5/25/2023H UPTREND Day 41 Nasdaq rose had Major Accumulation day (+1.7%) with highest volume in last 10 days!

May 25, 2023

5/25/2023H  UPTREND Day 41    Nasdaq rose had Major Accumulation day (+1.7%) with highest volume in last 10 days!

Note: The next LIVE Fort Worth IBD Meetup will be on June 1,  the usual first Thursday of the month.  

We meet at the Ol’ South Pancake house just outside of downtown Ft Worth (1509S University Dr, Fort Worth, TX 76107) from 6:00 – 8:00 p.m.)

There is no fee for using the restaurant’s meeting room, but guests are requested to buy a meal and contribute $5 for my costs to get there and back.  Questions? Call me at  (214-995-6702.)   Please note the earlier start time I was able to negotiate this month.  PLEAS.E INVITE YOUR FRIENDS. Note: First time visitors come as my guest and do not make the $5 contribution on their first visit. Please encourage them to buy a meal or dessert. (And I will make you look like an investing genius!)

WHAT HAPPENED THURSDAY?: The Nasdaq popped 1.7% higher bringing its closing price very close to Monday’s close. (I have already forgotten about the 2 down days in between Monday and today.)

NOTE: I would not be surprised if we don’t have more up-and-down, low volume days as congress figures out how it will make the budget work.

 

ABOUT TODAY’S MARKET: The questions I am still grappling with are:

·      “How high will this Uptrend go before it pulls back?” AND

·      “How will the market react as we get closer to defaulting on the debt limit?  

 Charlotte says, “Hang on – this could be a bumpy ride”

 

After the Nasdaq rose 21.5% in the first 4 1/2 months of 2023, does the market have an additional rise in it? (I believe so.)

I am as concerned as any of you are about hitting the debt ceiling without a resolution. I believe congress is creating a drama so they can come in as heroes and resolve it. Frankly, any way they get past it is OK with me. (Well, I hope is it not just a short term bandage that we will have to deal with again very soon.) 

The market does not have to gallop up the price hill to make me money. A steady trot with occasional dips is OK. Especially if those dips are on light volume.  

What could spook me would be… a cluster of significant distribution days.

And “Yes,” I am still concerned about the debt limit and the Fed’s upcoming announcements, but I suspect they are largely done with rate increases – perhaps one or two more small increases.

On the MARKET ACTION (Nasdaq) OVER THE LAST 20 DAYS table below, note the flood of new highs – 8 of the last 15 days hit  new highs. These 15 days show a market practically running up the hill. Tuesday was the first distribution day in the last 15 trading days.

With only 2 Major Distribution (selling) days and one minor d-day in the last 20trading  days, the Uptrend is in OK shape. Look at the PRICE column in the table below.

·       The Nasdaq’s Accumulation rating is a solid B+ again, indicating more of the Nasdaq stocks are rising than falling. Sorry about that C for the S&P500 and  D+ for the DJIA indicating they have about equal sellers and buyers. (I’ve warned you about the weak relative performance of these two indexes at the moment. They may spring back so keep an eye on them.)

·       If you hold some of those lagging indexes (S&P500, DJIA), I hope your position is not too large. I haven’t held the S&P500 or the DJIA in my portfolio this year.  If you do, I suggest you rethink that strategy. If one of them powerfully turn back up, you can always jump on that winner.

 

The ACCUMULATION/DISTRIBUTION TABLE

The number of stocks with A or  B ratings is barely changing.  Summer doldrums?

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

                                 Editor2023@armchairinvestor.com

Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  

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

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