2024-05-01W I will probably sell my TQQQ at the open on Thursday. I lost 2.3% in Price with 40% increase in volume. Oach!

2024-05-01W  I will probably sell my TQQQ at the open on Thursday. Today, I lost 2.3% in Price with 40% increase in volume. Oach!

Armchair Investor Newsletter. The market gave back5 of last 8 days!  But on Wednesday theTQQQ lost another 2.3% with a 40% increase in volume for a Major Distribution day.

I will sell the TQQQ at the open on Thursday unless the market has a strong rise.

NOTE:  I am NEVER shy about selling a stock to pocket a profit or to stop losing money in it.

The TQQQ has been a real winner for me but most of the market is rolling over.

Look at the current table of the THREE MAJOR MARKETS below. The Nasdaq and the S&P500 are holding just below their recent highs. It looks like the DJIA is a place to hide.

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PAPER TRADING:  If you aren’t comfortable getting in the inverse QQQ (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.”  

That’s what “shorting” stock does. That short position in the SQQQ will rise when the QQQ and TQQQ fall.

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 which will rise when the TQQQ is falling. That is what an “inverse” stock does.

I LOVE THE WAY the picture of the TQQQ and my 20-DAY TABLES (below) make the market reversal soooo clear.

I was surprised about the fast drop 3 weeks ago.  Did you notice the rising volume as the TQQQ rose over the last 2 weeks? Then you probably were not surprised about the lower volume as the TQQQ tried to recover some  of its recent losses.

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>>> MYCURRENT ACTION PLAN:  Wait in CASH!

Comment: Ihave not earned as much playing the S&P500 as I do in the TQQQ. So I staywith 100% of my investments in the TQQQ or SQQQ when the market is clearlyfalling.

>>> TheAccumulation/Distribution table for the current market has an error which Icannot fix quickly.  I hope to have itback up tomorrow.

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

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, 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.

>>>> Stay tuned for Thursday’sand Friday’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 best returns in your portfolio!.

Charlotte Hudgin,

The ArmchairInvestor newsletter

For activesubscribers, my phone number is (214)995-6702

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