2024-04-15M Armchair Investor Newsletter. I’m Happy to be OUT of this market. Now I am in the TRIPLE INVERSE SQQQ!

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2024-04-15M  Armchair Investor Newsletter. I’m Happy to be OUT of this market.  Now I am in the TRIPLE INVERSE SQQQ!‍

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Aren’t you glad you got out at the market at Monday's open?

‍On Monday, the Nasdaq fell 1.8% with higher volume for a MAJOR DISTRIBUTION DAY.

If you followed my lead over the weekend, you safely grabbed most of your recent gains by selling the QQQ at Monday’s open and by the end of the day, you could have gone out to a nice dinner on the day’s profits!

When you see the major indexes fall hard (see chart below)and you are in the SQQQ (the INVERSE TRIPLE QQQ), I hope you are pleased withyour winning actions.

As you look at the major index losses, remember you are playing the INVERSE game (I hope.)  

If you are new to the inverse ETFs just think “upside down.”  When the TQQQ goes down,….. the inverse QQQ (SQQQ) goes up!

I hope you see why following the strengths and diection of the Nasdaq and the QQQ family (below) will reward you nicely!  Sometimes that reward is simply missing more of the market drops than other do - like getting out of the QQQ near the start of Friday’s drop…. Which would have included missing Monday’s 1.8% drop!

Of course, I do not know when the market direction is going to change. (I am almost always at least a day late – I have to see the ETF reverse to consider shorting it.) 

But Friday’s opening loss was all I needed to get out and wait on the sidelines in cash!  Now note that the market did the jitter bug dance for about a third of the day on Friday before falling hard.  

On Monday (today), as soon as the market undercut Friday’s low, I jumped into the SQQQ (the triple, short QQQs.) See the line at Friday’s low.  And I skied down the rest of the hill. Why did I wait to get in the triple inverse? I saw the market hesitate above Friday’s low and wanted a stronger downward signal.  I got that signal about 12:30 as the Nasdaq undercutFriday’s low and kept going. \

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Overall, Monday was a great day to get short!

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

I sold the TQQQ at the openon Friday as I said I would if it opened lower – and it did.  And then while I waited in cash, the TQQQ(and QQQ) dropped more.  SO THE “SELL ATOPEN” was a good decision.

And the TQQQ continuedl ower for most of the day.  

 >>>> SELLING THETQQQ WAS THE RIGTH DECISION!

We have made great returns in this runup of the Nasdaq.  But the index (and its QQQ and TQQQ) showed a loss on Friday’s open (when I sold it and wentto CASH.)

Note: You cannot invest inthe Nasdaq composite – it is thousands of stocks. There is no investable basketfor the Nasdaq. The closest option is the QQQ. The QQQ ETF (basket of top 100stocks in the Nasdaq without the slower moving financial stocks) earned 27.5%during the last 5 ½ months.

>>>>>But itis the last step in this analysis – the step that really pays off --- Iam going into the inverse triple QQQ ETF - the SQQQ (the “S” stands forshorting. But the  Here’s today’s big win…  

As the QQQ falls with themarket… the SQQQ (inverse tripleQQQ) rises  about the same percent!  

HERE’S THE TEST.  Reread the statement above and decide what todo…..

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

The IMPORTANT QUESTION YOU HAVE TO ASK YOURSELF:

If the market has rolled over (which I believe it has) and started to drop, shouldn’t I be in theinverse (short) ETF? ….. YES! The TQQQ was a wonderful play to be while the market was rising.

??????????????????????????????

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

I sold the TQQQ at the openon Friday as I said I would if it opened lower – and it did.  And then while I waited in cash, the TQQQ(and QQQ) dropped more.  SO THE “SELL ATOPEN” was a good decision.

And the TQQQ continued lower for most of the day.  

>>>> SELLING THETQQQ WAS THE RIGTH DECISION!

We have made great returns Ithis runup of the Nasdaq.  But the index(and its QQQ and TQQQ) showed a loss on Friday’s open (when I sold it and wentto CASH.)

Note: You cannot invest inthe Nasdaq composite – it is thousands of stocks. There is no investable basketfor the Nasdaq. The closest option is the QQQ. The QQQ ETF (basket of top 100stocks in the Nasdaq without the slower moving financial stocks) earned 27.5%during the last 5 ½ months.

>>>>>But itis the last step in this analysis – the step that really pays off --- I am going into the inverse triple QQQ ETF - the SQQQ (the “S” stands forshorting. But the  Here’s today’s big win…  

As the QQQ falls with themarket… the SQQQ (inverse triple QQQ) rises  about the same percent!  

HERE’S THE TEST.  Reread the statement above and decide what todo…..

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

The IMPORTANT QUESTION YOUHAVE TO ASK YOURSELF:

If the market has rolledover (which I believe it has) and started to drop, shouldn’t I be in the inverse (short) ETF? ….. YES! The TQQQ was a wonderful play to be while the market was rising. (I know I am showing the Major Exchange Traded funs again ---I couldn's decide which one to remove, so I kept them both.

But the market took a next step and is falling not rising.

To emphasize that direction change,… What did the market do on  Friday….. And what did it do Monday?  Down and Down.

>>>Just be sure towatch any triple stock daily so you can decide when to jump out.  

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

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>>> MY CURRENT ACTION PLAN:  

The Accumulation/Distributiontable for the current market is shown below.

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

Overall, the sum of As + Bsis a strong 60% today, a frequent topping point.

(The above comment is myway of WARNING YOU that the market may have a correction next week, which couldgrow into a larger drop.)  

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

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Pink boxes above indicate ratings that have fallen over the prior week. Green boxes above indicate ratingsthat 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 afalling stock, (whether an ETF or the stock of a favorite company), is a quickway to lose your recent gains. If you play individual stocks and ETF’s, playcarefully. Use the real returns (daily, weekly, monthly)

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

Of course, I do not sell aposition that has been rising well after one or two small down days. But if youhad a significant 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 CASHIS A VALID POSITION,…in a fast rising market, you should VISIT your portfolioto verify it (or a big part of it) is not dropping.

>>>> Stay tunedfor Friday’s results!

One additional “Word to theWise”…

>>>MOST MARKETSFALL FASTER THAN THEY RISE. Beware of buying any new positionsunless they are very healthy.

Wishing you best returns inyour portfolio!.

Charlotte Hudgin,

The Armchair Investornewsletter

>>>>> IAPPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  I USUALLYSPEND  MORE THAN 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 ONTHE MINOR CHANGES IN TODAY’S NEWSLETTER (as described in the notes.) 

Thank you for your kindfeedback and ESPECIALLY FOR YOU WHO HAVE DECIDED TO MAKE A MONTHY CONTRIBUTION.

Charlotte Hudgin, TheArmchair Investor  

For active subscribers, myphone number is  (214)995-6702

May your stock portfoliogrow and grow and grow as this giraffe family has!

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