Thursday, March 3, 2016

NYMO McClellan Oscillator and NYA NYSE Composite Daily Charts Near-Term Market Top At Hand

The NYMO launches to 94.16. Sell, Mortimer, sell. The red circles show near-term market tops and the green circles are near-term bottoms. What do you think will happen?

The last reading in the 90's in October forecasted an immediate move lower in stocks, about 30 handles on the SPX, however, the stock market did recover and not place a firm peak until a couple weeks later at Halloween. Stocks sold off harshly from that point the SPX dropping nearly 100 handles during the first two weeks of October.

So the high NYMO says a market top is at hand. Keystone bot index shorts yesterday and added to them as stocks ran higher into the closing bell. A pull back should occur but it may require a very nimble trade especially if a fractal plays out like the blue box in October. Nonetheless, the excessive 94+ reading hints that stocks will be lower than current levels say a few days out and then also about one month out.

When stocks begin dropping, watch volatility. If the VIX moves above its 200-day MA moving higher than the market selloff is the real deal and has legs. If stocks drop but the VIX remains under the 200-day MA, then profits on the downside need to be taken quickly and the short trade exited quickly. The stock market will rally as long as the VIX is under the 200-day MA. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.