2024-05-03F Armchair Investor Newsletter. The Nasdaq rose on 7 of the last 10 days to earning a 5.7% gain.

2024-05-03F  Armchair Investor Newsletter. The Nasdaq rose on 7 of the last 10 days to earning a 5.7% gain.

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TQQQ, of course, did better than the Nasdaq, rising 1.5% on Thursday and 2,0%on Friday but Volume was light.

Over the last 2 weeks, the Nasdaq rose 5.7%.  I am smiling!

Look at those 2024 gains! I hope you have been in the TQQQ (triple QQQ) for much of that runup.

I was pleased to see the TQQQ popped 6.0% on Friday.  

The TQQQ volume rose to match the average of recent days. Iwish the volume was higher but I am VERY SATISFIED with the TQQQ recent rise.

Look at the black box I have drawn in over the last 2weeks. What color are the highest volume bars?? Yes, Red! Showing that much ofthe highest volume was on days that the price dropped (distribution, sellingdays.) That difference is not uncommon. Traders do not like big volume on downdays.

In Friday’s case, you cannot complain about the volume whenthe TQQQ is up 14.6% in the last 2 weeks. Yippee!

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.  I am still quite excited about the rises of the TQQQ!

IF YOU ARE NEW TO THIS STOCK TRADING GAME, please consider tracking the stocks you are interested on “paper” before you invest heavily in them. You can learn what signs to look for in the price and volume action before you invest heavily in the stocks you are interested in.  It’s called….

‍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.”  

That’s what “shorting” stock does. That short position in the SQQQ will rise when the QQQand 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.

>>> Whatcan we do when the TQQQ is falling? (see chart below) Just sell theTQQQ (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.

NOTE THE WAY the picture of the TQQQ and my 20-DAY TABLES (below) make the market reversal sooo 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.

Of the last 20 days, the Nasdaq had 7 rising days of the last 11 trading days.

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The most recent three rising days (4/22 through 4/24) set the market up for a possible new Uptrend.  If you step back and look at the TQQQ chart above, its failure is clear.

>>> MY CURRENT ACTION PLAN:  Wait in CASH!

Comment: I have not earned as much playing the S&P500 as I do in the TQQQ. So I stay with 100% of my investments in the TQQQ or SQQQ when the market is clearly falling.

>>> TheAccumulation/Distribution table for the current market has an error which I cannot fix quickly.  I hope to have it back up for Monday’s newsletter.

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 let you sleep at night.

>>>> Stay tuned for Monday’s results!

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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

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

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

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