5/16/2023T UPTREND Day 34 All Major Indexes had Major Accumulation Days Wednesday!

5/16/2023T UPTREND Day 34    All Major Indexes had Major Accumulation Days Wednesday!

THE MARKET’S MESSAGE   The Nasdaq’s continued rise hints that a strong Uptrend is forming. But will stalled debt talks also stall the market?

As Investor's Business Daily reminded us, option trading turns 50 years old on April 26. There are 16 exchanges handling option trades in the U.S. today (to confuse the results.  Which has the correct final prices for the day?????)

If you have some insights or hard lessons learned in option trading, I would love to hear them. You could either write me at Armchair Investor.com or call me at (214) 995-6702.  Thanks!

If you look at any major index chart for 2023, you will see a rising market.

The QQQ is still outperforming the other indexes and doing quite well since the start of the year (and the pandemic although that period is not shown tonight.  But that is an cient history for today’s investors. 

It is easy to figure out which index has been outperforming the others included in the graph above. And this is only for 4 ½ months.  Stay tuned and consider putting an investment in the QQQ as long as the market is in an Uptrend.  

Remember:  The stocks that rise the fastest frequently fall the fasted, too!

And the above chart’s results are typical of a comparison of the QQQ (Nasdaq 100 largest stocks without the usually slower financials stocks) and the indexes.  

I am most interested in the recent power of the QQQ which is significantly outperforming the major indexes. Here is the comparison of the Major indexes:

Now look at the MARKET ACTIN (Nasdaq) OVER THE LAST 20 DAYS table

What do you see? There is a clear change in the personality of these days that starts on day 9.

From day 9 to day 1 (at the bottom of the table), there are 6 green highlighted closing prices. That is 2 out of every 3 days hit a new high over the last 20 days. You can see the market climbing out of its prior dohldrums.

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Reviewing the MARKET FACTORS, COUNTS &RATINGS table below, note there is GOOD NEWS >>>>>:

·      The RISING/FALLING RATIO OF LEADER STOCKS has slowly risen to 1.4, which is above neutral rating of 1.0..

·      The Nasdaq’s Accumulation rating is a solid B+ (sorry about that C- for the S&P500and  C-- for the DJIA indicating they have more sellers than buyers.).

·      If you hold some of those lagging indexes (S&P500, DJIA), I hope your position is not too large. I don't hold the S&P500 or the DJIA and suggest you rethink that strategy if you do. Some of the “old safe indexes” are now losing money or making a lot less than they have in the past. YES,,,, the price moves on 5/5 (+2.2%) and on yesterday, 5/10 (+1.0%) were pleasant rises. But without a consistent strong volume statement like the +19.2% on Wednesday, I’m not convinced the new Uptrend isn’t tenuous. I don’t need 19% but a few +5% volume moves or more on days with higher prices more would give me comfort.

·      Thus, I am NOT heavily jumping into this market…..yet! But I AM BUILDING MY WATCH LIST to invest in when I am convinced the new Uptrend is not only here, but strong enough to keep rising.

·        I’d rather be a couple of days late to get into a new Uptrend, than jump into an uncertain market which why I have waited as this new Uptrend matured.

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The ACCUMULATION/DISTRIBUTION TABLE

The number of stocks with A or  B ratings has fallen over the last 4 weeks from 47% to 39% today showing the buying has quieted down..

And you can see the almost unchanged ratings over the last 4 weeks. That is called a “market stall.”  It will happen periodically in all markets. Sometimes all we can do is wait out the general market and spend more time looking for winning individual stocks.

>>>>> Are you registered on the current www.ArmchairInvestor.com site?  You do not have to register to get the newsletter. BUT…..

>>>> If you are registered, you will receive:

·       a BRIEF email from me after I post this newsletter each night to tell you, as soon as possible, when it is available for your review. If you don’t get that message, just click www.ArmchairInvestor.com website to get the list of all recent Armchair Investor newsletters.

·       Occasional additional reports and analyses I have created as a thank you for registering (stay tuned – and send in your question to answer in these responses.)

·       An opportunity to support the creating of this daily newsletter. I put 4-6 hours a day into researching what happened each day and the market’s health. Yes, it would be easy to just say Uptrend or Downtrend, etc. But I am committed to explaining the why’s and what’s about the market.

>>>>>I appreciate any feedback you have for me. Please send comments and ideas to:

Editor2023@armchairinvestor.com

>>>>> Are you registered on the current www.ArmchairInvestor.com site?  You do not have to register to get the newsletter. BUT…..

>>>> If you are registered, you will receive:

·       a BRIEF email from me after I post this newsletter each night to tell you, as soon as possible, when it is available for your review. If you don’t get that message, just click www.ArmchairInvestor.com website to get the list of all recent Armchair Investor newsletters.

·       Occasional additional reports and analyses I have created as a thank you for registering (stay tuned – and send in your question to answer in these responses.)

·       An opportunity to support the creating of this daily newsletter. I put 4-6 hours a day into researching what happened each day and the market’s health. Yes, it would be easy to just say Uptrend or Downtrend, etc. But I am committed to explaining the why’s and what’s about the market.

>>>>>I appreciate any feedback you have for me. Please send comments and ideas to:

Editor2023@armchairinvestor.com

Wishing you, “Many Happy Returns.”

Charlotte Hudgin, The Armchair Investor,  

www.ArmchairInvestor.com   (214)995-6702   editor2023@armchairinvestor.com

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