2023-11-22W UPTREND Day 16. TQQQ UP 158.6% this year.
This Armchair Investor report will be short due to the Thanksgiving holiday.
Here is the bottom line of 2023 – from the last day of 2022 to 11/22/23,the TQQQ has risen 158.6%. I am not saying you earned that much following this newsletter. We got in and out several times, waiting in cash during some of the dips. And we did not get in at the bottoms. We waited until a new Uptrend showed strength.
Overall, if you had bought the TQQQ on the last day of 2022 and held till today, you would be up 158.6%. if you followed some of our suggestions to wait in cash as the market fell, you would have made a higher return.
I am clear that the triple Qs are the key to winning big in the stock market. And remember: There will be prolonged downtrends and we will let you know when to use the INVERSE QQQ – the SQQQ which earns gains when the market falls.
Here is the weekly chart of the TQQQ for 2023. If you had agreed the market was in an Uptrend at the end of 2022 and just bought the TQQQ and held it through yesterday, you would be up 158.6%.
If you had followed out ideas of when to get out and wait in cash during falling period, you would have made more.
So however you played it this year, I hope you rode the TQQQ at least some of the year and you now appreciated the value of riding the trends.
As you follow the ARMCHAIR INVESTOR NEWSLETTER, you will see we have taken a simplified approach. I will explain why I get and out of the TQQQ, and why I use the SQQQ (inverse triple QQQ) and earn positive returns while the market is falling.
I will focus more on the KISS advice from Fred Richards (a good Dallas friend and a long-term friend of William O’Neil – from the time they were both in SMU (Southern Methodist University here in Dallas), until O’Neil’s passing.
I hope have enjoyed your Thanksgiving day. Tonight’s newsletter will be a short summary of the market action.
HERE’S YOUR BIG WINNER TODAY, THE TQQQ, AGAIN, up 3.6% today and up an amazing 158.4% this year. And is still rising.
>>>>> LOOK AT THE HEALTH OF THE NEW UPTREND:
The table below shows the growth in “A”and “B” rated stocks from 24% 4 weeks ago to 57% yesterday. WOW!
If you are interested in reviewing the MARKET FACTORS, COUNTS & RATINGS table or the 20-day HISTORY of the NASDAQ with PRICE & VOLUME, Please refer to Tuesday’s NEWSLETTER.
I do NOT know how to get in at the bottom… or out at the top.
But I usually get closer than most!
And you can usually make some nice returns with the signals I talk about in this newsletter.
NOTE THIS WARNING. Holding onto a falling stock, whether an ETF or the stock of a favorite company, is a quick way to loose your recent gains. Remember….. down is down. Of course I do not sell a position that has been rising well after one or two small down days. But if you had a significant loss over several days, especially if there is an increase in market distribution days (down days on higher volume), then stepping out and waiting in cash can help you save your portfolio for future rallies and let you sleep at night.
FOR MONDAY,I SUGGEST YOU WATCH THE OPENING OF THE MARKET AND SEE HOW THE QQQ SHOWS UP. IF THE MARKET OPENS WITH A significant DROP, YOU MIGHT CONSIDER WAITING IN CASH.
>>>>I EXPECT FRIDAY TO BE A VERY LIGHT TRADING DAY – WITH AN EARLY CLOSE.
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 to 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.