#SwingTrading the NYSI — 10/7/22

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.

After a one-day uptick the NYSI turned down yesterday triggering a buy signal on the open today in the 3xLeveraged ETFs.

Amazing some times how promptly the market (and the news) can obey the turns in the NYSI…

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 current gain (in this case for one day, 6%).