1/24/2023T UPTREND Armchair Investor strategy + 6.2% Year-to-date

1/24/2023T  UPTREND  Armchair Investor strategy + 6.2%Year-to-date

THE MARKET’s MESSAGE:  Market (QQQ) shows upward strength, +6.2% in 2023

On Monday I called the market “optimistic” about the current Uptrend. Tuesday’s  price/volume action was another small mix. Not only did the major index’s prices not move much, but they didn’t agree with each other (Nasdaq –0.3%, S&P500 -0.1% and DJIA +0.3%.) The moves were fairly small. No serious message there.

The reason the “Buy & Hold” return is 1.8% higher than the Armchair Investor return is that the ACI did not buy the QQQ until the market diagnosis went into Uptrend on January 9 opening price. I expect to exceed the “Buy & Hold” returns as we take advantage of the market direction changes. (that is – getting out of the QQQ and waiting in cash when the market goes into Downtrend (or Downtrend under Pressure.) STAY TUNED!

Either way, if you follow this newsletter, you have a strong return for 3 ½ weeks into the new year.  Congratulations!

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Sometimes the market takes off in a new direction at a gallop and sometimes at a moderate trot.  I think Tuesday was the slower trotting day.

But total it all up and I note that the percent of stocks with an “A” or “B” rating (showing they are under accumulation) shows 60% of all stock are being heavily bought – a big increase compared to 42% As and Bs just 4 weeks ago.

·       The Rising/Falling stock ratio is 0.9, just 1 click below even.

·       And note two of the three major indexes have mediocre “C” ratings with the Nasdaq leading the rise with a B rating.

In the MARKET FACTORS, COUNTS AND RATINGS  table below, note the large number of GREEN ratings, indicating the strength of this Uptrend.

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Regarding the MARKET ACTION TABLE below, what do the last 20 days show ABOUT MARKET DIRECTION AND STRENGTH?

Notice the highlights in the price column.

·      The RED highlights point to new lows in these 20 days. Notice there were just 3 in the past 20 days and they are close to timing off this table.

Then look on down the PRICE column and see the seven out of the last ten days.

·      The GREEN highlights point to days that hit new highs in the last 20 days. You probably noted this pleasant run-up as you scanned the PRICE column.

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BOTTOM LINE: Notice the number of days that the Nasdaq closed at a higher price (green highlighted daily price.) Pair these raw price rises with  ONE DISTRIBUTION DAY in the last 14 trading days.

MY CLOSING, SUMMARY THOUGHT: This market continues to strengthen!

STOCK WATCHING:  Send your suggestion on which stocks to follow in this newsletter.  I am looking for just one interesting stock at a time, for training purposes.

Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  (214)995-6702

www.ArmchairInvestor.com   (214)995-6702   editor@armchairinvestor.com

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