Premium, Tick and Trin

B

BackDoc

I have been a position trader for several years and am just now stepping into the world of daytrading. I often hear people talking about the Nyse and Nasdaq Tick and Trin, as well as the SP Premium. Can some one tell me exactly what these are and how I can profit from using them in my trading.
 
Originally posted by BackDoc
I have been a position trader for several years and am just now stepping into the world of daytrading. I often hear people talking about the Nyse and Nasdaq Tick and Trin, as well as the SP Premium. Can some one tell me exactly what these are and how I can profit from using them in my trading.
More...

There is probably a site that has all this basic info (and more). Tick is the # of stocks on the NYSE that had an uptick - the # that had a downtick on their last trade. For example if there are 1000 stocks and 400 had an uptick and 600 had a downtick the TICK would read -100. A general trending environment is steady >300 or <-300.

TIKI is the same but for the dow 30, so it ranges between -30 and +30. TRIN is the ratio of downvolume to upvolume. Anything over 1 means more down volume, anything under 1 means more up volume.

SP Premium is the futures price - the cash price. Program trading kicks in at certain premium levels in conjunction with FAIR VALUE. There is a theoretical level known as "Fair Value" that is explained on:

http://www.programtrading.com/fvalue.htm

The site above also has good info on program buying/selling.
 
Hi,
I have always understood daytraders preferred to use TRIN and TICK related to NYSE because the Nasdaq TRIN and TICK were less "reactive" and representative due to the number of small cap stock included in the 4200 stocks or so listed on the Nasdaq.

By the way, i follow the NYSE TRIN and NYSE TICK because i am use too these values.
But has anyone tried to develop a custom TRIN and TICK indicators based on price and volume actions of the Nasdaq 100 stocks ?
I guess this would be providing more relevant information if you trade only such stocks...

Happy Trade,

Eddy
 
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