2024-05-15W Armchair Investor Newsletter. Nasdaq and S&P500 hit new highs. Only the Nasdaq also hit a new high in volume.

May 15, 2024

2024-05-15W Armchair Investor Newsletter. Nasdaq and S&P500 hit new highs.   Only the Nasdaq also hit a new high in volume.

Note the Nasdaq rose nicely Tuesday and even more on Wednesday with extraordinary volume on the last 2 days.
If you are investing in GameStop, I hope you are monitoring it frequently during the day.  Its volume is wild!
If you get access to Investors.com, and you read their BIG PICTURE column everynight as I do, you may have been surprised as I was when I read the MARKETPULSE column today. It always includes two lists of top stocks (leaders)…:
·      Those stocks that ROSE in price and had higher volume and
·      Those stocks that FELL in price and had higher volume.
>>>>BUT GET THIS….Wednesday’s lists included 12 stock that made the first list (price rose with higher volume) and only 1 stock that made the second list (price fell with higher volume.) I have included the Market Pulse list with those stocks. (Note to Investors.com folks – I do not usually show the Market Pulse list in my newsletter. I only hope it will increase your subscribers!)
It is rare to see a MARKET PULSE  list that has 12 stocks in either category
I think it is fair to say, “Yikes! This market is a bit crazy!”
And yet, I am enjoying the rising market!  Giddiyap!

>>> MY CURRENT ACTION PLAN: Noting the 2 days of extremely high volume on the Nasdaq, I am happy to jump in tomorrow!

After climbing higher over the last 3 ½ weeks (which was really just a recovery after theApril dip,) the Nasdaq is again stalled near the March – April highs. That’s 9+ weeks of the market hitting its head on a Nasdaq high that has gone…… nowhere.

HERE’S THE BIG NEWS – HOW DID THE EXCHANGE TRADED FUNDS FARE SINCE THEIR RECENT LOWS?

>>>> THE ETF TABLE BELOW COULD BE YOUR TICKET TO EARLY RETIREMENT. BE SURE TO WATCH THEETFs DAILY.

Look at these 2024gains below! Focus on the TQQQ I hope you have been in the TQQQ (triple QQQ) for much of this runup.

 

>>> I’m sure you see why betting on the TQQQ in a consistent upturn is a beautiful way to grab a nice return!

NOTE:  I am NEVER shy about selling a stock to pocket a profit or to stop losing money in it. But Monday’s and Tuesday’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 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 comfortablegetting in the inverse QQQ (or triple inverse QQQcalled 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!)

>>> What can we do when the TQQQ is falling? (see chart below) Just sell the TQQQ (orany other QQQ you own), and  wait in CASH….. It the TQQQ continues to fall, buy the inverse – the SQQQ which will rise when the TQQQ is falling. That is what an “inverse” stock does.

On the 20-day HISTORY of the Nasdaq PRICE AND VOLUME chart below, note that 6 of the last 9 trading days were rising days, although only the last 2 trading days also had higher volume– for accumulation days.

I could not get this table to update. But it is only one day off.

>>> MY CURRENT ACTION PLAN: Hold the TQQQ!

Comment: I have not earned as muchplaying the S&P500 as do in the TQQQ. So I stay with:

·      100% of my investments in the TQQQ whenthe market is clearly rising and

·      100% of my investments in the SQQQ(which rise when the market is falling.)

Note the sum of A and B rated stocksis a strong 50%.

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 ETF or the stock of a favorite company), is a quick way to lose your recent gains. If you play individual stocks, play carefully. And follow the daily returns as shown in this newsletter.

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. Butif you had a significant loss over several days, especially if there is an increase in market distribution days (down days on higher volume), then stepping out and waiting in cash can help you save your portfolio forfuture rallies and lets you sleep at night.

 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 Armchair Investor

(214) 99506702

May your portfolio grow bigger every day!

 

More Recent Posts

Charlotte Hudgin
Editor, Armchair Investor
ArmchairInvestor.com
© 2022 Armchair Investor. All rights reserved.