2024-03-20W: Armchair Investor Newsletter. All Green Day! Major indexes rise to NEW HIGHS on higher volume.

2024-03-20W: Armchair Investor Newsletter.  All Green Day! Majorindexes rise to NEW HIGHS on higher volume.

Here is what I mean by an “all green day”….

All of the major indexes and their volumes rose onWednesday.  That is quite positive forthe current market.

·       Every major index I follow rose on higher volume Wednesday which means they all had accumulation days of market buying.

·      The Nasdaq andDJIQ came in with more than a 1% rise in price  with higher volume meaning they all had MajorAccumulation days (i.e. they rose more than 1% with higher volume!

·       Only the S&P500 came in slightly below 1.0% pricegrowth (but an 0.89% rise is still quite strong.)

ARMCHAIR INVESTOR CONCLUSION: The market rose significantlyon Wednesday, signaling it liked the Federal Reserve’s take on the market.

All theQQQ variations continued rising again on Wednesday  (TQQQ) rose 3.2%, not quite a 3x multiple ofthe single QQQ. But since the TQQQ continues to earn more than the singleQQQ or the double QQQ, I am happy to hold a nice position in the TQQQ.

The Nasdaq continued to rise to another all-time high!

The ETFs(Exchange Traded Funds). The current price of each ETF is less important thanhow much each has grown or declined.

The “recentgain” (as marked with the blue arrow on the chart below is a strong indicatorof one of the best stock to own at the moment – the TQQQ.

TQQQ hasrisen over 100% from October 31, 2023 low to Wednesday (3/20/2024.)  

Note that the TQQQ has been slightly below its all-time high at the beginning ofMarch .  Another way to look at thechart above is to see the TQQQ dancing sideways around 60 for 4 weeks.  The good news is, the TQQQ has not given up the 60 price.Given the 100+% gains over the prior 4 ½ months, I am thrilled that it isholding at around 60. Perhaps this will be just a “breather?”  

Please note,…. Based on the several weeks of playing around$60,  I am watching for a possibledrop.  I have no inside information thata drop is coming.  But a density ofdistribution days (down days on higher volume) might get me to cash out andwait on the sidelines.KnowingI am still holding that 100% rise in the TQQQ over the last 5 months.  I am not crying!  Not even complaining – this volatility iswhat, eventually, pays off big-time if you can just see when to get in and out!And that is what we will continue to discuss in this newsletter.

REMEMBER:  I do not know how to get in at the lows orout at the highs…. I just get closer than most!

If you step back and look at the above TQQQ chart above, you may not be tooconcerned.  The TQQQ will continue to bevolatile…..that’s what a triple ETF does.

>>>>LET’S LOOK AT WEDNESDAY’S indexes.

‍What did the triple QQQs (all 3 forms of them shown below) do on Friday?  I’d say they did good work!

IN MY WORLD –

·       NOTHING BEATS HOLDING THE TQQQ in an Uptrend, and

·       NOTHING BEATS HOLDING THE SQQQ in a Downtrend.

>>> I focus on the TQQQ because you can typically make2 ½ to 3 times what the QQQ earns.

NOTE:  I am verypleased with the dependable 1-2-3 relationship the 3 ETFs – the single QQQ, thedouble QLD and the triple TQQQ… and I am especially enjoying making those greatreturns on the triple QQQs!...

Also note that the high within the last 20 days was hit on 3/7/2024.Look for the Green data box on the list of the last 20 days!

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MY CURRENT ACTION PLAN:  (Please refer tothe ACTION PLAN FROM Marach 19 newsletter)

Today’s Accumulation/Distribution table:

Sorry about the odd spacing that is showing up - there are still battles to win with this software

Note: On the other part of this process, the greens all look alike. Please see them that way tonight!

Pinkboxes above indicate ratings that have fallen over the last week. Greenboxes above indicate ratings that have risen over the last week.

Please consider reviewing this newsletter daily: .Themarkets can change direction and strength quickly! Note that the percentage ofAs and Bs took hit over the last 4 weeks – a drop from 61% fourweeks ago to 52% 2 WEEKS AGO TO 58% LAST WEEK on this week!>>>>>  A small drop !

NOTE THIS WARNING.  Holding ontoa falling stock, (whether an ETF or the stock of a favorite company), is aquick way to lose your recent gains. If you play individual stocks and ETF’s,play carefully. Use the real returns (daily, weekly, monthly)

IT IS COMMON FOR STOCKS, ETFs, AND FUNDS TO FALL FASTERTHAN THE RISE.

Of course, I do not sell a position that has been risingwell after one or two small down days. But if you had a significant loss overseveral days, especially if there is an increase in market distribution days(down days on higher volume), then stepping out and waiting in cash canhelp you save your portfolio for future rallies and let you sleep at night.

REMEMBER:_____EVEN IF CASH IS A VALID POSITION,…in a fastrising market, you should VISIT your portfolio to verify it (or a big part ofit) is not dropping.

>>>> Stay tuned for Friday’s results!

One additional “Word to the Wise”…

>>>>>--- MOST MARKETS FALL FASTERTHAN THEY RISE. Beware of buying any new positions unless they are veryhealthy.

Wishing you big returns in your portfolio!.

I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THISNEWSLETTER.  

I USUALLY SPEND  MORE THAN 4 HOURS FOR EACH ARMCHAIRINVESTOR NEWSLETTER:

·      RESEARCHING THE IDEASIN THIS NEWSLETTER,

·      CALCULATING ALL THEDATA I NEED,

·      WRITING THE TEXT FORTHE NEWSLETTER AND….

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

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

Thank you for your kind feedback  and ESPECIALLY FOR YOU WHO HAVE DECIDED TOMAKE A MONTHY CONTRIBUTION.

Charlotte Hudgin, The Armchair Investor

May your stock portfolio grow and grow and grow like thisgiraffe family!

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