2024-01-24W The TQQQ rose 21.7% in the last 12 trading /days. But look what the TQQQ has done in the last 3 months .... a +77% gain!

2024-01-24W  The TQQQ rose 21.7% in the last 12 trading/days. But look what the TQQQ has done in the last 3 months .... a +77% gain!

I hope you are participating in this extraordinary UPTREND!

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AI (artificial intelligence) is HERE!

You have 2 choices …… (1) Learn it and use it! ….or (2) Loose it!

Of course, the big difference is the TQQQ pays off about 3 times the QQQ. And remember,…. When the market turns down, the TQQQ drops about 3 times as fast as the QQQ.

Compare the two charts in this newsletter. (TQQQ above and QQQ below.) You might mistake either one for the other if you didn’t look at the prices. The fact that the TQQQ does such a good job of mimicking the QQQ (and has for quite a while) gives me confidence in buying the bigger returns of the TQQQ.

>>>>The big difference between the 2 ETFs is that the TQQQ, when bought and sold at the right times, makes me close to 3 times what the QQQ does..

“I’ll make mine a TRIPLE, please.

What is fascinating to me is the similarity of the singe and triple charts.

So relax and lean back…. And enjoy the bigger gains of the TQQQ.

You cannot ignore what the triples are doing! (unless you are willing to accept a smaller return in the QQQ. And why would you)

>>>MY PLAN FOR TOMORROW:

Check in on the TQQQ at least every 2 or 3 hours…. just to be sure it isn’t failing.  A quick peak doesn’t take long.

NOTE: At some point, someday, the TQQQ will fail.  I would rather get out early than late and risk a bigger loss.

If I sell the TQQQ because it is price is dropping, I can go to cash or the inverse as appropriate index to protect my capital,

If the ETF resumes upward progress, I can always get back in.

NOTE: The nice thing about the TQQQ is that it really can make a lot of money for me when it is rising.  But it can quickly loose those gains if I am not paying attention. Note the TQQQ fell a lot harder than the QQQ over the same timeframe.

How long does it take to look at the current price chart? Just a wink if you have it set upon your phone or computer.

OPTIONAL ASSIGNMENT:Calculate the return on the TQQQ since the January low.  (AND YOU ARE WELCOME!)

And , “THANK YOU” to those of you that SUBSCRIBE  to this newsletter.

What I like best about the MARKET FACTORS, COUNTS &RATINGS table below is the number of Accumulation days versus the Distribution days. That ratio gives a strong sense of the strength and direction of the current market. If the 4 UP days and 2 DOWN days confuses you,note that I do not count a day’s move unless it was at least 0.2% up or down.

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What should you do when the market starts falling?

Just read this newsletter that night and I will give you a simple solution based on what the market is doing then.

>>>>>REMEMBER: I do NOT know how to:

·      Get in at the bottom or

·      Get out at the top.

·      …..but I have consistently gotten closer than most other advisors…. And that timing has returned significant growth in my portfolio and those of my readers.

Are you concerned that the market may have risen as much as it could, for the moment?You might be right … but I’m not worried.

>>>The current Uptrend is showing moderate strength.  

NOTE:  IF YOU EVER SEE AN EMAIL FROM ME IN THE MIDDLE OF THE DAY (which happens rarely),consider giving it a quick read. It MIGHT include a change of strategy you can implement during the day to save more of your prior wins.

·      Remember:The market and individual stocks continue in the direction they are going…until they don’t.

>>>>Please read this newsletter nightly to be sure you don’t miss my notes on when and where the big growth (or fall) is happening!  

I hope you have enjoyed an investment in the TQQQ (triple QQQ.)  They have grown almost 4 times the single QQQ this year. ….. But remember…. The TQQQ also can fall at 3 (or more)times the QQQ.  

What to do about the high volatility of the TQQQ?

>>>I suggest you read at least the first two pages of this newsletter each night. This action will keep you tapped into the current market. And remember:

·      I do NOT know how to get in at the market bottoms and out at the tops. ----- I just get closer than most others. Note on the above table the price/volume action of the last 20 days. Only 3 days were Distribution days –when the price dropped and the volume rose, indicated some serious selling.

FINALLY:REMEMBER:

 In the stock market:

“What goes UP,UP, UP….. eventually goes DOWN, DOWN, DOWN! “

The first 10 days on the 20-day list above had a singular down day on 12/20!  That is amazing!  

The market continued higher for the next 4 days before an abrupt reversal for 5 down days in a row, ending with 4 rising days.

Only one of those 3 rising days had a significant (2.2%) rise. And that 1/8 day had extraordinary volume of 20.6% increase… a nice way to kickoff the week.

Look at the amazing percentage of stocks that have “A” or “B” ratings – Even after a drop from recent A+B s owning 732%.... today’s 68% As+Bs is still very strong.!!!

Wednesday’s Accumulation/Distribution table

I recommend you watch this newsletter daily: .The markets can change direction and strength quickly!

Note that the percentage of As and Bs took hit over the last 4 weeks– a drop from 73% three weeks ago to only 54% on Friday! >>>>>  Yikes!

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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. If you play individual stocks and ETF’s,play carefully. Use the real returns (daily, weekly, monthly)

>>>> 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.

REMEMBER:_____EVEN IF CASH IS A VALID POSITION,…in a fast rising market, you should consider holding a position that allows you to position your portfolio to rise with the market (o r a multiple of it.) Stay tuned! And watch daily!

Stay tuned!   Those birds just are back and they brought some friends!

One additional“Word to the Wise”…

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

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Wishing you big returns in your portfolio!.

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I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  

I USUALLY SPEND  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.  (Today it was more like 5 hours.)

I WELCOME YOUR COMMENTS ON THE MINOR CHANGES IN TODAY’S NEWSLETTER (as described in thenotes.)

Thank you for your kind feedback and ideas. Please keep sending them.

Charlotte Hudgin

The Armchair Investor

CharlotteDH100@mail.com

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