Armchair Investor Newsletter 2023-12-14H Nasdaq Hits New 2-year High!

Armchair Investor Newsletter

2023-12-14H Nasdaq Hits New 2-year High!

Much to my surprise and delight….. the Nasdaq continues rising.

I was wrong Wednesday!  I thought the Nasdaq would relax and let the Nasdaq’s almost 40% rise this year be enough of a reward for us.

But“NO!”  Last week the Nasdaq was up 37.6% year-to-date.

And did the Nasdaq then slow down?   Nooooooo!That big rise did not satisfy the market players.  This week, the Nasdaq is up another 2.5% as of Thursday! It looks like the market players are still swinging for the fence!  

To repeat Wednesday’s comment:

What I see is…. Wow! The biggest price jump in more than a month AND last week’s highest weekly volume in the 7+ months of this chart.  Is the market making a “run for the gold”?  If so, I am ALL IN!

What would I really like to see in the Nasdaq next year?  To repeat my Wednesday thoughts…..

….It’s like a rise to the 2021 market high and then… continue beyond it!

Ever since we were hit by Covid, it seems the market is making new rules! (and I like them!)

Let’s see if the Nasdaq (and therefore the QQQ) can keep rising through 2024 to match or exceed the 2021 high! And please, do not get greedy! (Remember, I will tell you on page 1 of this newsletter if a new Uptrend starts to fail.)

Bottom line: Here are the three major indexes’ moves so far this week.

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Look at the three major indexes above and note:

Although the poor DJIA usually just can’t seem to keep up….

Sometimes it surprises me as it rose 0.5% with the other guys!!.

But with the dependability of the QQQ(and its two bigger brothers also shown in the table below), I am very happy to us the TQQQ in a rising market to grow my investment portfolio so substantially!.

I hope you have followed the TRIPLE QQQ (TQQQ) and are enjoying its amazing gains. Yee Hah!  181.2% gain. (yes, I do accept tips!)

>>> If you are new to this newsletter, please note that we don’t always use the TQQQ. But when the market is rising so powerfully (as it has for most of this year), I will be happy to get 3 times the gains using the TQQQ – the ETF (exchange traded fund that targets at growing this investment at 2.5 to 3 times the QQQ .

NOTE:  I will continue to highlight the TQQQ in strong Uptrends, and the inverse SQQQ (the triple SHORT QQQ) in falling markets. In a falling market, the SQQQ (short triple QQQ will rise when the market falls.  That is what a “short” investment does.

Why not let the market do the heavy lifting while we just enjoy the gains?

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Back to the second half of the ARMCHAIR INVESTOR NEWSLETTER. Those great tables.  Thanks for your positive feedback!

First take a glance at the last 20 days of the Nasdaq below.

·       Do you like what you see?

NOTE:  I have gone back to my old way of coloring the Nasdaq daily closing price:

·       When the closing price is below the prior prices, it will be orange.

·       When the closing price hits anew high on this table, it will be highlighted in green, pointing to its growth!

 Please be sure to check in DAILY in this market. You don’t want to be caught with a market that turns back down without your getting out!

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And the total of stocks with A or B ratings(rising stocks) rose in just 4 weeks, from 42% off all stocks to 66%.  WOW! – Just 4 weeks!

>>>> That points to a nicely rising market!

Be ready to move to the sidelines (cash) if the Uptrend fizzles out.

 NOTE THIS WARNING.  Holding onto a falling stock, whether an ETF or the stock of a favorite company, is a quick way to loose your recent gains. If you play individual stocks and ETF’s, play carefully. Use the real returns (daily, weekly, monthly)

>>>> Remember….. down is down!

Of course I do not sell a position that has been rising well after one or two small down days. But if you had a significant loss 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.

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!

And….. those birds still aren’t going anywhere!

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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  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.

I WELCOME YOUR COMMENTS ON THE MINOR CHANGES IN TODAY’S NEWSLETTER (as described in the notes.)

Thank you for your kind feedback and ideas. Please keep sending them.

Charlotte Hudgin

The ArmchairInvestor

CharlotteDH100@mail.com

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