2024-05-17F Armchair Investor Newsletter. Market ends the week on 2 FLAT days

May 19, 2024

2024-05-17F Armchair InvestorNewsletter. Market ends the week on 2 FLAT days

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%. On FRIDAY the market had a nother FLAT DAY. Nasdaq volume was almost double its normal daily rate.

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, 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 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 Monday if the TQQQ start rising!

After climbing higher over the last 3 ½ weeks (which was really just a recovery after the April dip,) the Nasdaq 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 (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!

The TQQQ has been areal 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 inthe 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 theSQQQ), 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 (or any other QQQ you own), and  wait in CASH….. It the TQQQ continues tofall, 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 9trading days were rising days, although only the last 2 trading days also had higher volume– for accumulation days.

>>> 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….. each day.  

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!

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