How the end of the uptick rule changed the $TICK-NYSE?

Discussion in 'Trading' started by Daal, Sep 4, 2007.

  1. Daal


    Doesnt go up as much and when goes down goes to deeper levels?
  2. No, it's the same as it's always been.

  3. right
  4. More opportunity for slippage and the ole' catch-all excuse, "fast market".

    It's lunch time. There is NO free lunch.
  5. Daal


    I believe your wrong

    "The Tick Index. The NYSE Tick Index gives the number of stocks on the NYSE that are trading on an uptick minus those that are trading on a downtick. This is a broadly watched index, especially among short and intermediate term traders. Since the uptick rule has gone into effect, many traders and commentators have noticed that the maximum tick reading of the day has been depressed. And this is easily seen mathematically: the average high tick of the day was 25% higher for the seven days before July 6th than the seven days since. This has happened despite the market’s move up, including the extremely strong move on July 12th. In fact, the 7-day moving average of the high tick of the day is at its lowest value since the sell-off that occurred in May 2006. " D.R. Barton, Jr.(from an article before the correction)
  6. someone on ET wrong?

    cant bee
  7. I doubt that is statistically significant. It's just an outlier. If it persists then maybe, but the cause might not be the uptick change anyway.
    What difference does it make to trading?
    None. I trade NYSE and Nasdaq stocks intraday for a living and it's made no difference to my trading - which is mainly short term momentum reading charts and level 2
  8. step outside your narrrow world and understand that it affects trading. especially index futures

    specifically, it affects index futures, which i trade for a living

    the market is constantly changing. i had to adapt to the change, but as somebody who watches tick almost every second of every day, it absolutely has changed.

    and the cumulative tick readings, and various other metrics confirm this.
  9. Biog


    Agree 100%.
  10. Ok, I shall step outside my narrow world :)

    Perhaps what I should have said was " my narrow world of intraday stock trading using level 2 and momentum, it hasn't made any difference".
    In future I shall be more precise in what I write.

    Are you saying that follow through on index futures is now less?
    Please enlighten me, I am genuinely interested.
    #10     Sep 7, 2007