Good Wednesday morning. I was bumped on yesterday’s 'Making Money’ with Charles Payne but am told that I’ll be on today. Fox Business in the 2PM EST hour.

VRA Market Update

Yesterday’s trading produced our 41st ATH of 2024 and while that’s great news for investors, it comes with a short term price. As we start trading today, the S&P 500, Dow Jones and Nasdaq are each hitting heavily overbought levels…very close to extreme overbought. It’s not time to sell but it is time to pause our buying. The easy money, based on VRA System readings, is behind us. 

This also applies to our position in KWEB (China Internet ETF), which jumped 10% yesterday and is up 20% over the last 3 weeks, on news of their stimulus bazooka program. The question is, will these overbought levels even matter for Chinese tech stocks, which as we’ve pointed out over the past many months, continue to trade at two-decade lows based on P/E and cash flow multiples.

Below we see this parabolic move higher in K...