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Sellers Just Took Control of Silver & Gold—The Next Drop Could Be Worse | Chris Vermeulen

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Sellers Just Took Control of Silver & Gold—The Next Drop Could Be Worse | Chris Vermeulen

 

Chris Vermeulen was out of the Nasdaq two weeks before Friday’s tech bloodbath. Then he gave a date: Monday gaps down, then bounces into a short term low. The chief market strategist at TheTechnicalTraders.com walks through the worst week technology has had in years, with his own charts on screen. Record hedge fund selling in October, Google spending its way into a search problem, Intel trading like a penny stock, and a semiconductor volume pattern he says has been warning for months. He explains why the eight percent mark is where investors start to panic, what record margin levels do to a market that falls ten, and why he thinks Friday was forced selling rather than a decision. For gold holders this is the uncomfortable half. He says the money leaving technology never left the market at all, it moved into dividend stocks, utilities and treasuries, which is why bond yields fell on a day when everything else was dumped. Gold broke below four thousand in the same session, and he reads that as stops and margin calls rather than a hedge failing. His target is three thousand one hundred to three thousand two hundred, another twenty percent lower, and he expects yields to stay high enough to keep a lid on the metals. The evaluation at the end checks his record and his numbers against Friday’s close, the October 28th Fed decision and the latest inflation print, and it pushes back on the gold target.

 



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