Many darling stocks have hit air pockets, SMCI, CMG, AAPL to name a few, see weekly chart. And NVDA has closed below its 10 week average for the first time since January 6, see weekly chart below. Sell-offs are happening even after earnings beats. And we are entering the weak post earnings release period. Many down markets end in October after a wash out–“come back at Halloween.” I have found that about 40% of new QQQ short term down-trends, as I define them, end in 5 days or less. I bought a little SQQQ on Wednesday and will accumulate more as the down-trend progresses, especially if it can pass a fifth day. I am also concerned that the GMI could fall to 2 and trigger a Red signal if the IBD Mutual Fund Index (0muti) closes below its 50 day average. It is right on it now. If inflation cools and the Fed lowers rates it will be off to the races again. But keep in mind that we may also be headed to a government shut down in late September (thank you, Judy).
While I remain invested in mutual funds in my longer term university retirement accounts, I am in cash with a little SQQQ in my IRA trading account. When the QQQ short term trend turns up again, I hope to buy TQQQ. If one had bought TQQQ on Day 1 of the QQQ short term up-trend on 4/28/23 one would have an increase of +40.5% through today’s close. That would have beaten 95% of the Nasdaq 100 stocks and all but 4 of the S&P500 stocks. Why do I not have the discipline to do that every Day 1 of a new QQQ short term up-trend? I guess I would rather try to find the rare needle in the haystack that beats TQQQ. Did any of my readers buy and hold TQQQ?