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VRA Letter: The Bears Are in Trouble. The Most Important Chart, Still Flashing Buy Signals. Front-Running July. Tesla; Skate Where the Puck is Going.

Good Wednesday morning. Solid recovery day in semis/tech yesterday, with NVDA jumping 7% and SMH + 3%. If what we’ve just witnessed was the bears best shot at taking the market down, then they’re in real trouble. While the sem ...

Posted On June 26, 20247 MIN Read
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Good Wednesday morning. Solid recovery day in semis/tech yesterday, with NVDA jumping 7% and SMH + 3%. If what we’ve just witnessed was the bears best shot at taking the market down, then they’re in real trouble. While the semis/Nvidia each took hits of 18%, the rest of the market only got stronger. Truly a bears worst nightmare.

The most important chart of this bull market continues to be the relative strength chart of SMH (Semi ETF) to SPY (S&P 500). For 20 months…from the birth of of the bull market...this tight ascending channel has consistently pointed to two outcomes; a) the semis have consistently led higher and b) the semis have traded within this tight channel band, which has proven to be an excellent market timing signal. Today, we see that the semis are taking a must needed (extreme overbought) breather. We fully expect the next major move in the semis/tech to be “higher”. We own SOXL (3 x Semi ETF).

Front-running Signaling Seasonal Move Higher into July

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