2023-11-27M UPTREND Day 18. TQQQ is UP 155% this year! Armchair Investor Newsletter
In a profitable year, extending a holiday weekend such as around Thanksgiving, is common. Monday’s lighter volume confirmed that not all the big payers were back online. I expect them to get back in action over the next few days.
And they have a good reason to take it easy – the Nasdaq has worked hard for us this year. Add in the impact of using the triple QQQ (TQQQ) and I am darned pleased with the 155% you would have earned this year. And I didn’t make that much – I didn’t play the TQQQ for the whole year.
Note on the StockCharts.com chart below, the TQQQ has had a great year.
You probably earned more than that rise 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.
I am clear that the judicial use of the TQQQ is 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 Triple QQQ – the SQQQ which earns gains when the market falls.
Below is the weekly chart of the TQQQ for 2023. If you had agreed the market was in
So however you played it this year, I hope you rode the TQQQ at least some of the year and you now appreciate the value of riding the trends in a TRIPLE vehicle!
NOTE:Most years are not as easy as 2023 has been. Some years require going to the INVERSE ETF that makes positive returns in a falling market.
As you follow the ARMCHAIR INVESTOR NEWSLETTER, you will see we have taken a simplified approach.
When the market changes its direction,I will explain:
· WHY I get IN and OUT of the TQQQ
· WHY I use the SQQQ (inverse triple QQQ) to earn positive returns while the market is falling.
· And WHY I sometimes go to CASH.
I will focus more on the KISS advice from Investors.com founder William O’Neil and advice from Fred Richards, a good Dallas friend of mine 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 recent passing.
I hope you have enjoyed your Thanksgiving day. The TQQQ and SQQQ give me much to be thankful for this year.
HERE’S YOUR BIG WINNER TODAY, THE TQQQ, AGAIN, up an amazing 178% 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 21% 4 weeks ago to 58% yesterday. WOW!
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 TUESDAY, 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 EXPECTED FRIDAY WOULD BE A VERY LIGHT TRADING DAY – WITH THE EARLY CLOSE…. AND IT WAS.
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!
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 positions unless they are very healthy.
Wishing you big returns in your portfolio!.
I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER. I USUALLY SPEND AT LEAST MORE THAN 4 HOURS RESEARCHING THE IDEAS IN THIS NEWSLETTER, CALCULATING ALL THE DATA I NEED,WRITING THE TEXT FOR THE NEWSLETTER AND…. FORMATING THE NEWSLETTER.