Good Tuesday afternoon. Led lower by Nvidia, which has been down as much as 7% today (breaking short term support), the semis and tech are lower today, while value/small caps are both higher on the day.

This looks nothing like panic selling or a liquidity event of the type that would take the broad markets sharply lower. Instead, this looks like a continuation of the rotation that’s been under way for some time. Rotations are bullish. And, it will result in the lows taking place in the semis/tech….based on our work…likely in short order.

Here’s the chart of NVDA. What we see below looks very much like the shakeout that occurred from end of February to early May. That’s what this is…a shakeout. What we also see below is that NVDA is entering heavily oversold levels. This is setting up as the next solid buying opportunity in NVDA, which means the same for our position in SOXL, where we remain buyers. Last: $38

Note on NVDA: in yesterday’s letter I incorrectly stated that...