Welcome back to the VRA Investing Podcast! In this episode, host Kip Herriage dives deep into Tuesday’s market action with a heavy focus on Tesla’s record-breaking rally. Kip Herriage unpacks why Tesla hit an all-time high, what’s fueling its momentum, and why he believes the journey is far from over. He shares insights on the potential benefits coming for Tesla shareholders if SpaceX goes public, and why the skepticism from Wall Street analysts could actually be a major buy signal.

Kip Herriage [00:00:00]:
Don’t look back because the market is closed. Good Tuesday after everyone. Kip Herriage here with the daily Variant Investing podcast. Hope you had a good day today. We had some fun things happen today, did we not? I know we got a smart money crowd here. You already know what, I’m going to go with this. So let’s just talk about some of the topics today. Let’s see what, what, what could be number one.

Number one is Tesla. So I’ve got a lot of people blowing up my phone today, A lot, a lot of people blowing my phone about Tesla today and for good reason. Tesla all time high today now puts it up like 26% in the year. And if you know us, you know what I’m going to say next. Probably this is just the beginning. Just to remind everybody, this has been our number one stock for the innovation revolution for some time. I started buying the stock at 18 split adjusted 18 a share. I’ve only averaged up.

That’s a smart money move right there. So I’m told. I think that’s true. Don’t really like averaging down sometimes it’s called for much, much rather average up. That is the smart money play. But again, all time high today we started buying at 18 recommended officially at 174 in the VRE portfolio. Long story behind that. And this year, you know, what a turbulent year.

Remember the stock hit 488 a year ago tomorrow and it’s an all time high today, right to close it to 488.51 as high of 491 today for almost 492 today. But when, when Musk fell out, when Musk, you know, again bought into Trump, they became buddy buddy. He started doge. What happened? People started firebombing Tesla dealerships, started killing keying cars, not knowing of course that Teslas are surrounded by cameras. So all of these idiots that are keying cars were caught red handed. A lot of them got arrested for it and some had, you know, multiple strikes and actually went up doing a fair amount of time because they’re just. Who does that? You’re a moron. Right? But anyway, stock got destroyed.

[00:02:06]:
Stock hit a 52 week low and I had to double check this. I couldn’t believe this is right. Stock hit a 50 low 52 glow of $212 a share again that was from first quarter this year. So the stock got absolutely destroyed after going parabolic end of last year and then again a 52 low. 214 was the low. But Tyler, Tyler was On Charles Schwab. Not long after that I memory serves, the stock was about 240, right? So just, just off the lows. And Tyler was doing an interview on Charles Schwab and they asked for favorite picks and he said it’s Tesla, the top of the list.

[00:02:47]:
And well you know they say oh, that stock has really gotten hit. Has it? He says you know what it we love it here. Hey, we loved it at 400 then you know we love it at 240. Right? That was his line. And, and now to see the stock more than double from there. Good call Tyler, great call. Again we love this stock. And again I just.

[00:03:06]:
Some people get a little antsy when a stock hits an all time high thinking the move may have already taken place. That is not the case here folks. That is absolutely not the case. There are a lot of things happen behind the scenes and we talk about the stock all the time of course but heard a new rumor last night and from, from a pretty good source I think there’s something to it and it makes sense because Musk has hinted at this before that with SpaceX going public next year, Musk is going to find a way to make sure that Tesla shareholders of a certain record date, right? Tesla’s long term shareholders of Tesla are going to get pre IPO shares in SpaceX. Musk said it twice last year. I would not be surprised because the rumors now making the rounds, I would not at all. Matter of fact I expect that, I expect Elon Musk to do that. And again that’s another reason for Tesla’s share price to rise because who doesn’t want to get SpaceX before it goes public? I mean this is going to be a very, very hot ipo.

[00:04:04]:
I think we all can probably agree on that depending of course where they price it. So but that’s, that’s, that’s an outlier, you know that’s not the primary reason the stock is going up. I will tell you that Morgan Stanley’s analyst this morning, which is interesting because Morgan Stanley, they have a new analyst following Tesla, right? So the guy that was following Tesla until about two weeks ago, he’s now at Morgan Stanley following I think just a broader AI theme, right? His name escapes me but, but we’ve talked about him a lot here on the show. But this new analyst for Tesla was going through yesterday some of the tailwinds, you know, the, the reasons to own the stock. His, his, they actually Morgan Stanley, this is one of the reasons the stock got hit about a week ago. They lowered the rating from a buy to an outperform. I think that’s, that’s what happened here. And so it was classified as a downgrade.

Well, it was just a new analyst following it. And so I think that he probably wants to put his stamp on it. But at the same time he is bull case, right? His upside Target was, was 880. The stock again not, not even 500 yet. So I think that was misinterpreted. And again all of these dips have been a buying opportunity, every single one of them. I just love the fact that now with the stock at an all time high, there’s not a single person on the planet that has a loss in Tesla. And you can say that for any stock at an all time high, of course, but the only people that have losses are the shorts, right? The Bill Gates of the world, the Michael Burry’s of the world.

Again only this is crazy. This, you may not believe me, but this is from a week ago. It can’t have changed much. And this is another reason why, why the stock is going up. I promise you this. Only 48% of analysts that follow Tesla have a buy rating on it. Now to the uninitiated, right to the, I would have to say to the naive, you was hear that and go well that’s not good. Oh my God, that’s why they don’t buy it, right? That’s, that’s bad.

If the analysts don’t know been around the block a little bit, you know, it’s what is one of the biggest buy signals there is when the analyst really don’t like a stock. I’m interested. I want to know everything about this stock, right? And I did. It’s just been, it’s been a great reason to own and sell stocks. But just while we’re talking about it, there’s only one analyst on Nvidia that has a sell rating. Now that, that has my attention. When I heard that a few days ago, I’m like, okay, I’ve got to rethink my position on video a little bit here because I didn’t know that was the case. Look, we own the stock.

We’re not, we’re not really even seriously considering selling it. But again it’s something that registers because you know that that’s, you don’t want all analysts on having a buy rating on your stock. You just don’t want that. But in this case, with over half of the analysts not recommending Tesla, it’s a huge buy signal anyway. Morgan Stanley’s analyst came out and talked about the inflection points, the tailwinds behind the robotaxi. One of them is that Tesla is removing the safety monitors on the robotaxis in Austin. Of course, this is the next step. It was always the next step.

[00:07:27]:
Musk said this on the last earnings call. What was it, month or so ago? And so we knew that was coming and now it’s come. That’s. That’s very good. So there’s no longer a safety driver in Robo Taxi, at least in. I don’t know about all of them, at least in some of them. Then. Next step is to expand state by state.

Kip Herriage [00:07:46]:
In 2026, Tesla has to log a certain number of miles without safety driver drivers for the crash rates and interventions keep trending down. Now, if you have a Tesla, and if you have 14.2, the latest FSD software version, if you’ve downloaded that, then you. Again, you already know what I’m going to say next. What interventions? What interventions? This car drives me flawlessly again. Every now and then, you know when I want to park in a parking spot or I want to make a turn, the car, maybe not familiar with it, might go the long way around. Meaning that, like, we actually have a street in our neighborhood where it’s a semi cul de sac, right? And you can go around it, or you can just go straight on the road and it’s 50, 50. The car just has its own mind. I don’t care at all.

Kip Herriage [00:08:41]:
But again, those are very, very minor, but on the big things. And this is why I encourage all of you, really. Do yourself a favor, go take an hour out of your day. You’ll be very glad you did this. You’ll enjoy telling people you did it. If you haven’t already, go to a Tesla dealership and just test drive. These people are friendly. That, by the way, in case you think you’re going to a normal car dealership, trust me when I tell you you are not.

Kip Herriage [00:09:09]:
No one’s going to try to sell you anything that is not their style. Tesla doesn’t work like that. They’re there to answer your questions. They’re there to help you take test drives. And what they’ll do is they’ll show you how the FSD works. It’s just a couple buttons you push and then you’ll just take the car, leave your driver’s license, take the car. Unless you want someone to go with you, then they’ll do that too. I encourage you to do it because as I’ve told so Many people.

And believe me, there are a lot of you that I’m thinking about a couple people right now that just this week have told me you’re about to go buy a Tesla. Right. What kind of model should I get? I will tell you this. The Model Y, I was just in there. The model. Yeah. On a lease. The new Model Y.

Just an incredible car. By the way, the new Model Y is the Cyber Cab. That’s the first before they go into production on their Cyber Cabs in April. Right. The Model Y right now is the Cyber Cab, but the. The new Model Y as a lease is $395 a month. I’m not sure what. What I’m actually going to put down, but I thought that was a pretty ridiculously low rate to have this car, which is.

There’s nothing like it on. There’s just nothing like a Tesla. There’s not. If I had to recommend one, I will tell you, you want to get the Model S. You want to get Model S plaid. It’s the nicest car they make. It’s full sedan. It goes zero to 60 in under two seconds.

Kip Herriage [00:10:35]:
And it is a. Just a gorgeous vehicle. That is mine. Love it. And got the caliper, brakes, everything. And get. Get the yolk steering wheel. I didn’t like that at first, but they’re fun.

Kip Herriage [00:10:48]:
Anyway, this guy. It does. Analyst at Morgan Stanley sees what’s happening here, that this is the future, that, that the. The Google. Waymo. Waymo’s in serious trouble. If you don’t know this story, I think it. It’s a good story because people always ask me, wait a minute.

Wayne must have been doing this longer. Wait, they, they. They have far more cars on the road than Tesla. That sounds like it’s Google. They’re pretty serious competition, right, Kip? No. And here’s why they’re not. Here’s why no one’s going to remember their name inside of five years. Okay, here’s the reason.

:
Waymo’s cars work on something called lidar, like it’s radar. And so for it to work, you have to have all of your radar, you know, towers or whatever have to be around the area that the cars are driving in. Otherwise it will not work. In addition, that’s expensive, right? Imagine doing that all over the country. All over the world. You can’t drive it until we put these towers up. I mean, that ain’t cheap. In addition, these Waymo cars, which are very expensive, you know, outfitted with all this fancy.

[00:11:56]:
You’ve seen the. You’ve probably seen them. It’s really ugly. They’ve got all the radar equipment on top of the vehicle. Maybe at some point that’ll be removed. Right now it’s not been but those vehicles, if you wanted to just buy one, they’re like $150,000. I’m sure those costs will come down, but you can see very quickly because with Tesla, any car, any vehicle they make as long as 14.2 or greater, by then it’ll be even more. Any vehicle can be a Cybercap.

And that’s what we intend to do. My wife and I intend to. We’re not, we don’t need the vehicle. And again I, I work a lot like a lot of you. I’m not in my car a whole bunch. What I wanted, I want it to be there. Otherwise I want that car out making me money. I want to have a fleet of these.

[00:12:42]:
And that is what we intend to do. And so again they’re setting the model up with all that in mind. So you know, how much would that, how much income would that produce a month? I don’t know, maybe three, four or five hundred dollars a month per car. You know, get a fleet of 10 and 20. And now we’re talking about a lot of money as passive cash flow that you can put with very, very low maintenance. Right? The car is going to be able to charge itself. The car is going to be vacuumed at the end of every shift. This is what Tesla’s already got in place again.

All this done robotically. Of course. Optimus will wind up doing all of this cleaning, et cetera. So there is no competition for Tesla. That’s the bottom line. The markets are realizing this now, which is why the stock’s in an all time high. As we said to you often here, look, this is the stock to own. Because next year, the next six months, first six months of 2026 are going to be insane.

It’s not just FSD, it’s not just the Cyber Cab, right. It’s Optimus. Of course it’s their new A14, A15 chips which you know, they’re considering building their own fab facility so they can produce these their self themselves. Talk about a huge reason to buy the stock. If you thought Nvidia has been hot when, wait till you see what Tesla will do. And then the, the next gen, the Roadster is going to be out. That’s the really expensive car that goes 0 to 60 in under a second. Rumors it’s going to fly.

It must loves talking about this one that’s going to be out next year. At least the, you know, the, the unveiling is going to be next year. I think it’s, I think it’s March or April for the unveiling. And the Tesla semi is going to be released that, you know, they’ve got the production facilities built now. They’re already on the road. Right. They’re being, you know, used by Coca Cola, Pepsi, that kind of thing. And the drivers love them.

[00:14:32]:
So I’m sure I’m forgetting some things, but all this is coming out but, you know, in the first six months of 2026. So the reasons to own this stock and remember, the markets discount out how far? Six months to nine months. I’ve seen it longer. But, but, but generally speaking, over my career, I’ve heard and I’ve seen it happen that the markets discount out six months. The markets are always smarter than any of us. They know what’s going to happen before we do. And so again, that’s all. That’s why the stock is going up now.

:
Excuse me. And why it’s going to, you know, continue. Our, our target’s been 500 this year. Yes. Even was 214. Our urine target was 500. Obviously we’re $12 away now. We’re clearly going to get there by the end of the year.

I don’t think I’m jinxing at all. I really don’t. Our technical target year end has been 598. I think we get there. I think, I think we get there. In the next two weeks, stocks will break out. It’s it today was a bullish engulfing pattern. Again, this is a high probability.

It’s like a 65% probability pattern. And again, there are just so many different reasons to buy this stock. And I think institutions that have been short or on the wrong side are going to have to flip. That’s more fuel for the fire. They’re going to cover the short than buy. And the Wall street analysts, they just better wake up. I mean, what are you waiting for? Half of all Wall street analysts, again, do not have a buy rating on Tesla, which is. That’ll change next year, but I think that’ll also be good for a move higher.

[00:16:04]:
So again, congratulations, all the Tesla holders, you know, it’s been a wild ride. Hadn’t always been a fun ride, especially over the last year as we pulled our hair out. But as we’ve told you pretty much every day in our letters and on this podcast, every day that Tesla goes down is a gift. It is a gift. It’s a good thing because it allow you to buy more stock. This is, this is one of our very 10 baggers. We believe in monthly dollar cost averaging in all of our 10 baggers, which is what we’ve been doing Tesla. And so we were able to buy a lot more because the price was down.

Right. In the SpaceX thing. That’s a very interesting rumor. Right? Hope that turns out to be true. Who doesn’t want to own SpaceX stock? Also this morning, I want to cover this on kind of a market timing point of view. I know a lot of you, a lot of you really like the work we do on market timing. And that’s, that’s, that’s built into the VRA investing system. And so, you know, we run our screens every night.

[00:17:04]:
And what we started, notice we told you last Thursday, Friday that the markets were hitting extreme overbought levels, but only on our shortest term momentum oscillator stochastics. All the others are fine. But as Toddler and I just talked about, this year has been especially good when it comes to timing using stochastics. This is a cheat. I will tell you a lot of people that do market timing. And again, market timing clearly works, right? If anyone that says you can’t time the market, it’s just because they haven’t figured out how to do it yet. But this is a very simple way to time your purchases because when stochastics get over extreme about over 90, we just stop buying. Now, we don’t mean we sell and typically we don’t.

You know, we need our other momentum oscillators to all get to extreme about. We call it extreme revital steroids before we even consider selling something. Right, right. But if you’re trading something and we just did this with soxl, the three time leverage, the semi ETF is exactly what we just did. You know, we bought it at extreme oversold on stochastics. We just sold it in 11 days, 41% profit. Extreme overbought on stochastics. Right.

And so I would tell you it’s a great cheat. Anybody can do it. Pull up a chart and you know, look at the momentum oscillators below it. But most of these are set to what the market averages, kind of a preset reading. And that’s fine. You know, we have some things we don’t give away. We have some proprietary things we don’t give away here. But as far as stochastics go, I can’t recommend that enough for Timing your purchases.

All you gotta do is take a quick look at the chart. If stochastics is at that top line or it’s nearing it. Just be patient. Just, just be patient. Doesn’t mean stocks can go down. And again the momentum moves higher. Occur when. So stochastics, Stochastics get there, but the others have not.

[00:19:01]:
And then they start playing serious catch up. And so let’s transition from there to here because that’s exactly what we see taking place in the market going forward. Right? We, we, we had, you know, the seasonality has been pretty reliable. It’s been good, it’s been very good this year. And first week of Jane of December was highly bullish. We told you that. Again, we’d been buying from the November 21 lows. So we’re well positioned there.

But last, beginning last Thursday, Friday, seasonality just, it wasn’t great. And so, you know, why fight it, right? And so we also had hit extreme bottle stochastic. So, but, but that’s all changing now, right? That, that’s all changing seasonality depending on, you know, which time frame you’re looking at. Turn bullish today or tomorrow. Well, what happened today? Right? NASDAQ was down at one point of remember you felony here. NASDAQ was down like a hundred and like 130, 140 points at one time. And then again, boom, here came the, here came the buyers. NASDAQ finished higher on the day the only Nasdaq.

Kip Herriage [00:20:09]:
Dow Jones was down 300 points, down 6 into percent. But again the, the move in NASDAQ was good. We wish it had been led by the semis. Unfortunately it was not. Smh. The semi ETF did finish down a half a percent. But the point being we, we were again starting last Thursday, Friday, kind of expecting what’s happened here. But at the same time we expect this little mini shakeout to be very short lived.

[00:20:39]:
Okay. And I think it was interesting today we have two market leaders that we follow primarily for market timing and they are the semis and bitcoin. And today what did bitcoin do? Bitcoin is up 2%, right? It led the way lower and now it’s heading higher. Bitcoin is also putting in a pattern of higher lows. So we like bitcoin a lot here. I think, you know, bitcoin anywhere in this range is a good buy depending on, you know, your time if you want to hold it. But again, bitcoin’s up today. I think that the semis.

Now we’ve had this Little shakeout, you know, again, could it go on another day? Sure could. But I think that turn today in NASDAQ was super bullish. One of the things that concerned us, we learned this earlier this morning, is that bank of America’s global fund manager survey boy, it’s, it’s, it’s super bullish, right? It, it’s, it’s, it’s super stimulated stretch with these guys, for sure. Fund managers are reporting the lowest cast allocation they’ve had on record of all time. I think this survey started in, I want to say 92, 94, something like that. So it hadn’t been around super long. But it is, it is a good survey to pay attention to. Bullish sentiment in this survey is hitting its highest level since July 2021.

So it stretched. And only 3% are concerned about the economy and the markets in the new year. I don’t know what to say. I agree with him on that one. I think there’s not a lot of things to be concerned about today. This guy, Rafael Bostic, you know, we, we, over the years, we’ve, we’ve made a lot of fun of Fed presidents, Fed governors and Fed chairmen, okay? They’re easy targets and they deserve it because they’re just horrible. Jay Powell, of course, top, top of the, top of the list there, right? This guy, Rafael Bostic of the Atlanta Fed said today that this is interesting. He said, because we expect the economy to be strong in the second year of Trump’s presidency.

We expect it to be strong with tax cuts, you know, again, one big beautiful bill, all that. And that means we don’t expect there to be any, any rate cuts in 2026. Once again, a very dumb, smart person that believes apparently that economic growth causes inflation. It does not. There’s absolutely no evidence that it does. The money printer calls inflation, folks. That’s what erodes the value of our money, printing more of it. This is very, very basic.

This is, this is, this is 101 stuff, right, for monetary policy. And these guys, they can’t say it because they know if they ever do, they’ll give, they’ll give it away. They can’t admit the truth. They have to know this. They have to know this. But again, we couldn’t disagree more. We’re still looking for multiple rate cuts next year because inflation is bye bye. We’re not going to have any more inflation, folks.

Kip Herriage [00:23:43]:
Take this to the bank. You see oil today below 55. Trump has been laser focused on this because he knows how important oil is to Inflation. Have you seen what’s happening with shelter cost? Again, another major component of inflation, cpi, et cetera, shelter costs. They’re lagging indicators, number one. But when they start going lower, they really roll over. They’ve rolled over, they’ve rolled over. So we’re going to have.

And again, the other big driver we talk about all the time is the innovation revolution. All it’s going to do is bring costs down. That’s what innovation does. So again, take it to the bank. Disinflation is the theme for next year and with a new Fed chair and remember, we’re also going to have several other, you know, Fed new Fed governors, Inflation disinflation is the primary theme. Now I got an email from someone this afternoon that forwarded me something saying that of the, the, the other Fed governors are gonna, they’re gonna be the new tds, right? They’re going to be the ones that really try to stop any progress for Trump when it comes to cutting rates. That’s my dog in here. He’s normally not here, but sorry about that.

[00:24:58]:
Brady, Brady, cut it out. Big old lab, big old rescue. He’s a great dog. Come on, Brady, stop, stop. No, look, will they fight Trump on this? I’m sure they will, but I think Trump through other means again, he’s going to have his Fed chair now. They’re going to control the narrative and the conversation and yeah, they’ll be pressured brought to bear if people get out of line. Maybe, maybe they’ll look into their backgrounds and find out if they’re guilty of mortgage fraud too. Right? There are, there, there are subtle things that can be done to make sure they fall in line.

I just don’t think it’s going to matter because I think the disinflationary themes are going to be so overwhelmingly powerful. I apologize folks. Let me let him out of my office. Come on, just one second. There are going to be so many disinflationary themes that it, that is just not going to matter. And you know, again, the dollar again shelter rent costs falling again, that’s our call and it’s, it’s a highly confident call that we’re making high confidence calls we like to say. So I think next year is going to be a great year with lower rates. Again, we’re, we’re on record saying that for now, for a long time.

We also believe that GDP growth is going to hit 5% in the first quarter of next year. We have been saying by mid year and now we think it’s going to be first quarter of, of 2026. And you know, it’s, it’s really, it’s almost impossible. Matter of fact, I think it is impossible for the markets not to go up a lot if we’re right about Fed rate cuts. I’m going to be on Grant Stitchfield show tonight on Real America’s Voice. He’s there like their, their number one guy. And I’ve been on, I think three or four times now and I’ll be on again tonight on his show. So it’s the top, top show on Real America’s Voice.

[00:26:57]:
Seemed like a really good guy getting to know a little bit. Wayne Alan Root introduced me to him. They’re, they’re pretty good friends. And so we’re going to talk about this and we’re going to talk about the, our big three again for our new folks here. I’ll go through it quickly. If you’ve been with a while, you already know, I’m going to say here as well, it’s our big three. The reasons that we are so incredibly bullish and we’re looking for gains of 30% in this 500 up to 50% in NASDAQ next year. I was on Charles Payne show last week and he put that up on the screen.

I could tell that maybe his, maybe his producers hadn’t prepared him for it. Charles looked at that and goes, what you’re calling for gain? You’ve already been, you’re the most bullish guy we have on TV on our show and you have been for a long time and now you’re calling for 30 to 50 gains next year. I’m like, yep, that’s right. And I told him the reasons why. I’ll cover those again tonight. It makes it easy for an interview, I’ll tell you that. It’s the big three. It’s the Trump economic miracle again, the one big beautiful bill.

Remember, Trump hadn’t even been office for a year yet, Right. It takes a while to get rid of the crap that we had to put up with Biden. Right. And so with rates falling, imagine what the housing market’s going to do. Imagine what interest rate sensitive groups are going to do again, that small caps, that’s technology, obviously, housing, okay. It’s going to be melt Upville. Okay? This is, this is what we’re plugged into. And so the Trump economic miracle is going to be in full swing in the first quarter again.

[00:28:23]:
The rest of the one big beautiful bill kicks in. There’s a lot to it, by the way. And the second thing of course, is the innovation revolution again. For our new people are like, what, what, what is that? Well, it’s AI on steroids, if you will, because what’s happening in this country and around the planet is so much bigger than just artificial intelligence. That’s just a piece of the puzzle. Innovation is taking place in every industry. AI may be fueling it, but not some of it. And we’re getting new industries again.

[00:28:54]:
SpaceX went public. Imagine what’s going to happen in space over the next several years to a decade. How many jobs, how many jobs can be created there? How many people gonna be living on the moon, right? That’s a permanent, at least somewhat permanent residence. This is all the future science fiction is arriving. And I’ll repeat, because it’s my favorite topic. There’s going to be at least one major new invention that nobody, at least nobody stating or, you know, no one said aggressively, this is coming. I haven’t seen it. At least there’s going to be one new invention that is just going to blow people away.

Again, like, email blew us all away with attachments, which I just remember. Like, yeah, I can see where I was sitting at the time. I was at Raymond James. And I remember the IT person coming by and going, okay, here’s how email works, right? And I’m like. And he goes, we just sent you something. Click on this. I’m like, boom. This document opened like 20 pads.

Like, what? What just happened here? We. I can do this. So again, it’s a. It was a big light bulb moment, right? And so I think we’re gonna, we’re gonna have one of those within the next 1, 2, 3 years that today, except the people inventing it just don’t see coming. We might have even more of those. Who knows what AI is going to open up and discover for us, right? So, again, rarely, if ever has it been a better time to be an optimist. We’ve been saying this now, you know, we’ve been saying this for a few years. I get snickered at a lot.

[00:30:29]:
People laugh at me. You sound awful naive. Well, you’re very Pollyanna, aren’t you, Kip? But you can call me that if you want to. But who’s been right? I mean, I just today want to be right and I could be confidently right. And we make the right investments. That’s even better. And fortunately, that’s what we’ve done. Okay? And we work, we’ll keep working our hearts to keep doing that.

So trump economic miracle, the innovation revolution, and this absolute Ocean of liquidity that’s out there. And again, I said it yesterday. Why people aren’t talking about this, I got no clue. I’m dumbfounded. And that’s the kind of thing that drives me crazy. People aren’t talking about all this money out there. And so it’s all got to go somewhere. It is, it is mind bending that Bitcoin, the crypto market in general, in total, right, is what, $10 trillion in size? I mean, maybe that’s a little wrong.

I don’t know that it is globally. Let’s say it’s, say it’s seven, eight, nine trillion dollars in size. That’s seven to ten trillion dollars that is now not in the stock market because that’s where that money would be, right? That is high risk money. That would all be in, almost all of it would be in the stock market. How much higher would the market be if we didn’t have cryptocurrencies? Right. So I think it’s a good way to look at it because the market’s already been, you know, banging and, and with all the money that’s been removed from it and into, into other things. And so it’s a magical time to be alive. It really is.

[00:32:03]:
And we intend to stay aggressively long. Look, there’ll be, there’ll be times we take some profits. We just did this week with Soxil. There’ll be time that we’re going to cut back a little bit. We’ll get to extreme bottle steroids. There’ll be times when we start taking profits in our, in our leveraged ETFs, a little more. There’ll be times we raise cash. But I just don’t see that happening in our 10 baggers, you know, not when we see Tesla going to $10,000 and we do.

:
Tesla’s going to 10,000 share. How long is it going to take? I don’t know, maybe a decade. I think that’s probably pretty safe. And, and there’ll be other stocks like it. In case you’re wondering, who is this country bumpkin from East Texas making such a ridiculous statement? I Ultimate Petroleum. I mean that stock went up 20,000% in nine years. That was my pick with Bart Bruner. And we were there from right the beginning stock was 15.

Kip Herriage [00:32:57]:
It was a Canadian company at the time only. And so it was like $0.18 Canadian, like $0.14American. That stock went from $0.14 a share to $200 a share over nine years. It was the number one stock in the planet over that time frame. A $10,000 investment turned into more than $11 million. So yeah, I have made some calls like this in my career. I believe Tesla is certainly going to be one of those calls. And, and again they’re, they’re, we don’t give them all away on this podcast.

I know that some of you don’t like that we do that. But anyway, I, I, I sometimes I just, I, I get carried away. I guess I’m very, Whoever said that you should not be emotional about your investments? I, they, what’s wrong with these people? Seriously, how can you not be excited about what’s going on at Tesla? How can you not? I don’t understand it. I’ve always been very emotional about my investment. That’s what gets me in. That’s why I do it. That’s what draws me in. I want to know everything about, especially the really exciting ones.

00:34:00]:
Right. That’s what I do. With Ultra, it’s like you’re telling me this thing could be one of the largest natural gas discoveries in America and the stock is trading at 50 cents a share. What? Right. And so we got it right. And so I think that that’s going to be the case with Tesla and a number of others. Maybe not to that degree, but a number of others in the VR portfolio. So again this, this overbought period that we’re in right now with the markets that’s going to shake out again.

The other momentum oscillators aren’t anywhere near there. This is going to set us up. This is going to be a great little, little mini, mini, mini reset. Right? That’s kind of what we’re seeing now. I, if it may be over, I mean the way NASDAQ turned it out, I would not be surprised at all. I want to see the semis lead. But again we think this would be very short lived and then we get right back on the train to higher prices into, into year end and January. Are there more bulls that I like to see? Yeah, there are.

But that’s what happens in a big bull market. Eventually you get to the point where people bought in, they’re on, they’re on the train, you know. But again, what tells us this is so early and again, high confidence statement here. Okay. Is it whenever we have a dip and if this dip we’re in now goes on another two days, I’m telling you it’ll happen again. I promise you it will. Whenever you have a shakeout like we had November, all of a sudden after all it takes is about a week and maybe 3, 4% losses. And there go your bulls.

Bye. Bye. They. They sell, they flip to bearish. They’re going short and they’re like, here, this guy’s falling. Here we go again. All right. And so that’s still the personality of this bull market.

So it’s perfectly fine that more people are getting bullish. That’s perfectly fine. Because my guess is, and I think I know this to be true, they’re not really bullish. They’re buying and they tell people they’re bullish, but they’ve not committed a lot of money. They still got a lot of cash sitting on the sidelines. That’s where we are now. So that’s all going to change as. And that’s good.

That’s how markets become multiple markets. And that’s. That’s why we are so bullish. Next year. Next year is going to be a fun year again. Something changes, will tell you. But we’re big believers in telling you what we think. We’re big believers in making calls.

And I know one of my pet peeves is listening to somebody that says this, that, or the other thing can happen, right? And you know, like Ed Yardeni, I’ve got to be honest, that’s Ed Yardini. He has an. I like his. I like his economic work, but this is what he does on his market calls. Well, there’s a 30% chance we’re going to have the roaring 2000s again. We’ve been calling it that for three years as a 30% chance of the roaring 20, 20. There’s a 20% chance we’re going to have a crash, all right? And there’s another 30% chance that we’re going to go up like 5% a year. Like, dude, make a call, take a stand.

[00:36:53]:
Right? Anybody can do that. We don’t do that now. That exposes us a lot of times to making a bad call, but knock on wood, you know, we’ve had a good run. And again, when you do something 40 years, you ought to learn from it. And I’ve made enough mistakes that I feel like. I feel like that’s where we are and there’s something different going on. I’m telling you, there’s something. There’s something.

I feel something different here. And I’ll lose people on this, I know, but I’m not. I’m a spiritual person, and I’ve just seen too many things happen in my life that I can’t explain. And I know that when I focus on what I want and what I want to see happen, for all the right reasons. Right. Hard to help the poor if you’re one of them. Okay. When I manifest things for all the right reasons, things, things are.

[00:37:49]:
Things happen in my life. Not always, but I feel like in this particular situation, everything I’ve done in my career, all the mistakes that I’ve made going through the dot com. Right. Bull market 95 to 2000, what I learned from that, what I’ve learned from my mentors over the years. And we had this, you know, very small group, a mastermind group that, that we rely on. You know, some of these people don’t even know who I am, don’t even know who Tyler is. It’s okay. We get their work right because we trust them and it works well with what we do.

[00:38:22]:
Right. I think all. Everything that I’ve done in my career has prepared me for this bull market. I really do. And I’d be lying to say I believe it. I believe it. And so, again, we’re going to stay humble and we’re going to stay modest, but we’re also going to be honest and truthful. And we’re going to tell you about the conversations that Todd and I have.

Right. And, and, and, and Sam and Josh and Danielle. This is my wife, Cindy. This is friends. This is, this, this is the things we talk about. And again, we do make bold calls, but we only. We don’t make them just to make them. We make a bold call when we really believe something’s going to happen.

Right. And, and that’s. That’s our, that’s our. You know, that, that’s the case with what we’re seeing now for this bull market. That’s again, just in early stages, going well past 2030, at least to 2030. But again, who’s got that kind of crystal ball? But it’s a structural bull market with all our big three and our megatrends. Right. All of these things are pointing to a very special period of time directly ahead of us today.

[00:39:27]:
A put call ratio, by the way, was elevated, 0.94. Again, the markets have been treating us pretty well, investors pretty well. So book call ratio has been pretty low. That’s elevated today. I spent most of the day in the 0.90 plus range. That’s what we want to see. Want to see more people buying puts. That’s a good thing.

Let’s take a look at the internals today. Not great, but again, not horrible. Again, nasdaq, you know, a rally, good, smart money out there. Finished. Positive. NYSE base decline was negative. 1.7 to 1. NASDAQ negative 1.3 to 1 down.

Volume on NYSE was 66% up, volume on NASDAQ 54%. We had, what is this about? About 100 more stocks in a 50 week low, then hit a 52 week high. Sector watch, really the inverse of yesterday. Yesterday we had eight sectors higher, three lower. Today we had three higher, eight lower. Led the downside by energy again. Oil $55 a barrel. Energy stocks down almost 3% today.

Kip Herriage [00:40:33]:
Right. But again this is where the VR investing system comes in. Right. We took profits in ERX two weeks ago. The, the two time leveraged energy etf. We took profits in that to buy soxel. Right. And, and so ERX now is going down.

[00:40:52]:
Right. We’re out of soxil. Okay. So again Todd and I, we love energy stocks and we’re salivating at the opportunity to buy ERX again. Just stay with us, you know, we’ll let you know. Again, come join us@vransider.com again vrainsider.com and check us out for two, three weeks, see what we’re talking about here. Right. But again we’re looking for opportunity to get back into that ETF again to the upside technology again NASDAQ higher up 3/10 of a percent.

Not, not a lot happening elsewhere. There’s in our commodity watch today, very quiet here really. You know, after the move they had again just a reminder, gold and silver both hit extreme or bought very close to extreme. Bot on steroids. Miners as well. They’ve had a hell of a move. Guess what, it’s time for a little breather, that’s all. And again that’s healthy, that’s natural, that’s what we need as a reminder also gold seasonality is, this is it.

We’ve now entered a point in December where from here to April is the best time of the year to own gold. Right. And if gold’s going up, that means the miners are going up. Right? If the miners are going down and gold’s going up, we have a problem. Right. But the miners have led the gold higher all year. That’s our big buy signal right there. Miners leading the underlying asset itself.

Underlying commodity. Gold today, last trade 43.32 down two bucks. Silver last trade 63,73 again just barely flat it barely down today. A copper today just up a couple pennies a pound at 436A pound. Crude oil again got smoked pretty good here today. That’s what Trump wants to see, right? Most these companies are making money. I know the title just told me about a good, a good piece he read on this. I always kind of believe that as long as you’re making over $55 a barrel as a producer, you’re making money.

[00:42:47]:
Tyler said a lot of these producers are making money over $35 a barrel. So, you know, I don’t think this is going to do any damage to the industry at all. And again, get inflation down so rates can fall. We are 100% on board with that game plan. President trump last trade cruel $55, 16 a barrel again, finally on bitcoin. One second here. Well, where is it? Had to reload my, my system last trade 87,800 and that’s up right at 1.6% over the last 24 hours. Again, not a great looking chart, but it’s also a support levels.

This is more for us a fundamental story than a technical story. But we do want to see the lows in place with those lows to hold. And it’s important technically that they do. Right. And then, and then start the march higher again. And that’s, that’s exactly what we think is going to happen. Again, we’re on bitcoin as well. All right, folks, that’s it for the day.

[00:43:59]:
Hope you had a great day and even better night. We’ll see you back here again tomorrow after the close. It.