Good Monday morning. We are adding NAIL (3 x Housing ETF) to the VRA Portfolio.

Alert: enter a market order to buy NAIL @ market. Last: $53.50

We’ve waited on this one as long as we intend to. The technical side (charts below) does not qualify as a traditional buy signal (below 200 dma), however the VRA System is 70% fundamental and 30% technical. Our view remains that the US economy will pick up speed from here...even more so with Trumps BBB now 90% likely to pass congress. Over the remainder of Trumps presidency we look for GDP to cross 5% growth (and higher) and for rates to continue to fall. This is a recipe for the return of a roaring housing bull market.

With 40% of homeowners being mortgage free (ATH) and overall home equity also at ATH, any cracks in housing will be short lived. It’s all about mortgage rates now. Once they drop below 6% (we see that within 3-6 months) and then sub 5% (1 year), the housing market will come back with a vengeance. Trump is on a warpath fo...