I find repeatedly that if I can buy TQQQ on Day 1 of a new QQQ short term up-trend and if the up-trend lasts, it beats almost all individual stocks. Similarly, SQQQ beats almost all individual stocks in a sustained down-trend. The key is to buy on Day 1 and hold, but to sell quickly if the trend reverses.
I am so disappointed and angry that social media and the media pundits are, with few exceptions, telling the masses to stay in a declining market. If one got out when I said I was in February, one can just calmly wait out the decline. I do not have to reinvest at the bottom, just return in a new up-trend before the market rises to the point I got out. Stop trying to predict a bottom and wait for it to define itself. Young investors can wait out a decline and keep dollar cost averaging into SPY. People near retirement may not have adequate time. It took 25 years for the DOW to come back to the 1929 top. But the market always comes back……
As to individual stocks, I, like Nicolas Darvas and William O’Neil, buy only when a stock trades at or near an ATH, I am not interested in buying the fallen leaders until or IF they ever trade at an ATH. We never know in advance when a rebound will end. The stocks that reach an ATH early in a market up-trend are proving themselves worthy of my attention and money. With the GMI=0 and RED, I must remain in cash. On Friday there were 4/6119 US stocks that reached an ATH (PM,TATT,ATO,OPOF). When so few stocks trade at an ATH, it is too risky for me to buy one. But they are worth monitoring.
On May 21, I shall present to the Boston IBD meetup group. The online meeting will be open to all. I will post a link when I receive it. You can register and just watch the recording if necessary.
