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Chris Vermeulen: Market Sentiment Could be Lying to Investors

Tom welcomes Chris, founder of The Technical Traders, back to the show. Chris discusses how we’re seeing some interesting price action, but we’re likely at the complacency stage of a bear market. We’re seeing interest return to the markets and some buying. Growth stocks are starting to come back to life. However, investors should be ready for another big leg down, as things could get uglier. Institutions are still being cautious. Markets seem like they need further correction.

Cash can be one of the best positions, you don’t always need to be in a trade. When things get chaotic, moving to something like the dollar index or even just cash can be optimal.

We could still be a year out before gold and the miners make their next big move up. There is strong support around the $1680 level. Hopefully, gold finds its legs and heads back towards $2000. Silver tends to be much more volatile, as we’ve been seeing.

Chris discusses where we are at in the commodity cycle. They will continue the rally once the dollar rolls over. It’s likely by then the stock markets will have bottomed out.

If big money is flowing into utilities or consumer staples, that can indicate a collapse. For the short term, he remains bullish on stocks, but it’s important to carefully monitor the markets. Things could change quickly, and you won’t want to be holding stocks. Chris explains why big dividend stocks are also dangerous in bear markets.

He explains the benefits of properly positioning trades and using stops in the most effective way. Lastly, he discusses Technical Trader’s Growth Strategy.

Time Stamp References:
0:00 – Introduction
0:38 – Sentiment Reversal?
4:14 – Growth Stocks
5:53 – The Fed & Money Flow
10:54 – A Bigger Bear?
12:57 – BAN List & Emotion
15:35 – Cycles & Analysis
18:48 – DXY & Equity Volatility
20:27 – Gold Outlook & SILJ
23:49 – Metal Support Levels
27:12 – Commodity Complex
29:25 – Stock S&P Barometer
33:29 – Managing Trades
37:18 – Growth Strategy
40:48 – Wrap Up

Talking Points From This Episode

  • Recent market activity and why the bear market isn’t over.
  • Why moving to cash or trading the DXY is advantageous.
  • Importance of properly positioning trades and taking advantage of stops.

Guest Links:

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 worldwide have 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.

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