4/5/2023W UPTREND day 6, Nasdaq has Major Distribution day (1.1% drop with higher volume)
THE MARKET’S MESSAGE: Time to build your portfolio in this rising market!
>>> If you live in the Fort Worth, TX area, join me for a return to LIVE IBD MEETUPS Thursday night at the Ol’ South Pancake House (with their private meeting rooms and space for my projector.) Pls register on Meetup or call Charlotte at (214) 995-6702 to register.
I will print copies of the handout with all the lessons and charts (weekly and daily MarketSmith.) If you bring your own laptop computer, you can download the handout onto your computer from a f
---------------------------------------------------------------------------------------------------------------------------------------
Which of the major indexes rose the most so far this year? Were you invested in it?
Here is the comparison of the Nasdaq composite, the S&P500, the Dow Jones Industrial Average, and the QQQ (100 largest, non-financial stocks in the Nasdaq.) I hope you are in the QQQ unless you put all your investment funds into top performing individual stocks.
The above chart is from the end of 2022 to the April 4 close….
Note: The QQQ OUTPERFORMED ALL THE INDEXES I FOLLOW and usually does!
The QQQ is a stacked deck! It is the 100 largest stocks traded on the Nasdaq (none of those big, slow-moving old guys on the S&P500.) Just by being only Nasdaq stocks gave it ahead-start. The biggest stocks on the Nasdaq are almost all high tech and are most likely to expand much faster than companies that have to have huge manufacturing plants with slow turnover times (cars, houses, etc.)
Until recently,the Dow Jones Industrial Average actually was ALL industrial produces. But as high-tech companies continued to grow faster and faster, the DJIA just fell farther and farther behind.
A few years ago,the owners of the DJIA added some high tech to try to keep closer to the performance of the other indexes. It seems to be “too little….too late.” (refer back to the chart above that compares the QQQ with the Nasdaq, S&P500 and DJIA. Even with its high-tech additions, the DJIA is less than 1% above where it start the year. Frankly, I only include the DJIA because I know a significant percentage of my readers still follow it. (I don’t know why. Perhaps it is fond memories of good times of the past.)
NOTICE: IF YOU LIVE NEAR FORT WORTH, JOIN ME THURSDAY April 6 for a LIVE MEETUP at our favorite,OL’ SOUTH PANCAKE HOUSE.
· BE SURE TO REGISTER ON THE MEETUP SITE. We will have a private room setup for us.
· OL’ SOUTH HAS MADE A LEGITIMATE REQUEST, ALL ATTENDEES ORDER A MEAL, single or multi-course is OK. YOU CAN EAT IT THERE OR TAKE IT HOME.
Good news about Thursday night’s class. Yes, the TRE (train between Dallas and Fort Worth) is doing construction, but there is one train every hour (on the half hour) coming back to Dallas. Our class will go from 6:30 – 8:30 p.m. tomorrow night – in person only. We do not have a way of broadcasting the meeting. Any ideas????
Questions???please call me, Charlotte Hudgin , (214)995-6702.
The ACCUMULATION/DISTRIBUTION table shows a strong sign of a recovery happening as the “As” & “Bs” count recently rose from 29% to 44% in just two weeks!!!!
Are you registered on the current www.ArmchairInvestor.com site?
If so, you will receive a brief email from me after I post the newsletter each night so you will know, as soon as possible, when it is available for your review.. If you don’t get that message, just click on the popup invitation that appears when you go to the www.ArmchairInvestor.com website (the one listed above) and you can join the group which receives a message as soon as the newsletter is posted each night.
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 holdthem. But please keep a tight rein on them.
Remember: Stocks usually fall faster than they rise!
==================
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