2023-09-22F Downtrend Day 3 -- I SOLD the TQQQ at FRIDAY’S open (as I told you I would in Thursday night’s newsletter) and wait in CASH

September 24, 2023

2023-09-22F Downtrend Day 3 -- I SOLD the TQQQ at FRIDAY’S open (as I told you I would in Thursday night’s newsletter) and wait in CASH

PLEASE NOTE: On Friday, IBD’s Live broadcast, Alissa Coram reminded us that, historical,September is a weak investing period. Thus, IBD’s end of day numbers (shown below) were not a surprise.

Keep the gains you earned this year and consider joining me watching from the sidelines!  The49% rise in the single QQQ  or 129% in the TQQQ (triple QQQ shown in the graph below.) are great returns! If you followed the “triple” plan, your retirement balance just got a HUGE kick in its pants! I don’t know if I will ever see that kind of growth in the next decade!  But you can count on me to be on the lookout for it!

I have NEVER had such a weak 20 days as shown in the following 20-day table below. How many accumulation days can you count?

 

You can count just 1 accumulation (buying) day in the last 20 trading days versus 6 distribution (selling) days with a 0.2% drop in price or more, with higher volume. I am amazed at how weak the market got. And I am pleased at how well many of you are reporting back to me that you have done this year.  

 

>>>Please consider supporting this newsletter by becoming a financial supporter as shown when you sign in to read the Armchair Investor newsletter! It is a pleasure sharing my winning insights with you!

 

>>>>>This year’s market has already paid me well and I can wait in CASH as the sellers continue to move out of the market.

 

The BAD NEWS: The market moved into DOWNTREND Wednesday after  showing 9 days under pressure. The final straw was the bad news in the last 4 trading days : 3 down days and one flat day.

 

>>>>I hope you are in cash or even have put some amount in the inverse Qs (We will talk more about that strategy in Monday’s newsletter.

You can count just 1 accumulation (buying) day in the last 20 trading days versus 6distribution (selling) days with a 0.2% drop in price or more, with higher volume.

>>>>>This year’s market has already paid me well and I can wait in CASH as the sellers continue to move out of the market.

The BAD NEWS: The market moved into DOWNTREND Wednesday after  showing 9 days under pressure. The final straw was the bad news in the last 4 trading days : 3 down days and one flat day.

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 from 47% 4 weeks ago to 29% this week.  I hope you followed my lead and waited in CASH.

BOTTOM LINE:  

I SOLD MY TQQQ THURSDAY’S OPEN and wait in CASH.

Look at the 20-day HISTORY of the NASDAQ with PRICE & VOLUME.

All five of the last 5 trading days were down or zero for the Nasdaq. That was a WARNING!

I am willing to sit on the sidelines in CASH until this market catches its breath and starts rising or falling again.  If the downward movement picks up steam, I may go short.  Let’s see what the market gives up tomorrow (Friday) before the weekend.

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Charlotte Hudgin
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