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. …


When one buys an option in the stock market there are only three things that can happen and two of them are bad for the buyer. It goes your way right away which is good. It goes against you, which is bad. Or it goes sideways and time decay eats away the premium paid, which is bad.

It’s the same selling an option but much better because the time decay is on the seller’s side. If the stock goes sideways, the seller keeps the premium on the option. …


THE STRATEGY

See below for context.

Posted 6/14/21– 22 trading days since the 5/13 buy signal:

Haven’t revisited this story for about a month. As has been said it’s buy when the market tells you. Going into today all general market buy signals — the NYMO, NYSI and the Nifty50StockList — were in play.

So what to do with stocks?

There were several big moves across the Nifty-50 list that would drive call trades, AMZN, ROKU, NFLX (which has lagged this up swing and was due for a run up), but I’m really here to suggest it’s timing moments like…


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…

Michael Petryni

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store