11/10/2022 Uptrend Market Leaps to Attention and Takes OFF!

11/10/2022   Uptrend   MarketLeaps to Attention and Takes OFF!

THE MARKET’s MESSAGE:  Market is back to work after strong Labor Dept message

Finally! Why has the Federal Reserve raised interest rates multiple times this year? To slow down inflation. After the Fed recent meeting announced plans to continue raising interest rates to tame that inflation, the market slowed down.

But when the Labor department revealed a lower than expected rise in the consumer price index, the market saw prices were already in “slow-down” mode,  already beginning – and that was good news! That slow-down resulted in the expectation that the Fed won’t have to raise interest rates as aggressively as thought after their last meeting. Therefore, the cost of living may not rise as much as feared. And the stock market took off!

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That equaled:

·      Lower than expected future interest rate rises,

·      Borrowing will cost less than feared.

·      And the market took off!

We saw the market “pop” on that good news. Investors.com showed its expectation of a stronger market in its Thursday Big Picture column:

·      A strong 6 leader stocks were up in price and volume showing they were being heavily purchased Thursday (only one stock was down in heavier volume.)

That much buying only happens when the stock market players are buying, buying, buying! And so should you! I hope you are in the QQQ (or your favorite market tracking ETF exchange traded fund.)  

NOTE: This newsletter is about capturing the market trend and I use the Nasdaq 100 (QQQ) to do that.

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Wishing you, “Many Happy Returns!”

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

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Notice all the GREEN in the MARKET FACTORS, COUNTS & RATINGS table. All the Green shows a strong Uptrend signal

On the MARKET ACTION table, pay special attention to the "Type of Day" column I have boxed. Even though there are a 8 price drops in the last 12 trading days, note in the "Type of Day" column that only 2 of those 12 trading days had a "Type of Day" as a Distribution day (a down day with higher volume.)

>>>> All the other down days had lower volume indicating the market did NOT agree with the drop.

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The percent of stocks that are rising with higher volume continues at a "strong market" signal of 40+%!

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