Chris Vermeulen: Caution Advised Before Gold Targets $5000 and Silver Targets $100+
Tom welcomes Chris, the founder of Technical Traders Ltd., back to the program. Chris discusses the enormous short position on silver and why it will take awhile to unwind.
Silver has hit his previous targets and appears to be moving higher. He says, “We are now in a bull market for silver,” and he gives us his next targets. More upside remains for the metals, but the broader markets will probably roll-over later this year. That will likely spark a sell-off and after that correction who knows how high silver and gold can go.
Currently, there is zero fear in this market, and investors are becoming overleveraged. This is typically when everyone gets caught holding the bag, and while the Fed may try, they probably can’t maintain this level of market momentum.
The dollar is beginning to fall, having broken its March lows and appears setup for a significant downtrend.
The problems today are bigger than in 2008, and as the economy worsens, the Fed will attempt to print more, which can only be bullish for metals. Globally, interest in gold due is increasing due to concerns about the economy and policies of central banks.
Time Stamp References:
0:40 – Shorts are starting to sweat.
2:25 – Silver technicals.
6:25 – Timeline for targets.
9:36 – Exposure and volatility.
11:25 – US Fiscal cliff and the dollar.
13:30 – Gold and Silver in a general equity drop.
20:00 – Transportation index and signals.
23:00 – Trend for oil and possible correction.
25:30 – Real estate and commercial in particular.
28:00 – Caution from here?
Talking Points From This Episode
• Silver shorts are in a dangerous position.
• Price targets going forward.
• Stock markets will roll-over soon.
• Bearish divergence between stocks and bonds.
• Outlook for the oil market and commercial real estate.
Chris Vermeulen is the Founder of Technical Traders Ltd. Chris has been involved in the markets since 1997. He is an internationally recognized technical analyst, trader, and author.
Years of research, trading, and helping individual traders around the world has taught him that many traders have great trading ideas, but they lack one thing. They struggle to execute trades systematically for consistent results. Chris helps educate traders, and his mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.
He has also been on the cover of AmalgaTrader Magazine and featured in Futures Magazine, Gold-Eagle, Safe Haven, The Street, Kitco, Financial Sense, Dick Davis Investment Digest, and dozens of other financial websites.