3/23/2023H Nasdaq ends day with partial recovery, +1.0%, but volume is Lower.

3/23/2023H  Nasdaq ends day with partial recovery, +1.0%, but volume is Lower.  

THE MARKET’S MESSAGE:  Market says, ”Higher Federal Reserve Interest Rates will give Negative impact on Individual Investors.”

I was surprised that the Federal Reserve chose to raise their interest rate by another 0.75% Wednesday! And so was the market!

How do I know? Look at the market’s reaction after the rate was named on the Nasdaq chart:  A 0.9%drop in the last 70 minutes of the market!

Did the market dislike of the Fed’s move?

On Thursday, the Nasdaq ended the day higher…. So maybe Wednesday’s Fed announcement was not as bad as I thought when I saw the 2.9% drop at the market close! After all, the Nasdaq is up 4.4% since the March 10 low about 2 weeks ago.  

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That was yesterday. And today, Thursday, is a new day…. All three major indexes rose, but only the Nasdaq had lower volume.

On the MARKET ACTION (Nasdaq) OVER LAST 20 DAYS table below, there are TWO glimmers of green (uptrend)…. In the last 10 days, 6 days rose (were UP,GREEN) and only three were red (Down).  

Plus the NASDAQ JUST KEEPS CHUGGING HIGHER – IT HAS A B+ RATING (compared to the D ratings of the S&P500 and the DJIA.!

In the last 15 trading days shown below, note the number of days that had price-volume action “consistent with” an Uptrend (shown in the rightmost column in the table below.  OK….I’ll give it away …. The answer is “only one.”

I will watch how the market ends the week tomorrow.

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On the MARKETFACTORS, COUNTS & RATINGS table below,

Plus the NASDAQ JUST KEEPS CHUGGING HIGHER – IT HAS A B+ RATING (compared to the Ds of the S&P500 and the DJIA.)

Here is the most important “tell” today – the A + B rated stocks have dropped 21% in just the last 4 weeks.  

That drop tells me there is some SERIOUS SELLING going on.  Not panicked, but consistent. Are the institutional players trying to quietly sneak out of town ?   

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Armchair Investor Trend-following Investment Position:

I hold my Trend-following  position in CASH.

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Are you holding onto stocks that you like in spite of their weak chart action? Not me!  

Cash is always a safe alternative. But note this recent broad rotation (past highly rated stocks being sold and underrated stocks being bought,)

>>>>>>>>>>>>> PLEASEREAD THE FOLLOWING NOTE >>>>>  

NOTE: A long time ago, (after paying for this lesson multiple times…..)  I finally learned two important messages:

1.    I am NOT smarter than the market. And,

2.    The market does not care about my “fine”opinion.

When I see the institutional investors selling hard (as shown by the drop of ”A” and “B” rated stocks, I am happy to step out of the market by selling my QQQ position.  

NOTE:  If you have individual stocks or ETFs that are holding up well, you certainly can hold them. But please keep a tight rein on them.

Remember: Stocks usually fall faster than they rise!

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Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  (214)995-6702

www.ArmchairInvestor.com   (214)995-6702   editor@armchairinvestor.com  

2023 ACI NEWSLETTER sent via WEBFLOW

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