3/30/2023H New UPTREND signaled on Wednesday continued to rise Thursday.

March 30, 2023

3/30/2023H  New UPTREND signaled on Wednesday continued to rise Thursday.

THE MARKET’S MESSAGE:   Time to build positions in rising stocks!

The S&P500and DJIA have risen 4 of the last 5 market days with the Nasdaq close behind,up 3 of the last 5 days.

 

The Nasdaq leads the gains compared to its 50-day and 200 day moving average lines, mostly riding above its 50-fday line except for a quick dip for only 2 days, 3 weeks ago. Although the two indexes followed similar paths, the Nasdaq appears more buoyant, spending more days above its 50 and 200-day lines.

 

On the charts below, note the S&P500’s deeper dip below its 50-day and 200 day lines.

I use the QQQ for my trend-following investment. Since I bought the QQQ at Wednesday’s opening price, it has risen

 

There was a lot of talk today about the PCE Price Index, the Personal Consumption Expenditures Price Index. This index excludes food and energy because they tend to swing widely (higher and lower) month to month. What is the recent history of the PCE?

 

The US government BEA Data site shows this index’s recent rises as 4.7%, 4.6%, 4.8% and 5.1% over the 4 months ending in January. Each period is annualized so it says we have been experiencing slightly less than a 5% annual (total) inflation rate. (That feels accurate to my budget.) This calculation leaves out food and energy (including gasoline) both of which are more volatile.

Bottom line: If it feels like you are paying about 5% more than a year ago. You are right on target of the real market changes. Remember, we have lived through much worse.

  I am ready for this first quarter to end, and anticipating (fingers crossed for) a stronger rising market. in the second quarter.  Stay tuned!

Notice in the MARKET ACTION (Nasdaq) LAST 30 DAYS... Eleven days of the last 20 market days were rising days.

The ACCUMULATION/DISTRIBUTION table below shows a hint of recovery.

Here is one bit of encouragement. The total of A and B rated stocks grew from 31%  to 36% today.

 Notice in the following MARKET ACTION OVER LAST 20 DAYS table hit two new market highs in the last 2 trading days. This Uptrend is taking off. I will not hesitate to start purchasing individual stocks as well as the QQQ for market direction.

Note in the MARKET FACTORS, COUNTS & RATINGS table below, there is a lot of green! Let see if we can turn this green into more green in you account!

The ACCUMULATION/DISTRIBUTION table shows a hint of recovery.

Here is one bit of encouragement. The total of A and B rated stocks grew from 31%  to 36% today.

Are you holding onto stocks that you like in spite of their weak chart action? Notme!  Cash is always a safe alternative. But note this recent broad rotation (past highly rated stocks being sold and underrated stocks being bought,)

>>>>>>>>>>>>> PLEASE READ THE FOLLOWING 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!

==================

 

 

 

Wishing you, “Many Happy Returns.”

Charlotte Hudgin, The Armchair Investor,  (214)995-6702

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

2023 ACI NEWSLETTER sent via WEBFLOW

More Recent Posts

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