Stocks on the run, day-four with the $NYSI upswing— 07/13/2023

THE TRADING STRATEGY

Kennedy Gammage, the late great market timer, used to say “Buy when the market tells you, sell when the stock tells you.”

With a wink of his eye what he didn’t say was most often the stocks tell you at the same time as the market, and except for rare exceptions, one might as well buy or sell at the same time.

Mr. Gammage’s market tools were the McClellan Oscillator ($NYMO) and the McClellan Sumation Index ($NYSI).

The NYMO is a short term market-breadth indicator based on the New York Stock Exchange Advance/Decline line, and the NYSI is its longer-term brother.

TAKEN TOGETHER

The two breadth indicators are the clearest indication of mass market psychology which is to say: market direction, up or down.

When the NYMO and NYSI rise, it is time to buy stocks, ETFs, calls, futures, whatever money-maker one likes best.

When the NYMO and NYSI (especially) are falling, it is time to get out of the way of the falling knives.

There really is no reason or excuse for arguing…

07/13/2023 — During the day…

Forty of the stocks in my Nifty50StockList are up on the day as the NYSI up surge, which began on Monday’s open, continues into day four.