2024-05-06M  Armchair InvestorNewsletter. The Nasdaq rose on 7 of the last 10 days toearn a 5.7% gain.

2024-05-06M  Armchair InvestorNewsletter. The Nasdaq rose on 7 of the last 10 days toearn a 5.7% gain.

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The last 3 trading days looked like a game of Leap Frog aseach day (Thursday, Friday and today, Monday) leaped higher!  (Note the opening gaps higher.)

The Nasdaq is now just a smidge below the March high.

The TQQQ, of course, did better, rising 13.5% on Friday through Monday. But the volume was light on Monday, -44.5%. The TQQQ has done so well over the last 3 days, I am not even concerned that it hasn’t hit a new high.  I am certainly feeling quite rich with the rise over the recent 3 days.

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Look at these 2024 gains! I hope youhave been in the TQQQ (triple QQQ) for much of that runup.  (I’m running late today… note that the tablebelow only goes through last Friday.

NOTE:  I am NEVER shyabout Selling a stock to:

 ·      Pocket aprofit OR

·      Stop losingmoney in a falling market.

 But Monday’s significant volume drop makes me wonder whether the holders of the TQQQ are getting shy???

>>> The TQQQ has been a real winner for me.  I am still quite excited about the rises ofthe TQQQ!  

IF YOU ARE NEW TO THIS STOCK TRADING GAME, please consider:

·      Tracking the stocks you are interestedon “paper” before you invest heavily in them.

 By studying the market in this “paper trading” way, you canlearn what signs to look for in the price and volume action before you investheavily 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 asmall position ON PAPER  (which means youdon’t buy any of the stock, but you track it on paper as if you had… to see howgreat the market treats you!)

Go ahead and open an investing chart of the SQQQ and compareit to the TQQQ.  You’ll see the rule –

·      What goes up on the TQQQ, goes down onthe SQQQ

·      And vice versa.

That’s what “shorting” a stock does. That short position inthe SQQQ will rise when the QQQ and TQQQ fall. (But the market is still rising for now.) It may seem strange, but the charts will look very similar…. Until you do the math and see the 3x factor in the TQQQ pricing.

>>> What can we do when the TQQQ is falling?

First, just sell the TQQQ(or any other QQQ you own), and  wait inCASH…..

Next, if the TQQQ continues to fall, buy the SQQQ which will rise when the TQQQ is falling. That is what an “inverse” stock does.

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

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>>> 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.

‍>>> The Accumulation/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. (I actually have it as my next action after I post this Monday newsletter.)

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

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

NOTE THIS WARNING.  Holding onto a fallingstock, (whether an ETF or the stock of a favorite company), is a quick way to loseyour recent gains. If you play individual stocks and ETF’s, play carefully. Usethe real returns (daily, weekly, monthly)

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

Of course, I do notsell a position that has been rising well after one or two small down days. Butif you had a significant loss over several days, especially if there is anincrease in market distribution days (down days on higher volume), thenstepping out and waiting in cash can help you save your portfolio for futurerallies and let you sleep at night.

>>>> Staytuned for Thursday’s and Friday’s results!

One additional “Wordto the Wise”…

>>>MOSTMARKETS FALL FASTER THAN THEY RISE. Beware of buying any newpositions unless they are very healthy.

Wishing you best returns in your portfolio!.

Charlotte Hudgin,

The ArmchairInvestor newsletter

Questions?? 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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