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VRA Letter: An Overbought Pause in Megacap Tech Will Produce “Buy the Dip” Opportunities. VRA Trading Notes. Get Ready for Fed Rate Cuts. DWAC, FOLGF.

Good Wednesday morning. After the close yesterday megacap tech stocks Microsoft, AMD and Alphabet reported earnings, with GOOLG and AMD selling off 5-6% in after hour trading while MSFT is flat. Trust me when I tell you that no on ...

Posted On January 31, 20246 MIN Read
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Good Wednesday morning. After the close yesterday megacap tech stocks Microsoft, AMD and Alphabet reported earnings, with GOOLG and AMD selling off 5-6% in after hour trading while MSFT is flat.
Trust me when I tell you that no one should be concerned about these “innovation revolution” leaders…or this melt-up bull market...and here’s why:

- Microsoft, now the largest company in existence, grew revenues by 18% and earnings by 26%.

- Alphabet (4th largest) grew revenues by 14% and earnings by 56%.

Stunning figures, all around.

The reality, as we began warning last week and as Tyler covered in detail on his VRA Investing Podcast yesterday, is that a short-term sell-off in megacap tech should surprise no one.

Across the board (essentially) on the VRA Investing System they’re trading at extreme overbought levels on each of our momentum oscillators (stochastics, RSI, MACD, MFI).

A “buy the rumor sell the news” event (on earnings) will likely continue.

Most importantly,...

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