ARMCHAIR INVESTOR NEWSLETTER TUESDAY 1/2/2024:2023 returns on the 2 major indexes areEXTRAORDINARY!

ARMCHAIR INVESTOR NEWSLETTER

TUESDAY 1/2/2024:  The 2023 returns on the 2 major indexes I follow (the Nasdaq and S&P500) are EXTRAORDINARY!

>>>Look at the difference between the Nasdaq and the S&P500 for last year.I plan to include the S&P500 for comparison purposes. But overall, S&P500 just hasn’t kept up with the Nasdaq so why should I waste your time?So you will appreciate the Nasdaq’s growth!

Last year the Nasdaq almost doubled the S&P500 returns- Compare the returns above. (And the S&P500 almost doubled the DJIA which is why I am dropping it from this newsletter.)

I will keep the S&P500 with the Nasdaq on my charts for comparison purposes.

>>>CONCLUSION: I suggest you don’t waste your time on the DJIA or even the S&P500.  

LOOK AT THESE HUGE 2023 QQQ  RETURNS below! Which one would you prefer to have earned?

‍

>>>WARNING #1:  RISING MARKETS are always followed by FALLING MARKETS. It is your job to watch the markets (or just read this newsletter nightly) to be clear on what direction the market is going.

I am not always in one investment like the TQQQ.  I will switch to the SQQQ (an INVERSE ETF) when the market falls – BECAUSE THE INVERSE ETF RISES WHEN THE MARKET FALLS.

I will clearly let you know when I make the market directions witches from TQQQ to inverse SQQQ in this newsletter.

REMEMBER:  I do NOT know how to:

·      Get in at the bottom or

·      Get out at the top.

·      ….. but I have consistently gotten closer than most …. And that timing has returned significant growth in my portfolio.

Now compare the major indexes (above) to the three Nasdaq ETFs below.

‍

The results of the comparison?:  I WON! With the TQQQ in the last 2+ months. And I won when I moved to cash the August and September.  

I hope you also enjoyed the extraordinary gains of the TQQQ (Triple QQQ ETF) for at least part of 2023! I did not get into the triple in this newsletter In the last 2-month run-up. And I regret my hesitation.  But the final returns were very satisfying.

Imagine who you would have earned if you had just planted your portfolio in the TQQQ!......But then realize neither of us knew what was coming next. So that last thought was just a fantasy.

>>>WARNING #1:  RISING MARKETS are always followed by FALLING MARKETS. It is your job to watch the markets (or just read this newsletter nightly) to be clear on what direction the market is going.

I am not always in one investment like the TQQQ.  I will switch to the SQQQ (an INVERSE ETF) when the market falls – BECAUSE THE INVERSE ETF RISES WHEN THE MARKET FALLS.

I will clearly let you know when I make the market directions witches from TQQQ to inverse SQQQ in this newsletter.

REMEMBER:  I do NOT know how to:

·      Get in at the bottom or

·      Get out at the top.

·      ….. but I have consistently gotten closer than most …. And that timing has returned significant growth in my portfolio. (Repeat of the current

Please do not expect the above gains in the coming year. 2023was an amazing year but the market may see itself as “extended.” Count on my telling you about the trend changes during the year so you can ride the map properly.

And with the blow-out in some of the AI stocks, it will be worth your time to read at least the first page of this newsletter nightly to be sure you don’t miss my notes on when and where the big growth (or fall) is happening!  

I hope you have enjoyed an investment in the TQQQ (triple QQQ.)  They have grown almost 4 times the single QQQ this year. ….. But remember…. The TQQQ also can fall at 3 (or more) times the QQQ.  

What to do about the high volatility of the TQQQ?

>>> I suggest you read at least the first two pages of this newsletter each night.  This action will keep you tapped into the current market. And remember:

·       I do NOT know how to get in at the market bottoms and out at the tops.----- I just get closer than most others.

‍

Look at the amazing percentage of stocks that have “A” or “B” ratings.... 72%!!!

‍

Please watch this newsletter daily. Note that the percentage of A-rated stocks dropped today.

The percent of “A” and “B” rated stocks is an EXCITING 72%.  You can find winners easily!

But note the TQQQ A and B rated stocks fell 1.9% over the last 2 days showing weakness in the TQQQ.

Note that the total of A and B rated stocks is an impressive 72%.  What isn’t impressive is that the total of As and Bs 3 weeks ago, was a higher 77%. But that 72% is still a strong statement about this market.

   REMEMBER:      

I do NOT know how to get  in at the bottom… or out at the top.  

I just usually get closer  than most!  

And you can make some nice returns with the signals I talk about in this newsletter.

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

‍

‍

‍

‍