2024-05-02H TQQQ Rose on Thursday, but Volume was Light. Nasdaq rose 1.5% and Its Volume was lighter, too.

2024-05-02H  TQQQ Rose on Thursday, but Volume was Light. Nasdaq rose 1.5% and Its Volume was lighter, too.

Armchair Investor Newsletter. The market gave back5 of last 8 winning days!  Then on Wednesday,the TQQQ lost another 2.3% with a 40% increase in volume for a Major Distribution day.

I was pleased to see the TQQQ rise almost 4% on Thursday.  (I wish the volume was higher.) Look at the black box I have drawn in over the last 4 weeks. What color are the highest volume bars?? Yes, Red! Showing that much of the highest volume was on price drops (distribution, selling days.)

I am NOT sure that the TQQQ dropping is over.  Hang onto your hat!

NOTE:  I am NEVER shy about selling a stock to pocket a profit or to stop losing money in it.

The TQQQ has been a real winner for me but most of the market is now rolling over.  I like that the TQQQ rose Thursday, but the below average volume gives me no faith that the TQQQ has finished dropping.  When the TQQQ doubled since November of 2023,I was excited.  

But when I see the TQQQ falling faster than it has been rising, I suspect the downward drift is NOT YET OVER.

Look at the current table of the THREE MAJOR MARKETS below. The Nasdaq and the S&P500 are holding just below their recent highs. It looks like the DJIA has found a place to hide.

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PAPER TRADING:  If you aren’t comfortable getting in the inverse QQQ (or triple inverse QQQ called the SQQQ), consider holding asmall position ON PAPER  (which means you don’t buy any of the stock, but you track it on paper as if you had… to see how great the market treats you!)

For your information:  The TRIPLE SHORT QQQ  is the SQQQ.

If you missed my note and chart about the SQQQ (the triple short QQQ), just think “inverse.”  

 That’s what "shorting” A stock does. That short position in the SQQQ will rise when the QQQ and TQQQ fall.  

It may seem strange, but the charts will look very similar…. Until you do the math and see the 3x factor in the pricing.

 >>> What can we do when the TQQQ is falling? (see chart below) Just sell theTQQQ (or any other QQQ you own), and  wait in CASH….. or buy the inverse – the SQQQ which will rise when the TQQQ is falling. That is what an “inverse” stock does.

NOTE THE WAY the picture of the TQQQ and my 20-DAY TABLES (below) make the market reversal sooo clear.

I was surprised about the fast drop 3 weeks ago.  Did you notice the rising volume as the TQQQ rose over the last 2 weeks? Then you probably were not surprised about the lower volume as the TQQQ tried to recover some  of its recent losses.

Of the last 20 days, the Nasdaq

NOtice the 2 blank boxes below.. They should both be "Neither" boxes.

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The most recent three rising days (4/22through 4/24) set the market up for a possible new Uptrend.  If you step back and look atthe TQQQ chart above, its failure is clear.

>>> MY CURRENT ACTION PLAN:  Wait in CASH!

Comment: Ihave not earned as much playing the S&P500 as I do in the TQQQ. So I staywith 100% of my investments in the TQQQ or SQQQ when the market is clearlyfalling.

>>> TheAccumulation/Distribution table for the current market has an error which I cannot fix quickly.  I hope to have itback up tomorrow.

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The only waywe will know which way the market is moving is to watch the market….. eachday.)  

Please consider reviewing this newsletter daily:  The markets can change direction and strength quickly!

NOTE THIS WARNING.  Holding onto a falling stock, (whether an ETFor the stock of a favorite company), is a quick way to lose your recent gains.If you play individual stocks and ETF’s, play carefully. Use the real returns(daily, weekly, monthly)

IT IS COMMON FOR STOCKS, ETFs, AND FUNDS TO FALL FASTER THAN THE RISE.

Of course, I do not sell a position that has been rising well after one or two small down days. But if you had a significant loss over several days, especially if there is an increase inmarket distribution days (down days on higher volume), then stepping outand waiting in cash can help you save your portfolio for future rallies and let you sleep at night.

>>>> Stay tuned for Thursday’s and Friday’s results!

One additional “Word to the Wise”…

>>>MOST MARKETS FALL FASTER THAN THEY RISE. Beware of buying any new positions unless they are very healthy.

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Wishing you best returns in your portfolio!.

Charlotte Hudgin,

The ArmchairInvestor newsletter

For activesubscribers, my phone number is (214)995-6702

May your stock portfolio grow and grow and grow as this giraffe family has!