The Next Big Thing in Stocks: A Crazy AI Journey
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Chapter 1: Introduction to Swing Trading
Swing trading can be a straightforward yet powerful approach to navigating the stock market.
When the NYMO indicator rises, it's advisable to purchase stocks at the next market opening. Conversely, when the NYMO declines, it's time to sell at the next opening. For longer-term strategies, the NYSI indicator should be used similarly: buy when it increases and either go to cash or short sell when it decreases. Both the NYMO and NYSI stem from the McClellan Oscillator, offering insight into market psychology by capturing the ebb and flow between fear and greed.
Section 1.1: The Importance of Market Trends
Most stocks tend to follow the market's lead, so understanding market indicators is crucial.
Recently, while searching for promising stocks, I stumbled upon an intriguing article that focused solely on stock symbols containing the letters "AI." It might sound a bit irrational, but history shows us that many successful market trends have emerged from seemingly bizarre ideas. Consider names like Amazon, Apple, and Google—each of these started off with unconventional branding.
In this article, the author highlighted three stocks with AI-related symbols: $AI, $GFAI, and $BBAI. While I can't locate that article anymore, I wish to express my gratitude to its author for shedding light on these opportunities.
Section 1.2: Analyzing AI Stocks
Those familiar with the swing trading signals I've outlined know how to act: buy if the NYMO is positive and sell if it's negative; similarly for the NYSI. The nature of a company’s business is secondary to its stock symbol when these signals are strong.
After examining the AI stocks through the NYMO and NYSI indicators for the year, the findings were astonishing.
The top row of the charts below illustrates the NYMO signals, while the bottom row reflects the NYSI signals. The green flags indicate closed trades based on the strategy for each $10,000 invested:
- $AI: Up 73% on NYMO trades, 116% on NYSI swings.
- $GFAI: Up an impressive 470% on NYMO and 478% on NYSI swings.
- $BBAI: Up 238% on NYMO trades and nearly 700% on NYSI trades for each $10,000.
These results highlight the potential of these stocks for swing trading, but caution is advised. It's essential not to become overly attached to these stocks, as volatility can lead to sudden downturns.
Chapter 2: Cautionary Tales in Trading
The first video discusses the anticipated volatility in stocks over the next 25 days, which aligns with the unpredictable nature of trading.
The second video focuses on the top five AI stocks that are significantly outperforming the market in 2024, providing further insights into potential investment opportunities.
As we continue to explore these promising stocks, it's crucial to remember past instances like AMC and GME, where initial excitement led to wild fluctuations. The white flags on the lower right of the charts indicate current trades, showing how GFAI, after a stagnant period, surged by 16% due to the NYMO's recent uptick.
(Click on the chart panel for a larger view.)