Thinking out loud about $BA when a door blows off one of its planes while the NYSI is falling —…

THE SIMPLE SWING 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.

The NYMO and NYSI are both derived from the McClellan Oscillator. They are to my mind the best measures of stock market mass psychology, measuring the swings from fear to greed and back again, and the best indicators of market direction.

Most stocks move best with the market.

Simple as that.

01/17/2024 — DURING THE DAY…

Saw the funny illustration above at WallStreetBets on Reddit, funny since fortunately no one was hurt when the door flew off the Boening 737 MAX during a flight Janurary 5th, and funny because a door flew off during a flight.

So could one buy puts from the plane in mid-flight?

Doubt it, but it is fun and funny to think about if one is an addicted options trader.

The NYSI triggered its sell signal for the general market for the open of January 3rd, just two days before the Boeing door went bye, bye…

As stated in the simple trading strategy for stocks and ETFs, most stocks move with the market and, of course, BA is no exception.

I don’t follow the stock on a daily basis so I had to take a look back prompted by the illustration above.

And what did I find?

No surprise.

BA is down, as of this writing, nearly 18% on NYSI sell (or short) signal. That would. indeed, have been a whopper of a put trade if one took a flyer (so to speak) on puts on the plane, and it appears even on the news after the news was out.

Once again it take some time for BA to recover, especially with the NYSI still driving it down.

The red color-coding on the chart below is the NYSI sell signal. Green marks the previous NYSI rally.

The white flag on the chart’s right axis shows the dollars/percentage gain so far for each $10K put in a short trade.

(Click on chart for a larger view.)