10/25/2022 UPTREND DAY 3 Time to BUY the QQQ and one or more Leading Stocks
TODAY'S MARKET MESSAGE: Market continues in NEW UPTREND
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 was a Follow-through day. See Friday’s newsletter for a more comprehensive explanation.)
>>>> At the open on Monday, I used my trend-following Cash position to buy the QQQ - an ETF (an Exchange Traded Fund)... a basket of the largest stocks traded on the Nasdaq. (See Monday’s newsletter for more QQQ details.)
By the end of Monday, the QQQ gained 1.0%! Excellent!... Then look what came next!
>>>> Today (Tuesday), the QQQ rose another 2.25% and closed very near the top of the day’s rang!
Not only was Tuesday a strong confirmation to Friday's start of a new Uptrend, but it shined with each of the 3 major indexes have Major Accumulation days (price rising 1% or more with higher volume), indicating support for this strategy is mounting! Notice the powerful October 13 "turnaround" day!
Then look at the Nasdaq composite's volume over the last 3 days – every day rose higher indicating these 3 days were all accumulation days (heavy buying causing a rising price.) The message is clear: IT’S TIME TO GET IN THIS MARKET – AT THE START OF WHAT COULD BE A VERY PLEASANT RUN-UP.
Every Uptrend tops. When this market starts to feel it it’s too high, we’ll see some selling. indicating the Uptrend is “Under Pressure.” With more selling, the Uptrend will eventually top. It will happen…… but it could be weeks or months away.
Market data tables are backward looking - they look at history, not the future. The market direction canflip to a difference status with just of few weak or strong days.
Notice the % of stocks with an “A”or “B” rating (the last column showing the stocks being heavily bought) nearly doubled as money that had exited the falling market jumped back in.
This is a strong uptrending market!
Now that I am up to speed on this nowformat, you will probably see many of these tables and charts in the nightlynewsletters.
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Wishing you, “Many Happy Returns,”
Charlotte Hudgin, the Armchair Investor, (214) 995-6702