1/9/2023M MARKET’s MESSAGE: Market Confirms Friday’s New UPTREND Signal
THE MARKET’s MESSAGE: Nasdaq creeps higher
Not every Uptrend starts with a bang.
Both indexes closed very close to their50-day moving average lines.
· The Nasdaq ended the day up only 0.6% Monday but with lower volume.
· The S&P500 ended the day flat (-0.1%) with strong volume(+20%).
Investor’s Business Daily declared the market in Uptrend at the end of Friday And I took my first position for the Uptrend (the QQQ) on Monday morning. But the day’s weak showing today, makes me unconvinced that we have hit a bottom. Note that the Nasdaq low of 10636 is close to the high of February 2020 which was the last strong week before the pandemic crash in February-March in response to the identification of the COVID threat.
Over the last 3 months, the S&P500has out-performed the Nasdaq. I’m not confident that predicts the future. TheNasdaq usually swings higher and lower (by percentage moves) that theS&P500.
And we are in a new year and a new Uptrend! I am optimistic about the growth of the market (and still concerned about the economy.)
Notice there are no strong uptrend ratings in the table below except in the last boxes which, by definition, will almost always be Green.
Do you see the strength in the MARKET ACTION table below? Look at the last 7 days (bottom of the table.)
Four of the last seven days are green (rising PRICE CHANGE column). Note that the density of rising days is a pleasant change from the most falling (red) days before.
Here's how the color work on this chart:
Note: The color of the Trend count column boxes, telling you what type of market we’re in, confirming the market is now in an Uptrend.
· Green= Uptrend
· Yellow= Uptrend under pressure
· Red = Downtrend
Not surprising: The major indexes are well below their all-time highs of about a year ago as shown below.
Note the large number of days that closed at NEW LOWS (red highlighted prices) over these 20 days. This is what a DOWNTREND looks like. On Wall Street this period is frequently defined in red to represent the blood in the streets. But the last new low price was a week and a half ago.
Here is the schedule of stock market holidays for 2023. I suggest you copy it into a spreadsheet (such as Excel or Numbers) and save it for future reference.
STOCK WATCHING: Send your suggestion on which stock to follow in this newsletter. I am looking for just one stock at a time, for training purposes.
Wishing you and yours a happy and safe holiday season.
Charlotte Hudgin, The Armchair Investor, (214)995-6702