Armchair Investor Newsletter 2023-121-12T Nasdaq Pops to New High of Last 7 Quarters!

Armchair Investor Newsletter 2023-121-12T Nasdaq Pops to New High of Last 7 Quarters!

Stock Market Holds at July high.

The Nasdaq is just 11.2% below its all-time high   I doubt that the Nasdaq will make that run in the two weeks left in 2023. But  a nice rise between today and the new year would give us a start on a new Uptrend! (Noted by IBD senior writer Ken Shreve, one of my favorite IBD writers!)

On the WEEKLY chart above, count the number of rising week we are now in….. We are in the 6^h rising week. How pleasant is that? What a nice way to end the year! (even if it takes a small dip before the end of the year.)

On the DAILY CHART below, note that the Nasdaq has stalled at the high price in July of this year. This is a common price action in an excited market. It runs…. It stalls…. It runs…., etc.  

What I would really like to see in the Nasdaq next year?  

….A rise to the 2021 market high and then a breakthrough to a new all-time high!  

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 if a new Uptrend starts to fail on page 1 of this newsletter.)

About the DAILY Nasdaq CHART below.

I like the way the Nasdaq is just climbing those price stairs. On Tuesday, the Nasdaq rose again for the sixth rising day!

Yes, the volume has fallen back to just about average volume… but considering we are closing in on the end of the year, I suspect some traders want to close at a new high for the year, and to save some of that momentum for the start of 2024! 

Next, please turn to the Nasdaq’s daily chart below. I am very excited about the recent 4 rising days as shown on the chart below.

‍

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 use 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!  172.1% 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?

------------------------------------

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!

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!

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 Armchair Investor

CharlotteDH100@mail.com