11/18/22F Uptrend Good News! Nasdaq and S&P500 have lower volume on recent falling days showing LACK OF WIDE-SPREAD SELLING

11/18/22FUptrend  Good News! Nasdaq and S&P500 have lowervolume on recent falling days showing LACK OF WIDE-SPREAD SELLING

THE MARKET’s MESSAGE:  UPtrend holds above its 50-day line - a sign of Uptrendoptimism.

Friday was another small pullback day after the 12% rise in the Nasdaq over prior 8 trading days -- not much of a disappointment.  In fact, there is some good news in Friday’s Nasdaq 0.4% drop….. The Nasdaq found support at it’s 50-day moving average line (see the chart below) and then turned back up closing near the top of the day’s range. And the lower volume on the last 2 falling days – shows the market is not too excited about the drops!

The small retracement Friday is not a deterrent to my stock buying. The falling volume showed a lack of selling interest.

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>>>>>> LOOKING TOWARD THE END OF2022.

As we approach the end of 2022, step back and review the chart below starting in November 2021 through last Friday. Given the virus we’ve dealt with, the 2022 loss is not a surprise.

Notice that the 200-day moving average line has been the reversal price twice in 2022. I’ve marked the all-time high in 2021 and the 2 reversals this year by down arrows.)

The ??? is a possible third reversal but the index could continue up through the 200-day m.a.  I know we all be watching!

Bottom line, I don’t know where this market will endthe year, but it is almost certain the year will end down in total. Not asurprise!

The current Accumulation/Distribution data is EXTRAORDINARY!!!!

I continue to be excited about the rise in the percent of  “A” and“B” rated stocks (stocks that are being heavily bought.) :

·       The “A” and “B” rated stock have risen from 38% two weeks ago to 55% showing a very strong market in serious buying mode.  

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>>> Now turn to a review of the last 20 trading days. The firstthing you might notice is the number of Uptrend days in the rightmost column! This is a very healthy Uptrending market. Even during the 10/26 to 11/3 pullback, the right “Consistent with…” column stayed healthy. It told me to hold winning stocks even though the market was pulling back.  >>>> That insight paid off well !

Ratings to Note:

·      8 accumulation days versus 2 distribution days in the last 20 trading days says the buyers are ruling this market.

·      All 3 major indexes (Nasdaq DJIA and S&P500) are B rated, again indicating buying rules the market direction.(see below)

·      All three indexes are above their 50-day lines – showing optimism about a rising market.

The extraordinary 4 week rise from 34% As and Bs to 57% in just 4 weeks. shows some serious buying is going on!

Ratings to Note:

·      8 accumulation days versus 2 distribution days in the last 20 trading days says the buyers are ruling this market.

·      All 3 major indexes (Nasdaq DJIA and S&P500) are B rated again indicating buying rules the market direction.(see below)

·      All three indexes are above their 50-day lines – showing optimism about a rising market.

And all of the above does NOT guarantee the future market direction.

Please read on…… for Important comments on the current market.

Wishing you, “Many Happy Returns!”

Charlotte Hudgin,  The ArmchairInvestor, (214) 995-6702

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 The MARKET FACTORS table (below) summarize the current market strengths and direction.  GREEN (rising markets, etc.) win!

Ratings to Note:

·      8 accumulation days versus 2 distribution days in the last 20 trading days says the buyers are ruling this market.

·      All 3 major indexes (Nasdaq DJIA and S&P500) are B rated, again indicating buying rules the market, as of Thursday – remember: one piece of bad news can turn the market around.

·      All three indexes are above their 50-day lines.

The extraordinary 4 week recent rise from 34% As and Bs to 57% in just 4 weeks. shows some serious buying is going on!

----- See you Monday night!

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