Good Monday morning. We are adding two positions to the VRA Portfolio this morning; TQQQ (3 x Nasdaq 100 ETF) and UVXY (Ultra Vix ETF).

VRA Alert #1: Buy TQQQ (3 x Nasdaq 100 ETF) @ Market. Last: $59.25

As we’ve covered often, over the last month the semis and tech stocks reversed from ATH’s to their 200 dma. The semis (SMH) fell as much as 28% in 3 weeks (bear market), while the Nasdaq 100 fell as much as 16%. Our view remains that these are shakeouts to be bought, not unlike the 5-6 corrections/bear market that took place during the Dotcom melt-up from 1995-2000.

Over the next month we have several powerful catalysts that should prove to be bullish, namely; 

1) J Powells Jackson Hole presser (8/24), where we expect Powell to be full-on dovish, telegraphing the upcoming rate cutting cycle (AKA the return of easy money policies).

2) Nvidia (NVDA) earnings on 8/28. We are in inning 1 of the "innovation revolution", which will continue to be led by the semis (we own SOXL, ...