2024-05-16H Armchair Investor Newsletter. Nasdaq and S&P500 hit new high prices. Only the Nasdaq also hit a new high in volume.

May 16, 2024

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

NOTE THIS WARNING.  Holding onto a falling stock, (whether anETF or the stock of a favorite company), is a quick way to lose your recentgains. If you play individual stocks, play carefully. And follow the dailyreturns 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 oneor two small down days. But if you had a significant loss over several days,especially if there is an increase in market distribution days (downdays on higher volume), then stepping out and waiting in cash can help yousave your portfolio for future 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) 995-6702

May your portfolio grow bigger every day!

 

2024-05-16H Armchair Investor Newsletter. Nasdaq and S&P500 hit new high prices.   Only the Nasdaq also hit a new high in volume.

Note the Nasdaq rose nicely Tuesday and Wednesday with extraordinary volume. On Thursday the Nasdaq hit a new high then backed off a smidge  to close down 0.3%.

Note that the volume has been this high twice before recently.

WARNING: THIS MARKET COULD REVERSE QUICKLY AND TAKE IT ALL BACK.

If you are investing in Game Stop, Ihope 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 every night as I do, you may have been surprised as I was when I read the MARKET PULSE column yesterday.

And I am still 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 if the TQQQ start rising.!

After climbing higher over the last 3 ½ weeks (which was really just a recovery after the Aprildip,) the Nasdaq is again stalled on Wednesday 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 THE ETFs DAILY.

Look at these 2024 gains below! Focus on the TQQQ I hope you have been in the TQQQ (tripleQQQ) 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!

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 whatsigns 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 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 asif 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 (or any other QQQ you own), and  wait in CASH….. If 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-dayHISTORY 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 the 20-day table to update. But it is only one day off. – please review iton Wednesday’s table.

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

Comment: The S&P500 is not earning as much as the TQQQ. So I stay with:

·      100% of my investments in the TQQQ when the 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 stocks below is now a strong 50%!

The only way we will know which way the market is moving is to watch the market….. every 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 THEY RISE.

Of course, I do not sell a position that has been rising well after oneor two small down days. But if 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 for future 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) 995-6702

May your portfolio grow bigger every day!

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