Good Friday morning. In addition to coming off of extreme overbought levels in our major indexes, we’re seeing a (near term) pattern of weak smart money hours, reversals lower from higher opens, and likely most importantly, a market that’s been led lower by our leading market tell, the semis (SMH/SOXL).

Throw in front-running of less than bullish August seasonality, an assassination attempt on President Trump and an attempted coup in the Democrat party and there are more than a few reasons for this increased volatility and downside action.

Deep Dive Into the Semis; The Ultimate Market Tell

For our newer Members, know that we key off of the semis more than anything else for near term market direction. From the birth of QE there has been no single signal more important when it comes to market timing. Over the last week, SMH fell as much as 11.6%, with our 3 x Lev ETF SOXL down as much as 30%. Again, the semis led lower.

The VRA System is 70% fundamental and 30% technical…the ...