Description:
Our Program Trading section contains the following indicators:
Program Trading in % of Nyse Volume
Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more. Stock-index arbitrage is defined as the sale or purchase of derivatives such as stock-index futures, to profit from the price difference between the basket and the derivatives. Under Rule 80A, when the DJIA moves 50 points or more from the previous day's close, index arbitrage orders in stocks of the Standard & Poor's 500 are subject to a special tick test. Program traders are contrarians. They buy into weakness and sell into strength. Be assured that these people know exactly what they are doing. When program trading becomes excessive the market becomes vulnerable.
Please note that program trading data is updated weekly and is always one week behind the date it is posted. Change of calculation: Program Trading as a percent of NYSE volume was formerly calculated as program buy volume + program sell volume as percent of NYSE volume. A more accurate calculation program is now used by the NYSE (shares bought, sold, and sold short as a percentage of NYSE shares bought, sold, and sold short).
Indicator Details
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Bullish: High readings |
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Bearish: Low readings |
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Program Trading Buy/Sell Spread
Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more. Stock-index arbitrage is defined as the sale or purchase of derivatives such as stock-index futures, to profit from the price difference between the basket and the derivatives. Under Rule 80A, when the DJIA moves 50 points or more from the previous day's close, index arbitrage orders in stocks of the Standard & Poor's 500 are subject to a special tick test. Program traders are contrarians.
They buy into weakness and sell into strength. Be assured that these people know exactly what they are doing. Please note that program trading data is updated weekly and is always one week behind the date it is posted. The Buy/Sell Spread is the ratio of purchases and sales.
Indicator Details
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Bullish: Readings below -10 |
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Bearish: Readings below 35 |
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