2024-01-29M: The TQQQ continued to rise for a total of 87.4% from the recent low in October. Consider what the TQQQ has done in the last 3+ months(November, December and January) .... an +87.4% gain! Did you get yours?

The Nasdaq kicked off the new week with very nice UPTREND gain across the indexes. The Nasdaq again showed the biggest percentage gain.

I hope you are participating in this extraordinary UPTREND!Here is how it is working.

But what does that mean about the dollars flowing into (or out of) this triple ETF?

So here is the easy way to compare current trader action in the TQQQ versus what it was like at the October low.

·      In October of 2023, the average volume was 111 million shares for $31.30 per share = $3,474,000bought and sold each day.

·      Today, the average volume is 80 million shares for $57.10 per share =  $5,200,000 bought and sold each day.

·      Today’s dollar volume of transaction is almost 50% higher.

CONCLUSION: The “investing crowd” is going after the TQQQ with vigor and that is where I am putting a nice percent of my funds!

Here are Monday’s moves in the three Major Funds I track.

I note the funds are staying in sync.

·      Nasdaq continues to be the big winner with the 1.1% gain on Monday.

·      S&P500 plays in the middle with a 0.8% gain.

·      DJIA continues to lag (although not every day) with a 0.6% gain today.

The returns today (Monday) for the 3 Nasdaq ETFs that I follow – they are very close to 1 to 2 to 3 returns today for the single,double and triple ETFs.

And look at the gains in the whole month (rightmost column in the table below... 4.5%, +8.6%, +12.6%. I don’t think I’ve seen a group of well behaved ETFs ever!  And “well-behaved”is what I am looking for ….. for predictability!

And be aware…, get ready for our newsletter and strategies to feel the changes as AI continues to move into the main stream.  If you are a leader in delving into AI, I would like to talk to you!  Please call me at (214) 995-6702 – please leave your contact information (phone number is best)and I will chat with a few of you.

When a new game-changing technology blooms (or booms!) like Artificial Intelligence (A.I.), you usually have 2 choices ……

(1) Learn the new technology  and use it! ….or

(2) Miss the biggest value of being a leading innovator in it!

I am offering you a third option. Stay with me,knowing I am on the A.I. train and am taking a deep plunge into A.I. this weekend through a 3-day intensive course this weekend. (NOTICE: BECAUSE OF THIS COURSE,THE WEEKEND NEWSLETTER MAY BE CONDENSED…. BUT STEPPING INTO THIS NEW TECHNOLOGY WILL SOON BE NECESSARY TO STAY UP WITH THE BIG BOYS.

FYI: My background includes an undergrad degrees in Advanced Mathematics/Statistics, and Economics, an MBA from the University of Chicago in Finance and Accounting and a CPA (not current but a great background.)

I then worked with an international distributor of drafting equipment (tables to those huge machines that printed out huge sheets of engineering drawings) and used that foundation to launch the first Computer-Aided-Design system sold worldwide built on the individual workstations (using Texas Instruments computers), and set up the worldwide CADD desktop distribution network to dealers in England, Germany, France and Japan, all trained by me on their sites.

I only tell you all the above so you will understand the skill set I bring to this newsletter.    

Status of the markets:

The TQQQ (triple Qs) lost just a smidge -1.8% from its recent high two days ago.

If you were with me last year, you made between 50% and over100% depending on how you played the trends.

I have decided to get clearer on my position.  I suspect the markets are going to move fast this year (up and down.) I look forward to the coming 12-months generating extraordinary gains.

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.

The following page of notes is repeated each newsletter

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 20days. 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.!!!

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Monday’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 A hit over the last 4 weeks– a drop from 73% three weeks ago to only 58% 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.

Wishing you big returns in your portfolio!.

I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  

I USUALLY SPEND  MORE THAN 4HOURS:

·      RESEARCHING THE IDEAS IN THIS NEWSLETTER,

·      CALCULATING ALL THE DATA I NEED,

·      WRITING THE TEXT FOR THE NEWSLETTER AND….

·      FORMATTING THE NEWSLETTER.  (Today it was more like 5 hours.)

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

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

Charlotte Hudgin

The Armchair Investor

CharlotteDH100@mail.com

Yes! My email address ends in@mail.com

(214) 995-6702

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