2/27/2023M Market has minor REBOUND. But does it signal Uptrend strength?
THE MARKET’s MESSAGE: Nasdaq & S&P500 50-day lines are holding close to 200-day lines showing an extended sideways period.
The Nasdaq and S&P500 have dropped over the last 3 weeks. Here are the results of the major indexes for 2023 through Monday, 2/27/23. You can see another example of why I am not interested in the Dow Jones Industrial Average and mostly turn my attention to the Nasdaq as a broad market investment.
But the real winner is this ArmchairInvestor strategy over all of the major indexes since 2019 Step back with me to the end of 2022 to see the comparison of the Nasdaq, S&P500, DJIA and the ARMCHAIR INVESTOR STRATEGY returns:
The Nasdaq is clearly outperforming the S&P500 and DJIA year-to-date AND during the whole pandemic. I hope you have enriched your portfolio with this strategy!
You can purchase the whole S&P500in a single buy of the SPY. And many investors buy the whole Dow Jones Industrial Average in a single buy of the DJIA. But you can’t buy the whole Nasdaq (approximately 3000 stocks.)
The GOOD NEWS is that the 100largest stocks in the Nasdaq usually outperform the whole Nasdaq and can be purchased in a single buy of the QQQ ETF. But beware: The QQQ usually outperforms the Nasdaq, S&P500 and DJIA in rising markets, the QQQ can give that lead back in downtrending period. And that is not bad news to smart investors. If you followed out guidance in this newsletter, you outperformed the S&P500 and DJIA in this pandemic.
I hope you are enjoying the good returns of the Armchair Investor strategy!
Is your next question…”What do i do now?
Simply open this newsletter each day and consider its lessons.
Just look over the price-volume action of the Nasdaq’s last 7 days in the table below.
· 5 down days
· 1 flat day
· 1 rising day – Monday!
Is Monday a sign of new hope for the uptrend? See the note after this table
REMINDER:ONE or TWO RISING DAYS DO NOT MAKE A SOLID FOUNDATION FOR A NEW UPTREND. Stay tuned.
>>>>> On the ACCUMULATION/DISTRIBUTION table below, notice the percent of A and B stocks (under Accumulation) took a serious drop in the last week – from 59% As + Bs 2 weeks ago to 49%. That is a notable signal of broad selling the market.
>>>>> BOTTOM LINE: Review your individual stocks for weakness. Consider selling losers. Stay tuned!