Timing Trading System Portfolios based on Market Internal Patterns - NYSE TICK

The NYSE TICK hit -1552 this afternoon. This was the lowest afternoon low since January 26, 2022. There are other NYSE TICK lower lows but they usually occur at the open of the day. We wanted to look at only the afternoon highs and lows of the NYSE TICK so we created a four hour custom session to pinpoint the significance of this afternoon's sell off.

We also took a look at what happened on January 26 in the market as well as the portfolio. The market moved higher and the portfolio hit new equity peaks over the next 3 days, following the January 26, NYSE TICK low reading of approximately -1500.

Examining these types of extremes can help pinpoint entry points into a portfolio.

The sample size here is only one since there was only one other time this happened in 2022. On January 26, the Stock Index Portfolio was down -$11k and in a $24K drawdown.

Today, October 11, 2022, the Stock Index Portfolio was up on the day and is only in about a 7k drawdown. It is possible we could see a big move up or down this week.

September CPI is released on Thursday.