NYSE

Keep Your Eyes On the RIGHT Chart!

March 6, 2015 by Timothy Mullooly

Stephen Suttmeier made a pretty interesting commentary regarding the NYSE chart. After we found this on Josh Brown’s website, we wanted to share it with you!

Recently, the focus on many investors, and many market-related news articles, have been about the NASDAQ and how it reached 5,000. Don’t get me wrong, that’s a great thing, but we think people might be focusing on the wrong chart!

The trend chart for the NYSE appears to be ready for a big breakout at the 11,100 area. This ties in nicely with the point and figure backdrop we have been seeing on many of our charts. In the very immediate short term, some charts may be expecting a pullback, but with our intermediate term indicators pointing higher, it could be a small hiccup on the way to better days!

Source:
http://thereformedbroker.com/2015/03/05/youre-all-looking-at-the-wrong-chart/

Fast Way to Tell If a Stock is NASDAQ or NYSE Listed

June 23, 2014 by Thomas Mullooly

Have you ever wanted to know whether a stock traded on the NASDAQ or New York Stock Exchange? There’s a simple way to determine which exchange a stock trades on. While it’s not always correct, more often than not you can tell which exchange a stock belongs to by looking at its ticker symbol. Tom discusses that in this week’s Mullooly Asset Management video.

If a stock symbol has three letters or fewer it is most likely a member of the New York Stock Exchange. If a stock has four letters or more it is most likely a member of the NASDAQ. Additionally, mutual funds will have 5 letters in their symbol and the last one will be an x. Like we mentioned previously, these aren’t always correct. More often than not, this will help you correctly analyze whether a stock is traded on the NYSE or NASDAQ.

Differences Between the NYSE and NASDAQ

June 18, 2014 by Thomas Mullooly

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It’s often taken for granted by those familiar with the stock market, but plenty of people don’t know the difference between the New York Stock Exchange and the NASDAQ. There are several, key physical and financial differences in these exchanges that everybody should know. Tom and Brendan discuss these differences and more on this week’s Mullooly Asset Management podcast.

You may have heard the NASDAQ referred to as the OTC Market. It’s sometimes called this because it has no real physical location, like the New York Stock Exchange. Until about 1987 it was only called the OTC Market. Currently you’re more likely to hear it called the NASDAQ. What does NASDAQ stand for? It’s the National Association of Dealers Automated Quotations. The association is made up of all the member firms that trade with one another. Each of them has the ability to buy, sell, and post quotes. The NASDAQ, or OTC Market, started in the 1960s trading penny stocks on pink pieces of paper called pink sheets. You had to call in and get prices on most of these names. Today the system works electronically using the small order execution system (or SOES). The shift to electronic trading happened after market makers decided to not answer their phones during the 1987 stock market crash.

Before covering the NYSE, Tom and Brendan briefly discuss the American Stock Exchange. It’s currently owned by the New York Stock Exchange, but (for some stocks) it used to serve as a stepping stone between the OTC Market and the NYSE. Smaller companies started in the OTC Market and some moved to the American Exchange before finally ending up on the New York Stock Exchange. The American Stock Exchange was also sometimes called the “Curb Exchange”. It got this nickname because pre-1921 trades actually happened outdoors. Crazy stuff! During the 1980s, a lot of options trading was done through the American Exchange. Trading volume was never quite as high as the NASDAQ or NYSE though.

Finally we have the New York Stock Exchange or the “Big Board”. Located on the corner of Wall Street and Exchange Place in New York, if you’re ever in the area we recommend taking a tour. Many people think of the NYSE as a large cap exchange, but a solid percentage of the stocks trading on it are small and mid cap. Pretty much all large cap stocks are a part of the New York Stock Exchange though (not including Apple, Microsoft, and Google). The market capitalization of all the NYSE stocks is about $16 trillion!

As you can see, many differences exist between the NYSE and the NASDAQ. Make sure to listen to this week’s Mullooly Asset Management podcast to learn more about these exchanges!

You might also enjoy checking out this post regarding some additional differences between the NASDAQ and NYSE: http://www.thesecuritiesedge.com/2012/07/where-to-list-nyse-or-nasdaq/

Relative Strength : Citi Bank Under $10 per share?

November 12, 2007 by Thomas Mullooly

We’ve been saying for months to avoid real estate, financial, insurance, banking, and brokers. This past week, all of these sectors were taken behind the woodshed and slapped silly again.

See, when you add up all of these sectors, we’re talking about a group that represents almost 1/3 of the S&P 500. So, of course the market will get smacked.

There have been several attempts in the media to compare what’s happening now with this group to what happened to the same group in 1998 — during the “Asian flu” and the Long-Term Capital hedge fund implosion.

Look, I don’t think we’re going back far enough.

Think back to 1990. Iraq had just invaded Kuwait, the US economy was slipping into a recession, several large leveraged buyouts had melted, and the real estate market was cooling off after a really fabulous run through the mid-to late 1980s.

Citibank soon dropped below $10/share.

There were also many several well-known banks throughout New York and New Jersey (and up and down the East Coast) that were trading for $2/share. Or less.

Has everyone forgotten that?

Many of the stocks in these sectors have broken support and are essentially in free fall. It does NOT mean the carnage is guaranteed to continue, but the likelihood is this may not end tomorrow, either. American Express is just the latest chart in the group to flash the “I’m melting” pose.

Now don’t get bummed out. There are STILL several great places to have your money invested. And we remain invested in stocks with the best relative strength. I know that I sound like a broken record when it comes to relative strength, but it’s VERY important.

So even though — in the short term — we may see some stocks (and some sectors) slip — just know that longer term, we’re in the right places, like stocks on relative strength buy signals. Stocks and mutual funds with the best relative strength are the names that come back the fastest.

If you have any questions, doubts, or concerns, you need to call the office *right now* to book a time to talk with Tom. We are standing by ready to help, at (732) 223-9000.

So, let’s talk soon, ok?

Tom

Thomas Mullooly
Mullooly Asset Management LLC
Our Only Business Is Fee-Only Investment Advice
www.mullooly.net
support@mullooly.net

732-223-9000

How does Bullish Percent Measure Risk in the Market?

May 20, 2007 by Thomas Mullooly

A “buy signal” occurs when there is demand for a stock.

You know from Economics 101, anything in demand will see its’ price rise.

The “Bullish Percent” is a way to count all of the buy signals.

That tells us the *percentage* of stocks that are currently on buy signals.

This is really important, because most people never know when the “party” is starting to end. If the market has had a pretty good run, and the percentage of stocks on “buy signals” starts to fall, we know that money is starting to leave.

Are you with me so far?

The bullish percent chart for all the stocks on the New York Stock Exchange is the primary indicator I use to measure the amount of RISK in the market.

It’s just a percentage, like a test score.

OK, when we see a bullish percent reading of 30%, that means only 30% of all stocks are on buy signals. That’s usually a *great* time to buy stocks, as the risk of losing money (in general) is pretty low.

And when the BP chart moves up, beyond 70%, it’s typically known as the “high risk” neighborhood. It doesn’t mean things are terrible. But, historically, a move down from these levels really hurts.

Put another way, if 70% of all stocks are already on a buy signal, what stocks are left to propel the market much higher?

OK. So where are we today?

The bullish percent chart for all the stocks on the New York Stock Exchange stands in the high risk neighborhood, at 74%.

Let’s be careful.

Tom

Thomas Mullooly
Mullooly Asset Management LLC
Our Only Business Is Fee-Only Investment Advice
www.mullooly.net
support@mullooly.net

Re-writing History on Wall Street

April 3, 2007 by Thomas Mullooly

No wonder many people have lousy opinions of Wall Street folks.
Read on:

Written in Barron’s March 5, 2007 issue, Bill Alpert noted that nearly 20% of “Analyst Recommendations” over a ten year period from 1993-2002 were changed — after the fact.

Twenty Percent!

As a result of the changes, the recommendations seemed to be 15% to 42% better than what actually happened.

In my experience, it made me sick to watch analysts make changes to their recommendations — then see them use the closing price from the night before — rather than the open price (which would be the first chance you could buy or sell the stock).

For example, if a company releases terrible news after the market closes, the downgrade would often cite the previous day’s 4 pm closing price — rather than the lower opening price the next morning — when the downgrade was actually issued.

This is another reason why we want to eliminate the “noise” surrounding a stock…and just follow the supply/demand in a stock or mutual fund. If there are more buyers than sellers, prices must rise.

Simple.

Tom