2023-09-19T Uptrend Day 15 Uptrend under PRESSURE Market QUIET, holding TQQQ, Waiting for Market reaction to Fed’s ANNOUNCMENT Wednesday
If you are interested in learning from Mark Minervini,the only 3-time World Trading Champion, join Mark and some top IBD traders on Wednesday,9/20/23 at 3:15 p.m. central time (links work in ALL time zones, just adjust your attendance for your zone). You must pre-register to get the link - no cost, no penalty if you can't make it. This very valuable workshop is open for beginners and experienced investors.
Also note that MarketSmith has made their excellent charting system FREE this week. Simply sign onto Investors.com and click on the MarketSmith link near the top of the page – FREE through Sunday night (no credit card required.)
If you bought the TQQQ (triple QQQ) when I first discussed itin this newsletter, you have made over a 3x return. If you would like to lock in your current TQQQ gains, simply sell your position (or part of it) and enjoy the workshop.
TUESDAY: For the second day, the market barely moved, as it waits for the Federal reserve’s official announcement on market conditions.
Do not expect much market action until after 2 p.m. (eastern time) Wednesday when the FOMC (Federal Reserve Open Market committee) offers its update on economic conditions at 2 p.m.(eastern time.) The more interesting opinion will come from the Fed Chair at 2:30 p.m.
Some of you sent me a question on “What could have caused the 75.6% increase om volume for the Nasdaq and 90.0% volume rise for the S&P500?
In case you missed my answer:: Note the Nasdaq has been dancing on its 50-day (red)line, holding up fairly well..
I am concerned about the deep dip of the TQQQ and might consider shorting the QQQ if it doesn’t find some upward support. I would have to see the QQQ stay below its 50-day line with strong volume, showing some serious distribution (selling.)
And we still have 3 ½ months to go in 2023! That gives us plenty of time to get out (if it continues down) or take advantage of an upswing!
>>> I am pretty good at reading the strength of the market as it happens, but I cannot predict its end of year closing price. Hang out with me to get the daily “blow-by-blow” account.
Note: If the market starts to give up more of its 2023 gains, I would happily step out to cash and focus on planning a BIG year-end party! After this amazing year, I am not interested in risking more of the gains. I would rather just sit out the rest of the year (a whole quarter is still ahead of us)then watch these amazing gains whither away. Cash can be a relaxing place to sit and watch the action.
Another question for those of you that like the S&P500…., ”When you can invest in the faster Nasdaq, why would you want to invest in the historically slower S&P500?”
Although the Nasdaq doesn’t outperform the S&P500 every day, it has overtime, proven its significantly better returns.
And just to remind you, the Triple QQQ (TQQQ) has outperformed them all with a 129% gain this year. But you must watch the TQQQ daily, because when the market drops, it will drop about 2 ½ x to 3x versus the QQQ.
The GOOD NEWS is that there were 8 rising days over the last 20 trading days but only 6 falling days over the same period.
Do you pay attention to price AND volume?
The BAD NEWS:
There were 5 distribution days (lower price with higher volume INDICATING MORE SELLING THAN BUYING) in the last 20 days but only 1 accumulation days (higher price and higher volume. INDICATING A DAY OF BUYING).
PLEASE WATCH THIS NEWSLETTER EVERY DAY. This market could crash on little notice. Or take off to new highs!
ON THE ACCUMULATION/DISTRIBUTION RATINGS TABLE BELOW……
>>>> THE DOWNTURN OF THE ACCUMULATION RATINGS is a WARNING of MARKET WEAKNESS!
Here is a confirmation of the current weakness in this Uptrend. The A & B rated stocks which had been climbing higher has dropped a frustrating 8% in one week from 47% to 36%.
IF YOU PURCHASE AN AGGRESSIVE POSITION LIKE THE TQQQ, YOU MUST KEEP YOUR EYE ON THE MARKET EVERY DAY. Even if it is just a quick read of the front of the ARMCHAIR INVESTOR newsletter.
One additional “Word to the Wise”…
>>>>>--- MOST MARKETS FALL FASTER THAN THEY RISE! So please, read this newsletter (at least the first section) DAILY!
Please send questions, comments, suggestions ideas and requests to: My text message account at (214) 995-6702.