Updates for this past week’s upswing are in this link:
Again and again, my nifty-50 stock list moves from oversold to overbought and back again to oversold like an ever spinning wheel within the market’s spinning wheel…
And each time there are 40 or more of the 50 stocks on sells, it’s time to sit up and take notice since that is the number that most often signals either the bottom or the beginning of a bottom on each down swing.
I first posted about this strategy in November of 2015 on another forum.
Nothing has changed since then.
Usually it just takes one day of 40 sells, sometimes two days, to set up the bottom of a swing. Should be noted if it goes more than two days that’s is a warning that something bigger may be in the offing (last time that happened was the start of the Covid-19 bear plunge this year).
This is just an FYI since the signal is once again close by.
This is what market timing and swing trading are all about.
The results can be quite remarkable, in leveraged ETFs like TQQQ, TNA, leveraged sector ETFs like SOXL, FNGU, and, of course, hot individual stocks.
The purple marking on this chart are each time there were 40 or more of the Nifty-50 on sells.