5/18/2023H UPTREND Day 36 The Nasdaq had the only Major Accumulation day!

5/18/2023H  UPTREND Day 36  The Nasdaq had the only Major Accumulation day!

THE MARKET’S MESSAGE   The Nasdaq continued showing the biggest rises this year. But will stalled debt talks also stall the market?

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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. But which index is far outperforming the others?

Answer:  The QQQ is still outperforming the other indexes and doing quite well since the start of the year having risen an extraordinary +26.7% compared to the Nasdaq which is up a strong +19.4%. But look at the S&P500 (up 8.3%) and the almost flat Dow Jones Industrial Average (up 0.8%).

This is no time to be timid in your choice of index to track.  The BIG WINNER, just4 ½ months into the year, is clear – the QQQ.

In case you missed yesterday's chart comparing the QQQ, the Nasdaq, the S&P500 and the DJIA, here they are, updated for Thursday:

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We are only 4 ½ months into 2023, but it is easy to figure out which index has been outperforming the others. See the comparisons in the graph above.  

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!  Please check in on this newsletter nightly.

Let’s look at the last month for the Nasdaq to see the SERIOUS SHIFT in the market. From day 10 to day 1 (at the bottom of the table), there are 7 green highlighted closing prices. Each green highlighted price is a step the market took climbing out of its prior doldrums.

From day 10 to day 1 (at the bottom of the table above), there are 7 green highlighted boxes of closing prices.. You can see the market climbing out of its prior doldrums.

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 a few 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.

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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 46% to 42% today showing the buying has quieted down a bit..

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 to start moving again in one direction or the other.

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

Editor2023@armchairinvestor.com ‍

Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  

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

2023ACI NEWSLETTER sent via WEBFLOW

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