremes (Pulse)
 Market TICK

B
A
Levels

1000

400

-400 A

-1000 B
 Market TICK

Levels

1000
B
400

0
A
-400

-1000

B
 Correlation, Arbitrage and Automation

In statistics, dependence or association is any statistical relationship, whether

causal or not, between two or more random variables or bivariate data.

Russell
/NQ
/ES
$ADRLD

$VOLRLD

$TIKRL
/RTY
/RTY
 B C

ABC
A A A
Automated Systems

".... is an automated
system for
day-trading the S&P
e-mini market…

… it uses Market
Internals to
generate buy and
sell signals..."
 References
NOTE: These are not investment recommendations sources, but
rather references for you to check (ie. get to know what is out
there)

https://youtu.be/c0wp1ANxeH4

https://youtu.be/YLO6CVXO9iA

https://youtu.be/G9G-ZJdBYEY

by Greg Capra
 ShadowTrader.net “The Quad”

Peter Reznicek
Clue / Nugget

● Bollinger Band

● Keltner Channel

● Plot Histogram
THANK YOU

Contact Info:

Gonzalo Peres

gonzalo@tradersmeetup.net