2/06/2023M Second Pullback Day but Lower Volume Again Lessens the Sting
THE MARKET’s MESSAGE: Market shows broad UPWARD strength in 2023
Two down days does not kill an Uptrend. But it does make me wonder….. What’s next.Thus, my first suggestion to you is to…. “Pay attention.” Do not let this market get away from you!
Examine the last few days, first just soak up all the GREEN!
What’s the message to investors? Yes,you should be in this uptrend swell and be growing your retirement package!
Just to comeback to today’s reality. Yes, the market had a second down day. But after the Nasdaq rose 20% from its 12/28/2022 low, I am NOT complaining.
NOTE: The12.1% the Armchair Investor strategy has earned so far this year is more than some uptrending years earn. And this excellent start to the year does not predict where it will end. So please stay with me daily for your Armchair Investor updates.
Note there is still plenty of upside growth to get back to the previous highs. >>>>> I WILL BE HAPPY TO RIDE THIS MARKET BACK UP TO TOP THOSE PREVIOUS HIGHS…. but I know this may not be that time.
THE GOOD NEWS IS: As the Wall Street Journal said this morning (2/7/23):
“More stocks across different sectors are participating in the market 2023 rebound” which is“often an encouraging sign of a rally’s durability.” [from the WSJ article “The Market’s Breadth Is Improving as More Stocks Join Rally) continuing to quote from that article:
“Plus, a widely followed technical indicator formarket breath [how widely this move includes stocks] last week hit a level not seen in more than a year. The share of S&P500 stocks closing above their 200-day moving averages rose Thursday to 78—the highest since September 2021…”
My concern with the recent rise, was its staying power. The above quote explains how widely the 2023 market rise is based! And that usually means – staying power.
Even though Friday and Monday were down days, I am not discouraged about the current Uptrend. I suspect those two days were simply some modest (look at the lower volume)profit taking.
Don’t let the past two down days discourage you. After this year’s run-up, expect investors to tuck away some of those earnings.
On the Accumulation/Distribution table below, note the selling impact over the last week was a small 3%. (Look at the rightmost column below –in the last week, the As +Bs drop 3%, leaving that total still a very strong59%)
And review the PRICE-VOLUME action on the MARKET ACTIONtable below. Again:
There was only ONE DISTRIBUTION day in the last 20trading days. AMAZING!
On the MARKET FACTORS table below, the only red is at thebottom – showing how far the major indexes are compared to their end of 2021highs.
Do you wonder why I usually put my comments AFTER the tables and charts? Because I want you to look them over first and make your own conclusions. Then you can read my comments to compare the thoughts. Remember: I am not always right but I do have a pretty good hitting record!
>>>>> BOTTOM LINE: This market continues to rise, showing strength – I hope you are “riding the rise”and grinning as much as I am!