When the #NYSI Market Timing drives the Darvas Boxes —

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.

11/30/2022 — During the day…

Despite all the news, or maybe because of all the news, things must be looking up in China.

Looking up certainly for the Chinese stock twins in the Fang Index — BABA and BIDU — with a lot of help from the NYSI of course.

This all retrospect but the point is the past always points to the future.

BABA and BIDU are on a watch list…

The NYSI turns up with a buy signal on the open of the 10/24. BABA and BIDU are both buys right there (see the chart panel below).

Now as the advance gets going they trace out Darvas Boxes (see the chart panel below). And both stock break…