Armchair Investor Newsletter. 2024-03-25M: Nasdaq hits all-time high, Other indexes and volumes fall.

Armchair Investor Newsletter. 2024-03-25M: Nasdaq hits all-time high, Other indexes andvolumes fall.

I expect lighter volume this 4-day week, unless the Fed does something to surprise the traders. But I think they want a gentle week, also.

Here are Monday's major indexes' closes.

As the market gets ready for the Good Friday holiday, I would not be surprised if we get a quiet week.    

NOTE: The Nasdaq hit a new all-time high (by a hair) last Friday!

Let’s look at the recent run-up!  I don’t know about you, but I am awfully excited about the Nasdaq continuing to rise, rise,rise!

Last week, the Nasdaq rose higher every day:

·       All three major indexes rose moderately (0.2% to 0.7%)

·       The NYSE had a higher volume day (on Wednesday).

The Nasdaq ended last week up almost 3%. Volume was lighter, perhaps in preparation for the short week of the Easter holiday.

Today (Monday), the Nasdaq slipped back 0.3%. After such a strong run-up over the last 4 ½ months, a minor pullbackMonday is not a disappointment.

Bottom line: Up is UP and last Thursday’s all-time high was a delight. (The last of volume may have been an anticipation of traders getting ready to relax over the coming 3-day holiday weekend,

REMEMBER:  I do not know how to get in at the bottoms or out at the tops…. I just get closer than most!

If you step back and look at the above TQQQ chart, you may not be too concerned.  The TQQQ will continue to be volatile…..that’s what a triple ETF does.

·       NOTHING BEATS HOLDING THE TQQQ in an Uptrend.

·       NOTHING BEATS HOLDING THE SQQQ in a Downtrend.

>>>I focus on the TQQQ because you can typically make 2 ½ to 3 times what the QQQ earns.

NOTE:  I am very pleased with the dependable 1-2-3 relationship the 3 ETFs – the single QQQ, the double QLD and the triple TQQQ… and I am especially enjoying making those great returns on the triple QQQs!...

Note that the high within the last 20 days was hit on 3/7/2024. Look for the Green data box on the list of the last 20 days!

NOTE:*  A GREEN date box in the date column in this table means the Nasdaq hit an all-time high closing price! Wow!

MY CURRENT ACTION PLAN:  (Please refer to the ACTION PLAN FROM March 19 newsletter)

Today’s Accumulation/Distribution table: The stronger (green) A & B boxes rose 6% today.  Overall, the As + Bs are again near 60%, a frequent topping rating.  

Pink boxes above indicate ratings that have fallen over the last week.

Green boxes above indicate ratings that have risen over the last week.

Please consider reviewing this newsletter daily: .The markets can change direction and strength quickly! Note that the percentage of As and Bs took hit over the last 4 weeks – a drop from 61% four weeks ago to 52% 2 WEEKS AGO TO 58% LAST WEEK on this week!>>>>>  A small drop !

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

IT IS COMMON FOR STOCKS, ETFs, AND FUNDS TO FALL FASTER THAN THE RISE.

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 canhelp 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 VISIT your portfolio to verify it (or a big part ofit) is not dropping.

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One additional “Word to the Wise”…

>>>>>--- MOST MARKETS FALL FASTER THAN THEY RISE.

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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 FOR EACH ARMCHAIR INVESTOR NEWSLETTER:

·      RESEARCHING THE IDEAS IN THIS NEWSLETTER,

·      CALCULATING ALL THE DATA I NEED,

·      WRITING THE TEXT FOR THE NEWSLETTER AND….

·      FORMATTING THE NEWSLETTER.  (Today it was more like 4 hours.)

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

Thank you for your kind feedback  and ESPECIALLY FOR YOU WHO HAVE DECIDED TO MAKE A MONTHY CONTRIBUTION.

Charlotte Hudgin, The Armchair Investor

May your stock portfolio grow and grow and grow like this giraffe family!

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