Using NYMO cycles can increase your odds and produce more winning stock picks. When the cycle turns up, that literally means more stocks are being bought on increasing volume. Adding a moving average assists in identifying the peaks and valleys. Short weak stocks or exit long positions at the top of cycles.
NYMO Cycles – Where Are You Now?
Over two weeks ago when NYMO began to peak, breadth deteriorated, diverging from price action. We began to exit winning stock picks and started looking for weakness. Just a week ago, we pointed on the statistical probability that we were about to experience a bounce of perhaps 2% or more. The (-82.13) was the extreme level that suggested a shift in character was near.
If this NYMO bottom confirms, as we point out in my book, NYSI in the bottom panel turn back up and the moving average (magenta line) in the upper panel will turn up as well. At this point, the cycle up will become obvious to the “crowd”.
Already this morning we see lots of green in pre-market trading. Stocks like BZUN (have a position post-EPS) and MOMO were lower after they reported earnings earlier in the week. Bargain hunters are stepping in for the second day pushing both of these stocks markedly higher.
Semiconductors – An Opportunity?
Semiconductors appear to be catching the eyes of investors, as many stocks in this group saw buying yesterday. AMD, MU, NVDA and ON are a few stocks worth considering today.
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