2023-09-26T Downtrend Day 5 – Remember: I SOLD the TQQQ at FRIDAY’S open and wait in CASH

September 26, 2023

2023-09-26T Downtrend Day 5 – Remember: I SOLD the TQQQ at FRIDAY’S open  and wait in CASH

PLEASE NOTE: On Friday in IBD’s “Live” broadcast, Alissa Coram reminded us that, historically, 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 in cash…  watching from the sidelines!

The 49% rise in the single QQQ  or 129% in the TQQQ (triple QQQ shown in the graph below) are great returns!

 

If you followed my “triple” plan, your retirement balancejust 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!

 

But getting in is only half the battle.  On the chart below note there are 4 arrows representing possible exit points.

 

The Red arrow is at the highest point – where we would all like to have exited but it is hard to know the highest point until it is in the rearview mirror.

 

So what about the first yellow point?  I used it because this is the first time the TQQQ closed below the 50-day moving average line since it broke out of the February-March cup with handle base.  If you miss that profit-taking spot, you had a second similar signal 5 weeks later when the price rose above the 50-day moving average line again and then fell below again (second yellow arrow.)

 

If you missed that opportunity, there was one more on my chart… and that was on Friday’s close.,,,, Even the last arrow has a better return than the just holding the single QQQ.

 

I am getting reports from some of you that you bought the TQQQ as it took off in the middle of January and sold it either in the pullback in June or after the recent bounce started to fail and sold around $41 or $42.  Even if you only sold Friday morning as was suggested in this newsletter, you should have a whopping 100+% gain. .

If you are new to active investing, perhaps you only watched this event.  But I hope you saw the potential of what we do!

Am I sure I want to be in CASH TODAY?? ABSOLUTELY!

 

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. (Refer to the 20-day history below, which I present in each newsletter.)

 

I am amazed at how weak the market got. And I am pleased at how well many of you are reporting to me that you have done this year.  

 

Please report back your profits so far this year – whether they are in cash or “on paper” as you learn.

 

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

 

And be assured, YOU are always in control of your contributions!

 

>>>>>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 flatday.

 

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

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.

 

>>>>> 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 last 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.

Please examine the ACCUMULATION/DISTRIBUTION RATINGS TABLE BELOW……  

>>>> THE DOWNTURN OF THE ACCUMULATION RATINGS is a WARNING of UNDERLYING MARKET WEAKNESS!

Monday’s slight rise of the major indexes ON HIGHER VOLUME….points to a lack of interest in a rising market.

>>>>> A confirmation of the current weakness in this Uptrend showed up Monday as the A & B rated stocks dropped from 46%3 weeks ago to 29% today. (Yikes!)

I hope you followed my lead and sold your rising indexes and now wait in CASH. An aggressive believer in the continuation of this downtrend and might short some stocks.  I am happy with having sold my QQQ and waiting in cash. But if this DOWNTREND continues with strength (volume), I may short it.

One additional “Word to the Wise”…

>>>>>--- MOST MARKETS FALL FASTER THAN THEY RISE

Please send questions, comments,suggestions ideas and requests to:   My text message account at(214) 995-6702.

Wishing you, “Many Happy Returns.”

Charlotte  Hudgin, The Armchair Investor,                                              

www.ArmchairInvestor.com   (214)995-6702   

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