10-28-22F UPTREND Nasdaq rises 2.4% this week with higher volume!

October 30, 2022

10/28/2022F UPTREND   Nasdaq rises 2.4% this week with higher volume!

THE MARKET’s MESSAGE:     Second rising week after one-year new low.

Hurray! “THOUGHT FOR THIS WEEK” If you play the right “BIG GAME” in thestock market, you are likely to reap the “BIG GAINS.”

Although it has been a wild ride last week, the Nasdaq moves ended higher by a pleasant +2.2% for the week with higher volume – an accumulation week. This was  the second week of higher volume with a price risen in a row! Although it was a bumpy 2 weeks, the 7.6% 2-week Nasdaq risewas worth it! The current Uptrend holds.

Expect quiet markets on Monday,Tuesday and Wednesday until mid-afternoon. We are now waiting for the next Federal Reserve rate announcement on Wednesday, November 2, at 2 p.m. (east cost time) with the longer (and more interesting) explanation by the Fed Chair Powell at 2:30 p.m..

·      The market expectation is a Fed rate increase of 0.75%.

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Why is the Nasdaq index lagging the others major indexes over the last 12 months? year?

·      Nasdaq        - 29.04%

·      S&p500        - 18.15%

·      DJIA             - 9.57%

Does the Nasdaq’s larger drop for the year frustrate you?  I’m with you on frustration with the Nasdaq’s losses this year.  But then I look back and remember how much more the Nasdaq have made for me in the past…..Here is the 10-year comparison:

Because the Nasdaq has more than 2500 stocks on that exchange and many are new issues that are not profitable, yet,the fact that the index outperforms the other two most of the time is amazing. Manyare winners, some are highly volatile newbies. Some are struggling in the pandemic and the economic slowdown. The S&P500 and the DJIA (30 blue chips)each contain a basket of the better performing stocks in those defined categories.

But over time, the Nasdaq hasoutperformed bother the S&P500 and the DJIA.

·      Nasdaq        + 272.91%

·      S&P500        + 176.25%

·      DJIA             + 150.92%

Does the Nasdaq’s larger drop for the year frustrate you?  I’m with you on frustration with the Nasdaq’s losses this year.  But then I look back and remember how much more the Nasdaq have made for me in the past…..

Here is the 10-year comparison:

Because the Nasdaq has more than 2500 stocks on that exchange and many are new issues that are not profitable, yet,the fact that the index outperforms the other two most of the time is amazing. Many are winners, some are highly volatile newbies. Some are struggling in the pandemic and the economic slowdown. The S&P500 and the DJIA (30 blue chips) each contain a basket of the better performing stocks in those defined categories.

But over time, the Nasdaq has outperformed bother the S&P500 and the DJIA.

·      Nasdaq        + 272.91%

·      S&P500        + 176.25%

·      DJIA             + 150.92%

My big concern for the current market is,

“Have we found the bottom?”

If you are too uncomfortable withthe current market, consider a small position in your trend-following holding.

DO YOU WANT TO IMPROVE YOUR INVESTING SKILLS (e.g. RETURNS)?

>>>>>>KEEP A JOURNAL OF YOUR TRADES.

Take the time to track your reasonsfor your purchases and sales.

>>>>>This step only reaps rewords with you actually write down your thoughts as you aremaking the trade – NOT later.  

I suggest you type it all in a documenton your computer.  If you do not get your current thoughts and feelings down as you execute a trade (or decide not to execute a trade), you are likely to have “revisionist memories” when you do get around to reviewing your recent trades.

·       If the trade worked, you will write down how excited you are about the trade.

·       If it doesn’t work, you will write down your reservations.

>>>>Today’s BIG LESSON:

NOT NOTING YOUR THOUGHTS at the times of the trade ON WHY YOU DID (OR DID NOT DO) A TRADE,  WILL LIKELY PERPETUATE POOR DECISION MAKING OVER TIME.

I have never regretted writing down why I did or did not make a trade. But after some losses without documentation, I have wondered more than once, “Why the heck did I make that trade?

You own it to yourself and your family to document your stock moves. Even a quick scribble could turn your trading mistakes into future wins.

The last 20 days of the Nasdaq with type of day - note the last 6 UPtrend days

Wishing you, “Many Happy Returns,”

Charlotte Hudgin, The ArmchairInvestor

(214) 995-6702

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