Armchair InvestorNewsletter 2023-11-29W UPTREND Day 20. Market quiet today TQQQ is UP 156% this year!
The Nasdaq moved sideways for the last 5 days holding just below its July 2023 high.
And 12.1% below 2021 high shown on the WEEKLY chart below.
The Nasdaq is unlikely to rise above the December 2021 high of 16,212 this year, but it would be nice!
NOTE THE YEAR-TO-DATES GAINS of the QQQ, QLD and TQQQ: WOW!
On the daily Investors.com chart below, the TQQQ has had a great year and is creeping up close to its July 2023 high.Prior major new highs like the July point can frequently be a stalling point. But the 6 week rebound has certainly been an exciting trip!
The market is getting healthier- as I see in the Accumulation/Distribution table later in this newsletter. The sum of the stock’s with “A” and ”B” ratings has risen from 22% of the stocks to 58% over the last 4 weeks. Wow!
Remember: There will be prolonged downtrends and we will let you know when to use the INVERSETriple QQQ – the SQQQ which earns gains when the market falls.
I hope you are still riding the TQQQ at least some of theyear and you now appreciate the value of riding the trends in a TRIPLE vehicle! I love the TQQQ gains when the market is in an Uptrend.
NOTE: Most years are not as easy as 2023 has been. Some years require going to the INVERSE ETF that makes positive returns in a falling market.
As you follow theARMCHAIR INVESTOR NEWSLETTER, you will see we have taken a simplified approach.
When the market changes its direction, I will explain:
· WHY I get IN and OUT of the TQQQ
· WHY I use the SQQQ (inverse triple QQQ) to earn positive returns while the market is falling.
· And WHY I sometimes go to CASH.
I will focus more on the KISS advice from Investors.com founder William O’Neil and advice from Fred Richards, a good Dallas friend of mine and a long-term friend of WilliamO’Neil – from the time they were both in SMU (Southern Methodist University here in Dallas), until O’Neil’s recent passing.
The growing health of this market can be seen in the increase in the percent of stocks with A or B ratings in the table below risingfrom just 21% 4 weeks ago to 57% on Tuesday. I am much more excited about buying individual stocks to day than I was a month ago..
It is a pleasure to see all 20 entries on the table below be in the new 20-day Uptrend!
NOTETHIS WARNING. Holding onto a falling stock, whether an ETFor the stock of a favorite company, is a quickway to loose your recent gains. If you play individual stocks and ETF’s, playcarefully. Use the real returns (daily, weekly, monthly)
Remember ….. down is down. Of course I do not sell a position that hasbeen rising well after one or two small down days. But if you had a significantloss over several days, especially if there is an increase in market distribution days (down days on higher volume), then stepping out and waiting in cash can help you save your portfolio for future rallies and let you sleep at night.
FOR WEDNESDAY,I SUGGEST YOU WATCH THE OPENING OF THE MARKET AND SEE HOW THE QQQ SHOWS UP. IF THE MARKET OPENS with a significant DROP,YOU MIGHT CONSIDER WAITING IN CASH.
REMEMBER: _____EVEN IF CASH IS A VALID POSITION,…in a fast rising market,you should consider holding a position that allows you to position your portfolio to rise with the market (or a multiple of it.) Stay tuned! And watch daily!
Those birds just aren’t going anywhere!
Stay tuned! Those birds just aren’t going anywhere!
One additional “Word to the Wise”…
>>>>>--- MOST MARKETS FALL FASTER THAN THEY RISE. Beware of buying any new positions unless they are very healthy.
Wishing you big returns in your portfolio!.
I APPRECIATE YOUR CONTRIBUTIONS FOR SUPPORTING THIS NEWSLETTER. I USUALLY SPEND AT LEAST MORE THAN 4 HOURS RESEARCHING THE IDEAS IN THIS NEWSLETTER, CALCULATING ALL THE DATA I NEED, WRITING THE TEXT FOR THE NEWSLETTER AND…. FORMATING THE NEWSLETTER.
Thank you for your kind feedback and ideas. Please keep sending them.