2024-04-29M Armchair Investor Newsletter. Market up 5 out of 6 days! Last week, the TQQQ ended with 4 out of 5 trading days rising for a total increase of 11.7%.

2024-04-29M Armchair Investor Newsletter. Market up 5 out of 6 days!

Last week, the TQQQ ended with 4 out of5 trading days rising for a total increase of 11.7%. That was a goooood week.

Then the TQQQ rose again on Monday for a total gain of 13.1%. Even better!

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CONCLUSION: The TQQQ’s 5 rising days out of the last 6 days,were a pleasant turnaround after the prior 4 weeks fell hard.

Although we are looking at a single ETF, you can invest in a single ETF – be sure it is rising powerfully.

·      If you were not in the TQQQ last week, you can still jump in, but I am very concerned about last Friday’s low volume. AND I AM EVEN MORE CONCERNED ABOUT MONDAY’S LOWER VOLUME.  And yet, the TQQQ rose another 1.2% Monday, so I have NOT sold my TQQQ, yet.

 ·       If you own the TQQQ, congrats on a great return. And BE SURE TO TRACK the TQQQ this week. It may run out of steam, CALLING FOR A QUICK EXIT.

 ·      I am NEVER shy about selling a stock to pocket a profit if it is showing reticence about continuing higher.  If the TQQQ does start back with price and volume, I would probably jump back into see how high I can ride this pony!

Look at the current table of the THREE MAJOR MARKETS below. The Nasdaq and the S&P500 are holding near their recent highs. (As usual, the DJIA is just limped along.)

If you have gone SHORT…. Please consider moving back into the LONG TQQQ.

PAPER TRADING:  If you aren’t comfortable getting in the inverseQQQ (or triple inverse QQQ called the SQQQ), consider holding a small position ON PAPER  (which means you don’t buy any of the stock, but you track it on paper as if you had… to see how great the market treats you!)

For your information: The TRIPLE SHORT QQQ  is the SQQQ.

If you missed my note and chart about the SQQQ (the triple short QQQ), just think “inverse.”  

When the QQQ rises,

·      The Triple QQQ (TQQQ) usuallyrises about 3 times as much. Wow!

It may seem strange, but the charts will look very similar…. Until you do the math and see the 3x factor in the pricing.

>>> What can we do when the TQQQ is falling? (see chart below) Just sell the TQQQ (or any other QQQ you own), and  wait in CASH….. or buy the inverse – the SQQQ.

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

I LOVE THE WAY MY 20-DAY TABLES (below) make the market reversal soooo clear. I want to see at least one or two more strong, rising days to declare the market is back in UPTREND!

The most recent three rising days (4/22 through 4/24) set the market up for this new Uptrend.

>>>Friday’s 2.0% rise is the biggest single day rise in the last 20 days. But it had lower volume than the day before.

On Monday, the Nasdaq rose a modest 0.4% with a nice +5.9% higher volume.

I may be jumping in a little early to declare a new Uptrend has begun. But my intuition tells me the market has shifted.        

>>> MY CURRENT ACTION PLAN:  

BE LONG IN THE Nasdaq  by holding the TQQQ.

Comment: I have not earned as much playing the S&P500 so I stay with 100% of my investments in the TQQQ which have done better..

>>> The Accumulation/Distribution table for the current market is shown below.

The strongest (green) “B” boxes are holding at 43%.  Add that to the 13% “A” rated stocks added tothe 56% of B rated stocks comes up with over half of all the stocks, 56% ,have either A or B ratings which is quite strong.

The Accumulation/Distribution table is in the online WebFlow version at ArmchairInvestor.com.

Note: Acc/Dis table is missing here but is in tonight’s newsletter

(got it on the internet.)

The above comment is my way of explaining to YOU that the market is looking UP! Andwe are likely to see strong moves – either holding the 56% or seeing it grow.   Look at the sum of the As and Bs that shifted from 44% As + Bs to today’s 56% As and Bs.                    

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

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

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, AND FUNDS TO FALL FASTER THAN THE RISE.

Of course, I do not sell a position that 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 in market 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.

>>>> Stay tuned for Monday'sresults!

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 best returns in your portfolio!.

Charlotte Hudgin,

The ArmchairInvestor newsletter

>>>>>I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER.  I USUALLY SPEND  MORE THAN 4 HOURS FOR EACH ARMCHAIR INVESTOR NEWSLETTER:

·      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 4 hours.)

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

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