VRA Investment Update: Team Lockstep: The Communist Takedown of America. Record Levels of Extreme Oversold Should Lead to Major Rally.
/Good Friday afternoon all. Before we get to the markets, which has both a crash scenario along with some of their most oversold levels we’ve ever seen, we’re beginning this morning with “Team Lockstep”.
Here’s todays VRA VidCast covering this topic:
https://rumble.com/v18sw9y-vra-midday-stock-market-commentary-june-17-2022.html
Team Lockstep: The Communist Takedown of America
None of this ever made sense. We’ve always known something else was going on here.
- The onset of mass censorship (as Tyler said in his podcast yesterday, the good guys are NEVER the ones backing censorship). YouTube just banned us over our Wayne Root-Trump Interview.
- The rigged 2020 presidential election
- CV Insanity, all over a flu that 99.9% survive
- Forced lockdowns, business closures
- Forced jabs. Take ’em or lose your damn job…which one’s it gonna be?
- Open borders. America is being invaded.
- Russia-Ukraine war. The wag the dog money grab (to the most corrupt country on the planet) that’s doing its part in ramping global inflation/food shortages.
- Food distribution plants catching fire/blowing up all over the country
- Baby formula shortages, the shutting down of pipelines and limiting oil/gas exploration, 40 year highs in inflation.
All of this is happening while 90% of our elected officials…the Uniparty Ruling Class…marches right along in silence/agreement….in complete lockstep. It’s pure Cloward-Piven.
* None of this is easy for me to write. I am a lifelong optimist that knows America is the best planet on earth and know that our best days are ahead of us. I am certain of it. I see an America that is being overwhelmingly red-pilled with midterm elections that should mark utter devastation for the Democrat Party. The kind of devastation that takes Dems decades to full recover from.
*At the same time, this is no longer up for debate; we are witnessing attempts to intentionally destroy America. The ultimate goal of communists is to crash the American economy/financial system, making Americans desperate and fully dependent on the State. That’s how they plan on winning. We must all be on high alert.
A stock market crash is more possible today than at any point in recent memory. I still put the odds at less than 20%, but with “Team Lockstep Communists” in charge, we cannot put anything past them.
VRA Market Update — Record Levels of Extreme Oversold
We’re in a bear market…the sellers are still in control…but we have now reached such deeply oversold levels that a bear market rally should be ready to begin.
1) The DSI for S&P 500, Nasdaq and bonds are all below 10. Extreme oversold.
2) The AAII Sentiment Survey just hit 19.4 bulls and 58.3% bears. Rarely have we seen readings like this. It’s happened just 10 times and in 100% of previous cases the markets have been higher over the next 6 and 12 months (with gains of 13% to 23%)
3) Our VRA short term momentum oscillators just hit extreme oversold on each major index. Over the last 18 months this has been highly reliable indicator of near term reversals.
4) 3 of the last 6 days have seen the TRIN (arms index) hit a reading of greater than 2 which signifies “panic”, which is typically followed by a major short covering move higher. To have this happen 3 times in 6 trading sessions is something I do not remember seeing in my career.
5) In addition, more than 90% of stocks in the S&P 500 declined today. It’s the 5th time in the past 7 days.Since 1928, there have been exactly 0 precedents. This is the most overwhelming display of selling in history (h/t Jason Goeppert).
- Only 2% of the stocks in the S&P 500 are above their 50-day moving average. This is near historically washed out levels, only topped by March 2020 and October 2008.
VRA Bottom Line: As contrarians we should be ready for a move higher. All of the signs are there. There is real fear in this market.
Fed Rate Hike — Solid J Powell Best Presser
The Fed’s .75% rate hike was fine…it just came 4–5 months too late. The Fed never leads….only follows. That’s a problem when they’re chasing inflation. I’ll give J Powell credit for a solid presser on Wednesday….his best to date.
The problem remains that the Fed is hiking into a slowing economy. I know “many” people that simply do not believe the official data on unemployment being at 3.6% and consumers being “in good shape”. The bear market that we’re in is likely telling us the data is (at minimum) flawed.
Throughout my career the Fed has caused every recession that we’ve had. Should we have a recession it will in large part be due to the fact that Joe Biden is president.
If you watched Waynes and Trumps interview (here is the link) you heard Trump question whether Biden is even willing to try and make things better or if this is in fact “intentional destruction.” WAR pushed him on this several times.
You know my thoughts; it’s absolutely intentional and it remains our biggest concern. If we had an honest financial media in this country that question would have been one of the most asked of Powell. But we don’t…so our media keeps going along with the banana republic that we’ve become.
Wednesday’s action in the markets, following the hike and presser, was solid. However, as we saw yesterday, we are in a bear market which means that the sellers are still in control. That’s the reality until it’s not.
Still, we are reaching heavily/extreme oversold on our momentum oscillators and essentially every investment sentiment survey echoes those “fear” readings. This years Fed meetings have featured major moves higher, lasting from a few days to a few weeks. We’ll soon see if that holds true this time.
Until next time, thanks again for reading…
Kip
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