Using the NYSI to buy and hold a high dividend stock risk free — $PSEC— 5/15/2024, updated 5/23/2024

THE NYMO/NYSI SWING TRADING STRATEGY

Kennedy Gammage, the late great market timer, used to say “Buy when the market tells you, sell when the stock tells you.”

With a wink of his eye what he didn’t say was most often the stocks tell you at the same time as the market, and except for rare exceptions, one might as well buy or sell at the same time.

Mr. Gammage’s market tools were the McClellan Oscillator ($NYMO) and the McClellan Sumation Index ($NYSI).

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.

In investing the longer-term NYSI is the more important indicator.

It is the market timing signal that starts a trade and can put in place a relatively less risky investment for the long term.

UPDATED 5/23/2024-CLOSE OF NYSI UPSWING…

See below for the original post to lock in profits and hold for dividends.