2023-11-03F UPTREND Day 3, Nasdaq leaps 6.6% last week –looks like a MOON SHOT rocket!
The Nasdaq rose another1.4% on FRIDAY with higher volume. The S&P500 rose 1.7% for Accumulation Day for both --- to launch a NEW UPTREND!..
Although I am happy to see the market back in an Uptrend, I am uncertain about the strength of the new Uptrend and how long it will last. I will watch carefully.. Please stay tuned in daily!
The GOOD NEWS: All 3 indexes we follow in this newsletter (the Nasdaq, S&P500 and DJIA) rose on all 5 days last week.
And the REALLY GOOD NEWS: The Tripple QQQ (TQQQ)which I use in a rollicking market as we had in the last 3 days of last week, rose14.6% during the 3 days. (I admit it was an uncertain signal until the end of Wednesday gave us a 1.7% rise with a big
But only the Nasdaq was supported by higher volume and thus the only major index with a Major Accumulation day.
The QQQ, which frequently outperforms the Nasdaq, rose 4.8% during the last 3 days of last week. (I chose that period because if you had been watching the last 2 days of last week, the Nasdaq’s rise might have attracted you to watch the QQQ after the nice rise on Friday of last week.
If you were bold enough and smart enough to watch the rising TQQQ during last Wednesday, just checking in after the high volume during the you the QQQ at Tuesday’s close. You would have been UP 3.0% in just the last 2 days of last week.
BUT…. if you were bold enough to buy the TQQQ (Tripple QQQ) before the end of the day (after Wednesday’s 5.2% rise on Wednesday, you would have ended the week with a 9.0% rise in just the last 2 days of the week.
Step back and look at the TQQQ intraday chart for Wednesday. Note, it has risen for 6 days in a row. But the volume has settled down. Does that mean you have “missed the boat?” The TQQQ has risen quickly to its50-day line, gapping up between the last 3 days. That does NOT sound like a market that has given up.
And the TQQQ (triple QQQ ETF) rose 14.6% in those last 3 days of the week.
Note the charts look very similar which means the fund manager=s for the TQQQ are doing a great job. NOTE: in past years, the TQQQ rarely earned 3x the QQQ. But I still enjoyed returns well above the single QQQ or the double Q
Note the single QQQ chart looks very close to the triple TQQQ chart. But if you were in the triple QQQ (TQQQ) during that time, you would have earned about 200% more. Here’s the year-to-date comparison of the 3 QQQ ETFs we have been talking about.
The Market also produced more well-performing stocks. The count of stocks with “A” or “B”ratings rose from 7% to a total of 28% last Friday.
On the Accumulation/Distribution table below, note that the stocks with “A” ratings which have almost dried up – at 4% or 5% for the last 5 weeks, grew today:
· The % of Bs rose from 17% to 22% over the last week.
· The % of Cs rose from 20% to 23%.
· While the Ds fell 2% and the Es fell 8%.
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.)
REMEMBER:_____EVEN IF CASH IS A VALID POSITION,…with a fast rising market, you should consider holding a position that allow you position to rise with the market (or a multiple of it.)
WOW! Note the increase in stocks with A or B ratings in the last week! (Note the rightmost column above which adds up stocks with A or B ratings. In one week, that sum rose an encouraging 16%!
But remember, most indexes fall faster than they rise. The TQQQ is soooo much easier to make money with if you can visit it just once or twice a day. That TQQQ pays out about 2.5x to 3x the single QQQ. 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. I just 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.
>>>> LESSON to NOTE: Most indexes drop faster than they rise but this drop is accelerating! Please take a few minutes to look at the stocks you own (QQQ, TQQQ and any individual stocks). Any of them can change direction in a blink.
Although today’s Nasdaq closing price was not a 20-day high, it was 11day high 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 has an E rating and the DJIA has a D 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.
The low number of stocks with an “A” rating certainly got HIGHER Thursday.! And I expect them to grow tomorrow and next week
Stay tuned! Those birds just aren’t going anywhere!
REMEMBER:_____EVEN IF CASH IS A VALID POSITION,…with a fast rising market, you should consider holding a position that allows you position your portfolio to rise with the market (or a multiple of it.) 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.