2/21/2023T The Market had selloff day Tuesday – That’s 3 selloffs in a row! Ouch!

2/21/2023T  The Market had selloff day Tuesday – That’s 3selloffs in a row! Ouch!

After you look down today’s DAILY MARKET ACTION below, you may want to jump ahead in tonight’s newsletter to examine the last 20 trading days that I will be talking about tonight.

 Let's jump over the to 20-day table to see the transformation of the market's health. I have changed the sequence of the tables in tonight's newsletter, to warn you about the change from more buying p8essure to more selling that is going on.

On the following table, note the last 12 trading days have shown weakness in the current market – 7 of the last 12 days were down days! Ack!

BUT NOTE: After the month and a half run-up I don’t expect to hear much complaining.  You should be in a positive position in your portfolio for the year-to-date,

>>> EVEN THE BEST UPTRENDS HAVE OCCASSIONAL DAYS OF SELLING – DISTRIBUTION DAYS.

Start at the top of the ‘TYPE OF DAY” column in the table below.

·       Of the 20 days in the table above, when was the first distribution day? (Eight days ago.)

·       How many “Major Distribution” (major selling) days were there in total over the last 20 trading days?    (only 4) Note: The last 3 trading days were all distribution (selling) days.

>>>>That is a real change in health of this Uptrend. There was one more distribution-day in the last 20 trading days - just over a week ago. (And the Uptrend was doing so well!)

BUT: after the month and a half run-up I don’t expect to hear much complaining.  You should be in a positive position in your portfolio for the year-to-date,

February 9th was the first day in the last 20 trading days that had distribution day, showing the market shift to surrendering to the selling pressure.  

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On the MARKET FACTORS table below, you can see additional WARNINGS!

 Beside today’s distribution days (always shown in red), the only red answer box is the number of Down Days in the last 10 trading days – which is now 6 of the 10.  

 As always, at the bottom – the major indexes ARE STILL BELOW THEIR HIGHS of 2021-2022 and are annotated in Red . (They almost always will be above recent lows.)

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On the ACCUMULATION/DISTRIBUTION table below, notice the percent of A and B stocks (under Accumulation) has been fairly flat (57%, 62%, 59%, 60%, and 59%) over the last 5 weeks. That means just about even buying and selling.

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That decline says there are more sellers than buyers in the current market.  Perhaps this is are action (a cooling off period)  to the fast buying in the first 5 weeks of this year.

>>>>> BOTTOM LINE: This market may have taken a “breather” and is now resting below the 12,000 Nasdaq level.  Stay tuned! That’s OK with me.

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STOCK WATCHING:  Send your suggestion on which stocks to follow in this newsletter.  I am looking for just one stock at a time, for training purposes.

Wishing you, “Many Happy Returns.”

Charlotte Hudgin, The Armchair Investor,  (214)995-6702

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

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