5/26/2023F UPTREND Day 42 QQQ is +30.8% for 2023. Wow! As Congress reaches agreement the market GALLOPS ahead.

May 29, 2023

5/26/2023F  UPTREND Day 42    QQQ is +30.8% for 2023. Wow! As Congress reaches agreement, the market GALLOPS ahead.

THE MARKET’S MESSAGE   The market runs up for last 2 days as debt issue is postponed.

Note: The 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 Ft Worth downtown (1509S University Dr, Fort Worth, TX 76107) from 6:00 – 8:00 p.m.)

Details: There is no fee for using the restaurant’s meeting room, but guests are requested to buy a meal and contribute $5 to cover other meeting expenses.  Questions? Call me at  (214-995-6702)   Please note the earlier start time I was able to negotiate this month.  PLEASE INVITE YOUR FRIENDS Note: First time visitors come as my guest and do not need to make the $5 contribution. Please let me know if you are coming so the Pancake House can get the room ready for us.

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FRIDAY: The Nasdaq popped 2.2% on Friday after a 1.7% rise on Thursday, bringing the Nasdaq’s 2-dayrise to 3.9% making me comfortable that a resolution for the spending limit was already a done deal.  (Politicians enjoy making it look hard.)

Note the 2 upward rises the QQQ took so far this year! I hope you grabbed your share of it.

 

Note how close the major indexes have gotten compared to the prior highs.  Why are the Nasdaq and QQQ so much farther away from their all-time highs?    

 

On the weekend, I like to explore additional investing ideas for you readers. In a rising market, the “Year-to-Date” table is always fun. (I hope you have given up the DJIA, at least for the moment.)  This table should re-enforce why I have no interest in the S&P500 nor the DJIA.

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

 

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

·      “After the Nasdaq’s 21.5% rise in the first 4 1/2 months of 2023, does the market have an additional rise in it?”  (I suspect it does but I let the actual numbers be my guide.)

 

Now that the debt limit appears resolved (for the moment), I suspect the Federal Reserve is largely done with rate increases – a couple of small increases could still be in store.

How did the weeks go on a day-to-day basis? Overall, the Nasdaq rose nicely for the week.

 On the MARKET ACTION (Nasdaq) OVER THE LAST 20 DAYS table below, note the flood of new highs – 9 of the last 16 days hit  new highs. These 16 days show a market practically running up the hill. Tuesday was the first distribution day in the last 16 trading days.

With only 2 Major Distribution (selling) days and one minor d-day in the last 20trading  days (and 2 of those will timeout of the 20-day list in just 3 more days. The Uptrend is in OK shape.Look at the PRICE column in the table below.

Nasdaq makes an impressive 18.1% runup over the last 3 months to already be 30.8% higher this year.  I think I’m getting a nose bleed from the altitude!  (NOT complaining.)

 

·      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.)

·       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 in my portfolio this year. I don’t remember when I last held the DJIA. 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?

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Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  

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