VRA Letter: Beginning to Hit Overbought Levels. SOXL Hitting Extreme OB. Tesla Kitchen Sink Quarter As Shares Fall 9%. - Vertical Research Advisory

Log in Join Now

VRA Letter: Beginning to Hit Overbought Levels. SOXL Hitting Extreme OB. Tesla Kitchen Sink Quarter As Shares Fall 9%.

Good Thursday morning from Jacksonville, Florida. Note: There may not be a VRA Letter in the AM as we’re in meetings and then catching flights. No podcast until Monday. With the S&P 500 and Nasdaq 100 putting in another da ...

Posted On January 25, 20243 MIN Read

vra-default-img

Good Thursday morning from Jacksonville, Florida. Note: There may not be a VRA Letter in the AM as we’re in meetings and then catching flights. No podcast until Monday.

With the S&P 500 and Nasdaq 100 putting in another day of ATH’s (4 in a row) some of our broad markets are beginning to hit heavily to extreme overbought on our shortest term momentum oscillators, the key point being “our shortest term” indicators only. Money flows (MFI) are only now starting to really turn up. In addition, the percentage of S&P 500 above the 50 dma sits at 72.6 while percentage above the 200 dma reading is just 69.80. Until these readings top 90-93% we are not concerned about significant downside in the short term.

Two short term notes of caution. The Fear & Greed Index sits at 76 (extreme greed) and our market internals have been on the weak side over the last couple of days.

Heads up on Semis

The semis (we own SOXL, the 3 x lev ETF) have gone parabolic but are also beginni...

Continue reading your article and start your free 14-day trial with VRA.

Start Free Trial

Already have an account? Sign in.

Related Post

June 11, 2026

VRA Letter: Xtract One Tech Earnings

Good Thursday morning. I’m in meetings this morning but will be back with our Letter a bit later. We’ll also be on the Xtract One Tech (XTRAF) earnings call this morning and will report back. This looks to be the most important, and certainly the most impressive earnings report from X1 to date. Here’s an […]

June 10, 2026

VRA Letter: Excellent Internals on a Bad Day. May CPI Report; a Slight Beat. Capitulation Readings in Gold Miners. Own Physical Gold/Silver, Avoid Fiat.

Good Wednesday morning. Late in the trading day yesterday we learned that Trump was planning to take fresh military action against Iran, in what they continue to call “defensive actions”, while the ceasefire remains (somewhat) intact. This sent the markets reeling mid-day although a solid afternoon rally resulted in a positive close in the Dow […]

June 09, 2026

VRA Letter: Our Bullish Themes Remain Fully Intact. Trump; Juicing the Market. China’s Warren Buffett Buys Tesla. Galaxy Digital Jumps 21%. Oil/Rates/USD.

Good Tuesday morning. Yesterday’s trading looks to have confirmed that Friday's selloff was an anomaly in an otherwise strong bull market. Our Big 3 remain: the Trump Economic Miracle, Innovation Revolution and an absolute ocean of liquidity will continue to power this market higher into the 2030’s. Dips will remain buying opportunities. From the beginning […]

June 08, 2026

VRA Letter: Fridays Selloff; the Data Says It’s a Buying Opportunity. What We’re Watching and Ready to Act On.

Good Monday morning. Following Fridays sharp selloff in Nasdaq (-4.2%), over the weekend we saw a resumption of military action between Israel and Iran, which resulted in oil jumping 5% overnight to $95/b. However, those hostilities now look to be over, with oil trading back down to $91.50 as Trump encourages both sides back to […]

June 05, 2026

VRA Letter: May Payroll Data; Red Hot. Market Update. Your Questions: Falcon Buyout, SpaceX IPO, Bitcoin/TAO, VRA Portfolio.

Good Friday morning. The May jobs report is in and the results are strong with 172,000 jobs created vs estimates of just 88,000. The unemployment rate is unchanged at 4.3%. In addition, the last two months of payroll data have been revised higher by a total of 93,000 jobs. Two points here; the economic benefits of […]