With the NYSI DOWN it appears the bears are out for blood — 1/03/2024

The stock market either goes up or goes down, taking its stocks and ETFs with it. And yet It is amazing how difficult it is to recognize that simplicity.

THE 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.

Most stocks and ETFs move with the market.

Simple as that.

02/03/2024 — END OF THE DAY…

This only day-one of the NYSI sell signal. It triggered yesterday for today’s open and the blood bath appears to have already begun .

Forty-five of the stocks in my Nifty50StockList were down from yesterday’s close although 17 managed to rise off their opens. Not a lot except for those in Crypto mania — MARA, RIOT, IREN, COIN (I doubt their exuberance will hold up if the NYSI keeps dropping).

And eight out of nine bearish leveraged ETFs had a good day as expected, led by LABD up 4.7%, TZA up 4.2, and BNKD up 3.6% from the buys on the open.