Using Market Internals In Trading


EWT analyst Princely Mathew, host of The Smart Money service in our Trading Room, discusses what market internals are and how he uses them in trading. 

Princely explains in this video how market internals allow you to better understand what underlies moves in the indexes by examining the data about the stocks that make up those indices.  Such analysis can assist in determining whether price moves are supported by a majority of stocks or just a few stocks, enabling traders to gauge the underlying health of market and specific indices. 

Princely discusses the kinds of market internals available, including the New York Stock Exchange Advance-Decline data, which gives you the sum of advancing issues minus declining issues on the NYSE each day. 

Another important market internals instrument is NYSE High-Low data, which measures the number of stocks making new highs in a session minus those making new lows going back 1 month.  This is data that Princely uses most in his trading.