Journal Archive

"Kip's VRA financial newsletter is a MUST read for every saavy investor in this country. Disregard it at your own peril. His mantra is my mantra. Kip Herriage's newsletter is my financial Bible."

--Wayne Allyn Root
2008 Libertarian Vice Presidential candidate
Author, "The Conscience of a Libertarian"

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Twitter: @kherriage

Thursday
Mar212019

VRA Portfolio +38.3%, Crushing Mr. Market. VRA System Update. The Fed Goes Full Dove. If You Are Not Long, You Are Wrong.

Good Thursday morning all.

With just over a week to go in Q1, here are our updated VRA Portfolio results:

VRA Portfolio: +38.3%

S&P 500: +12.7%

VRA outperformance (vs SPX): +292%

VRA annualized return: +152%

We only own 10–12 stocks at any one time. We want a focused/concentrated portfolio, one that we can apply monthly dollar cost averaging to, allowing us to build sizable positions. We want to crush Mr. Market (make no mistake, he loves crushing us).

VRA Market/System Update

Yesterdays Fed meeting has the “recession is coming” permabears out in full force (again). J Powells Fed effectively admitted that 9 straight rate hikes was a mistake (Trump was right). Powell also announced plans to cancel QT, or quantitative tightening (Trump was right). And Powell announced that the Fed would not hike rates again this year, with just one hike likely by end of 2020 (Trump was right, again).

We continue to find the bears negativity remarkable. The VRA Investing System remains at 10/12 screens bullish. But, the bears are fixated on this chart….10 year yields…which have now crashed to a new annual low of 2.5%. To the bears, this signals “recession” is nearing. Trust me, we are watching this closely as well. But just as we told you last year that rate hikes would end, we’re telling you now that a 2.5% 10 year is not the sign that recession is nearing.

Know this; foreign money is flooding into US debt markets. With 0–1% govt debt yields in Japan/Europe, who can blame them. 2.5% in US govt debt is a slam dunk! Important news that we’re barely hearing in the financial MSM.

US Dollar

3 weeks ago we told you that the US dollar breakout was likely a false breakout. The ramifications of a lower dollar are bullish for the VRA Portfolio positions in precious metals, miners and oil/energy stocks.

You know our thoughts. Dips must continue to be bought. US and global markets are headed much higher.

We see more technical evidence of this (below) in the chart of the Dow Jones. Last week we focused on the inverse head and shoulders pattern in the S&P 500. Low and behold, we see an inverse head and shoulders in the DJ as well. Not as perfectly defined as we saw in SPX, but an inverse H&S none the less (marked by small blue circles at top right).

But here’s what we’re focused on right now. The DJ just experienced a golden cross. A golden cross occurs when a short term moving average crosses over a longer term moving average. There are many types, but the most bullish (by far) is when the 50 dma crosses the 200 dma.

Personally (and this is backed up by data as well), I find golden crosses more useful in individual stock patterns. But folks, anyone that tells you a 50/200 golden cross is not a useful tool is almost certainly a permabear. Either that, or they’re just trying to play devils advocate. We’ve had 5 golden crosses in the DJ over the last decade. Each has produced higher prices over the next 6–12 months.

Check out how the DJ did following its last 50/200 golden cross, in April, 2016. What we see below is a 50% move higher, from the April ’16 golden cross to the peak in October of last year. So yes, golden crosses are a valuable investment tool.

What we also see above is a full on buy signal in the DJ, according to the VRA Investing System. Each technical signal (RSI, MFI and stochastics) is flashing buy. We should get a fresh MACD buy signal in the next 1–2 days as well.

If you’re not long you’re wrong.

If you were with us last October, you’ll recall this chart and market analytics.

Since WW2 (1946), the S&P 500 has been higher 1 year after the midterm elections “every single time”. That’s 18/18 with an avg gain of 14.2%. Currently, the SPX is up just 2% following the midterms. We like repeating patterns a great deal. Most certainly those that have been 100% accurate since 1946.

One more time, for about the 105th time since Trump was elected, “if you’re not long, you’re almost certainly very, very wrong”.

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 15/16 years.

Learn more at VRAInsider.com

Also, Find us on Twitter and Facebook

Friday
Mar082019

VRA Weekly Update. VRA Investing System Podcast Hits 20,000 Listens, Golden Crosses Abound

Good Friday Afternoon all. When Tyler came to me last year with the idea to start recording a daily podcast, my first reaction was “so you want to add to our 12 hour work days?”.

But Tyler is relentless. Would not take no for an answer. So I agreed. I honestly believed that with countless thousands of podcasts already in existence, this might be a short lived project.

But the numbers continued to build. Now, with hundreds listening to our end of market podcast, we’re locked in and having a blast with it.

Tyler shared the following with me yesterday. We’ve reached 20,000 total listens…

Thanks to everyone thats been listening! And Tyler, thanks for being relentless.

Give us a listen at VRAInsider.com/podcast

Market Action

Futures pointed to a lower open as we had weak futures trading overnight leading up to this morning’s economic reports where we had a bit of a mixed bag.

On the top line non farm payrolls missed big on estimates coming back with only 20,000 job gains compared to estimates of 173,000. However, wages beat expectations coming back at .4% compared to .3% estimates, and a very important indicator, the unemployment rate came in today at 3.8%, continuing the strongest job market in over 50 years, beating estimates of 3.9%

Futures are further under pressure after the news this morning, but there were more positive numbers to look at as housing starts for January came back strong with gains of 18.6% v. the estimates of 9.5%

Housing has been on a great run as well since the 12/24 capitulation, and similar to our markets has taken a pause in the last weeks after reaching overbought conditions. However, we continue to see strength in this sector, as it is now at approaches oversold levels, we fully expect to see this rally higher continuing.

Golden Crosses abound

As Kip mentioned in Yesterday’s Podcast all four of our major indexes are approaching what is called a golden cross, and I wanted to take you through a few very bullish examples of this we are seeing right now.

A Golden Cross occurs when a shorter term moving average moves above a longer-term moving average. In this case for our indexes, the golden cross is happening with the 50 day moving average about to cross the 100 day moving average. While this may not the most bullish golden cross that we could see, that would be the 50 day crossing the 200 day, in this scenario we are still seeing a highly bullish pattern, confirming the strength of the current uptrend.

I’ll spare you from having to look at each chart of our major indexes, as once you see one you will always know what to look for, and right now all four of our major indexes are in very similar patterns. What we are looking for here is the blue 50 Day MA crossing above the red 100 day MA.

For an example of a true golden cross take a look at the Emerging Markets ETF (EEM) as we are about to get the most bullish golden cross with the 50 day crossing the 200 day… more on China and emerging markets in a second.

I also wanted to show an example of how the golden cross can have an impact. This is one of the highest probability trading signals because so many people watch it, and since so many people trade it, it becomes a self-fulfilling prophecy. This chart is particularly relevant as we have been pounding the table that now is the time to own Gold and the miners for weeks now.

GDX had a true golden cross in earlier February and take a look at how it jumped once crossing this important technical indicator. Important note, on the poor jobs report, gold is +$13/oz with GDX up another 1.75%, on top of yesterdays 1.25%

Going back to Emerging markets and China, we have one last golden cross chart, FXI, which is right at a golden cross as we write. Continue to aggressively add to positions here as, similar to GDX, we expect to see a big move higher once we get through this golden cross.

I will say quickly here we did see some poor performance overnight from Asian Markets as the Shanghai composite fell 4.4%, it’s biggest single day loss since October. The Hang Seng was also down 1.91%, but it’s important to remember, Asian markets have been red hot to start the year, actually up higher than U.S. markets, so to see a pause in action is not terribly concerning yet.

U.S. Dollar

Changing gears here to a more fundamental factor, which had a big day yesterday, the U.S. Dollar. This is important for many reasons, but most relevant right now is that a strong U.S. dollar is a major headwind for trade and commodities. We have seen a pull back in Gold and Silver partially in part due to the strength of the dollar.

President Trump has been speaking against the over performance of the Dollar for months now. Not that he wants the dollar to crash but rather have a stable currency. Here is what he had to say just this past weekend, “I want a dollar that’s great for our country but not a dollar that’s prohibitive for us to be doing business with other countries.”

So called “experts” are saying there isn’t much that Trump can do about the currency value, however, I will point out that this is exactly what the “experts” said about Trump influencing Interest Rate hikes. What happened when Trump began harping on the FED? The FED held off of Interest Rates.

As you know, we’re highly bullish on precious metals and miners. For the parabolic bull market that we envision, the US dollar will need to reverse lower.

Here’s Kip’s tweet from yesterday.

Now, take a look at this chart of UUP (US Dollar Index). Again, we believe this could be a false breakout.

Volume has been incredibly light (and getting lighter), versus its strong move higher last year (which interestingly, did not hurt gold/miners….in fact thats when their breakout above the 200 dma kicked in)

UUP is now at extreme overbought (RSI) and heavily overbought on stochastics. And MFI (money flows) have reversed lower, even as the USD moved higher.

Again, this looks to be a false breakout. Here’s why a weaker USD is important. Foreign currencies (Europe, EM, China) have been crushed. This attracts short sellers in equity markets as well. 
And just as importantly to US investors, a strong USD is not welcome news to US multinationals, which in many cases do 50% of their business abroad. Dollar strength makes those sales more difficult.
And finally, as I mentioned, we know that President Trump wants a lower USD. He got his way with the FED and rate hikes….we expect a similar outcome with the USD.

Until next time, thanks again for reading and have a great weekend…

VRA

Since 2014 the VRA Portfolio has net profits of more than 2300% and we have beaten the S&P 500 in 15/16 years.

So far in 2019, our average gain per position is over 35%, nearly tripling the S&P 500! Come join us at vrainsider.com for more details.

Also, Find us on Twitter and Facebook

Friday
Feb222019

VRA Update: Markets Look to Finish the Week Strong. Big $19 Billion Dollar Hostile Takeover in the Mining Sector. W.A.R. NOW Interview.

Good Friday morning all,

It is shaping up to be an exciting end to what has been a relatively dull week for our markets. We have seen small trading ranges for our indexes this week as the market and investors were looking for a clearer outlook from the fed and potential resolutions to China trade discussions. We look for these conflicts to be resolved and as we have said here often, never short a dull market, therefore, we must be long.

We received confirmation of the Fed’s pause this week in their February minutes, as the FOMC voted to keep its benchmark interest rate target at 2.25 percent to 2.5 percent, and indicating it will take a “patient” approach to further policy moves. Five more Fed officials are due to speak today, but should follow the report we received on Wednesday.

As for the trade talks, Trump is scheduled to meet today with China’s top trade official, Liu He, with only one week left to the March 1st deadline it is looking positive that both sides will make concessions that will at least continue the truce on tariffs so that further negotiations may continue after this deadline. As we have said for over a year, this was never a trade war.

The Shanghai (+1.91%) and Hang Seng (+.65%) are both up overnight here, pointing to a positive outlook from Asian investors. Our China buys are up over 4%.

All four U.S. indexes are also trading higher as I write, and this is an important day for our markets, as you can see from the chart below of the S&P 500, we remain at overbought conditions in nearly every category, but as we have said here long and often, there are few more bullish signals than a market that continues to head higher despite overbought conditions.



It is our continued belief that these are the pauses that need to be bought and these brief breaks are just what we need to keep our markets fresh, while also keeping the Fed from aggressively raising rates.

As you may have heard on Kip’s podcast yesterday (link), we did see our first day of negative Volume and Advance/Declines in our internals from some time now, but new highs to new lows still finished positive, and take a look at the internal charts below and they will tell you just how far we have come in such a short period of time since the December 24th lows.

As you can see here, Advance declines just hit a new all-time high on Wednesday, a key that we see as an important market tell which is, new highs begets new highs.

Percentage of S&P 500 stocks hitting new highs to new lows also now back rallying big back from the December 24th lows. This is the exact chart we looked at following the Decemebr 24th lows that told us the lows were in.

Bottom line: No one knows what is going to happen in the short-term, but we will continue to shout it from the rooftops, if you are not long, you are almost certainly wrong.

Gold

Big news from the mining sector as Canadian based Barrick Gold announces hostile plans to buy U.S. based Newmont Mining Corp for $19 Billion in one of the largest-ever mining deals.

After this gold rally which started in October, which has gold up nearly 12% since October 9th. This move has flown under the radar of most, but the movement in miners is even more impressive as GDX is up more than 26% in the same time period. Leverage is always 3–5 times higher in the miner

This piece of news makes it official, the mining sector is now red-hot! If you haven’t seen our research from earlier this week on gold and the miners, I encourage you to go back to our February 19th update and check out the incredible chart patterns we have seen in this sector. Gold is up marginally higher this morning, it has moved up right along with our markets over the last two months, and similar to our markets, we could see a little sideways action but this will be a precious metals break out.

Investor Sentiment

Investors continue to be on the fence about this market, take a look at the past few months of investor sentiment. Bullish sentiment is reaching the high end of the last few months worth of surveys, but we are nowhere near euphoric highs with bears/neutral investors still at 60%, while bullish investor sit at only 39%. We will say it again, this is just not how bull runs end, and it is our belief that sooner rather than later will be the time to break out of the sideways movement we have seen since the October highs and will send our markets back to new all time high territory

Finally, a big thank you to our great friend Wayne Allyn Root…aka WAR…for having me back on this week. In the segment prior to mine, Wayne was getting into his theory that the Mexican drug cartel has been a major source of funding for the Democrat Party.

The man is fearless. Always has been.

If you were with us here at the VRA in the days/weeks following the Las Vegas massacre, Wayne and I tag teamed the attack, exposing both the financial profits from 10/1 as well as the HIGH likelihood that ISIS was behind the attack.

But folks, I do not live in Las Vegas like Wayne does. Day after day, Wayne exposed the corruption that took place at MGM (owner of Mandalay Bay). Corruption at the very top of MGM, from both the CEO and Chairman. He did it in print (he writes a 2 x weekly column for the largest paper in Vegas) and on air (he has the #1 radio show in Vegas).

In fact, fearless is not a strong enough word to describe Wayne. Balls of steel and a possible death wish? Thats more accurate… :)

WAR is the freaking man. If you don’t already watch his nightly show on NewsMax or listen on radio, I can promise you he is far more interesting and accurate than anything you’ll see/hear on the networks.

You can find my complete interview here: https://soundcloud.com/user-640389393/kip-herriage-live-on-war-now-with-wayne-allyn-root-1

Until next time, thanks again for reading… have a great weekend.

Kip Herriage

So far in 2019, our average gain per postion is over 40%, nearly tripling the S&P 500! Come join us at the Vertical Research Advisory free for 2 weeks!! For a limited time we are offering a 2 week free trial to the Vertical Research Advisory, visit vrainsider.com for more details.

Since 2014 the VRA Portfolio has net profits of more than 2400% and we have beaten the S&P 500 in 15/16 years.

Also, Find us on Twitter and Facebook

Thursday
Feb142019

Major Buy Signals: Paul Krugman is Bearish, Paul Krugman is a Buffoon. McClellan Oscillator Buy Signal. Investor Sentiment Buy Signals. Crushing Mr. Market.

Good Thursday morning all. What could be the most bullish signal for global stock markets and a resurgent worldwide economy?

Easy. NY Times economist Paul Krugman predicting a global recession, as he did over the weekend at an investment conference.

Krugman has long been a laughingstock of serious economists.

“Hey Kip, could you give us a couple of examples?” Hey, you bet…thanks for asking.

Here’s Krugmans quote about the internet proving to be less valuable than the fax machine. No shit…he actually said this.

Let’s travel back in time for a moment. Back in 1998, then an economic professor at MIT, Krugman predicted that the Internet wouldn’t be such a big deal by the mid-2000s and that its economic impact “would be no greater than the fax machine’s”:

The growth of the Internet will slow drastically, as the flaw in “Metcalfe’s law” — which states that the number of potential connections in a network is proportional to the square of the number of participants — becomes apparent: most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.

In the same column, Krugman also wrote:

As the rate of technological change in computing slows, the number of jobs for IT specialists will decelerate, then actually turn down; ten years from now, the phrase information economy will sound silly.
And hey, we could stop here with Krugman, but its just too much fun, especially in light of the fact that the Herriage family is still trying to recoup the $380 we were forced to spend on Krugmans college economics textbook for Tyler. Having read through Krugmans monstrosity of plagiarism and far left propaganda, is it any wonder our universities have so ill-prepared our children for the real world.
Here’s Krugmans infamous quote, the morning after Trump was elected.
“It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?” Krugman said in his post. “If the question is when markets will recover, a first-pass answer is never.”
“We are very probably looking at a global recession, with no end in sight,” he added. “I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.”

Here’s Krugmans infamous quote, the morning after Trump was elected.So you see, when Krugman comes out with another prediction for a global recession, we have just one move to make. We must buy everything in site…aggressively. There is no clearer signal for a global stock market melt-up.Tune into our Daily VRA Podcast from earlier this week to learn more as to why this is a major buy signal

Major Buy Signals from the McClellan Oscillator and Investor Sentiment

This morning lets take a quick trip back to the Christmas Eve massacre 12/24 lows. We have a new piece of research to look at, but to make sense of it all, this is what I wrote on 12/26/18.

“This morning I’ll share the two most important market stats I see today. After the last 3–4 days of research, these two stand out more than anything else;

First, the S&P 1500 New Highs-lows index just hit -42% on Christmas eve. All time low (this stat dates back to 2010). Below we see what happened following the previous two lows (-37% in ’11 and -34% in ‘16). Each of these readings marked the lows for stocks, followed by moves in the S&P 500 to fresh all-time highs. Selling in the face of fear and panic is rarely a smart money move. This is a bear market in search of bad news. This is ridiculously overdone.

But this is likely the single biggest indicator that we’re either at or very near an important bottom…investor sentiment. The Fear & Greed Index hit 2 on Christmas Eve. TWO. A new all-time low (obviously).

VRA Bottom line; we’ve just had a 2 month version of the 1 day 1987 crash. At this point no one can say when it will end, except that we’re seeing the historical signs that the decline should stop here. This has been a structurally driven, algo based decline, fueled by an out of touch, tone deaf and hostile Federal Reserve. All this selling into a December air pocket. This market is at ridiculously oversold levels.”

— — 

What a 7 weeks its been. Of course, the lows of 12/24/18 marked THE lows. And just as we highlighted the S&P 1500 new highs/lows back then this morning we’re going to highlight the McClellan Oscillator, which is simply another way of looking at the VRA market breadth data we focus on regularly.

Below we see that the McClellan Oscillator (net breadth of NYSE advances/declines) has just flipped from -1000 to +1000 (which will occur officially today), for just the second time in the last 20 years. The previous occurrence was March of 2009, which marked THE bottom in the stock market from the great financial crisis.

In other words…this is a very big deal. it confirms what we’ve been discussing here daily, namely that the permabears continue to be on exactly the wrong side of this market. Readings like this have the power to propel markets higher by 20–30–40% inside of a single year. And with institutional cash readings also at their highest levels since March 2009, we have just one move to make here; we must continue to be long and strong.

And folks, should the Fear and Greed Index ever hit a reading of 2 again in our lifetimes, we must sell all of our worldly belongings and put every single penny into S&P 500 call options. Can we agree in advance to hold each other to this???? Just an fyi, its highly likely that no one reading this will even be alive the next time the Fear & Greed Index hits 2. Yes…it is that rare…as in, it had never happened in history (prior to 12/24/18).

And here’s last nights AAII Investor Sentiment Survey readings. Even with the massive move higher over the past 7 weeks, we’re at just 35% bulls with 39% of investors at neutral. Hard to put into words how remarkable I find these readings.

The VRA Investing System has been upgraded to 9/12 System Screens bullish.

  • Both the DJ and S&P 500 are now back above their all important 200 day moving averages (dma). Nasdaq and Russell 2000 are just points below their 200 day Moving Average
  • Our overbought status of last week has reversed.
  • The Federal Reserve is no longer an anchor.
  • Market leadership has returned to tech, growth and momentum stocks.
  • Insider buying and M&A activity will hit record levels again this year.
  • The forward P/E on the S&P 500 now sits below 15. Absurdly ridiculous coming off of 27% EPS growth in 2018.

And checkout this excellent analytics work from our friend Troy Bombardia.

After being more than 14% below its 200 dma, once the S&P 500 jumps back above the 200 day, the S&P 500 has been higher 100% of the time over the next 3–6–9–12 months. That’s 13/13 times with an average gain 1 year out of 17%.

If you’re not long, you’re wrong…very, very wrong.

Until next time, thanks again for reading…

Kip

Since 2014 the VRA Portfolio has net profits of more than 2400% and we have beaten the S&P 500 in 15/16 years.

Experience the Vertical Research Advisory free for 2 weeks!! For a limited time we are offering a 2 week free trial to the Vertical Research Advisory, visit vrainsider.com for more details.

Friday
Feb082019

The Importance of Relative Strength. EM, China, GDX. VRA Market, System Update.

Good Friday morning all. Parabolic Options #8 closes today. This will be our largest options program we've done to date. Cannot wait to crush Mr Market with you. We'll close signups today and send out our first test email and texts early Saturday morning. Any questions, we're always here.  To learn more about the program visit : Parabolic Options Program

Yesterdays trading brought our first back to back negative days for VRA Market Internals since the 12/24 Christmas Eve massacre. Still, even with a -220 Dow Jones, new 52 week highs outnumbered new 52 week lows by 187-132. Watching closely as always but this looks very much like an overbought pause, in an otherwise powerful, continuing uptrend. 

Hockey great Wayne Gretzky famously said "skate to where the puck is going, not where its been".

If you watch MSM financial news much, its impossible not to hear about the global slowdown occurring in Europe and China. Please, tell us something we don't already know. Could it be that this is why global markets fell 25-50% in 2018? Could it be that the slowdown is already priced into some of these badly beaten up markets?

This is why we place so much importance in tracking relative strength. Its a unique look at where the puck is going, yet few seem to use this most valuable investing tool today. Thanks again to my mentors from the 80's and 90's (RIP Ted Parsons and Michael Metz). 

Lets look at a few examples this morning (my relative strength charts are versus the S&P 500, the worlds largest and most important equity index):

1) EMERGING MARKETS (EEM).

Again, if you listen to the news you'd probably want to short EM/China. But look at this dramatic, 4 month outperformance of EM to the S&P 500. As much as the S&P 500 has soared from those 12/24 lows, EEM has outperformed by 12%. Thats some serious alpha. But the "gurus" want little to do with EM/China. Their loss....again.  

2) CHINA
 
Looking specifically at China (to S&P 500), we see an almost identical pattern. What would you say that the actual smart money is doing here? Shorting China or buying China? Note: Chinese markets are closed all week for New Year celebrations. My best advice is to ignore the Chinese perma bears. I've been among China's hardest critics...but I also believe they have read their history books about the Japan/US battles from the late 80's and 90's. Once Japan got our attention, as they made their own attempt to take over the world, the US reminded Japan of exactly who the boss was. The end result was a 19 year bear market in Japanese real estate and 75% collapse in the Nikkei Dow. Today, China has debt/GDP of 270%...they know they cannot afford to make the same mistakes that Japan did. I remain confident that China is in the process of caving to the willpower of one Donald J Trump. This chart tells us that the worst is likely over in China. Keep buying. 
 

 

 

3) MINERS (GDX)
Talk about stark relative strength and outperformance, check out GDX vs SPX over the last 5 months. What we see below is a massive 36% outperformance from GDX. The key to making money in gold/silver equities is exactly what we see below. The leverage is always in the miners (3-5 x). In addition, GDX has traded above its 200 dma for 10 days, with a golden cross buy signal generated earlier this week (50 dma crossing over 200 dma).

 

 

VRA Market and System Update

The January barometer is another piece of important analytics that long time market watchers have used for decades. Check it out; we know that we just had the best January since 1997, with S&P 500 gains of 5.62%. What does this mean for us?

As goes January, so goes the year....this is the heart of the January barometer. 

Between 1950 and 2017, the January barometer has been correct 58 of 67 times, or 87% of the time. Powerful statistical analysis. 

Lets also remember that in years following mid-term elections, since 1946, the markets have been higher 18 of 18 times, with an average gain of 15%.

Folks, and forgive my repetitiveness here, but we must continue to ignore the permabears and negative Nancy's. No, we are not headed into recession. No, the sky is not falling. And yes, we remain in a super bull market that will take the Dow Jones past 35,000 by the end of next year and past 50,000 by the end of Trumps second term. 

While we remain short term overbought, the time to aggressively buy was in mid-late December, but also know this; we continue to expect that any pullback will be merely an overbought pause. We see it in the data and we see it in VRA internal tracking metrics. US stocks are building momentum. Much higher prices await. 

If you've been able to listen to our end of market daily podcasts, each day you hear us get into the mechanics of the markets. The backbone of the VRA Investing System. We're big believers in the KISS principal. With all of the insane attempts by todays day trading technicians, who think they can time the markets from day to day, we take a bit longer term view. Watching the internals and the VRA System Screens have kept us on the right side of big moves. 

Please join us daily at vrainsider.com/podcast   

While we remain at 8/12 screens bullish, I look for this to jump to 9/12 in the near future. Remember, anything above 6/12 bullish screens and we're still buyers. The Dow Jones is back above its all important 200 dma, with the S&P 500 and Nasdaq hot on its tail.

Check out this excellent work from our friend Troy Bombardia, master of market analytics. What we see below is what happens to the S&P 500 when it closes above its 200 dma after being more than 14% below its 200 dma for the previous 3 months. Stunning figures here, including an S&P 500 that is higher 100% of the time over the next 3-6-9-12 months, with an average gain of 17.36% a full one year later. 

Long and strong...don't let the bears convince you of anything else. 

 

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 15/16 years.

Experience the Vertical Research Advisory free for 2 weeks!! For a limited time we are offering a 2 week free trial to the Vertical Research Advisory, visit vrainsider.com for more details.