Precious Metals and Miners: The Move of a Lifetime is Beginning

Good Friday afternoon. If you’ve been with us a while you know our views on gold/silver and the miners. Fundamentally, they MUST be owned. Precious metals are the antidote to fiat currency. The world is awash in debt that can NEVER be repaid. Governments and central banks have done the rest of the damage, printing our currencies into oblivion, as evidenced by the 97% depreciation of the USD since the creation of the FED in 1913…another financial Frankenstein from the worst president in US history, Woodrow Wilson (he also brought us the 16th Amendment/income tax).

If you’ve ever wondered “what the hell happened to our financial way of life”, aka, why is it that both spouses have to work to bring home the same benefits that a single income produced just 30–40 years ago, now you know the answer. Currency debasement. Currency inflation. US dollar destruction.

USD currency destruction lies at the heart of most all our financial issues. Period.

As a side note, this also explains todays manufactured culture wars, aka 99% of the “news” we’re force fed today. The powers that be do not want us talking about currency destruction or the dangers of a runaway, unregulated FED. They do not want us talking about soaring inflation (which sits at 10%+ today). They do not want us talking about The Patriot Act. They do not want us talking about multiple 6 figure college costs. And they don’t want us owning precious metals.

I committed numerous chapters to these subjects in both of my CrashProof Prosperity books. Nows a good time to go back and read them. Inflation is coming…on a global and massive scale. As inflation first returns (and its happening now…those 2% CPI reports are full of deception), it will be a major positive for global equity markets. Again, at first. This view is at the heart of my DJ 35,000+ call by end of 2020. Early inflationary breakouts are HIGHLY bullish for equities, as history has demonstrated often.

To be crystal clear, we should own “physical” gold and silver (not hypothecated gold/silver ETFs). And we should own mining stocks….thats where the real leverage lies. Leverage of 3–5 times historically, meaning that in PM bull markets, the miners actually outperform gold by 3–5 times.

The VRA has been bullish on PM’s (and miners) from 2003, where in my second-ever buy rec I recommended gold and silver. Gold was below $400/oz. Silver was below $5/oz. We’ve also locked in well over 2000% in net gains from our recommended miners.

I know this sector. I know this fundamental story. I love PM’s and miners, particularly in todays climate.

Let me also remind that our VRA 10 x Buy Rec Fortem Resources (FTMR) has a significant stake in “City of Gold”, a massive 465 square mile concession in Myanmar. I’ll have more on this soon, just know that Fortem CEO Marc Bruner and COO Mike Caetano have BIG plans for City of Gold. Just another reason to own Fortem. Here’s the link:

http://www.fortemresources.com/resources/mining/city-of-gold/

And folks, something big is taking place right now in PM’s. The technicals are flashing all kinds of buy signals. MAJOR buy signals. Lets take a closer look. First up, here’s the chart comparing the miners (GDX, miner ETF) to gold itself. In big bull markets, the underlying equities outperform the commodity.

We see it clearly in this chart, as GDX has “significantly” outperformed gold since early September. This is a most important indicator, one that few are talking about today. But we see it…we love what it’s telling us.

Gold has just broken out as well. Gold is now above its 200 dma with a golden cross occurring this week (50 dma crossing 200 dma). Big technical buy signals here.

 

We see the same in GDX. Back above its 200 dma with a golden cross nearing. We have yet to see volume confirm the move, but with the breakout that I expect, ramping volume in the miners is near. Once GDX breaks $25, look out above.

 

Now is the time to have your positions in place. Gold, silver, and the miners. To learn more sign up for our Free 14 day trial at VRAInsider.com and you will receive a copy of our report on investing with Precious Metals & Miners.

The move of a lifetime, for precious metals and miners, is beginning.

Until next time, thanks again for reading…

Kip

Since 2014 the VRA Portfolio has net profits of more than 2300% and we have beaten the S&P 500 in 15/16 years.

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Statistical Analysis Tells Us a Nasdaq Boom Predicts a Broad Market Boom. Trade War, China is Nervous…That is Smart. Sentiment Highly Bullish.

Yesterday we highlighted the fact that the Russell 2000 has reached an overbought level that has occurred just twice in the last 2 years. Right on cue, the R2K sold off sharply, down 1.18%, leading the rest of the market lower (along with its co-leader, the Nasdaq).

But again, I see no serious signs of an impending and larger sell-off here. In fact, new 52 week highs to lows were positive 313–281, something that we simply do not see in a market that is dramatically weakening. Yesterdays 196 point drop in the Dow Jones has taken it back to highly oversold levels, now just 220 points above its 200 dma. Obviously, we want to see this level hold. Here’s why I am highly confident that it will…

The leader, following the 2/9 lows, has indisputably been the Russell 2000. US small cap stocks are (mostly) immune from concerns of a trade war, as 90%+ of their business is done inside US borders.

I point the IWM (small cap ETF) out to you this morning for the following reason; small caps have only been this overbought twice in the last 2 years. What followed, in both cases, was either a pause or a something larger (12% drop following the January highs).

According to the VRA System…and my 33 years of doing this…now is not the time to be adding to positions in this sector. While we do have exposure to this group, our positions are more in the “small cap, story stock” category and should be immune from any pullback in the small caps.

If you’re a fan of statistical analysis (I am), and remain bullish (as I am) you’ll find this interesting (with thanks to BullMarketsCo):

When the Nasdaq is as strong as its been over the last 4 months, outperforming the Dow Jones by more than 12%, the end result is a highly bullish broad market move higher over the course of the next year, with the median 1 year move higher in the S&P 500 of 16.68%. The median move higher in the S&P 500 over the following 6 months is an even more impressive 12.44%.

This supports my research of more than 3 decades, which we’ve covered here often; when the Nasdaq leads the way higher, the broad markets are almost certain to follow. It’s the ultimate “a rising tide lifts all boats” analogy.

Big troubles in China

China, as of yesterdays close, both mainland Chinese stocks and Hong Kong traded Chinese stocks, have hit their most oversold levels in 2.5 years. I continue to expect China to cave on trade with the US/Trump. Because, if they do not, their already 40% collapse in the Shanghai Stock Exchange will turn into something much worse. The Chinese economy is slowing…of this there can be no debate…and with debt/GDP already at 250%+, a prolonged slowdown could result in a form of a death spiral in Chinese debt. Yes, they are most aware of this. And no, I do not expect this to take place. But Trumps not kidding around here…trust me when I tell you that China is increasingly nervous.

The following 3 tweets from this week give you an idea of my thoughts about the potential for a trade war with China. Bottom line; a trade war will only take place if China is suicidal.

Again, when you have debt/GDP of more than 250% (almost equaling Japan), and with a state sponsored semi-capitalist system that is causing serious havoc in the form of rapidly rising corporate defaults, this is NOT the environment from which you want to enter a trading war with your most important import partner (the US, of course).

Trump knows all of this. His team, led by very sharp and hard edged negotiators Wilbur Ross and Peter Navarro, knows all of this. China, were they to repeat the mistakes of 80’s/90’s Japan, would be forced to issue obscene amounts of debt just to survive total economic collapse. History tells us that totalitarian nations do not weather economic collapses all that well (Germany, Russia, Italy, etc).

China has already lost this battle with Trump. The only thing missing is some form of face-saving admission. Look for that in the near future.

Final point; late last night the White House released this 35 page document on trade with China, along with how China has stolen (at minimum) $10 trillion from the US in just the last 20 years. Must read for those that want to understand Trumps views on trade. Take your blood pressure medication before reading it…

https://www.whitehouse.gov/wp-content/uploads/2018/06/FINAL-China-Technology-Report-6.18.18-PDF.pdf

Investor Sentiment

Below is the weekly AAII Investor Sentiment Survey. I’ve used this exact sentiment survey since the late 80’s and today, it’s not even close to indicating that a market top is on the horizon. Not. Even. Close.

Bulls sit at 38.7% (down 6% on the week), with bears at 26.2% and neutral investors still at a very big 35.1%. Remember, at the January highs bulls were 60%. Remarkably (to me), even with the nasdaq and R2K hitting all time highs daily, investors continue to be skittish. As contrarians, this tells us that stock prices have a long, long ways to go before investors are complacent…much less euphoric.

Lastly, if you haven’t already signed up to receive our free weekly blog, please do at kipherriage.com. Not only will you receive our weekly blog in your inbox, but you will also receive special offers from the VRA. Just so you know, we have one running right now through next Tuesday, so sign up today at kipherriage.com to learn more!

Until next time, thanks for reading…

Kip

Crushing Mr. Market in a Rising Interest Rate Environment: What rising rates mean for your Portfolio

As expected, the FED raised rates…we now have a 2% fed funds rate for the first time in a decade…they also signaled there may be 2 additional rate increases this year.

The central bank’s updated “dot-plot”, a chart of the projections for interest rates of Fed members, should offer a clearer outline for how many rate hikes will be on the way. More than anything, the Feds dot plot (and press conference comments) are what the markets will be listening to as it holds significance for how Trumps fed views the Feds role in managing the US economy. Higher rates and a stronger dollar can contribute to how investors value stocks and other assets, but as we’ve covered here often, the facts are clear; stocks love higher rates…to a degree that is…as higher rates confirm an economy that is expanding, and earnings that will continue to grow.

And remember, the fed funds rate was also at 2% as Lehman Brothers announced bankruptcy, back in the dark days of September 2008, as the financial crisis kicked into high gear. The point being, until the fed funds rate surpasses 3%…possibly even 3.5 to 4%…our stock markets will almost certainly continue to rise.

Yes, my view is the contrarian view…but it also has the advantage of being supported by historical investing patterns and returns. We’ll continue to ignore the chicken littles that tell us…seemingly daily…that higher rates will soon lead to the next market crash. We’ll use their bearish positioning/short selling to keep the markets climbing their wall of worry. Much needed fuel for the bull market to keep charging higher.

Unlike most followers of monetary policy, I like to think I have the ability to think using at least a bit of logic. And logic tells me that rate hikes are a very, very good thing, for all of the reasons we’ve covered in these pages since the first Fed rate hike, back in December, 2015. Rate hikes signal everything thats good about an economy…it also allows savers the ability to make a somewhat decent return on their most conservative of money. How novel a concept…retirees may no longer be required to take uncomfortable levels of risk, throwing money into the stock market. At just 2% yields, we’re not there quite yet…but by this time in the next 12–18 months, when the fed funds rate is approaching 3%, savings accounts might start to mean something, again.

J. Powell…keep up the great work.

Again, this will mark the 7th hike since December, 2015. Lets take a look and see what gold, silver and GDX (miner ETF) have thought about rising rates, over the past 2.5 years.

Gold bottomed with exactly the first fed rate hike, 12/16, and is up 23%. Still needs to break $1375-$1400/oz before a confirmed breakout, but everything about this chart tells us that pressure for a big move higher is building. Massive volume expansion…smart money global players (including central banks) buying up all they can (even as the price is manipulated over the short term to fool investors to the spike to come).

 Silver is up 24% from the first fed rate hike…eerily matching golds move almost completely. The action in silver is even more compelling to me than gold. When multi-year coiled springs like the one in silver break out, the moves can be bitcoin like.

But the big winner…as we would expect…comes from GDX (miner ETF), which is up a big 80% from the first rate hike lows. A nearly 4–1 move advantage over gold/silver. When this big triangle breaks higher we’ll have to wait and see but once volume starts to build (it has gone dormant of late) we’ll have our first real clues.

Bottom line; precious metals/miners love a rising rate environment…most certainly the early innings. Our proof of this is the fact that the biggest bull markets have occurred in exactly this environment

ECB Ceasing QE

We also learned this morning that the ECB will be ceasing QE at the end of this year. Again, more great news, although you wouldn’t know it from the many growling bears this morning, who continue to look for reasons…that simply do not exist, according to the VRA Investing System, to predict the coming recession and global stock market crash.

Sanity is finally returning to monetary policy. Combined, from the beginning of QE from the FED and ECB, more than $6.5 trillion in central bank funny money has been printed. Those funds were then used to directly purchase government debt in the US and Europe (among others, including corporate bonds in Europe). Frankly, its a miracle the worlds financial system did not collapse under the weight of it all. Today, the VRA Investing System could hardly be more bullish.

Quick Hitters

1.) This morning, retail sales figures for May came in at +.08%, more than double the estimates. More great news for a very quickly growing US economy. Remember, the Atlanta Fed estimate for Q2 GDP sits at 4.8%. Anything over 4% is a huge win. I continue to look for full year GDP this year of better than 3%, with 4% or better in 2019 (and wait til Trump passes Tax Reform phase 2….this is the phase where our personal rates begin to drop).

2.) Wednesday’s 119 point loss in the Dow Jones (half that % in other indexes), ended the 7/7 run of hugely positive market internals. Still, new highs to new lows were positive nearly 4–1, more confirmation that the broad markets are headed higher.

3.)After an historic meeting with North Korean President Kim Jong Un, President Trump has done but what no American president has done before him, getting NK to agree to complete denuclearization. Long ways to go here, but folks, if you’re betting against #45, I have a question for you:

Why? Trumps pattern of winning, on every level, is crystal clear. The man simply does not lose. Stunning successes, time and again. I covered some of his most important wins in an am tweet.

4.) We also learned this morning that US small business optimism is at its second highest readings of all time. The very definition of animal spirits. Yet the Dow Jones remains some 1300 points below its all time high. This spells opportunity.

Finally, if you’re not listening to our end of day podcasts, please join us! Tyler and I tell you…in roughly 5 minutes…what happened in the markets with specifics on VRA Investing System readings. Sign up at vrainsider.com/podcast

Join us as the VRA continues to crush the market, with 2400% in net gains since 2014, beating the S&P 500 14/15 years since inception in 2003!

Until next time, thanks again for reading…

Kip

VRA Saturday Alert: What. A. Week. VRA Market Update

Good Saturday morning all. What. A. Week. I’ve run all VRA System Scans and screens this morning and have a number of important points for us to cover. If you’re reading this, you are likely anxious about the markets. If not, you have more ice water in your veins that me…nerve wracking might be an understatement. But if I can be so bold, this is also why you subscribe to the VRA. The VRA System helps us to remove emotion from investing…as much as possible…making clear headed decisions, based on whats worked for me over 3 decades.

We’ll cover the VRA Alerts from this morning next, but first, the question that’s most on your minds; “are the lows in place?” I honestly do not know at this point, but we do have some hard data that points to the likelihood that a deeply oversold bounce should be in the cards come Monday morning and the early part of the week. Consider:

1) Both the put/call ratio and the VIX hit near panic-selling levels this week. On Friday, the put/call ratio averaged 1.4. Anything over 1 tells us that options traders are heavily bearish…almost always a solid contrarian indicator…a reading of 1.4 tells us that (if nothing else), a relief rally should be in the cards.

The VIX (volatility or the “fear index”), spiked to 50 on Tuesday…an 118% 1-day increase (an all-time record) and a 2.5 year high. But, on Wednesday and Fridays sharp declines, the VIX failed to surpass 31, closing at 29 on Friday. This tell us that the declines are becoming more orderly…less fear induced…and that’s a positive.

2) Investor Sentiment has flipped from 60% bulls (AAII Weekly Investor Sentiment Survey) all the way down to 37% bulls. We have to keep in mind that these are the readings from Wednesday, but we also learned on Friday that the USA Today Sentiment reading was down to 8…it had been as high as 80 just 2 weeks prior. Again, as contrarians, we want to act against the majority…most especially during a bull market, when bearish sentiment reaches a fever pitch. We’re getting there now.

3) Fridays wild day in the DJ (+300, -520, +500…with a close of +330) was just the kind of messy retest of the lows that we’ve been discussing. While the Dj remains some 1300 points above its 200 day moving average (200 dma)…never getting close to the 200 dma…the S&P 500 fell to EXACTLY its 200 dma on Friday. Here’s the SPX chart…this is the one that every smart money market watcher is talking about…its the only chart we will look at this morning.

At its lows, SPX traded down to 2359…again, exactly to the 200 dma (circled below). Investors that invest almost exclusively on fundamental analysis pay close attention to the 200 dma. Here’s why; if a stock or index is above the 200 dma, investors can assume the trend will continue to be “higher”….and will buy/add to positions. Conversely, if a stock/index is below its 200 dma, this is when investors can look to go short, betting against a move higher, looking for lower prices instead. The VRA keys off of the 200 dma for exactly this reason.

We can also see that the momentum oscillators are reaching heavily oversold levels….not yet extreme oversold on the VRA System…but certainly getting close. Should we get an additional test of the 200 dma, dollars to donuts we can bet that extreme oversold levels will be reached. These levels of extreme oversold readings commonly mark a bottom (at least for the short term). We also saw some interesting readings in trading volumes. As you can see below, buy-side volumes were higher on both of the recovery moves higher (Tuesday and Friday) than at any other point during the week, as the market was plunging. This is a positive divergence…and that’s good.

Fridays reversal higher was most important. If we had seen a sharp sell-off headed into the weekend, investors that wait until the weekends to review their portfolios would likely have entered sell orders, for first thing Monday morning. This is how black Mondays occur. This is how a standard market correction can turn into something much worse. The rally into the close could prove far more important than most realize. Again, another positive.

We also saw BIG reversals higher in some of the most important market leading indexes…aka, the same indexes that have led the market higher over the past year. The Housing Index (HGX) finished up .73%. The Semiconductor Index (SOX) finished up a huge 3.05%. The Bank Index, another important market leader, finished up 1.98%. Often, major intraday reversals like this signal important market bottoms.

So…as we can see…there are a number of signs pointing to the likelihood that the markets may be reaching their lows. Add to this that the economy is powering ahead, tax reform is just now kicking in, and we have a president that is committed to MAGA, and the fundamentals look solid. Globally, as well.

Now…the negatives. And yes, this decline “could” be signaling that something bad is headed our way.

For my members, I’ll remind you of my Wednesday podcast. Swamp draining is in high gear. It could also come with a steep price tag. If we really want to get dark, think back to what the markets did prior to 9/11/01. Many have forgotten this, but just prior to the 9/11 attacks, from May of 2001 to the day before 9/11, the Dow had already fallen some 14% during those 4 months. After the attacks, over the next 12 months, the Dow would plunge another 20%. 34% in combined DJ losses.

Was the 14%, 4 month decline in the DJ…just prior to 9/11…signaling trouble on the near horizon?

If you’ve seen the recent news out of Syria, which has already developed into a proxy war between Syria, Iran, Russia, Turkey, Israel and the US (among others), the news is getting steadily worse. In just the last few days, planes, helicopters and attack drones have been shot out of the sky. Are we nearing a much more serious global conflict?

I’ll resist going too far down the rabbit hole, on this already bleak and rainy Sugar Land, Texas morning. And honestly, its most often when paranoia begins to set in, that we’ve reached a market bottom.

Until Monday morning, thanks again for reading…enjoy the rest of your weekend.

Kip

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VRA Update: 360% Gains in Just 11 Days. Next Up.

VRA Update: 360% Gains in Just 11 Days. Next Up.

Since the beginning of 2018 the VRA Portfolio ( stocks and options) has produced gains of 360%. I’ve been saying this will be my best year ever. This bull market is just getting started, and I fully intend to crush it again this year.

Market Update

Walmart announced that they would raise their starting wages, announced they are giving big cash bonuses to employees, plus something I have not seen before...a $5000 adoption benefit, for Walmart employees that adopt a child.

Wow.

Here's an AM tweet from Charles Payne...one of the rare MSM "gurus" that is actually a guru, in my book.

Since Trump's tax bill was passed into law, just 3 weeks ago, we've seen more than 80 fortune 500 companies making employee cash/benefits awards, similar to Walmarts. 

Can anyone name a single fortune 500 company that offered company wide cash & benefits packages to ALL employees, during Barack Obama's entire 8 years in office? There must be at least a few...right?

And here's a reminder tweet of mine, once we knew the tax bill had the votes to pass:

I remember the Reagan years pretty well. I was young (18-26), but I remember the news of the day...great news that went on for years on end; tens of millions, new jobs created...higher wages, year after year...and a rip roaring stock market, that more than doubled over his 8 years in office.

Under Reagan, it took 12-18 months before his polices began to make a difference in the stock market, but jobs growth was a different story...job creation began to rise quickly after just 6 months in office, with interesting rates topping out near 20%. 8 years of economic boom.

Under Trump, we've seen near immediate improvement with major employer after major employer, paying it back to their best assets...the people that work for them. Who the president is matters a great deal. 

I had people scoff at my year-end target for 25,000 for the Dow Jones, just as some are scoffing at my 30,000 target this year and my 40,000 target by 2020. But folks, this is what earnings growth of 10-15% per year works out to, assuming the P/E multiple stays around 20. It's really just math, at the end of the day.

Regardless, we'll continue to use the VRA System to ensure we are positioned correctly...whatever the future may hold.

Investing Tenets and Observations of the Day    

A few of my mentors investing lessons...

1) "Don't fight the tape, don't fight the FED". Yes, the FED has started raising rates...at some point the markets will have to deal with this...but the rising "tape" says we must be bullish.

2) "The trend is your friend". When the major averages are in confirmed bull market status (above 200 dma), we must be long. Conversely, stocks trading beneath their 200 dma pose big risks.

3) "There is no more bullish sign than an overbought market/stock that continues to rise". This is exactly what we're seeing today. Overbought markets that continue to rise. Highly bullish

4) "It's not a stock market....it's a market of stocks". One of the best investing lessons my mentors taught me. There's always an opportunity to make money, by focusing on both fundamental & technical research. This rule is at the heart of the VRA System.

I remain a bull...

...a big one...with the amount of money coming into the markets (a massively unreported story in my view), our next move should continue to be on the long side.

Remember, when inflation (and higher rates) first begin to return to the global economy, it is a highly, highly bullish event for stock prices. It's the confirmation of a strong economy and a much brighter global growth story. How could this be bearish?

It's only after a year (or even 2-3 years) of rising inflation and higher rates that we must start to become concerned. Please do not listen to the bears that tell you otherwise. It's not that they are wrong...they are just early (likely very). 

Ideally, I'd like to see the market take a breather...maybe even have a 200 point down day, just to get some fear back into the market. But frankly, we may not get anything close to this kind of decline...this bull market has too much higher to run.

Oil Powering Higher. Commodities Must Be Owned. 

Oil is breaking out to 4-year highs. Long-term readers will remember that I was bearish on oil at $100 and then turned bullish on oil at $32. Today, at $64.50/barrel, I could hardly be more bullish. ST overbought, yes... but we want to continue to own/buy.

Let me repeat; this is the beginning of the move higher...this is not the time to take profits...my $70/barrel target (WTI) for oil this year will likely be too low. Most continue to miss the power of the reflationary move in global economies. We're talking a 2-3-4 year cycle of MAJOR moves higher, in commodities across the board. 

I've been saying that the pause in gold/silver/miners would be short lived. It's likely that we've already seen the ST lows in each. $2000/oz remains my target for gold this year. Price suppression schemes may have just reversed course...in favor of higher gold and silver prices. And what a reversal that would be. Still looking for one final sign of proof....we must see buy side volume in GDX (miner ETF). Once volume confirms, look out above.

 

Final point on PM's and miners. History tells us that PM's love higher interest rates. History also tells us that PM's and miners love higher inflation. Folks, we have both of these today. 

VRA Market Update

Congress is back in session...this is when market accidents happen. Known as the Congressional Effect, going back some 60 years, more than 90% of all stock market gains have occurred when both houses of congress are out of session. Pretty powerful statistic. While we also know that more than 90% of all gains occur during the November to May time frames, I am not getting bearish on the markets...just pointing out that if a correction is going to occur, its more likely to take place when the House and Senate have an opportunity to screw things up.

Important New Years Market Pattern

Below is a link to an article from Zero Hedge that could foretell what we can expect for 2018, along with my tweet about the piece. Bottom line; we saw the Dow begin the new year with a gain of 2% or more. In years where the first 5 days of the year saw gains of 2% +, the market went on to rise in 15 of 15 years, with an average gain of 18.6%. 

https://www.zerohedge.com/news/2018-01-06/stock-markets-bulls-monday-matters

Most interesting statistical research.  

It matches well with my year-end target of DJ 30,000 (20% higher from the beginning of 2018). In April of 2017, I stated that my year-end target for the DJ was 25,000. We missed that by just two days. Frankly, I'm even more confident about my 30,000 target for this year. Range expansion meets momentum,...this is the market we appear to be in today...is highly, highly bullish. It makes sense when you think about it this way; when the markets (or individual stocks) hit all-time highs, there is no one that owns that particular investment that has a loss...meaning that there is little to no reason for that investor to sell. When there's little selling pressure, even small amounts of buying pressure can send an investment soaring. 

Today, with the largest tax reform package in US history about to be unleashed...with corporate earnings already growing their best in a decade...and then add in the coming $2 trillion infrastructure bill and up to $4 trillion that could be repatriated back into the US, you can see why I remain so bullish about the future for stock prices. 

Yes, we remain extended and overbought...but that's no reason to sell. In fact, statistical analysis also confirms for us that markets that reach overbought levels and remain overbought tend to be one of the best investment environments of the last 100 years. 

In our next VRA Update we'll cover several charts that make up the VRA Portfolio. I continue to see major moves higher in energy, biotechs, China, precious metals & miners and small caps.  

Until next time, thanks again for reading….have a great week.

Kip

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