11/08/2022 Uptrend under Pressure. Market has strong volume on 3rd rising day

November 9, 2022

11/08/2022   Uptrend under Pressure. Markethas strong volume on 3r rising day


THE MARKET’sMESSAGE:  Market back to work after Fed’s rate increase

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I am always encouraged by a rising market move but this market hasn’t see a 5-day rally even once this year.


I’ve marked the 3- and 4-day runs on the Nasdaq chart below. There are four 4-dayrises and nine 3-day rises and including yesterday’s rise. This is what a Downtrending market looks like.

The lessons?


Lesson (1) Don’t get too excited about a 3-dayor even a 4-day run up in this market. But a 5-day runup in this overall falling market… would catch my attention.


Lesson(2)  Look closer at the stocks you own –get to know their “style”, their “personalities.” Like having a teenager in the house – when the personality changes, you have to figure out whether it is something you should be concerned about.  


As this market continues to drop (my expectation) closer to the 2020 all-time high, I will be watching to see if it will find support.


The market continues in the direction it is going (downtrend) …..

                                                     until it doesn’t.

And NO ONE knows how longthat will be.


If your portfolio includes individual stocks and they are holding up, you may decide to continue to hold them even in this overall falling market. Please don’t fall in love with any of your stocks and hold them through deep drops.  


Wishing you, “Many Happy Returns!”

Charlotte Hudgin,  The Armchair Investor, (214) 995-6702

On the table below, note the Accumulation/Distribution rating for the Nasdaq is a D- meaning its stocks are being fairly heavily sold off! (Not all of them, of course.)

Notes:  10/25 hit new high Nasdaq price in the last 20 trading days. If the price or indexmoves less than +/-0.2%, the day is not showing enough of a price or volumemove to be either a consistent with an Uptrend or a Downtrend day. Just thinkof it as a “sleeping” day!  

Here’s some encouraging news. Lookat the table below – Note the percentage of "A" and "B"stocks continues to grow - from 26% to 43% over just the last 4 weeks!


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Charlotte Hudgin
Editor, Armchair Investor
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