2024-04-12F Armchair Investor Newsletter. Market ends the week with the Nasdaq returning just over 16,000. Volume lighter.

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2024-04-12F  Armchair Investor Newsletter. Market ends the week with the Nasdaq returning just over16,000. Volume lighter.

On Friday, the Nasdaq ended the week, holding above 16,000.  That is a 28.9% rise over the October 2021 low.

‍>>>> Go below the Nasdaq chart to see how Ihave earned about 3x that Nasdaq return.

I sold the TQQQ at the open on Friday as I said I would ifit opened lower – and it did.  And thenwhile I waited in cash, the TQQQ (and QQQ) dropped more.  SO THE “SELL AT OPEN” was a good decision.

And the TQQQ continued lower for most of the day.  

 >>>> SELLING THE TQQQ WAS THE RIGTH DECISION! You can see from the two days of the TQQQ below, that the best time to seel the TQQQ was as soon as it opened on Friday.

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We have made great returns in this runup of theNasdaq.  But the index (and its QQQ andTQQQ) showed a loss on Friday’s open (when I sold and went to CASH,

Note: You cannot invest in the Nasdaq composite – it is thousands of stocks. There is no investable basket for the Nasdaq. The closestoption is the QQQ. So here is that  QQchart.

The QQQ ETF (basket of top 100 stocks in the Nasdaq withoutthe slower moving financial stocks.) earned 27.5% during the last 5 ½ months.

If you don’t know the last step in this analysis – the step that really pays off --- We are going to the TRIPLE QQQ ETF.

If you are new to thins newsletter, you might think I am being silly,

The TQQQ I am using in this (final) step, it the “Tripple QQQ!”

And this one really pays off – about three times what the single QQQ pays.

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The TQQQ certainly gave investors an exciting return over the last 5 ½ months more than tripling their investment.

>>>> MY BIG CONCERN RIGHT NOW:  The QQQ has been riding the market sideways.  I am much more interested infinding something solid that is rising but have not.  Soooooo…..

>>>>>>>> I SOLD MY QQQs Friday morning and am now waiting in CASH <<<<<<<

I am not going to invest in the QQQuntil I see that Exchange Traded Fund start rising again.  And I am happy to rest for a moment while theNasdaq decides on a direction.

>>> I invite you to watc hthis newsletter to see when I have confidence in a rising QQQ to get back in.  And when that happens, you will know it from my comments at the to of this newsletter. And it is possible my first purchasewill NOT be the QQQ, but I will invest in the TQQQ (triple QQQ) which typically makes 2.5x to 3.0x the QQQ. Yee Haw!

But the TQQQ is up 87.4% since itslow in November of last year,  because itis a “triple”!  

And as you look atthe TQQQ’s fabulous growth, I hope you understand why I invest in the TQQQ. Butthe TQQQ has gone sideways, playing around $60 (a little lower and a little higher, but it has NOT taken off very far in either direction.  

Note how alike the Nasdaq and TQQQ charts look.

The big difference is the multiple. The Nasdaq is a single multiple of that index.  The TQQQ is a triple multiple of the QQQthe 100 biggest stocks on the Nasdaq.) The two charts will move in similar looking stepscompared to the QQQ. But each TQQQ step is about 3 times the Nasdaq!

BOTTOM LINE: A triple of any stock that is winning is better than just the single stock.

The IMPORTANT QUESTION YOU HAVE TO ASK YOURSELF:

Is it time to SELL the TQQQ and wait in CASH?  

>>>>> I am going to sell my TQQQ Friday if the market doesn’t open higher.

LESSON: Don’t be shy to ride a triple in a Uptrend!

But watch it daily. I sold my TQQQ at the Friday open,as I said I would.

>>>Just be sure to watch anytriple stock daily so you can decide when to jump out.  

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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 torise. The only way we will know which way the market is moving is to watchthe market….. each day.)

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

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

Note that the percentage of As and Bs is holding 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 Friday’sresults!

One additional “Word to the Wise”…

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

Wishing you best returns in your portfolio!.

Charlotte Hudgin,

The Armchair Investor newsletter

>>>>> I APPRECIATE YOURCONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  I USUALLY SPEND  MORETHAN 4 HOURS 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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