Statistics  |  NOV 2003

Does The Market Have A Personality? by James Kellndorfer

Does The Market Have A Personality? by James Kellndorfer Here’s a look at how you can convert the NYSE’s tick into a sentiment indicator using statistical analysis. Along with the other US stock exchanges, the New York Stock Exchange (NYSE) provides investors with an internal statistic of the stock market called the tick. This statistic summarizes the number of stocks that are increasing in price versus those that are decreasing in price. But what does this really mean and how can you use this information in a meaningful way? THE TICK Generally, many view the tick as the amount of buying or selling taking place in the market, but that isn’t quite accurate. This is because there’s a seller for every buyer. Both sides are represented simultaneously at any given price. This view is accepted in the futures market and is generally referred as a zero sum market. But how is a trader to know how much supply remains at any given moment?

by James Kellndorfer