12/08/22H Uptrend – Nasdaq continues to find price support at 50-day m.a. line.

12/08/22H Uptrend – Nasdaq continues to find price support at 50-day m.a. line.

THE MARKET’s MESSAGE: Future uncertain - Nasdaq and S&P500 indexes stay pinned between their 50-day and 200-day lines

On Thursday, the all three major indexes I follow (Nasdaq, S&P500 and DJIA) rose. But do you see what is missing?

Yes, volume! For the last 5 weeks, no down day had above-average volume for the Nasdaq, S&P500 or DJIA.That fact tells me that buyers are still leading today’s market.

In fact, if it feels like the market hasn’t done much for you in the last 2 1/2 months, I am with you! Here’smy focus on just the Nasdaq over that time:

In total…….BORING.

Yes, there were some nice rises, but the market has taken back all that it has given us over the last 10 weeks..

The market’s message. BE CAUTIOUS.

Thursday was another rising day without higher volume support.

Yes, there were some nicer ises, but the market has taken back all that it has given us over the last 10 weeks..

The market’s message. BE CAUTIOUS.

Thursday was another rising day without higher volume support.

Let’s see if the market continues Thursday’s rise on Friday. Or will it fizzle out?                  

REPEAT OF WEDNESDAY’S Analysis (if you missed it):

Could this be the final bottom before a new UPtrend? Could the market be ready to rally. But I don’t see the external financial factors topredict that move, yet, but I am watching carefully.

So I advise some caution in your investing. I am asking the market to “Show me the money” but it is not responding yet.  

Winners are out there. The Accumulation/Distribution table shows an extraordinary 56% of all stocks have strong “A” or “B” ratings.(see that table later in this newsletter.)

Remember: CASH is a position. And in time of themarket wandering sideways, if you can’t land winning stocks, cash is a goodoption.

The one thing NOT TO DO is stop monitoring your holdings. A quick daily review is crucial to catching market moves early.

As I step back and look atthe whole MARKET FACTORS table, I see a lot of strength:

·      Accumulation v Distribution day count, Uptrendfor 32 days, Market accumulation “B” ratings for all the indexes.  

But weaknesses are showing up:

·      Count of Up and Down days in the last 10 daysis 3 Up days to 4 down days. Where are the other 3 days? They all moved less than +/- 0.2%, a sign of market uncertainty.          

As I step back and look atthe Nasdaq chart above and the whole MARKET FACTORS table, I see a lot ofstrength:

·      Market in Uptrend for 32 days,

·      Accumulation v Distribution day count is astrong 7 to 2.

·      Market accumulation “B” ratings for all the indexes.  

But weaknesses are showing up:

·      Count of Up and Down days in the last 10 days is 2 Up days to 6 down days. Where are the other 2 days? They all moved less than +/- 0.2%, a sign of market uncertainty.

>>>>  Focus on the last 10 trading days on the 20-day table below. It is not a pretty site:

·      Only one Major Accumulation day (a day that rose 1+% with higher volume)

·      4distribution days

o   2 Major Distribution days (a day that fell 1+% with higher volume) and

o   2 minor distribution days (a day that fell less than 1% with higher volume.

·      5 “neither”days that did not move enough in price or had lower volume.

In a healthy Uptrend, I would like to see rising days with higher volume.That combination means that the majority of market players are buying.

The stock market took a hit over the last week.

Stocks with A or B ratings are being SOLD. over the last week, we see the number of stocks in those categories had big drops showing a sell-off of the top rated stocks.

STOCK WATCHING?   If you have a favorite stock right now, you can send your suggestion to editor@armchairinvestor.com and we may chose yours to follow in this newsletter.

Wishing you and yours a happy and safe holiday season.

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

www.ArmchairInvestor.com   (214)995-6702   editor@armchairinvestor.com

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