VRA Weekly Update: Anxiety Over Jobs Reports. But Rates Will Only Go Lower, Markets Will Only Go Higher.

Good Thursday morning all. Breaking news from the ADP jobs report this AM which came in at 978,000 jobs created vs estimate of 650,000. I can tell you that there’s some nervousness around the May jobs report that’ll be out tomorrow morning (8:30 AM EST), especially following last month’s huge miss. Estimates are for May are 670,000 new jobs with an unemployment rate of 5.9%. 

I have no clue about these month to month economic reports but I can tell you that the bond market is not signalling this as a “hot” economic report. The 10 year yield is back to 1.6%, even with this mornings big ADP beat. I continue to believe we’re more likely to see 1% yield on the 10 yr again before we see 2.5% (or even 2% frankly). 

We have a 40 year repeating pattern of lower interest rates and disinflation. That’s one helluva of a long term repeating pattern to contend with. 

And if you’re a bit of a conspiracy theorist (where the truth is found, more often than not) a poor jobs report would also make it (much) easier for Biden to sell his stimulus plans. BTW, the action in gold over the last month (+$40/oz, until this morning…gold is down $20/oz this AM) also points to weaker economic reports. Same with the dollar…consistently weak over the last 30 days.

Decent day in the broad market yesterday with each index posting slight gains and with positives across the board in our internals (below). Up-volume was a solid 72% in both NYSE and Nasdaq. 

And once again, primo readings on new 52 week high/low with 582 stocks hitting new 52 week highs to just 30 hitting new lows. 

I’m disappointed in the markets gains of the past 2 days. The readings we’ve had from our internals should have produced more to the upside. Not a reason to be concerned…just an observation. Dow futures are -175, Nasdaq futures -130. Pullbacks continue to be a buying opportunity.

The markets still look higher to us. Nowhere near overbought levels, except for the Russell 2000 which is approaching overbought. 

But Nasdaq, semis and Q’s have solid room to run. All momentum oscillators are still flashing buy signals.

And check out the Fear and Greed sentiment readings. 47…just barely out of fear levels. What?? How that’s possible with the S&P 500 less than 1% away from ATH is beyond my comprehension. But as a contrarian indicator I do know this is VERY bullish.

AMC: AMC just announced they issuing another 11 million shares. One might think the shares would be getting slaughtered on this news…not the case. Last trade $48. AMC is no longer a retail meme stock. This is a battle to the death between big dark money and global hedge funds. And we have the proof to back it up. 54% of yesterdays trading was from dark pools/whales/funds.

The gamma squeeze continues. The investing world has never seen anything like this.

VRA Bottom Line: we are actively looking for the next AMC, because folks, this is hot new investing strategy will almost certainly move from one stock to the next…likely for some time (months/years?). Keep your best ideas and new targets coming. But for now, its still about AMC. My money is still on the longs. $100+ is becoming more and more possible.

Finally for this morning as you may have seen late last night, via the FOIA process we’re now getting large email dumps of one Tony “Fauci the Fraud”. I’d say that the revelations are shocking (Wuhan lab, pointlessness of masks, dangers of experimental vaccines, censorship etc), but if you’ve been here with us over the last year you know that none of this surprises us. In March of last year we first reported the details of the Rockefeller Foundations 2010 document called “Lockstep”, full of the near-exact details we’ve experienced over the past 16 months, to use a pandemic to look us down, mask us up, jab us and destroy our small businesses…TO CONTROL THE GLOBAL POPULATION…gaslight us furiously along the way. 

Like climate change, like domestic terrorism, like racism/white supremacy and of course the applications of CV insanity….it’s all our fault. We did this to ourselves. Shame on us. 

We’ll cover more in the days ahead but if you saw our disgusting excuse for a leader yesterday, Biden took another opportunity to gaslight us yesterday….we’re all racists and white supremacists, don’t ya know. 

But know this….gaslighting is a tool used by those that want to dominate and control us. Full on authoritarianism. 

Gaslighting is a form of psychological abuse where the perpetrator tries to convince you that you can’t be trusted and that you’re probably even losing your mind. The perpetrator’s main goal is to gain power and control over you. The more someone can convince you that the problem is you and not them, the less likely you are to discuss it or ask questions about it. This is exactly what the gaslighter is banking on…that you will keep quiet, out of a feeling of shame. 

We don’t roll like that here at the VRA. America is the best country on planet earth, full of extraordinary people that love helping one another. 

We won’t allow them to deceive us over CV insanity…and we won’t allow them to gaslight us, regardless of the issue. 

The truth resonates…which is of course why our planners are desperate to shut us up. 

Until next time, thanks again for reading…

Kip

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