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VRA Letter: Textbook Repeating Pattern in Semis/tech. Plus, 5 & 10 Year Trading Data in SOXL You Have to See to Believe. Are the Markets Predicting a Trump Win?

Good Tuesday morning. Another day of ATH’s in the S&P 500 and Dow Jones, featuring (once again) a textbook day of trading where the semis led the nasdaq higher, which then led the broad markets higher. Yesterday, SOXL (3 x ...

Posted On October 15, 20244 MIN Read
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Good Tuesday morning. Another day of ATH’s in the S&P 500 and Dow Jones, featuring (once again) a textbook day of trading where the semis led the nasdaq higher, which then led the broad markets higher. Yesterday, SOXL (3 x Semi ETF) rose 5.5% with TQQQ (3 x Nasdaq 100) up 2.5% (both VRA Buy Recs).

If this theme looks familiar to you it’s because it’s been a primary repeating pattern of this bull market from the bear market lows of 10/13/22. When the semis are leading the market higher, from the birth of QE (2008), there’s not been a stronger buy signal for the markets. The semis are the ultimate tell for market direction.

Below, in this two year relative strength chart of the semis to S&P 500, we see that the semis led the markets higher from October 2022 to July of this year, punctuated by the 3-week 28% bear market in the semis, where this relative strength chart broke down. And yes, this trading pattern absolutely has shades of the dot-com melt-up of 1995-2000, where n...

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