THE STRATEGY

As has been said before the point of the Nifty-50 Stock List is to be able to see extremes, especially at the end of a down swing.

To reiterate the strategy is whenever 40 or more stocks on the list are on sells that is most often the bottom or the beginning of the bottom of a down swing. The buy signal is triggered with there are no longer 40 or more on sells.

Yesterday, 5/11, there were 40 stocks on sells. Today there are 38, giving the buy signal for the tomorrow’s open.

So what’s next?

We…


THE MARKET SIGNALS:

When the NYMO turns up, that is a short-term buy signal on short-term market breath and when it turns down it is a sell signal.

When the NYSI is rising that is an intermediate buy signal on positive market breadth, and when it turn down that is a sell signal.

THE STOCK SIGNALS:

When a stock that is oversold quits being oversold that is a stock buy signal; if it returns to oversold before becoming overbought that is a stop; if it becomes overbought and ceases being overbought that is a sell signal; if after ceasing to…


There are so many options strategies in the stock market the head spins — a straddle, a strangle, a naked and/or a covered put and/or call, a calendar, a condor, an iron condor, an iron butterfly (isn’t that a rock band?) and any combination of any of these for hedging purposes, for capital appreciation or preservation, for gambling. Mind boggling.

But buying options…

Buying options, just plain buying a call or a put, everyone will say is a “fool’s game.”

Regardless of whether a trader buys calls or puts on index ETFs like SPY or QQQ or IWM, or buys…


SIGNAL — LONG ON OPEN 3/29/21 — ELEVEN TRADING DAYS

See the CONTEXT FOR BUYS AND SELLS outlined near the bottom of this thread.

Update 4/13/21 — Selected Stocks

Since the buy signal on the market open eleven trading days ago, three bellwether stocks in the list have made significant move up.

TSLA is up 23.23%, NVDA is up 21.1%, ROKU is up 26.6%. See the charts below.

The all-important NYSI is rising so there should be more to come in the list in general.

Update 4/8/21 — — Selected Stocks:

Two charging station stocks have surged in the past…


When the NYSI turns up it is time to buy stocks.

And when the NYSI turns down, like now, it is time to go to cash or to go short.

For example, BA and CGA.

BA (Boeing), a stock in the Dow, is down 2.42% at the moment on bad news. It announced it would not reinstate its dividend any time soon. Who could not see that coming?

Funny how bad news so often agrees with the NYSI going down.

CGA (China Green Agriculture) is a fertilizer company. Its stock is down 17% as of this writing triggered by the…


I have been asked how I calculate the buys and sells, as well as the overbought and oversold, for the stocks in the list. I have made as simple as I can. I use a nine-bar Channel Commodity Index (CCI), but RSI, MACD, Stochastic indicators will work too.

Let’s walk through a recent swing on a stock or ETF — in this example, SPY on the chart below.

At the vertical line, SPY is color-coded in blue which means the CCI is below negative 100 and SPY is on a sell, oversold. As the bar turns green and the CCI…


Update — 5/12/21, end of the day.

Today’s at-the-money 411 PUT closed the day trade up 235% (despite being stopped for 10% losses twice).

The chart below is set up to display the dollar and percentage gain per each $1,000 position (scalable, of course) in the white flag on the right axis.

(Click on the chart for a larger view)

Tweet on the position:


Update 5/12/21.

As has been said before the point of the Nifty-50 Stock List is to be able to see extremes, especially at the end of a down swing.

To reiterate the strategy is whenever 40 or more stocks on the list are on sells that is most often the bottom or the beginning of the bottom of a down swing. The buy signal is triggered with there are no longer 40 or more on sells.

Yesterday, 5/11, there were 40 stocks on sells. Today there are 38, giving the buy signal for the tomorrow’s open.

So what’s next?

We…

Michael Petryni

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