2024-04-05F Armchair Investor Newsletter….The Nasdaq rebounded 1.2% Friday but volume was lighter.

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Please note: For  the Monday and Tuesday around the solar eclipse next week, I will be on vacation. In Dallas, we are lucky enough to have front row seats for the eclipse…. Unless it rains. Please keep your best wishes for a sunny day in Dallas on Tuesday of next week.  

Friday was the first day of significant drops on all three major indexes with higher volume in quite a while, making Thursday a day of significant MAJOR DISTRIBUTION. The week ended with significant distribution days across the 3 major indexes above.

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‍Which of those 2 stocks would you rather be in (the TQQQ or QQQ??

BOTTOM LINE: A triple of any stock that is winning is better than just the single stock. >>>> But beware of that triple when a market reverses. The stock then FALLS 3 times as fast.

‍I am very pleased with the TQQQ’s 5-month growth (almost doubling!) See the upward heavy line on the TQQQ chart above!

Yes,they are very similar in form.  

‍The 3 QQQ stocks, (the single QQQ, the double QLD, and the triple TQQQ) followed the quietmarket in perfect synchronicity. Note the daily rises of the 1x, 2x and 3xfunds, stayed perfectly in sync. And rememberover the longer term, there can besome variations as there is in the “Gain in 2024” column. But I am notcomplaining. My TQQQ are up 19.7% this year and we are jus a few days past thefirst quarter.  WOW!

>>>>> If the TQQQ has done so well, why am I concerned right now?  Because the Nasdaq and the TQQQ have gone sideways for the last 5 weeks. The IMPORTANT QUESTION YOU HAVE TO ASK YOURSELF:

......Is it time to cash out of the TQQQ?  

In an uncertain, flat or falling market, cash can be abetter holding place.  

Look at the TQQQ chart above. What is difference about theTQQQ yesterday from the last 5 months? THIS IS IMPORTANT: Thursday was the first day the TQQQ fell below its50-day moving average line.  

>>> That drop below the 50-day line is enough forme to say the institutional investors are selling their TQQQ….. And that isenough for me to decide I sell my TQQQ and wait in cash… How long?  Until I decide:

·       The market is going into a correction (Downtrend) and I maybuy the SQQQ (the inverse TQQQ)  … OR

·       The market is back in an Uptrend and it is safe to buy backinto the TQQQ

Note Friday’s drop as it hit the 3 Major Exchange Traded funds: They all dropped.... inporportion to their multiples!

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LESSON: Don’t be shy to ride an Uptrending triple in a Uptrend! But avoid it in a Downtrend.

Watch it daily. Based on Friday's drop after almost 5 sideways forweeks. I sold my TQQQ at the Friday open. When it turns back up, I will watch for a good time to get back in. Cash can be a very comfortable place to wait in a falling market. 

 NOTE: *  A GREEN date boxin the date column above means the Nasdaq hit an all-time high closing price! Wow!

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Note: I'm not sure what is going on with tonight's charte. But I have to leave in some dublicates because the WebFlow workspace takes them ALL out if it don't leave the duplicates in.

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‍>>> MY CURRENT ACTION PLAN:  

The Accumulation/Distribution table for the current marketis shown below.

The strongest (green) “A” boxes are holding at 14%  from 15% two weeks ago.

Overall, the sum of As + Bs is a strong 60% today, afrequent topping point.

(The above comment is my way of WARNING YOU that the marketmay have a correction next week, which could grow into a larger drop.)  

I am optimistic about this A.I. driven market continuing to rise. The only way we will know which way the market is moving is to watch the market….. each day.)

Pink boxes above indicate ratings that have fallen over thelast week. Green boxes above indicate ratings that have risen over thelast week.

Please consider reviewing this newsletter daily: .The markets can change direction and strength quickly!

Note that the percentage of As and Bs isholding between 58 and 62 for the last 5 weeks!

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NOTE THIS WARNING.  Holding onto a falling stock, (whether an ETFor the stock of a favorite company), is a quick 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, ANDFUNDS TO FALL FASTER THAN THE RISE.

Of course, I do not sell a positionthat has been rising well after one or two small down days. But if you had asignificant loss over several days, especially if there is an increase inmarket distribution days (down days on higher volume), then stepping outand waiting in cash can help you save your portfolio for future rallies and letyou sleep at night.

REMEMBER:_____EVEN IF CASH IS A VALIDPOSITION,…in a fast rising market, you should VISIT your portfolio to verify it(or a big part of it) is not dropping.

>>>> Stay tuned for TOMORROW'S RESULTS!

One additional “Word to the Wise”…

>>>MOST MARKETS FALLFASTER THAN THEY RISE. Beware of buying any new positions unlessthey are very healthy.

Wishing you big returns in yourportfolio!.

>>>>> I APPRECIATE YOURCONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  

I USUALLY SPEND  MORE THAN 4HOURS FOR EACH ARMCHAIR INVESTOR NEWSLETTER:

·      RESEARCHINGTHE IDEAS IN THIS NEWSLETTER,

·      CALCULATINGALL THE DATA I NEED,

·      WRITINGTHE TEXT FOR THE NEWSLETTER AND….

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

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

Thank you for your kind feedback and ESPECIALLYFOR YOU WHO HAVE DECIDED TO MAKE A MONTHY CONTRIBUTION.

Charlotte Hudgin, The ArmchairInvestor  

For active subscribers, my phonenumber is  (214)995-6702

May your stock portfolio grow and growand grow as this giraffe family has!

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