10/24/2022 NEW UPTREND DAY 2 Consider buying one or more Stock (read down past the blankl ines)
THE MARKET’s MESSAGE: Market breaks through into NEWUPTREND
Last Thursday, I told you I was “itching” to get back into the Uptrend.
Friday’s strong market close gave me the signal to get in. (It wasa Follow-through day. See Friday’s newsletter for a more comprehensiveexplanation.)
>>>>At the open on Monday, I used my trend-followingCash position to buy the QQQ which gain 1.0% by the close! Excellent!
If you are not familiar with theQQQ, it is an ETF – an Exchange Traded Fund... a basket of the largeststocks traded on the Nasdaq which means, in this case, it has the 100largest stocks traded on the Nasdaq excluding the banking stocks. Why excludethe banks? Historically, financial institutions simply do not move as fast asthe other high-tech companies.
Recap on Follow-through day definition:
A Follow-through day,as discovered by William O’Neil, founder of Investors.com, can occur on day 4or later of a new “attempted uptrend.”
Tuesday is day4.You can see theprior 3 days on this Nasdaq chart. Note that not every day in this 4+day period has to be a rising day. But every day must NOT undercut the day 1low. Since the Nasdaq is now almost 6% above the recent low, an undercut isunlikely unless this attempted rally is failing.
How strong is this uptrend? Look at the MARKET ACTION OVER THE LAST 20DAYS table ! Look at the last 9 days!