VRA Investment Update: Important VRA Strategy Update
/Good Thursday morning all. We’ve been hashing the basics of this letter out for the past several days. Just when I think I know it all, Tyler reminds me of the value of a fresh (young) set of eyes.
I’m going to walk you through a quick strategy session on where we see the markets and (our) stocks going, along with the approach we will use to profit through this (Nasdaq) bear market.
1) Yes….it is a bear market…but only (so far) in Nasdaq and tech. As we've been covering with our members, with Nasdaq falling 22%, its no longer a debate…we are officially in a (Nasdaq) bear market. But again, these bull/bear market labels do not really matter. We only have to own the right stocks and be in the right sectors…the rest takes care of itself.
However, because we know that semis and tech lead the broad markets (up and down), and we know that both have fallen more than 20%, its a decent probability that the rest of the market may follow lower.
We are moving forward with that as the most likely outcome. Bad things happen below the 200 dma. That means that the big move higher we’ve seen over the last couple of days is likely a "bear market rally”.
And this is their nature. Once the markets get to deeply oversold (we know this by watching sentiment, put/call ratios, internals, etc), bear market rallies then kick in. And they are most often “furious” moves higher. They rip the face off of short sellers. What’s really interesting about bear market rallies is that they tend to go up MUCH faster than even in bull markets…and they can go on for days, in some cases longer…and then, they just “end”, followed by sharp sell-offs and a continuation of a pattern of lower lows and lower highs. Again, what we’ve just seen looks like classic bear market rally action.
Our game plan will involve keeping more cash...we will be more nimble...and we will be more careful. As it turns out, Rich Ross at Evercore was right. It’s a bear market. Those two guys at Evercore, Rich Ross and their savant of an economist Ed Hyman, are just very, very good. We’ll keep you in the loop on what they are saying, regularly (along with my long term favs Helene Meisler, Stock Traders Almanac, etc)
2) However, and this is a most important point; Because, over the last 14 months, the average Nasdaq stock has already collapsed by an average of 50% +, there’s really nothing all that new about this bear market. When you take a quick look at the portfolios of people like Cathie Wood of ARKK ETF, where “most” of her flagship fund holdings are down 60-70-80%, the damage has been brutal.
3) While we have sidestepped some of that damage, we haven’t sidestepped all of it, but we have greatly outperformed the markets.
We highly recommend that all you join us at VRAinsider.com and take advantage of our “trading vehicles”, including our VRA leveraged ETF approach and our special situation, short term plays.
Below are our 8 such trading vehicles of the past year. They’re no longer in our portfolio so the temptation is to think we own a portfolio of stocks that may not have done all that well, not remembering that we booked these significant profits along the way.
What you see here are 8 short term trades from the past year. Combined, we booked net profits of 457% in these 8 trades, with an average profit of 57% per position (note: I did not include Bitcoin in our profit calculations. This was the order of trades so I left it in the chart, but again, the BTC profit of 49% is not included in our 457% gains).
** Via the use of our shorter term trades in both ETF’s and special situation stocks, we will continue to look for excellent gains while holding our VRA 10 Baggers and VRA growth stocks for superior longer term gains.
VRA Bottom Line; while no one can know exactly what the future will hold, by taking advantage of the VRA Investing System and our ability to be nimble, we will be in good shape, bear market or not.
Here at the VRA, we take it one day at a time, with the knowledge that yes, it does appear that the globalists and World Economic Forum types are inflicting “intentional destruction” on mankind, and yes, we are in fact governed by rather evil people. That, in my view and as sickening as it may be, is no longer in question. Ultimately, we may have to deal with this, from an investing point of view.
After doing this 36 years I’ve learned that no matter what comes our way, we will be ready for it. I also have faith that America will survive and prosper, and that (much) brighter days are ahead for American leadership. We deserve so much better than these self-serving, megalomanic clowns.
We may go through a period of time where we are forced to play a bit of defense and to be more nimble. Instead of looking to book 40-50-60% + gains in our VRA ETF’s and special situation stocks we may have to look for shorter term gains of 20-30% per trade…and yes, some of these trades may come from being bearish rather than the bull market side.
We’ll walk you though these set-ups each step of the way, ensuring that we are all on the same page.
If you ever have any questions, we’re always here. Tyler and I reply to every email personally and we always enjoy hearing from you!
Until next time, thanks again for reading….
Kip
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