12/21/22W Uptrend – Market broadly rose Wednesday.Nasdaq had accumulation day.
THE MARKET’s MESSAGE: Warning! Market showing broad weakness.
The ACI Return that I show at the top of the newsletter is the year-to-date return earned by following the Armchair Investor signals. And yes, 2022 is turning out to be one of the rare years of losses. Sigh. But look at the last 3 years together and note the win:
What is the lesson in thelast 3-years? “Buy & Hold” (shown in the S&P500 and Nasdaq columns above) is NOT the way to earn an early retirement.
By following this nightly newsletter, you could be up 41.2% over the last 3 years versus “Buy & Hold” strategies generating 20.0% for the S&P500 and 17.0% for the Nasdaq.
CAN YOU DO EVEN BETTER? Many of the Armchair Investor readers use the newsletter’s market direction signals to help them choose when to invest in individual stocks. IMPORTANT NOTE:
· Once I own a stock, my decision to continue to hold it or sell it is primarily (90%?) based on that stock’s performance and NOT the market. There are always individual stocks that do not follow the market.
· If the “greatest stock in the world” is falling, I will sell it no matter what the market is doing.
· And vice versa – if a stock I own is rising in a market downtrend, I will hold it until it misbehaves (drops).
Note the fast 17% drop in the As + Bs column in just the last week. This shift confirms the broad selling action in this market.
Note all the RED and YELLOW boxesin the MARKET FACTOR TABLE below. The only GREEN boxes (showing strength) refer to the indexes not yet hitting new lows. BUT LOOK HOW CLOSE THE NASDAQ IS COMPARED TO ITS RECENT LOWS.
On the MARKET ACTION OVER THE LAST 20 DAY Stable below, the Nasdaq had only two accumulation days (when price and volume rose showing serious buying action) in the last 3 weeks. I’m not sure the market has much more than the occasional (very occasional) accumulation day in it right now
Note: A . RED.. highlighted index Price indicates a NEW LOW during these 20 days.
A GREEN highlighted index Price indicates a NEW HIGH in these 20 days. Only 2 green days points to how weak this market it.
STOCK WATCHING: Send your suggestion on which stock to follow in this newsletter. I am looking for just one stock at a time, for training purposes.
Wishing you and yours a happy and safe holiday season.
Charlotte Hudgin, The ArmchairInvestor, (214)995-6702