DOWN — #MarketTiming with the #NYSI — 01/02/2024

The stock market either goes up or goes down, taking its stocks and ETFs with it. And yet It is amazing how difficult it is to recognize that simplicity.

THE TRADING STRATEGY

Short-term swing trading: When the NYMO turns up, it is time to buy stocks on the next open. When the NYMO turns down it is time to sell stocks on the next open.

Longer-term swing trading: When the NYSI turns up it is time to buy stocks on the next open. When the NYSI turns down, it is time to go to cash or to go short on the next open.

Most stocks and ETFs move with the market.

Simple as that.

02/02/2024 — END OF THE DAY…

New Year, new market?

With the NYMO once again giving warnings (see the red highs below highs on the chart below, The NYSI buy signal, from the open of November 1st, turned down today.

That is a sell on the open of 2/3. No use arguing about it.

Geez…and just when everyone was getting so bullish — CNN Money’s “Fear and Greed” index was lodged at the “extreme greed” level for seven consecutive trading days. That is not sustainable.

As I cruised around the various internet stocks and options sites, it seemed to me everyone was buying calls on stocks, reveling on how much they were going…