Good Tuesday morning. As we began covering last week, we have a stock market that’s overbought in the short term, while the medium-long term continues to look excellent. The fact that our two primary "market direction" leaders….Bitcoin and the semis…are now leading lower, confirms that the rubber band has been stretched.

In addition, we learned this morning...from Bank of America’s Global Fund Manager Survey...that they too see indications sentiment is stretched, as fund managers are reporting the lowest cash allocation (on record) with bullish sentiment hitting its highest levels since July 2021. Just 3% are concerned about the economy and markets in the next year.

VRA Bottom Line: as lifelong contrarians, when investors become overly bullish we get a bit uneasy. Still, we’ve entered a highly bullish period for the markets and importantly, none of our VRA System indicators have flipped to bearish (medium-long term). Again, we see this as a short term concern that would be easily...