2023-11-01W UPTREND Day 1, Nasdaq and S&P500 rose 1+% on Wednesday with Higher Volume for Accumulation Days to launch a NEW UPTREEND!..

November 1, 2023

hopeful 2023-11-01W  UPTREND Day 1,  Nasdaq and S&P500 rose 1+% on Wednesday with Higher Volume for Accumulation Days to launch a NEW UPTREND!..

Wednesday was fourth rising day in a row for the Nasdaq, and the third up day in a row for the S&P500! Volume was rising (or holding higher)!

Although I am happy to see the market back in an Uptrend, I am uncertain about the strength of the new Uptrend. Lots of politics cloud the current market direction and strength.Please stay tuned!

THE GOOD NEWS: All 3 indexes we follow in this newsletter rose on Wednesday. But only the Nasdaq was supported by higher volume and thus the only major index with a Major Accumulation day.

Many of you know that I love to hold the Triple QQQ (TQQQ) in a strong uptrending market. And I switch to the Triple Short  QQQ (SQQQ)  in a downtrend.

So I do NOT hold long or short ETFs as the market changes direction (such as today.)    I am sitting back and watching for a few days to be sure the Uptrend is going to show upward pressure (movement.)

But after a few rising days, I am likely to jump into the TQQQ….And you will hear about it on the first page of this newsletter!

A quick reminder – in 2023, the Nasdaq has outperformed the S&P500 by 150%.  And sadly, the one time market leader, the DJIA, just broke even with its price on 12/30/2022 (the last trading day of last year.)

Here is why I put my money in the Triple QQQ (TQQQ) once a new market settles down. I step back and look at who is winning in the longer term - I bet most of you know the winner is the Nasdaq and its QQQ etf.

QQQ and TQQQ have enjoyed the rise over the Nasdaq’s rise over the last 3 days.

The QQQ and TQQQ are great places to invest when the market is rising. And I am in the QQQ/ But I’ll give  the market a couple more days to build momentum to the Upside before I go in for the triple QQQ.

Note the third line in the above table is the Triple QQQ (TQQQ) and the first line is the QQQ. Which one do you chose to be in today? Even if you chose to ride the TQQQ up and down, you are way ahead by being in the triple ETF. And if you got out Even if you didn’t get out in August or September of even until today, you are much richer having held onto the TQQQ (although I would recommend you select a max percentage loss of 8 – 10 %  and exit then, waiting for the market to turn back up.  

I have made a lot of money just playing the TQQQ when the market is moving upward fast.

But remember, most indexes fall faster than they rise. The TQQQ is soooo much easier to make money with if you can visit them just once a day. That TQQQ pays out about 2.5x to 3x. I can tell you a serious percent of my students just do that – play the TQQQ in a rising market…..and the SQQQ in a falling market. And now you know the foundation of the success of this newsletter…. the Triples!

>>>>> Please remember: I do not know how to get in at the bottom  or out at the top. Ijust  get closer than most.

We don’t know it’s atop until after we have ridden the market down for a bit.

But I get closer to the turning points than most.  

If you had gotten IN at the beginning of the year and out at the March low you would have been UP about 20% which alone is a pretty good year. But I hope you would have stayed around and considered getting back in as the TQQQ broke to a new high.

I’ll let you ponder those questions.  On a MarketSmith chart, you can play out the stock timing drama. You can reveal the chart one day at a time to see how well you would have timed it.

My goal in this discussion is to be sure you know these critical points to remember:

·      A “BUY & HOLD” strategy is never recommended in this newsletter.

CONSIDERABLE DAMAGE HAS BEEN DONE IN THE RECENT DOWNTREND. I hope you did not go on vacation and leave the triple ETF unattended.

Please NOTE: In this newsletter, you will see more attention paid to the QQQ (Nasdaq100 – the fund of the 100 largest stocks without the slower financial stocks) than the Nasdaq, S&{500 or DJIA.

As you look at a 20-day HISTORY of the I below,note:

·     The Nasdaq topped on 10/11/23 and has lost 6.7% from that top.

Look at the last 13days of the Nasdaq’s price/volume action.

In the “Change in Price” column, look at the last 13trading days that I have “boxed:”

·       8 price changes are red or orange indicating their price fell from the day before,versus…

·       Only 5 price changes were green or lime-green indicating they rose.

>>>> LESSON to NOTE:  Most indexes drop faster than they rise but this drop is accelerating! Notice on the QQQ chart above, I have installed a curve under the QQQ lows which emphasizes the accelerating drop.

Although today’s Nasdaq closing price was not a 20-day high, it was 6 day high and with 4 rising days, and the last 2 as accumulation days, the new Uptrend might give us a good boost!

Look below at the MARKET FACTOR, COUNTS & RATINGS table below


I am LOOKING FOR GREEN…. And I found it in the top for ratings!

·      Note the poor, laggard DJIA and S&P500 have closed below their 200-day lines.

·      The Nasdaq and DJIA have E ratings.


And this market continues lower. (After the big runup earlier this year, I am not surprised …. And am not poor from it – since I made a lot in the first half of the


In the table below, I especially liked the 6 up (rising) days versus the 4 down days in the last 10 days.

>>>> In fact, please note the last 4 days were all rising and the last 2 were  a minor accumulation day for Tuesday and a MAJOR ACCUMULATION DAY for Wednesday (today.)

>>> it looks the uptrend is gaining momentum. 

Look below at the MARKET FACTOR, COUNTS & RATINGS table below.

I am LOOKING FOR GREEN: Yes, the market direction dis change to UPTREND GREEN today!

 And I not that in the last 8 trading days, 6 were UP days. Yippee!

 CONCLUSION: This market continues to RISE!

The low number of stocks with an “A” rating certainly still gives me pause before  entering any new investments.

…. Even the QQQ is now 32.0% below its 50-day line!

Stay tuned!    Those birds just aren’t going anywhere!

NOTE ### I have changed the last column of the Accumulation/Distribution table below to focus on the (scary) sum of stocks with “D” and “E” ratings. Yikes!


On that table below, note that the stocks with “A” ratings have almost dried up – at 4% or 5% for the last 5 weeks.  Meanwhile, 54% of the stocks have low “D” and“E” ratings today.

Looking at the last 5 weeks, note that this period has been a hard time to find stocks that have strong or rising prices (Stocks with “A” or “B”ratings.)

>>>>> This a dropping market. (Yes the last 3 days of the Nasdaq were UP with rising volume – but that volume is significantly below average.

>>>> I am NOT convinced the market correction is over.

Stay tuned!    Those birds just aren’t going anywhere!

One additional “Word to the Wise”…

>>>>>--- MOST MARKETS FALL FASTER THAN THEY RISE. Beware of buying any new position unless they are very healthy.

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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