#SwingTrading the NYSI — Day One— 01/04/23 — Crypto Stocks

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.

Who says history doesn’t repeat itself?

The NYSI turned up yesterday giving a buy signal for today’s open.

This is today in the crypto stocks:

Double-digit first day gains in MSTR, MARA, RIOT with MARA leading up 20% already. COIN lags up only 8.8%.

How to play these stocks?

One knows what happened last time the NYSI turned up (see the October post below) so put them on a watch list and wait, wait, wait as a falling NYSI drives them down, down, down (great shorts, by the way), and when the NYSI gives its buy signal jump all over them.