VRA Update: Strong Jobs Report. Move Higher Continues. Silver is Leading…Great for the Group. Election Update

Good Friday morning all. Octobers jobs report is out and its a good report. 638,000 jobs added…just a bit on the low side…with the unemployment rate falling to 6.9%, a big beat from the estimate of 7.6%, and a full percentage point lower from Septembers 7.9%. Dow futures were -200….now flat, on this positive news.

Yesterday's big move higher in US markets…2% + across the board…was attention getting. The internals full confirmed the sharp move higher. Big 4:1 + positive readings across the board. The public is out of this market, the shorts are still being forced to cover, all while we’re in the most bullish period of the year with a massive wall of worry to climb. We continue to like this set up a good deal.

It’s all about gridlock. Markets love gridlock. Even if Biden wins (nothing is close to settled), there will be no Green New Deal, no $4 trillion in new taxes and no far-left regulations to choke off economic growth. Big tech loves this playbook…their business models will only be emboldened, in an era of government gridlock.

The markets are also looking for MUCH more in the way of QE and fiscal stimulus. With a solidly negative yield curve and staggering global debt levels, the reasons to own physical gold, silver and the VRA Miners are stronger than ever. Even stronger than when I first recommend this group in 2003, as they were preparing for that record move higher.

McConnell said Wednesday that Congress should act now to approve the next round of broad stimulus measures. Love it or hate it, it’s coming. The pump is in the process of being primed. It’ll be topsy turvy for a bit, but US markets are headed to fresh all time highs.

And we really liked the move higher in precious metals and miners. GDX was up a big 7%, with a 3.5:1 beat to gold. Silver surging, also up a huge 6%.

Our VRA System is focused on this relative strength ratio of silver to gold. Silver has led gold much of the year, certainly from the 3/23 CV insanity lows. Below we see a solid trend line for this ratio, with an explosive move higher after each hit (like the one occurring now). This bodes well for the entire group. In major moves higher, silver tends to lead gold, just as its doing now. Into year-end we look for silver to challenge its highs of the year, with gold and the miners surging along with it. With ongoing election uncertainty, and the dangers/volatility of a Harris-Biden administration, this group is primed to ramp higher.

Election Update

To those on the left saying the election is essentially over and Trump’s legal challenges are a threat to our democracy, you are a barrel of laughs. Gore used legal challenges against Bush that lasted 37 days. Get ready for the same.

Serious voices on the right have very serious concerns. Among them, Ted Cruz, Lindsay Graham and Newt Gingrich saying last night that this is a clear attempt to steal the presidency and that this fraud cannot stand. Mitch McConnell from this am, making it clear that the fight is just beginning.

The key issues, that will almost certainly make it to the Supreme Court:

1) Ballot harvesting, via mail-in vote fraud, permitted in only blue run states.

2) Not allowing R’s to view vote counting. This is a Federal crime. Gingrich is saying that in every vote counting center where this is occurring, those votes must be “wiped out”.

3) Illegal votes…no voter ID…although this should have been handled in Trumps first term.

This is headed to the Supreme Court folks. The future of our country depends on getting this right.

Yesterday, Steve Bannon was on Fox Business and laid out the exact case for Trump winning. If I had the link now I’d include it but I encourage you to find it on YouTube and watch.

According to Bannon, the actions of several key swing states to change their election and vote counting process, up to and AFTER 11/3, will not stand, when it reaches the Supreme Court.

Here’s what I know; on 11/3, when the betting markets went to 91% for Trump, it was a slam dunk that Trump was going to win. A complete slam dunk. Then, here came the bizarre efforts to stop the count, with election rule changes and just enough mystery votes to push Biden over the top, in key states. To me, this feels like 2000, just a whole lot bigger.

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.

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