Armchair Investor Newsletter 2023-12-13W Nasdaq Pops to New High of Last 7 Quarters!

Armchair Investor Newsletter 2023-12-13W 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 + currently  in….. We are in the 6^th 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 its high price in July of this year. This is a common price action in an excited market. It runs…. It stalls…. It runs…. It stalls…., etc.

On Wednesday Nasdaq chart below, what do you see (1) in the Nasdaq price move today and (2) in the volume today?

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What I see is…. Wow! The biggest price jump in more than a month AND the highest 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?  

….A rise to the 2021 market high and then a 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.)

A bit more about the DAILY Nasdaq CHART above.

I still like the way the Nasdaq is just climbing those price stairs! On Tuesday, the Nasdaq rose 0.7% for the sixth rising day and today (Wednesday) it rose another 1.4%(and so did the S&P500 and the DJIA) Yippee oh hi hay!!

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 anew high for the year, and then save some of that momentum for the start of 2024!

Next, please turn to the Nasdaq’s daily chart below….. The last 5 days have demonstrated a nice stairway to…. heaven???

Bottom line: Here are the three major indexes’ moves Wednesday:

No I didn’t miscopy those rises.  It’s like the S&P500 and DJIA are playing the same game. And I LIKE THAT GAME (big rises on big volume increases.)

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 TRIPLEQQQ (TQQQ) and are enjoying its amazing gains. Yee Hah!  172.1% gain. (yes, I do accept tips!)

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 sharp rise 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 ArmchairInvestor

CharlotteDH100@mail.com

(214)995-6702

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