VRA Weekly Update: 3rd Quarter GDP Soars 33.1%. Repeating Patterns of the Troubling Variety. Delayed Election Results Increasingly Likely.

Good Thursday morning all. Big day today. 3rd Quarter GDP came in at a blistering 33.1%, breaking every record known to man. Now we get to find out if its a “buy the rumor sell the news” event.

And this is a huge day for earnings, with the biggest of big tech reporting (after the close). It’s not the news that matters most but instead the markets reaction to that news.

We’re seeing pattern changes this week. In addition to being a heavy tape, where higher opens are sold with bouts of selling pressure into the close, we’re seeing a market that is exhibiting some of the repeating patterns from our previous sell-offs this year. And yes, even the patterns from the onset of CV insanity;

-semis/tech are leading lower

-oil is falling (even as a hurricane approaches the gulf coast)

-the internals, very weak, with 91% and 88% downside volume days in NYSE (Monday and yesterday)

-correlations aren’t correlating. Even as the markets are falling, bond yields were higher yesterday, with no flight to safety. Gold/silver falling as well.

Again, this is a heavy tape. My least favorite kind of market. Is this coordinated selling pressure, combined with CV insanity lockdowns, another attempt to “Get Trump”? Why not…they’ve tried everything else.

And the news out of the Supreme Court yesterday was not good news for timely 11/3 election results. The SC ruled late yesterday that North Carolina is being granted an extra 9 days to count mail-in ballots. Pennsylvania may receive extra time as well.

Importantly, if this was a sane world, with actual journalism being practiced, Biden would already be toast(more on this in a minute). Here we have a massive bombshell of a story with the Biden Crime Family whistleblower, but unless you’re watching a Fox channel or you’re on social media you know very little of the details. Journalism in the US cannot come back from this. Pravda would be proud.

VRA Bottom Line; the combination of election uncertainty…we may not know a winner for weeks…plus the return of troublesome repeating patterns, may well take our broad markets to extreme oversold on steroids. I don’t like writing this anymore than you like reading it. But, until VRA System readings improve, this may be a risk off kind of market for a while longer. Something like another 3–5 days. This does NOT change our medium-long term bullish view on the markets. In fact, it will set up our best buying opportunity in some time, but we must respect what the markets are telling us over the short term.

Dow futures are flat. Nasdaq futures are +55.

And yes, we still see Trump winning. This is a base election. Base elections favor the side with momentum and passion. That’s not team Biden. Ask Mitt Romney from 2012.

As election uncertainty builds, another major US city is on fire and CV insanity makes a pre-election comeback.

But unless you’re watching a Fox channel or you’re on social media, you’re only hearing about CV insanity and orange man bad.

“Actual journalist” and former US Chief Asst. Atty General Andy McCarthy sums it up well this am;

Tuesday night, in what was almost certainly the most watched segment ever on cable news, Tucker Carlson interviewed Biden whistleblower Tony Bobuslinski for the entire hour of his show. Wow. This is the biggest political blockbuster story I can recall. For more than 3 years we lived through the Russia! Russia! Russia! hoax, $50 million special counsel investigation and Trumps impeachment scam, where every MSM outlet covered every negative Trump story 24/7. But today, with an actual blockbuster story about Joe Biden and the Biden Crime family, the vast majority of the media is in cover-up mode. Stunning.

Gerry Baker, editor of the WSJ, was on Fox this morning. He’s in just as much shock as the rest of us.

“Corruption doesn’t get more brazen that this….we’ve never seen anything like this”

And it’s clear from your (many) texts, DM’s, phone calls, tweets and emails that you’re locked into this shocking story as well. Can Biden and President Harris run out the clock? I don’t think so….not close. The people of our great country are getting their best glimpse ever at the deep state establishment and how life time politicians have pilfered money for decades, as they have enriched themselves with billions upon billions in corrupt influence peddling and brazen money grabs.

And if you’ve seen Trumps rallies, often 3 per day before MASSIVE crowds of America loving patriots, even as Biden hides in his basement, the momentum is crystal clear. This is Trumps election to lose.

But I’ll repeat; should this election go to Biden, in what would appear to many/most Americans as having being a stolen election, the US could quickly become ungovernable. This remains our biggest fear, both as investors and citizens. This is how civil wars begin.

We remain optimistic, however. We see a clear Trump victory.

Know this; should the MSM continue to cover-up the story of the Biden Crime family, there will be no coming back. A republic cannot stand with a corrupted media, criminally tilting the scales to favor one presidential candidate over another. US media will have to be completely dismantled, along with our Justice Dept and FBI. These are perilous time for our system of justice.

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 15/17 years.

Join us for two free weeks at VRAInsider.com

Sign up to join us for our daily VRA Investing System podcast

Also, Find us on Twitter