2024-01-23T The TQQQ ros1e 6.3% in the last 11 days. But look what the QQQ has done in the last 3 months .... +77%! Now imagine what the triples have earned!

2024-01-23T  The TQQQros1e 6.3% in the last 11 days. But look what the QQQ has done in the last 3months .... +77%! Now imagine what the triples have earned!

I hope you are participating in this extraordinary UPTREND!

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Yes…. The GAP UP after a 4 month dip.Although not all gap-ups continue to rise, they have the statistics on their side.

What is fascinating to me is the similarity of the singe and triple charts.

Of course, the big difference is the TQQQ pays off about 3 times the QQQ. And remember,…. When the market turns down, the TQQQ drops about 3 times as fast as the QQQ.

Compare the two charts in this newsletter. (TQQQ above and QQQ below.) You might mistake either one for the other if you didn’t look at the prices. The fact

that the TQQQ does such a good job of mimicking the QQQ (and has for quite a while) gives me confidence in buying the bigger returns of the TQQQ.

>>>>The big difference between the 2 ETFs is that the TQQQ, when bought and sold at the right times,makes me close to 3 times the QQQ.

So relax and lean back…. And enjoy the bigger gains of proper buying and selling of the TQQQ.  

When you compare the QQQ above to theTQQQ (Triple Qs) chart below, you will wish you had been in the TQQQ if youweren’t.

Yes. The TQQQ is outperforming the rising QQQ.  

>>>The TQQQ rises and falls about 3 times faster than the single ETF, the QQQ.

You cannot ignore what the triples are doing! (unless you are willing to accept a smaller return in the QQQ.)

>>>MY PLAN FOR TODAY:

Check in on the TQQQ at least every 2or 3 hours…. just to be sure it isn’t failing. A quick peak doesn’t take long.

NOTE: At some point, someday, the TQQQ will fail.  I would rather get out early than late and risk a bigger loss.

If I sell the TQQQ because it is price is dropping, I can go to cash or the inverse as appropriate index to protect my capital,

If the ETF resumes upward progress, I can always

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NOTE: The nice thing about the TQQQ is that it really can make a lot of money for me when it is rising.  But it can quickly loose those gains if I am not paying attention.  Note the TQQQ fell a lot harder than the QQQ over the same timeframe.

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How long does it take to look at the current price chart? Just a wink if you have it set up on your phone or computer.

ASSIGNMENT:Calculate the return on the TQQQ since the January low.  YOU ARE WELCOME!

And , “THANK YOU” to those of you that subscribe to this newsletter.

Take a look at the TQQQ’s 215% rise since December 2023. Did you stay in the TQQQ when the market took a over that same 11 days!. Three times the QQQ’s 6.4% rise is 19.2%.The TripleQQQ did even better than the expected 3 times the QQQ by jumping  .

The TQQQ is called the “triple” QQQ and is expected to rise and fall much more than the QQQ (not always 3 times the QQQ, but sometimes like today, the TQQQ outperformed the QQQ.

Last week the TQQQ rose 8.3% on the Daily chart below.!  

Step back and look at how the recent price move almost 3 month rise is doing.  I hope you are in the TQQQ at the moment

Now compare the QQQ and TQQQ charts below. WOW! The TQQQ was designed to move about 3 times the QQQ whichever direction the ETF goes. I think you will agree with me – they do a pretty good job.

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‍I hope you participated in the recent January runup!

Note: I am not concerned that the volume was light over last week. Monday was a holiday. Volume returned on Tuesday. Let’s see what the last 2 days of this week and next week bring in.

The REAL MONEY was earned in the TQQQ. When you look at the TQQQ chart below, you will probably immediately notice that the TQQQ is well-below its recent high.

Note the SUPER RETURNS from the TripleQQQ (TQQQ)

If you are curious how the QQQ perform compared to the double Qs (QLD) or the triple Qs  (TQQQ), you can find those most days in this newsletter as is shown the MAJOR EXCHANGE TRADED FUNDS table above.

When you turn to the 20-day history below, notice the 5-day period of down days in the middle of the 20-day table below.  That table had only 2  down day in the last 9 trading days.Although not all up-days were large, the consistency of the recent rising days in the last 20 trading days is positive news.      

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The green “Count” column in the middle of the table, counts the number of days the market has been in an Uptrend(green) or Downtrend (red).

>>>>>> Right now,the market has been in an Uptrend for 55 days – over 11 weeks when you take recent holidays into the count. This is one of the longest Uptrends I have had the pressure to invest in. And it was not expected by the “experts!”

The reminds me of one of my grandfather’s jokes.  He used to say…..

“X is the mathematical term for the unknown. And a "spirt" is a drip of water under pressure. So an Expert must be an unknown drip under pressure!”  

There are days I identify with his remark!

Onward…..

Notice, even with the market’s ups and downs, overall, the Uptrend continues. This is one of the longest Uptrend I have enjoyed riding! What do you notice about how fast market rise versus fall?

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What I like best about the MARKET FACTORS, COUNTS & RATINGS table below,is the number of Accumulation days versus the Distribution days. That ratio gives a stronger sense of the strength of the current market. If the 4 UPdays and 2 DOWN days confuses you, note that I do not count a day’s move unless it was at least 0.2% up or down.

What should you do when the market starts falling?

Just read this newsletter that night and I will give you a simple solution based on what the market is doing then.

>>>>>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 other advisors…. And that timing has returned significant growth in my portfolio and those of my readers.

Are you concerned that the market may have risen as much as it could, for the moment?You might be right … but I’m not worried.

>>>The current Uptrend is showing moderate strength.  

NOTE:  IF YOU EVER SEE AN EMAIL FROM ME IN THE MIDDLE OF THE DAY (which happens rarely),consider giving it a quick read. It MIGHT include a change of strategy you can implement during the day to save more of your prior wins.

·      Remember:The market and individual stocks continue in the direction they are going…until they don’t.

>>>>Please read 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. Note on the above table the price/volume action of the last 20 days. Only 3 days were Distribution days –when the price dropped and the volume rose, indicated some serious selling.

FINALLY:REMEMBER:

 In the stock market:

“What goes UP,UP, UP….. eventually goes DOWN, DOWN, DOWN! “

The first 10days on the 20-day list above had a singular down day on 12/20!  That is amazing!  

The market continued higher for the next 4 days before an abrupt reversal for 5 down days in a row, ending with 4 rising days.

Only one of those 3 rising days had a significant (2.2%) rise. And that 1/8 day had extraordinary volume of 20.6% increase… a nice way to kickoff the week.

Look at the amazing percentage of stocks that have “A” or “B” ratings – Even after a drop from recent A+B s owning 732%.... today’s 68% As+Bs is still very strong.!!!

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I recommend you watch 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 73% three weeks ago to only 54% on Friday! >>>>>  Yikes!

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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 donot 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 anincrease 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 (o r a multiple of it.) Stay tuned! And watch daily!

And….. those birds still aren’t going anywhere! (They will be back)

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.  (Today it was more like 5 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 ideas. Please keep sending them.

Charlotte Hudgin

The Armchair Investor

CharlotteDH100@mail.com

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