11/11/22 Uptrend Amazing Market: Only 2 DISTRIBUTIONdays in 20 TRADING days.
THE MARKET’s MESSAGE: Market is back to work, rising aggressively
Most of what I will talk about today is the strengthof this renewed Uptrend.
First notice that the Nasdaq has risen for 5 of the last 6 days. And as it rose, it crossed above its 50-day moving average red line for the first time in 9 weeks. That rise in September was just for one day before it dove back below the 50-day line.
What else do you see is strong about the Nasdaq’s recent price moves?
You might have noticed that 4 of those 5 rising days closed at (or near) the top of the day’s range. Next look at the blue volume bars of those rising days. Only one line was below average… and the last two are the strongest in price move and in volume.
Yes, we have quite a distance to go to recover the territory lost this year. But we could take some serious ground on that recovery by year end. If we do, I want to be on the buying side during that move.
>>>>Turn to the Accumulation/Distribution table below.
NOTES ON THE ACCUMULATION/DISTRIBUTION RATINGS of STOCKS
Notice the rightmost column of this table - the sum of stocks with A and B ratings.
WOW! The sum has almost doubled over the last 4 weeks from 29% to 53%. That growth tells me there is some serious, sustained buying happening in this market and I should be partaking in it! (Oh!.... I am!...And I hope you are, too. If not yet, you can start on Monday.)
For me, I am not only enjoying the recent rise of the QQQ. But I am trolling for the best individual stocks. You don’t have to buy full positions if you are reticent about the market. But owning a few stocks, even partial positions, can encourage you to watch the market daily.
Be sure to read on – I don’t know that I have recently (or ever??) seen a 20-day history as strong as the one in the 20 DAYMARKET ACTION table below..
Please read on…… for Important commentary on the current market.
Wishing you, “Many Happy Returns!”
Charlotte Hudgin, The Armchair Investor, (214) 995-6702
Notice the Uptrend (green) days in the last (rightmost) column of the MARKET FACTORS, COUNTS & RATINGS table. All that 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 8 price drops in the last 12 trading days, note in the "Type of Day" column that only 2 of those 12 trading days Distribution days (a down day with higher volume indicating more sellers than buyers.)
>>>> All the other down days had lower volume indicating the market was NOT enthusiastic about exiting them.
· There were 9 down days out of the 20 days on the following table.
· But only 2 days were distribution days - when the price dropped and the volume of shares traded rose,
The message is clear >>>>>:The institutional investors did NOT believe the market was dying, even as it dropped 7.5% over 7 trading days.
Now look at the last 6 days after the Fed’s FOMC announcement was digested….
· >>> 5 rising days out of 6 trading days.
· The Nasdaq closed Friday above the pre-Fed announcement high. That was an encouraging fast recovery.
>>>> NEXT: I have a list of stocks to consider getting into Monday. Do you???
Look at the summary of the last 4-weeks of the market. Thursday and Friday together had great volume and rose 9.3% !!!!!!
Look at the count of accumulation days versus distribution days over the last 2 weeks - 9 accumulation versus only 2 distribution days.