2023-10-05H Downtrend Day 12 – Thursday was a quiet day as the major indexes wait for Friday’s employment report, I CONTINUE to WAIT in CASH

October 5, 2023

2023-10-05H Downtrend Day 12 – Thursday was a quiet day as the major indexes wait for Friday’s employment report,  I CONTINUE to WAIT in CASH

THURSDAY’S HIGHLIGHTS:  

·       The S&P500 and the DJIA dropped to 17-week lows. The Nasdaq is close to  a 7-week low. Watch for the market’s reaction to Friday’s employment report.

 

·       On the good news side:  Be sure to note how strongly the Nasdaq has out-performed the S&P500 and the DJIA this year. (see the GROWTH OF THE MAJOR INDEXES 2 charts below.)

NASDAQ DAILY CHART

To confirm the Nasdaq is still leading the “Big 3” (Nasdaq, S&P500 and DJIA), Iput them on the same chart – starting at 12/30 2022. Which would rather be in?

And,“Yes!”  These 2 charts are just two ways to present the same information. I am trying to get you to see what I have found in the markets!

I’m not a fan of white stock tables like the one below.  They tell me nothin’ has happened.

 

Today’s Big Picture tells us that the market is waiting for Friday’s employment report from the Labor Department.  While the market predicting only moderate growth, the current downtrend is likely to continue….down.

 

SHOULD YOU “SHORT” THIS MARKET?  If you understand the question,then you may decide that the market is likely to continue lower and you might decide to take on an “inverse” position such as the SQQQ. The ETF is a single purchase that has consistently risen when the market has dropped.  

WARNING: If you still have some funds in the TQQQ, you can’t ignore your portfolio is losing money.The “T” in TQQQ stands for “Triple” and means this managed fund aims are moving up and down at about 3 times the rate of the single QQQ. Please consider moving to CASH

PLEASE REMEMBER:

CASH IS A FINE PLACE TO PUT YOUR MONEY WHEN THE MARKET IS FALLING ESPECIALLY IF YOU ARE UNCOMFORTABLE WITH HOLDING AN “INVERSE” ETF, YET. 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. Please watch them daily.

>>>>>CHARLOTTE’S PROGNOSIS FOR THE NEAR FUTURE :

My current MARKET thoughts…..

>>>> The Nasdaq has found support at its 200-day moving average line. But it would take only a small dip to cross that line and possibly continue down.  

If you want to see how strong this DOWNTREND is, do this quick exercise:

 

1)   Count the number of distribution (falling) days…. and accumulation (rising) days on the 20-day table below.

2)   And your question will be answered.

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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