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VRA Letter: Analysis of a Summer Shakeout. The Semis Will Continue to Lead Higher. Fox Business ‘Making Money’ Interview. Lost Solider closes $300 M

Good Friday morning. It’s been an eventful last 2 weeks, which (beginning on 8/1) saw the Dow Jones plummet from 41,100 to a low of 38,500 (8/5) for a decline of 6.3% over 3 days, followed by what has become a strong 6 day recov ...

Posted On August 16, 20246 MIN Read
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Good Friday morning. It’s been an eventful last 2 weeks, which (beginning on 8/1) saw the Dow Jones plummet from 41,100 to a low of 38,500 (8/5) for a decline of 6.3% over 3 days, followed by what has become a strong 6 day recovery move higher.

The biggest hit came in the semis (SMH), which experienced a steep 3 day decline of 18.6%, taking VRA Portfolio holding SOXL (3 x Semi) ETF from $43 to a low of $23.50, a stunning decline of 45%…again, in just 3 days.

As covered last Monday (8/5)...following Japan’s Black Monday (-13.4%)...in my career the best buying opportunities have come from a sharply lower Monday open, following a weak Friday. That’s exactly what we just saw. We were buyers on 8/5 and we are buyers today, adding to our positions in SOXL, GME and adding a new position in TQQQ (3 x Nasdaq 100 ETF). The lows are in place.

SMH: The Chart that Matters Most

This chart of SMH (Semi ETF) tells all. From the July highs, where SMH was hitting extreme overbought levels on...

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