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!
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.
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.
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