Thinking Out Loud About Swing Trading — 02/27/2024

Market Timing to reap rewards and control risk

Feb 27, 2024

THE NYMO/NYSI SWING TRADING STRATEGY

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.

02/27/2024 — Before the open…

This is probably the worst time to bring this up but…

The NYSI turned down yesterday triggering a sell signal for today’s open. The indicator is in the midst of a month-long whipsaw which does not happen often but when it does it is confusing and uncertain and dangerous.

But at the same time it must be played because in the stock market, as has been said, the god of trading rewards “persistence, experience, and discipline, and absolutely nothing else.”

Today’s sell is after only two trading days up.