3 Critical Market Internals to Consider Before Day Trading

>>>The hidden Wall Street movement around Nvidia’s HUGE earnings announcement — LIVE at 2 PM ET today!<<<

Looking at market internals before making day trading decisions is a critical part of my real-time analysis that’s often overlooked. 

So in today’s video, I’m going to walk everyone through how I use three different indicators, the $TICK, $TRIN and the A/D Line ($ADD), which is also known as the advance/decline line.

I’ll explain how these indicators can provide insights into institutional buying and selling activity, market trends and the overall health of the stock market at any given time.

We’ll cover: 

📈 $TICK: A positive $TICK indicates institutional buying, while a negative $TICK signals selling. Extreme readings (above 800 or below -800) signify strong buying or selling pressure.

📉 $TRIN: This index measures the overall trend of the market. A high reading (above 6) suggests an extreme overbought condition, while a low reading (below -2) indicates an oversold market.

📊 $ADD (Advance/Decline Line): This indicator tracks the number of stocks advancing versus declining. A divergence between the A/D line and the S&P 500 can indicate that a handful of stocks are propping up the market, potentially leading to a sharp decline if these stocks pull back.

👀 Correlation: It’s important to watch for correlations between these indicators and the overall market. For instance, if the $TICK is down while the S&P 500 is up, it could signal a potential reversal.

⚠️ Red Flags: Discrepancies between internals and the overall market movement can be a red flag, suggesting potential weakness or unsustainable momentum.

Check out today’s video up top for the full rundown — and look below for a couple of earnings plays for this week!

Order Flow: 

This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.

When you look at these plays, always take the market maker move into consideration.

You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.

With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.

Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!

And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!

If a stock’s moved a ton already today, maybe wait for a pullback.

There is inherent risk in trading. Trade at your own risk.

The team at Lance Ippolito Trading

Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros. 

You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito 

And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx 

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. This Is NOT Your Typical Earnings Setup

First, it was the trade war fears…

Then Nvidia dropped 37%, and Michael Burry made a killing on his puts.

Next came the “full recovery” headlines as the stock climbed back above $3 trillion in market cap.

Now, analysts are talking about “narrow margins favoring upward revisions” ahead of tomorrow’s earnings.

The story keeps changing.

But you know what hasn’t changed?

The shadow sweeps.

All morning, my scanner has been picking up the same unusual activity patterns across the 16 options exchanges.