VRA Investment Letter: VRA Market & System Update. The Semis Should Lead Higher from Here.
/Good Thursday afternoon.
Late last week, we began advising our VRA Members that we had reached heavily overbought levels (short term) on the VRA System and that we would hold off on adding to our ETF positions. Two days later DeepSeek (which now looks very scammy and likely a bear trap for AI-related stocks) a 3% loss in nasdaq and a 10% loss in the semis followed. From euphoric, all-time highs to panic and blood in the streets, just like that.
As much as we were forced to respect our discipline with leveraged ETF’s, what mattered most was the fact that our primary macro theme has not changed. We are in the bull market of a lifetime, led by an innovation revolution and Trump 2.0, that will continue to power the economy and markets higher into 2030 (at minimum).
Because it was primarily the semis and tech that were hit the hardest on Monday, outside of the semis, the rest of the market has held up just fine. We’ve also worked off those overbought levels, with the exception of the Dow Jones, as value stocks have continued to trade well. This bull markets rotational theme continues to be heavily protective and supportive of a broad based move higher. The VRA System remains at 10/12 screens bullish.
For our newer readers, we continue to recommend our VRA growth stocks and 10-baggers…found at the bottom of each daily Letter and in your VRA Members Site with your 14-day free trial on VRALetter.com
We continue to key off the semis. As Tyler covered in yesterday’s podcast, this is the stage of the bull market when the semis should start leading higher. First in, first out. The semis are at the very heart of the innovation revolution and are now hitting oversold levels as they charge back above the 200 dma in today’s trading. SMH (semi ETF) is trading at $243.50 this AM while the 200 dma sits at $242.
The semis are now beginning to hit oversold levels on the VRA System and can be purchased by aggressive investors. It’s likely that the lows are in place for this market leading group, just as most investors have given up on them. This is how important bottoms are formed.
Fed Meeting
Again, Tyler covered the Fed meeting and J Powell in detail on his podcast. We applaud Powell for doing what he rarely does; reporting the facts, remaining apolitical and essentially doing nothing that would upend the markets. We continue to look for interest rates to decline. Trump's post on Truth Social summed Powell and the Fed up better than I ever could.
Finally for today, thanks again to Wayne and Real Americas Voice for having me back on “The Root Reaction”!
https://rumble.com/v6elpaa-kip-herriage-joins-wayne-for-this-weeks-financial-analysis.html
Until next time, thanks again for reading…
Kip
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