It’s said no one can time the market when everyone can

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.

The NYMO and NYSI are both derived from the McClellan Oscillator. They are to my mind the best measures of stock market mass psychology, measuring the swings from fear to greed and back again, and the best indcators of market direction.

Most stocks move best with the market.

Simple as that.

SIGNALS:

3/21/2022 — During the day…

Been quite a while since I returned to posting examples of this simple market-timing stock-trading strategy so I decided to use this tweet by Mr. La Monica today to get back into it.

So SHOP is down 10% today on no news?

But…

The stock, finishing on the high of the day, was up 36% Friday on the NYMO buy signal, three trading days, and up 26% on the NYSI signal in two trading days (see the signal explanations above).