The NYSE Momentum Cycle – Are you Flying Blind?
If you are like most investors you concern yourself with questions like, “is this the right time to buy?” The answer isn’t that simple however, we can monitor cycles, bullish and bearish momentum indicators and cycles as they ebb and flow.
The momentum indicators we use during our daily LIVESTREAM broadcast give us a barometer of market temperament and a sentiment. If institutions are net buyers momentum and breadth indicators, among other things will allow us to ride the wave.
Buy Low Sell High – The Cycle
While this is a trite phrase, it shouldn’t be ignored. Cycles assist the investor that knows how to use them to their advantage, especially when coupled with a strategy.
New highs minus new lows is a simple indicator. But, it is very useful when used with other charting strategies. Here is the NYHL midday Tuesday.
Note High, Low, Open, Last and Change%.
This is NYHL at the closing bell (MOC) or market on close. If you look at nothing else, do pay attention to Change%, the moving average (black line) and the histogram (green and above zero line). These bits of information tell us to ignore CNBC and the intraday noise.
The cycle is up until it isn’t, right?
We can buy and add to bullish setups until we see a peak in this simple indicator. We also watch NYAD in the lower panel, up down volume during the day and bonds. These “cycles” do not turn in one day, so monitoring gives us a glimpse into institutional sentiment over longer time frames.
What did you use to exit stocks during the market rally in January?
We were using this indicator among others, as a signal to sell into strength during the January rally. As the cycle turned recently, it prompted us to begin establishing new positions, with cautious optimism.
Are they buying, selling? Cycles do help.
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