Timing Stock Trades with the #Nifty50StockList

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 latest buy signal was on the open, 5/13/21 and continues.

Posted 6/8/21–18th trading day:

The #MemeStocks — $AMC $GME $BB $CLOV — all notched 100% gains intraday today on the Nifty50StockList buy signal 18 trading days ago.

They are in a spectacular manic rally much like the dotcom stocks were in their heyday. This will end badly, as it did for many of the dotcoms, but in the meantime there is fast money to be made.

The players on “WallStreetBets” on Reddit and Facebook, who think they alone are fueling the short squeezes in the stocks of these fundamentally weak if not worthless companies, believe they will ever have price collapses.

They are deluded.

The prices will collapse eventually, of course, because there is nothing new in the stock market and all this too has happened before.