2023-09-28H Downtrend Day 7 – Remember: I SOLD the TQQQ at FRIDAY’S open and now wait in CASH

September 28, 2023

2023-09-28H  Downtrend Day 7 –Remember: I SOLD the TQQQ at FRIDAY’S open  and now wait in CASH

It was another quiet day in the market. And even with a quiet day, the Nasdaq still won for the best advance (although it was a small win.) Why would you invest in the lagging S&P500?

 

Note the Nasdaq rose for the last 2 days, bouncing off the 13,000 level. Will that be the total of the Nasdaq’s losses. (I suspect not, which is why I continue to wait in cash.)

I repeat: Look at how the 3 major indexes have done this year (as of 9/27/2023).  

I hope you rode the Nasdaq up and have exited it near the top, selling with a nice profit this year  (much more than the current Nasdaq year-to-date return since I exited weeks ago.)

Note that the Nasdaq has more than double the returns of the S&P500 (we won't even talk about the lagging DJIA).

I hope you are not surprised at the biggest winner (the Nasdaq.)

AND I hope that you have exited the Nasdaq (as well as other investments that are not growing at the moment.  

BOTTOM LINE:  

I SOLD MY TQQQ AT LAST  Friday’s OPEN and now WAIT in CASH as I WATCH THE MARKET SINK WITHOUT ME!

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

Some of Yesterday’s thoughts repeated:

PLEASE REMEMBER: CASH IS A FINE PLACE TO PUT YOUR MONEY WHEN THE MARKET IS FALLING.

For those of you who are more aggressive in a falling market, remember the major indexes have inverse ETFs that grow when the market is falling.

CHARLOTTE’S PROGNOSIS FOR THE NEAR FUTURE: (No guarantees!) I suspect that the inverse ETFs (that rise when their mirror is falling) are going to continuerising in the near future.  

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 this year. CONGRATULATIONS!

 

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

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

 

REFERING TO THE 20-DAY NASDAQ HISTORY, I REPEAT from WEDNESDAY:  

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 turned.   And I am pleased at how well many of you are reporting to me that you have done thisyear.  

 

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

 

>>>And I hope you will 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!

 

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   

2023 ACI NEWSLETTER sent via WEBFLOW–

 

 

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