1/25/2023T UPTREND Good News ! Market under heavy buying (accumulation)!
THE MARKET’s MESSAGE: Market (QQQ) shows upward strength, +6.2% in 2023
The markets started the week with two quiet days on lighter volume, waiting for the Federal Reserve’s next interest rate update. We expect the Fed to raise the interest rate by just a quarter point, the smallest rise in interest rates in over a year.
After Monday’s 2% rise in the Nasdaq and 1% rise in the S&P500, Wednesday’s large number of rising leaders, 7, right before the Fed’s rate announcement on Wednesday is a surprise. See the leaders from Investors.com Big Picture below:
1/25 Investors Business Daily’s MarketPulse:
Leaders up in volume: ASML, HES, ACLS, BMRN, CHX, MRDR, STM
Leaders DOWN in volume: ARRY, PI
The market has been reacting negatively to the Federal Reserve’s recent interest rate hikes. But the current rumor is that the next rate hike will be smaller, 0.25% increase and, therefore, have a smaller impact on the market. My fingers are crossed!
The fourth quarter gross domestic product report hits at 8:30 a.m. ET. The Dow Jones survey of economists expects the GDP grew 2.8% a slowdown from the prior quarter’s 3.2%. Would this slowdown support whispers of a slowdown in the US economy?
Note the “As +Bs”column in the Accumulation/Distribution table below. In just one month, the count of stocks that were strongly bought rise from 41% to 60%. Wow! That flip points to some serious buying.
Note that buying was not just a single week event, but continued over the last 3 weeks:
– See the sum of the heavily bought stocks with “A” and “B” accumulation ratings over the last 3 weeks: 59%, 60% and 60%.
I am excited about the market kicking in a new, faster gear. When the big players are buying heavily I know it time for me to go fishing.
Regarding the MARKET ACTION TABLE below
What do the last 20 days show us? Notice the highlights in the price column.
· The RED highlights point to new lows in these 20 days. Notice there were just 2 in the past 20 days (4 weeks.)
· The GREEN highlights point to days that hit new highs in the last 20 days. You probably noted this pleasant run-up over the last 9 days.
BOTTOM LINE: This market continues to get STRONGER
Note: When you look at today’s MARKET ACTION table above, scan down the PRICE column and note the GREEN highlighted prices. They are green because, in the last 20 days, the Nasdaq hit new highs in the last 4 weeks of this chart! THAT’S A LOT OF GREEN!
STOCK WATCHING: Send your suggestion on which stocks to follow in this newsletter. I am looking for just one stock at a time, for training purposes.
Wishing you, “Many Happy Returns.”
Charlotte Hudgin, The Armchair Investor, (214)995-6702
www.ArmchairInvestor.com (214)995-6702 email@example.com