2/15/2023W Armchair Investor is UP 14.7% in 2023! I am smiling!
THE MARKET’s MESSAGE: Nasdaq’s 11thday above its Moving Average lines!
Overall, Wednesday was a quiet day as measured in price and volume but I found the Nasdaq’s latest 3-day rise refreshing! I wish the volume had been higher. The last three days added up to a 3.0% rise. I will take what the market can give!
>>> Note: Thus far in 2023,here is how the major indexes have fared:
The Nasdaq is up 15.3% year-to-date.
The S&P500 is up 8.0% year-to-date.
The DJIA is up 3.0% year-to-date.
But here’s the really good news, assuming you have something invested in the QQQ (the Nasdaq’s 100 largest, non-financial stocks ETF)
The QQQ is up 16.1% year-to-date!
>>> I am NOT complaining! That is an extraordinary rise!
And for full disclosure, please note that I was not in the QQQ at the start of this year. The Nasdaq hit a 2 ½ month low on 12/28/2022and was not yet in the new Uptrend.
At the top of each of the Armchair Investor newsletters, you will see a year-to-date return earned by following the guidance suggested in this newsletter. If you look at the top of this newsletter, you will see that the ARMCHAIR INVESTOR newsletter has earned 14.7%this year by guying the QQQ on the start of a new Uptrend, And “Yes!” we underperformed a “buy and Hold” strategy from January’s open. But I look at the 14.7% and I am NOT complaining.
THERE ARE 2 WAYS TO USE THE MARKET DIRECTION INFORMATION AT THE TOP OF THIS NEWSLETTER.
1. Wait for my signal and buy the QQQ, holding until I tell you I am selling out of my QQQ (the next morning).
2. Many of my readers use the QQQ signal to start buying strong stocks they have been eyeing (when those stocks are breaking out).
Either way, be sure you know why you selected any stock you invest in. And please consider writing down your thoughts. That is the best way to capture what you were really thinking and to see if you were right.
Every year, I spend time reviewing each buy and sell decision I’ve made to figure out what rules are working and what needs to be adjusted.
Notice all the good news in green over the last 20 trading days below. Only one day was is distribution day – a day of heavy selling which causes the price to drop and the volume to rise.Amazing!
On the MARKET FACTORS table below,look at all the GREEN! The only red is at the bottom – showing how far the major indexes BELOW THEIR ALL-TIME HIGHS of 2021-2022.
On the ACCUMULATION/DISTRIBUTION table below, notice the percent of stocks that are rising with higher volume (under Accumulation)versus the percent of stocks that are falling with higher volume (under distribution) is almost FLAT over that last 5 weeks.
>>>>> BOTTOM LINE: This market continues to rise, showing strength – I hope you are “riding the rise” and grinning as much as I am!
I hope you are “riding the rise” and grinning as much as I am!