VRA Investment Letter: The Significance of this "Structural Bull Market". Extraordinarily Bullish Internals. Semis Roaring. Bitcoins Move Higher. Stinchfield Podcast.

Good Thursday morning. As we’ve covered extensively over the last 3 years, we have entered a “structural” bull market that will carry US stocks sharply higher through at least 2030. The Roaring 2020’s combined with our "Big 3” a) the Trump Economic Miracle (tax cuts, massive deregulation, tariffs and 1BBB), b) the Innovation Revolution and c) an absolute ocean of liquidity will power the US economy and markets higher. We expect 2026 to an historically important year with the S&P 500 surging 30% and nasdaq jumping 50%.

This structural bull market will continue to be driven by earnings growth. We expect S&P 500 profits to rise 18-20% in 2026 (after double-digit gains in 2025). Corporate America will continue to thrive on AI-driven productivity, record capex, tax cuts and operating leverage with a surging economy which will produce 5% GDP growth in Q1 (our call) rising to more than 8% by 2028. Americans will continue to benefit from sustained consumer spending, powerful wage growth, broadening market participation beyond just the tech giants. 

Importantly, yesterday’s trading action was extraordinarily bullish. Even as Nasdaq fell 1%, the internals for nasdaq were solidly bullish with 69.5% up-volume and 1.5:1 positive advance/decline. This is both rare and very bullish…a BIG tell. We continue to expect dips to be short-lived in this melt-up bull market phase with 10/12 VRA System screens remaining bullish. More evidence that a global reflation trade is underway (with global markets hitting ATH after ATH). 

VRA Bottom Line: this is a “fundamentals “ led bull market, rather than a speculation-driven bull market, with animal spirits clearly returning. And we’ve yet to get to the phase where IPO’s and M&A activity surge….but know this; it’s coming. We continue to pound the table on our favorite groups for 2026, which include small caps, housing, semis/tech, PM’s/miners, Bitcoin.

Semis Roaring Higher 

After the close, Taiwan Semi (TSMC) reported a 35% increase in fourth-quarter profit, beating estimates and hitting a fresh ATH as demand for AI chips remained strong. The world’s largest contract chipmaker has now posted y/y profit growth for eight consecutive quarters. Check out all of our VRA Positions and how to use our VRA leveraged ETF trading strategy at VRAletter.com

Yes, the semis are hitting overbought levels but still have a good deal of room to run before hitting extreme OB levels. 

Below, in what is our most important relative strength chart for broad market direction, we see that the semis continuing to hit ATH’s versus the S&P 500. 

When the chart below looks like this, we must remain long and strong stocks. 

VRA Bottom Line: This looks to be an extended move higher for the semis, as we remain in the most bullish months of the year. It’s going to be another sensational year for semis/tech.

Gold, silver and the miners continue their breakout moves higher. Gold has a magnet to $5000/oz (last: $4636…8% higher from here) with silvers magnet at $100/oz (last: $91.80/oz, 9% higher from here). Both are trading at heavily OB on the VRA System, with room to run before hitting our most OB levels of EOBOS. We continue to pound the table on gold miners and junior miners as well. Both look great on our charts. As we’ve seen over the last 2 years, when the junior miners run, the moves higher are fast and furious. This move in both is early innings.

Miners are breaking out vs the S&P 500 with a long ways to go.

Bitcoins Move Higher Will Continue

From its late November lows of $81,000, Bitcoin has traded back up to $96,900. We expect the move higher to continue. The 200 dma sits at $106,000, where we expect the current move to take us (before hitting extreme OB levels). From there, BTC should challenge its ATH’s of $126,300 this quarter. Keep buying. 

Finally, thanks to Grant Stinchfield of Real Americas Voice for having me on his podcast over the weekend where we had a 30 minute conversation about the VRA, our views on the economy/markets and why investors should be aggressively long stocks/gold/bitcoin and say goodbye to their fiat currency bank holdings.

Wall Street Pro Declares: Bull Market is a Go, The Market Negativity Narrative is Fake News!

https://rumble.com/v742bcs-wall-street-pro-declares-bull-market-is-a-go-the-market-negativity-narrativ.html

Until next time, thanks again for reading.

Kip

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