Timing Stock Trades with the #Nifty50StockList — Part 2

THE STRATEGY

As has been said before the point of the Nifty-50 Stock List is to be able to see extremes, especially at the end of a down swing.

To reiterate the strategy is whenever 40 or more stocks on the list are on sells that is most often the bottom or the beginning of the bottom of a down swing. The buy signal is triggered with there are no longer 40 or more on sells. If the list returns to more than 40 sells after giving a buy signal that is stop-loss signal for the market (and likely a sign of a deeper down trend).

THE BUY SIGNAL — 7/12/21

There were 46 stocks on the list on sells last Thursday (7/08) in a deeply oversold market. Hard to believe with the market indexes near all time high but it is what it is. As the strategy indicates that is either a bottom or the beginning of a bottom.

Friday looked like “the bottom” itself.

Twenty-nine stocks on the list gave individual buy signal as the market surged across the board — only two Dow stocks, for instance, were down on the day.

Friday’s buying, from 46 stocks on sells to 32 on buys, created a Nifty50StockList buy signal for Monday’s open.

One might want to review what happened the last time this happened — Timing Stock Trades with the #Nifty50StockList (Part One). There are highlights in that link including a batch of meme stocks — AMC , GME, BB, CLOV — notching 100% gains on the…