In today's episode, Kip breaks down a market session that looked like a near mirror image of yesterday's trading. He also highlights the continued leadership from the semiconductors since the early April lows, and explains why that is exactly the kind of action you want to see from this market. Tune into today's podcast to learn more.

Don’t look back because the market is closed. Good Wednesday afternoon everyone. Kip Herriage here with the daily VRA investing podcast. Hope you had a great day today. Kind of a snapshot, kind of a mirror image of yesterday really. Very similar action. NASDAQ leading, semis leading Nasdaq. Again, this is textbook bull market action happening in today. We are hitting extreme overbought levels.

The fear and greed index is getting up there. We’re almost now at extreme greed now and the full call ratio today was extremely low. I’ll cover all that more in just a moment. This market probably is due for some kind of a breather here, but you know, Todd and I both agree on this. I think any pullback we get is going to be light because institutional money, the big money, is still on the wrong side. They’re just now beginning to cover the short sales and come back into the market. Monday was a big short squeeze, but they’re just now starting to really come back into the market. Of course retail as led the way here, led the charge consistently from the very lows of the tariff tantrum and they continue to be long the market.

[00:01:01]:
So look, we’re headed back to all time highs. We may have a little bit of a shake out here, but no, this is not, this is, this is not a reason to take profits or sell. Probably a good time to be patient putting new money to work. But when you have leadership like Tesla up now, what, 60% in, in five weeks. Nvidia, this is the first in, first out we’re talking about here. Tesla and Nvidia, I think as we’ve said consistently are the two most important companies to watch. They led the way lower in January, February. They topped before anything else did and they also bottomed before anything else did.

Tesla and Nvidia both have been soaring over the last couple, three weeks. I think that’s going to continue as well. Big moves higher today in both those stocks. Nvidia up 4.6%. Tesla up 4% on the day and again first in, first out. FIFO, if that’s the case here, we got a great kind of a, kind of a playbook to go after here to watch along with the semis again. Semi study led the way as they did yesterday, as they did the day before. Seeing a pattern here.

[00:02:04]:
Semis up today 1.3%. Nasdaq up 710 of 1%. But again that all led everything else today and again that is textbook bull market action. Dow Jones today was lower than the day like it was yesterday, but down just 210 of 1%. The only, I’d say again, we are hitting extreme robot on all of our major indexes. Not on steroids. We’re not quite there yet, but we’re starting to hit levels that you think, okay, this is, this is a little bit of the danger zone here as far as putting new money to work. The Fear Ingredient Index, as I said, is just a few points away now from hitting extreme greed.

Remember, we stayed at extreme fear levels for weeks. It was unbelievable. And now those, those days are gone because again, this market has surged higher after a Trump reversed course on his tariff policy. And also the put call ratio today did not get above a 0.70. It was in the 0.6es all day. Again, that’s just another indication of people are buying calls left and right and the love of puts is gone now. So this is again, all of these are signs when you start to think we’re going to have a little bit of a pause here, a little bit of a shakeout, but I wouldn’t be surprised if this market keeps going up because there’s so much money behind this. Now, we said this a month ago, repeated today, when the lows are in and the lows are in.

[00:03:23]:
Now, when the lows are in, this will be the low, not just for the year, but these lows will service the lows for the entirety of Trump’s presidency. This market is going to do what it was doing before Trump went down the tariff path, which is we are back in the roaring 2000s. It really never left. We had a one month hiatus like we had with the pandemic 2020 and you know, again, the innovation revolution, look at AI is getting red hot again. You know, this, these are the, these are all the telltale signs that we’re back. The trains left the station, this market’s going higher. We’ll be back at all time highs long before August and that’s where we were. It took us to August to get back to all time highs.

And after the 20, 25 week bear market, after this four to five week bear market, think it’s going to take that long? As a matter of fact, I wouldn’t be surprised if we’re back at all time highs probably early to mid June again, shakeout should be few and far between and very light at the same time. Internals today, not good. Again, a more sign that market’s ready, probably ready to take a little bit of breather here. Today we had a 2 to 1 negative on advanced decline for NYSE, NASDAQ 1.7 to 1 negative on advanced decline. Volume today 55% down volume day on NYC but NASDAQ put in a 64.2% volume date. Not surprising of course NASDAQ was up to 136 today. Semi sled, Nvidia Tesla. Again these key names, these key leadership names are now leading the way as they should do in a bull market.

[00:04:58]:
These are all very, very bullish signs here. We also had about 40 more stocks hit a 52 week high then it hit a 52 week low. Sector watch today decisively negative. We had eight sectors finished lower, only three fin. Not a lot of damage done. Healthcare was down 2.3%. That’s most of the damage done today. Materials, real estate down 9 cents.

No other damage anywhere else to the upside. Communication services of 1.5% and technology again what you want to see up 1% on the day. And our commodity watch here. Again this is a risk on market. So we’re, you know, we no longer have to worry about a tariff trade war with China and a trade embargo. At least that looks to be behind us. So gold is going to go lower, have there’s, there are peace talks between Russia and Ukraine. So some of the outlier reasons that were probably you know, not, not the major reason that that gold has been rising but, but, but part of it, right.

[00:05:55]:
It’s, it’s the energy has been sucked out of the room a little bit. The oxygen has been for gold a little bit. But this will not last. Gold today was down 66 bucks an ounce. It down 2% to $3180. We’re now what, what is that? 320 bucks off of the all time highs of 3500. But remind everybody gold wasn’t going up and silver to a lesser degree, precious metals weren’t going up because of, they have. Gold isn’t up 83% in the last 18 months.

Right. Because of tariff policy. Gold’s not up 83% in the last 18months because of Russia, Ukraine, war. It was never it. The driver of this is what we said for many, many years, actually more than two decades. The driver of this is money printing. We cover this with you. When the House put forward their legislation on the budget and Tax act we’re going to an additional $2.5 trillion in debt this year we didn’t have before.

[00:06:50]:
That’s over the next decade. That’s going to be an additional $20 trillion in debt. Again no one’s serious about tackling this problem. It’s going to continue to be a problem but that’s why gold is rising. It is the perfect hedge against monetary inflation which is all inflation. So that’s why gold is setting up as another great buying opportunity in the shakeout Here again last trade 3180 silver today also down 2%. 3238 copper today down 1.7%. Again just take a little break, a little breather here at the 464 A pound crude oil today also sliding back down now just below 63 bucks a barrel at 62.88 down 1.2% of the day and final of the day bitcoin.

Let me give you again consolidating average breakout here. Last trade $103,530 down just just right at 1% on the day. All right folks going to keep this a little short today. Got a mean to head to here a few this. Hope you had a great day and even better night. We’ll see you back here again tomorrow after the close.