THE TRADING STRATEGY
Short-term swing trading: When the NYMO turns up, it is time to buy ETFs on the next open. When the NYMO turns down it is time to sell ETFs on the next open.
Longer-term swing trading: When the NYSI turns up it is time to buy ETFS on the next open. When the NYSI turns down, it is time to go to cash or to go short on the next open.
Almost all ETFs are set to move with the market, up or down. Best done with leverage.
Simple as that.
2/23/2022 — TQQQ
Swing trading TQQQ, the leveraged Nasdaq ETF, on the short side is up nearly 40% year to date.
That is to say, when the NYMO turns down short the ETF, and when the NYMO turns up, cover the short.
The white flags on the chart left and right axis below show the dollar/percentage gains for each $10,000 traded. The white flag on the left marks the closed trade while the white flag on the right axis shows the current trade (taken together, about 46%).
TQQQ is down 14.2% on this last down swing, three trading days.
FYI: short results on this strategy do not consistently occur like this in bull markets.