#SwingTrading the NYSI — 10/10/22

THE SIMPLE 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 indicators of market direction.

Most stocks move best with the market.

Simple as that.

With the NYSI again falling the 3xLeveraged bearish ETFs followed through across the board today on their gains from Friday’s open…

Today’s highlight — SOXS, the bearish semi-conductor ETF, now up 21% in two trading days.

When a bear is at play, it can maul ever sector in the market.

The green flag on the chart below shows the gains per each $10K traded a closed since the NYSI first-turn-down on 8/19. The white flag is the gain on the current swing trade.