Chris Vermeulen: Gold Signaling "Massive" Equities Correction, My Strategy Now
Summary
Gold's Performance: Gold is experiencing a parabolic move, reaching all-time highs, and is seen as a safe haven amid potential market corrections.
Market Outlook: A significant correction in equities is anticipated, with gold signaling a potential global financial reset.
Investment Strategy: Investors are advised to prepare for a pullback in precious metals by adjusting strategies, such as moving stops and locking in profits.
Silver and Other Metals: Silver and other precious metals like platinum and palladium are also rising, but investors should be cautious of their volatility and potential for sharp corrections.
Stock Market Dynamics: The stock market is in a euphoric phase, driven by AI and tech heavyweights, but most stocks are struggling, indicating a possible downturn.
Cash Position: Moving to cash is recommended for equities portfolios to avoid risks, while long-term gold investments can still be held.
Technical Analysis: Fibonacci retracement levels are used to project potential support and resistance for gold, indicating possible future price movements.
Investor Caution: Emphasis is placed on having an exit strategy and being prepared for market volatility, as big money flows indicate a shift away from equities.
Transcript
[Music] I'm Charlotte Mloud with investingnews.com and here today with me is Christopher Muan, chief market strategist at the technicalraders.com. Thank you so much for being here. Great to have you. >> Always a pleasure, Charlotte. Thanks for having me. >> Of course. Really good to be catching up with you and there's plenty to go over today, especially when it comes to the precious metals. If we start off by taking a look at gold, it was doing really well when we last spoke all the way back in April and even better today, trading at or near all-time highs. So, I wanted to take a look at the charts with you and ask you what you're seeing here. Do we have potential for gold to go higher in the near term or do we need to see a pullback, a correction of at some point right now? >> Yeah, sure. I mean, I can share my charts if you want. I can uh show what I'm seeing here. And if we take a look, just uh pull the charts. If we take a look at the charts, we can see gold has just been rocketing higher. I mean, really, for the last couple of months, and we're in this, we're in this phase now that's really exciting. I mean, this is what precious metals investors have been waiting for for years. It's slowly been unfolding all this year. And now we're in this parabolic move in terms of gold, silver, miners, platinum, and platium. are all starting to really come to life. Uh gold's hitting all-time highs. It really doesn't matter what the stock market does. It doesn't matter if the stocks go up. If the stock market goes down, money just keeps going into gold. And so now we're at this this phase. Actually, in fact, if we were to look back at 2007 on the left chart here is 2007. The stock market put in a top and it it sold off 50% or 55% when we got into the correction. Now, this yellow line is gold. And what's really really interesting here is if you were to go just before the stock market peaked, which is where I think we're kind of right now on the verge of a massive correction in equities as gold right now is the the the fleet to safe haven. We saw stocks and gold go higher just like we've seen here on the righth hand chart where we are right now. Stocks and gold have been going higher. The fact that gold's been outperforming is telling us something big and bad is going to happen. probably not just in the United States or Canada, but more or less globally. And we're going to see a big financial reset. So, gold is warning all of this. And what we're seeing, you know, in the markets is this this feeding frenzy. Now, gold is the favorite play. Same with silver. And now we're in this phase right now where the stock market is starting to sell off. And now when money flows out of stocks and it's got to go somewhere, money's always looking for a return. And so now every time we have a down day, just like you and I are speaking right now, equities are down. Gold has shot up over 2 and a.5% today, which is a huge move for gold. And so now, now this is telling us where we are right now on this chart is very, very interesting because what could happen next could be a very big reset in stocks. And temporarily, this is this is what I think is the last big push for precious metals before it it stalls out. So, I think gold and silver are going to continue to take the lead. They're going to pick up more speed and shoot higher for potentially the next few weeks. And where's the top in metals? I don't know yet. But, um, gold could very easily run up to 5,000. Silver could run up, who knows, into the 70s or 80s. Silver, but the stock market, I think, is on the verge of a big correction. And so, money is going to start moving out of stocks and moving into precious metals even more so. So, it's pretty exciting this whole big scenario that I think is unfolding. >> It is. It is very exciting and it's interesting to see those signals that you're mentioning in terms of what gold is telling us about what's going on. If we take a little bit of a closer look at gold, I'm wondering where you're seeing support and resistance for the metal at this point. >> Yeah. Yeah. Well, if we if we look at the charts, the last real measured move where we could get a projection of where price should go is we've we've already blown past that. So, for for example, we had a recent uh extra little trade that we put on when gold broke out of this large bull flag pattern. We we got long, we pulled a little profits off here, and we got the rest out right over here. So just based on this big chart pattern, we're now somewhat in no man's land in terms of the big stage of where the next level could be. Now to zoom in, as you mentioned, we we can get a little bit more of a u an idea of where the next short-term level is. So we could just say, well, based on this rally going up to this high, this is using Fibonacci extension and this pullback. Actually, I need to go down to this uh this previous reset right through here. If we base this last rally up and the pullback, it shows where that next upside move is for gold. It's 438 or $4,383. That's the next measured move where it's probably going to have a little bit of a pause or hiccup or at least slow down for a bit. But other than that, when you look at the big big multi-year monthly charts of gold, we don't really have any upside. It's now somewhat in a little bit of kind of bubble territory. It's just kind of going parabolic. And when we look at it, and especially when we zoom out to see what happened during the last major wave, actually, we can go back even further. Let's just go right back to the last one we saw back in the 80s here. You can see these are these are very big parabolic moves where things really just shoot straight up and they kind of get dwarfed by by the price in some cases, but all of these they usually end pretty abruptly. But right now, we need to figure out where where it's going to stall out. And you know, everything in this space, the whole precious metals complex, whether it's gold, silver, platinum, platium, or miners, they're pretty much all almost all doing the same thing. They're going parabolic. And the problem with this, it's not like it's going to probably just roll over slowly and give you time to lock in profits. The problem with a parabolic move that goes straight up is they usually come straight back down once the feeding frenzy, once the momentum stalls. And you know, silver is actually a really good view of that. If we look at the silver chart, you can see how silver has spiked up each of these times. Both times they've sold off 70% or or 35%. And you know, when we zoom into these charts, uh you can see it's not like you have time to get out. It's really the market roll goes up and then suddenly there's like a m max exodus and and it goes it sells off very quickly. We saw the same back here when it didn't a last spike up into this this level. So, this is one thing I think investors are going to need to realize is yes, this bubble is exciting and it's amazing to watch our accounts just skyrocket kind of day after day, but this usually comes to a very abrupt end. And unless you're really good at picking a top, which most people are not, especially in a bubble like this or as this feeding frenzy phase, um you're going to have to accept that eventually if you do plan to get out, you're probably going to give back a good chunk of that. Um because you're not going to know the trend has turned until you get a big long red bar that says it's a reversal. And if you try to time the top, you might get out now and then realize it just keeps rocketing higher. This is the this is the problem, right? You have fear of missing out on gains, but then you have fear of taking a loss or giving back gains. And that's what makes this situation like very very unique. it. There is no perfect way to really navigate it other than potentially moving up your stops and locking in some profits. Um, however you want to attack that to try to minimize um, you know, the volatility that this will eventually bring to our accounts. This is a great direction to go in because as I'm reading the comments section on our YouTube channel, I see a lot of people who are excited about these moves, but I also see a lot of questions from people wondering, all right, should I take profits now? Should I plan for that later? How should I approach that? So, you mentioned a little bit about things that people can do. Anything further you would share because I think that's getting quite key right now. >> Well, yeah, for sure. I think it's I think it's the big thing like we had silver break $50 a barrel and I had I had emails people coming in saying it's broke 50 it's at all-time highs you know this should be a buy signal and you know there's there's a few red flags. So kind of before we get into how do you attack this there's a few interesting things that are coming into play. So when we look at the volume for silver it has been ramping up telling us that the majority of like the masses are starting to pile into it. It's starting to get attention. If we look at gold, uh, we're seeing gold volumes picking up. If we look at, for example, like GDX, uh, and this is the same with silver miners or sorry, if we go look at, well, GDX, GDXJ, silver miners, the volume has been picking up in a lot of these over the last several months. And when we step back and we look at some of these other plays like PL, platinum, and platium, they're doing the same thing. And so, all the signs are here that volume is piling in. It's becoming a little bit of a crowded play. And we are we do need to be ready for this pullback. And how do you go about that is is really difficult. It really depends on the type of metals that you own. Do you own a gold ETF or silver ETF? Do you actually own physical stored in a vault somewhere? Is this a long-term play? Is this a short-term play? Are you, you know, is this a trade or an investment? Right? So, there's so many different ways you need to think about how you're going to attack this. Now, as a shorter term trader, somebody who is who owns metals, miners, um, and it's easy to liquidate, meaning it's like an ETF or a stock, it's not physical stored away. I I think we're getting into this point where you need to start preparing, start moving stops up and and like that means like starting to layer in protective stops under some somewhat significant lows. Maybe not right under them. You might want to go a little lower because the market loves to pull back and and try and shake people out. But more or less, you need to start ratcheting up your stops because eventually we're going to see probably a few big red bars that are going to wipe out a lot of price action and you kind of want to get out as it rolls over and starts to break down on on the daily chart. Um, so that's that's one of the ways you can do it. Locking in partial profits and not feeling like you're missing out is a tough thing because people don't want to get out of something and then watch it keep going. So I always say like you scale out of winning trades over time when we're in this market environment. So you're locking in profits and you always have, you know, a little bit in the game and eventually you'll have a smaller and smaller position because it keeps moving higher and higher and you keep trimming and locking in more profits and your protective stop will slowly keep following it up. So, that's how I go about doing these things as they slowly scale out. And I think one thing a lot of investors get stuck up on is they they want to be all in and they want to make as much as they can. They don't want to get out too early. But that always equals a volatile a really big roller coaster ride in your portfolio because if you're all in then you you see your account grow but then when it rolls over and you don't have an exit strategy and it goes down very quickly your account you know growth line is all over the place. Whereas if you get into a high probability trade you scale out slowly as it goes up and protect it. Your account kind of grows up and then when there is a pullback well you've already locked in lots of profits. you have a smaller position. So, when it rolls over, it's not doing as much damage. Uh, and it creates a nice kind of steady growth. That's what I'm I focus on is protecting capital from volatility and allowing us to grow. No matter what market condition we're in, up, down, sideways, there's there's always an asset to go to. So, that is the best way to go about it is to mentally know that you're not going to make the maximum amount. Nobody can unless you pick a bottom and a top perfectly, which is really never going to happen unless it's a fluke. So, you just need to be prepared to watch it go a little higher with a smaller position and run up and not you can always buy it back later. That's what people don't understand. And who really cares if you buy it back later at a higher price? For example, you could you could lock in, you know, profits here like we did with our gold trade at this the same time. Silver continues to run up. Well, eventually silver is going to have some type of correction and build some bull flag, something that gives us a new upward trajectory. Um, this is silver miners. I'm I'm just drawing as an example. And after it pulls back or trades sideways for a while, it's restabilized. And when it starts to break out and run higher, you can jump back in and and get in while it's like going to generate returns right away versus holding it through the volatility and the selloff. And you just never know which pullback is going to turn into a major market top that it might not come back for years. And and that's kind of the feeding frenzy we're in right now, I think, with gold and silver and miners is actually large cap gold stocks are a really good example. When you go back here and we look at the monthly chart, I think the mindset of a lot of investors is a lot of people have held it, you know, from 2010, 2011, they've been through this. It's, you know, slowly come to life and just finally a lot of investors are finally making money on their trades. A lot of people bought, you know, way back over here and this is it. They wait they wait 14 years for it to come to life and then in three bars, three monthly bars, it the trend might be coming to an end already. And the problem is they've like, well, I've held on for 14 years. This trend is just starting. Reality is the chart is showing that it actually might be just coming to an end. And so people think it's just starting and they're planning on just holding it for a long time, but it might actually end up being very, very costly because if we were to fast forward this chart, I mean, nobody knows where the top's going to be, but eventually it could come right back down and it could stabilize and it could be down here. Like look at the time frame. These are years across the bottom. Monthly chart patterns are big. You know, it might fall out of favor for for years and build a a 2-year bull flag trading sideways before it goes higher. So, um, that's the big catch is people who have been in this have been holding on forever. And in three green bars, it goes from being a good trade to it's actually now kind of highly priced. It's the a momentum trade. And once the masses start to sell shares, we could see it drop very quickly. So, you just have to be mentally prepared for a market top and how you're going to address higher pricing because you can't just buy and hold. uh unless that's the style of investment you are, but it's you're guaranteed you're going to ride a roller coaster with that strategy. >> This is really important, I think, as I was already saying and kind of exactly the direction that I wanted to go in. I wanted to ask you, all right, so we're talking about the short term. We should be prepared for this pullback. You should think about adjusting your strategy so you can perhaps get out. But if we look longer term at gold and silver, any further thoughts you would share on where we could go because I think there is a lot of talk about how this is just getting started there. There is more potential and for you I'm also wondering so you are you're looking at the charts you're looking at patterns you're looking at history and we are in kind of this uncharted territory where we haven't been at these levels. So just curious about any further thoughts you'd add. Yeah, I mean we can look at using Fibonacci retracement which I love Fibonacci because it gives us the whole universe pretty much runs on the Fibonacci theory and the the golden ratio. So looking at this chart, this will give us a projection of of what I think could happen going forward. So we had this gold traded sideways for a long time. This was back in 2006 2007. During this time stocks rallied, real estate went ballistic. Nobody wanted gold. It was boring. And then suddenly out of nowhere, gold started to run higher. And it was telling us something big and bad was going to happen in the economy, which it did. We had the 2008 financial crisis. Well, based on this rally up, typically the market wants to pull back anywhere between 38% and 61% of that move. And so this tells us using Fibonacci retracements, when gold gets down into this spot, we should be looking for it to find support. So, we can we can take that forward and look at the next kind of level here. Uh we can go back and we'll just go right to where we are right now. Let me just zoom this out a bit. If we were to take a look at this last rally of where uh gold could could pull back from here, depending where the top is, obviously if if gold does keep pushing higher, the middle ranges will will move up as well. But at this point it is saying we could see gold fizzle right back down into the 3,300 you know potentially all the way back down into the 2600. And if we if we just grab what what percentage that is that is about 30 35%. And interestingly enough if you look at the 2008 financial crisis gold actually pulled back it was 34%. If we look at the the previous selloff and pull back here it was about 44%. So, we just need to figure out where once gold puts a reversal bar in, then we can drop this on and be like, "Okay, this is where the next support level is for gold where we could look at it." And again, if it drops down there, I it could spend years building a new launch pad and working itself up before it goes higher again. So, with that said, if we go back to the comparison chart of 2007 and 8, let's just look at that financial crisis. we saw the stock market crash. Uh gold pulled down 34% during that crash, but then gold shot higher and took off. So, if we were to fast forward to where we are right now, um I I could see the stock markets starting to roll over and potentially having a a big sell-off. And I think gold will eventually I think gold's going to push higher for a little bit longer, but I do think gold will eventually pull back and and and it'll pull back to one of these levels that we just talked about. I think we could see it down towards that 3,300 potentially. And when it gets down to that level, uh it'll be very, you know, eyes on the charts going, okay, let's see if it can build a base and reverse direction. Because once it does that, I think we're going to be something like this. it'll be the the um 2008 bottom. This huge multi-year run, I think, will be the start of the multi-year run for for gold. So, again, if I was to just draw this out, we could potentially if if gold rallied, you know, 180% from there, say gold comes down to this mid zone, we could go 180%. I mean, we're looking at, you go way back up here, you're looking at $8,500 gold. So, there's just there could just be this big hiccup that is going to catch a lot of investors offguard. And that's what we're kind of I'm trying to mentally prepare people for is we have the perfect setup and the feeding frenzy right now in this space that it actually looks like we're about to step into one of these sharp pullbacks, but it this pullback will be, I think, the ultimate opportunity before it it takes off. You and I talked about this probably a year or two ago. I've been talking about how when the stock market and the economy tops and we have a reset, gold is going to pull back and then it's going to have that big multi-year run. And so this is what I'm I'm kind of waiting for. In fact, I'm I'm I'm very excited for the stock market to correct and a reset and for everything to do this because after this there's so much opportunity in the world in business, in equities, and gold and miners once we have this this reset. So that's that's my outlook on on gold and silver will follow suit. >> That's exactly what I was going to ask you. Is is silver a similar situation there playing out in terms of the price? I think people are especially interested in silver right now just because we're at this level that we've really only seen a couple of times before. >> Yeah. I mean, in reality, if you depend how you look at it, like I'd be more excited about gold because it just keeps hitting all-time highs. And we're like, well, silver, well, heck, it was here, you know, 45 years ago. So, it's just it's just hitting resistance again. It's actually not performing that well in the grand scheme of things. Other people will say, well, yeah, it's still down here, and with inflation and all that stuff, silver should be like $150 or $400. I've seen some pretty crazy high pricing for silver. Um, but silver will follow suit. But you know, silver's extremely volatile. I mean, if we look at the 2000 um 2008 financial crisis, it fell like over 60%. Um COVID, it fell fairly sharply. We saw, you know, it it has big big corrections along the way. So, um it it's going to be a roller coaster ride. This is what happens. If you do the buy and hold and you you just you buy into the overall um theme of precious metals being a safe haven, you can end up riding some pretty big roller coasters and have like a decade here and there or multiple decades of no returns where I just really follow the money. I'm like, "Hey, if it's running, I want to be part of it. If it's not, I'll get back to gold and silver later." Right now, like we're long long I'm long metals, physical metals, but eventually I'm going to sell some out. I'm actually getting closer to exiting a large portion of my physical metals once I start to see the charts starting to break down. And I do plan to reby later um going forward. There's there's some huge gains on on paper that I kind of want to lock in. And I don't I never really have that feeling of of missing out too much. I don't mind if things take off. There's always another investment. There's always another sector or asset that I can take part of. I I hate to hold something that goes straight up and I know it's parabolic and I know, you know, it can come straight back down. I hate to hold through that. That's kind of my specialty is being a technical trader, following price, managing positions, and I don't want a roller coaster ride with my my investment capital. I own it when it's going up. I get out of it when it's not. And I just I just hold whatever asset at any given time is the best one to hold. I think that's a nice reminder because maybe people think they only have one chance to get it right, but no, you can you can come back to it later just as you said there. >> For sure. >> Right. And I want to touch a little bit more on what's happening with the stock market because you're right, we've been talking about this for quite a while about how we need to see this correction. And my question, I think, is how has it managed to hold on so long? >> Yeah. Well, I mean, there's quantitative easing. There's I mean, we have we have this new phase, right? So, we're we're in this phase. If we were to look at the stock market stages, so I I believe we're kind of entering this euphoric phase right now. Um euphoric phase. You and I have mentioned this before. I believe we're in this like stage three like the markets are putting trying to put in a major top here. But what's really interesting is the markets keep going higher because we have some huge heavy weights, some tech heavy weights pulling things up. So precious metals tend to come to life right near a stock market top. They're outperforming. We've seen this over and over again. That is that's what's happening there. But if we take a look at the business in the economic cycle, which is this yellow cycle, you can see we're in this innovation and adaptation phase. And the innovation right now happens to be AI. Everybody's bringing it on board. The AI companies are the big techs. They have the heaviest waiting in the stock market and it's the crowded play. Everybody wants to own AI. Everybody's funding AI startups. Uh and that's that's just keep creating this feeding frenzy and the the big mag sevens are more or less dragging the indices higher because of all this excitement. But the reality is most stocks are still really struggling. A good example of this is you know people who got into like the ARC ETFs. If we look at the ARC ETFs, it's a perfect example of the phase that that we went through. So that chart I showed you, you have a you have a stage one and then you have a stage two and then you have a blowoff phase and this stage three top and then it breaks down and and now we're starting to see them come back to life. People are piling into small caps and micro caps. And this is one of the red flags that the market is in this feeding frenzy of people thinking, hey, just get into the small caps. I do think we're going to see this top out and we're going to roll over and we're going to see the stock market sell off in a big way. But when you look at, you know, the majority of growth stocks, they're nowhere near the highs that we saw back in 2020 and 2021. Um, so people just need to be aware. We're we're in I believe we're in this final stage is we just need the momentum to stall out and gold going parabolic and really taking off with big volume across the board in silver, platinum, platium and miners is telling us that everybody is now fleeing equities today. The equities are down and and everybody's piling into the precious metal space. That's just a shift of ass of assets moving from or money from one asset class to another. And so as the stock market rolls over, uh, they're going to, I think, continue to push the miners and the metals higher, and that is a warning sign. So, um, yeah, I mean, I just can't I can't say it enough. People just need to be aware and have an exit strategy for when it comes to an end. >> Absolutely. And one one small follow-up question here on the stock market is who who is participating right now for the most part part in the stock market? And the reason I ask partially is because we're seeing more and more mainstream headlines about gold, these big firms suggesting higher allocations to gold, things like that. So any comments there? >> Yeah, I I think it's kind of part of the feeding frenzy. I mean, just like when Bitcoin, you know, topped a long time ago, years ago, the the the kind of first major serious peak. I mean, it was on the radio, buy Bitcoin now, buy it on your credit card. you know, once everybody starts recursors and money managers are in a really difficult situation. It's almost like they can't win no matter what they do. Uh, unfortunately, they want to look good. They they they need to move into the assets that are moving. And so, gold has had this huge miraculous rally. It's outperforming. And so, you naturally have to people naturally want to get into it. And the advisor is like, well, it's trending up. We should get into it. And so usually I think you know they the masses get in kind of near a major market top and I think I still think there's room to go when advisors start moving investors money in that's going to help push price even higher but eventually that will fizzle out and it's just one of those signs that a lot of people are getting into it kind of all you know the fact that it's gone parabolic and and people are just starting to recommend gold believe it or not that is you know not not the greatest sign. Um, when we when we look at the stock market, you know, we've got this this big bar that we had from last week and this is we we have this bearish price action. This is called an inside inside uh bar here. More or less, we have a big down bar and then price is kind of drifting and working its way up. Usually, this pattern resolves with a great big red bar back to the bottom and then usually it continues to to go even lower. So these last few days stuck inside this giant red bar are bearish and it's just the market got hit really hard. Now it's in shock. Investors and traders are wondering like which way is this going to break? Is it going to continue to rally or is it going to break down? Based on our technicals, we're I'm seeing the market's going to want to break down. And for for a couple reasons, if we take a look at this color-coded chart of the NASDAQ, this is the market sentiment. This is telling me it's my own custom custom tool that says, "Hey, even though the stock market was hitting all-time highs, big money investors were rotating money out of the market. It's like they knew something was coming. Regular investors were piling in. Big investors were moving out. And then we got big bad news of tariffs." Well, here we are right now. We've I've been sharing this and saying, "Listen, we have big money moving out of this stock market. Yet the everyone you know is buying small caps and micro caps and and miners. Uh you know we have this big shift happening underneath the hood of the markets and now we've got this this bearish looking price action which could lead to a very big selloff. The market and the smart money is telling us something is is about to happen and it doesn't look good. Uh, and if this does happen, I think it'll add fuel to the fire for gold because pump money is going to come out of the stock market and people go to whatever else is working at the time, which is gold, silver, and miners. So, that's kind of my take on the markets right now. >> Yeah. And as we can see, it all it all comes together with the precious metals side. I do I want to spend a little bit of time on platinum and palladium as well, which I think you mentioned a couple of times. Definitely, we're seeing prices moving there. There's more interest. I'm seeing questions about these metals as well. A lot of what I'm hearing, I'm hearing platinum mentioned more as an opportunity versus palladium because there's the Russia supply risk for palladium, but I'm wondering for you because you take a charts perspective, what are you seeing for both of those metals? >> Yeah. Well, I would say, you know, people have been piling in. It had a big breakout. really it's getting close, you know, to running out of steam along along with pretty much all precious metals, the gold and silver. If we were to just look at this last run right through here, using Fibonacci tools, we can get a gauge of where that next resistance area is. So, it is telling us that somewhere up here around 1,900 is going to be the next measured move. That's where naturally the universe, the the people in this asset are going to stop buying and the the selling is going to start. Now, that also happens to be a previous high um on the charts, which is pretty significant. When these two line up, you better be careful when it gets up there. It could get rejected very quickly. There's not a whole lot of upside left. There's, you know, maybe 10% upside in platinum. So, that's my take. You know, the majority of the move is done in my opinion for the moment. Now, if we were to look at Platium uh and take a look at that, we can see just let this load. You can see it still has a bit more potential in terms of it's nowhere near the highs in the past. It's it's really starting to rocket higher on the monthly chart. If we do zoom in on on the monthly chart a bit and look at it, we can also give this this projection and it looks like it it's hit kind of its shortterm move just based on percentage. So, it's already kind of blown past its 100% measured move and it's hard to get a gauge of where the next level is. And if we draw a horizontal line from where it is right now, it's gone up to here. And here's our 100% measured move. You can see this was a very significant level. It was a major low in the past. It was a low here and then it became a top here. And so now we're back into resistance. Um so again, I I do think most of the upside for these two metals are are probably they're they're running into overhead resistance um around this level. Gold and silver I think are more so have have actually more percentage upside than these and um they're because they're more mass you know mass psychology you get more people wanting to get into gold and silver a lot of people will be like I don't know how to get into platinum or platium so I just don't think you're going to get the same move into this space but they have been performing very well >> got it I think that makes sense so we have stock market flashing warning signs for us we have precious metals perhaps getting to the point where they are running out of some steam. So, if you had to sum up your strategy right now, how would you put it? Are you focusing on on getting into cash? What are you looking at doing? >> Yeah, good question. So, we moved to cash this week. Uh we have liquidated. So, we are holding we've we've sold one of our gold trades. We or our only gold trade that we had for a short-term trade. We have now moved to cash with our equities a few days ago and we're now waiting in cash just earning interest waiting for a new opportunity. Is it going to be, you know, the markets if it sells off? You definitely don't want to be holding stocks. And it, you know, I think precious metals has the upside. As a long-term investor, I own physical metals. I believe gold's still going higher. I'm not looking to sell long-term investment for gold yet. But as a short-term trader, we hit our target and now we're in no man's land. When we hit targets, I always execute trades and I get out and because I I I follow rules. If based on the chart leading up to that trade says, "Hey, gold should go to this price. If it does, it's a it's a done trade." And so that's what we did. It was a quick 15% gain in and out. Uh right now, cash is king. I think other than long-term gold and silver investors, I think you can ride that move higher. But as a somebody with an equities portfolio, I think you're carrying a ton of risk. the momentum has rolled over. Insiders and big money flows are moving away from the equities markets. Something is something bad is brewing because the stock flows are going out and because gold's skyrocketing. Both of those are a warning sign to an investor. So sometimes the best move is to do nothing is to move to cash and let the chaos hit and just be happy you're not part of it and then you can regroup uh once there's a new opportunity. And I think that's a point that you've emphasized for us many times in the past. So, thank you for going over that again and it's a nice place to end on unless you had any final thoughts that you would leave investors with right now. >> No, I think you nailed it with all your questions. I think we covered we covered the gauntlet there. >> Yeah, I feel like I I know what you're doing. So, thank you so much for coming on once again and hope to have you back soon. >> Thanks, Charlotte. Always a pleasure. >> Of course. And once again, I'm Charlotte Mloud with investingnews.com and this is Christopher Muan. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]
Chris Vermeulen: Gold Signaling "Massive" Equities Correction, My Strategy Now
Summary
Transcript
[Music] I'm Charlotte Mloud with investingnews.com and here today with me is Christopher Muan, chief market strategist at the technicalraders.com. Thank you so much for being here. Great to have you. >> Always a pleasure, Charlotte. Thanks for having me. >> Of course. Really good to be catching up with you and there's plenty to go over today, especially when it comes to the precious metals. If we start off by taking a look at gold, it was doing really well when we last spoke all the way back in April and even better today, trading at or near all-time highs. So, I wanted to take a look at the charts with you and ask you what you're seeing here. Do we have potential for gold to go higher in the near term or do we need to see a pullback, a correction of at some point right now? >> Yeah, sure. I mean, I can share my charts if you want. I can uh show what I'm seeing here. And if we take a look, just uh pull the charts. If we take a look at the charts, we can see gold has just been rocketing higher. I mean, really, for the last couple of months, and we're in this, we're in this phase now that's really exciting. I mean, this is what precious metals investors have been waiting for for years. It's slowly been unfolding all this year. And now we're in this parabolic move in terms of gold, silver, miners, platinum, and platium. are all starting to really come to life. Uh gold's hitting all-time highs. It really doesn't matter what the stock market does. It doesn't matter if the stocks go up. If the stock market goes down, money just keeps going into gold. And so now we're at this this phase. Actually, in fact, if we were to look back at 2007 on the left chart here is 2007. The stock market put in a top and it it sold off 50% or 55% when we got into the correction. Now, this yellow line is gold. And what's really really interesting here is if you were to go just before the stock market peaked, which is where I think we're kind of right now on the verge of a massive correction in equities as gold right now is the the the fleet to safe haven. We saw stocks and gold go higher just like we've seen here on the righth hand chart where we are right now. Stocks and gold have been going higher. The fact that gold's been outperforming is telling us something big and bad is going to happen. probably not just in the United States or Canada, but more or less globally. And we're going to see a big financial reset. So, gold is warning all of this. And what we're seeing, you know, in the markets is this this feeding frenzy. Now, gold is the favorite play. Same with silver. And now we're in this phase right now where the stock market is starting to sell off. And now when money flows out of stocks and it's got to go somewhere, money's always looking for a return. And so now every time we have a down day, just like you and I are speaking right now, equities are down. Gold has shot up over 2 and a.5% today, which is a huge move for gold. And so now, now this is telling us where we are right now on this chart is very, very interesting because what could happen next could be a very big reset in stocks. And temporarily, this is this is what I think is the last big push for precious metals before it it stalls out. So, I think gold and silver are going to continue to take the lead. They're going to pick up more speed and shoot higher for potentially the next few weeks. And where's the top in metals? I don't know yet. But, um, gold could very easily run up to 5,000. Silver could run up, who knows, into the 70s or 80s. Silver, but the stock market, I think, is on the verge of a big correction. And so, money is going to start moving out of stocks and moving into precious metals even more so. So, it's pretty exciting this whole big scenario that I think is unfolding. >> It is. It is very exciting and it's interesting to see those signals that you're mentioning in terms of what gold is telling us about what's going on. If we take a little bit of a closer look at gold, I'm wondering where you're seeing support and resistance for the metal at this point. >> Yeah. Yeah. Well, if we if we look at the charts, the last real measured move where we could get a projection of where price should go is we've we've already blown past that. So, for for example, we had a recent uh extra little trade that we put on when gold broke out of this large bull flag pattern. We we got long, we pulled a little profits off here, and we got the rest out right over here. So just based on this big chart pattern, we're now somewhat in no man's land in terms of the big stage of where the next level could be. Now to zoom in, as you mentioned, we we can get a little bit more of a u an idea of where the next short-term level is. So we could just say, well, based on this rally going up to this high, this is using Fibonacci extension and this pullback. Actually, I need to go down to this uh this previous reset right through here. If we base this last rally up and the pullback, it shows where that next upside move is for gold. It's 438 or $4,383. That's the next measured move where it's probably going to have a little bit of a pause or hiccup or at least slow down for a bit. But other than that, when you look at the big big multi-year monthly charts of gold, we don't really have any upside. It's now somewhat in a little bit of kind of bubble territory. It's just kind of going parabolic. And when we look at it, and especially when we zoom out to see what happened during the last major wave, actually, we can go back even further. Let's just go right back to the last one we saw back in the 80s here. You can see these are these are very big parabolic moves where things really just shoot straight up and they kind of get dwarfed by by the price in some cases, but all of these they usually end pretty abruptly. But right now, we need to figure out where where it's going to stall out. And you know, everything in this space, the whole precious metals complex, whether it's gold, silver, platinum, platium, or miners, they're pretty much all almost all doing the same thing. They're going parabolic. And the problem with this, it's not like it's going to probably just roll over slowly and give you time to lock in profits. The problem with a parabolic move that goes straight up is they usually come straight back down once the feeding frenzy, once the momentum stalls. And you know, silver is actually a really good view of that. If we look at the silver chart, you can see how silver has spiked up each of these times. Both times they've sold off 70% or or 35%. And you know, when we zoom into these charts, uh you can see it's not like you have time to get out. It's really the market roll goes up and then suddenly there's like a m max exodus and and it goes it sells off very quickly. We saw the same back here when it didn't a last spike up into this this level. So, this is one thing I think investors are going to need to realize is yes, this bubble is exciting and it's amazing to watch our accounts just skyrocket kind of day after day, but this usually comes to a very abrupt end. And unless you're really good at picking a top, which most people are not, especially in a bubble like this or as this feeding frenzy phase, um you're going to have to accept that eventually if you do plan to get out, you're probably going to give back a good chunk of that. Um because you're not going to know the trend has turned until you get a big long red bar that says it's a reversal. And if you try to time the top, you might get out now and then realize it just keeps rocketing higher. This is the this is the problem, right? You have fear of missing out on gains, but then you have fear of taking a loss or giving back gains. And that's what makes this situation like very very unique. it. There is no perfect way to really navigate it other than potentially moving up your stops and locking in some profits. Um, however you want to attack that to try to minimize um, you know, the volatility that this will eventually bring to our accounts. This is a great direction to go in because as I'm reading the comments section on our YouTube channel, I see a lot of people who are excited about these moves, but I also see a lot of questions from people wondering, all right, should I take profits now? Should I plan for that later? How should I approach that? So, you mentioned a little bit about things that people can do. Anything further you would share because I think that's getting quite key right now. >> Well, yeah, for sure. I think it's I think it's the big thing like we had silver break $50 a barrel and I had I had emails people coming in saying it's broke 50 it's at all-time highs you know this should be a buy signal and you know there's there's a few red flags. So kind of before we get into how do you attack this there's a few interesting things that are coming into play. So when we look at the volume for silver it has been ramping up telling us that the majority of like the masses are starting to pile into it. It's starting to get attention. If we look at gold, uh, we're seeing gold volumes picking up. If we look at, for example, like GDX, uh, and this is the same with silver miners or sorry, if we go look at, well, GDX, GDXJ, silver miners, the volume has been picking up in a lot of these over the last several months. And when we step back and we look at some of these other plays like PL, platinum, and platium, they're doing the same thing. And so, all the signs are here that volume is piling in. It's becoming a little bit of a crowded play. And we are we do need to be ready for this pullback. And how do you go about that is is really difficult. It really depends on the type of metals that you own. Do you own a gold ETF or silver ETF? Do you actually own physical stored in a vault somewhere? Is this a long-term play? Is this a short-term play? Are you, you know, is this a trade or an investment? Right? So, there's so many different ways you need to think about how you're going to attack this. Now, as a shorter term trader, somebody who is who owns metals, miners, um, and it's easy to liquidate, meaning it's like an ETF or a stock, it's not physical stored away. I I think we're getting into this point where you need to start preparing, start moving stops up and and like that means like starting to layer in protective stops under some somewhat significant lows. Maybe not right under them. You might want to go a little lower because the market loves to pull back and and try and shake people out. But more or less, you need to start ratcheting up your stops because eventually we're going to see probably a few big red bars that are going to wipe out a lot of price action and you kind of want to get out as it rolls over and starts to break down on on the daily chart. Um, so that's that's one of the ways you can do it. Locking in partial profits and not feeling like you're missing out is a tough thing because people don't want to get out of something and then watch it keep going. So I always say like you scale out of winning trades over time when we're in this market environment. So you're locking in profits and you always have, you know, a little bit in the game and eventually you'll have a smaller and smaller position because it keeps moving higher and higher and you keep trimming and locking in more profits and your protective stop will slowly keep following it up. So, that's how I go about doing these things as they slowly scale out. And I think one thing a lot of investors get stuck up on is they they want to be all in and they want to make as much as they can. They don't want to get out too early. But that always equals a volatile a really big roller coaster ride in your portfolio because if you're all in then you you see your account grow but then when it rolls over and you don't have an exit strategy and it goes down very quickly your account you know growth line is all over the place. Whereas if you get into a high probability trade you scale out slowly as it goes up and protect it. Your account kind of grows up and then when there is a pullback well you've already locked in lots of profits. you have a smaller position. So, when it rolls over, it's not doing as much damage. Uh, and it creates a nice kind of steady growth. That's what I'm I focus on is protecting capital from volatility and allowing us to grow. No matter what market condition we're in, up, down, sideways, there's there's always an asset to go to. So, that is the best way to go about it is to mentally know that you're not going to make the maximum amount. Nobody can unless you pick a bottom and a top perfectly, which is really never going to happen unless it's a fluke. So, you just need to be prepared to watch it go a little higher with a smaller position and run up and not you can always buy it back later. That's what people don't understand. And who really cares if you buy it back later at a higher price? For example, you could you could lock in, you know, profits here like we did with our gold trade at this the same time. Silver continues to run up. Well, eventually silver is going to have some type of correction and build some bull flag, something that gives us a new upward trajectory. Um, this is silver miners. I'm I'm just drawing as an example. And after it pulls back or trades sideways for a while, it's restabilized. And when it starts to break out and run higher, you can jump back in and and get in while it's like going to generate returns right away versus holding it through the volatility and the selloff. And you just never know which pullback is going to turn into a major market top that it might not come back for years. And and that's kind of the feeding frenzy we're in right now, I think, with gold and silver and miners is actually large cap gold stocks are a really good example. When you go back here and we look at the monthly chart, I think the mindset of a lot of investors is a lot of people have held it, you know, from 2010, 2011, they've been through this. It's, you know, slowly come to life and just finally a lot of investors are finally making money on their trades. A lot of people bought, you know, way back over here and this is it. They wait they wait 14 years for it to come to life and then in three bars, three monthly bars, it the trend might be coming to an end already. And the problem is they've like, well, I've held on for 14 years. This trend is just starting. Reality is the chart is showing that it actually might be just coming to an end. And so people think it's just starting and they're planning on just holding it for a long time, but it might actually end up being very, very costly because if we were to fast forward this chart, I mean, nobody knows where the top's going to be, but eventually it could come right back down and it could stabilize and it could be down here. Like look at the time frame. These are years across the bottom. Monthly chart patterns are big. You know, it might fall out of favor for for years and build a a 2-year bull flag trading sideways before it goes higher. So, um, that's the big catch is people who have been in this have been holding on forever. And in three green bars, it goes from being a good trade to it's actually now kind of highly priced. It's the a momentum trade. And once the masses start to sell shares, we could see it drop very quickly. So, you just have to be mentally prepared for a market top and how you're going to address higher pricing because you can't just buy and hold. uh unless that's the style of investment you are, but it's you're guaranteed you're going to ride a roller coaster with that strategy. >> This is really important, I think, as I was already saying and kind of exactly the direction that I wanted to go in. I wanted to ask you, all right, so we're talking about the short term. We should be prepared for this pullback. You should think about adjusting your strategy so you can perhaps get out. But if we look longer term at gold and silver, any further thoughts you would share on where we could go because I think there is a lot of talk about how this is just getting started there. There is more potential and for you I'm also wondering so you are you're looking at the charts you're looking at patterns you're looking at history and we are in kind of this uncharted territory where we haven't been at these levels. So just curious about any further thoughts you'd add. Yeah, I mean we can look at using Fibonacci retracement which I love Fibonacci because it gives us the whole universe pretty much runs on the Fibonacci theory and the the golden ratio. So looking at this chart, this will give us a projection of of what I think could happen going forward. So we had this gold traded sideways for a long time. This was back in 2006 2007. During this time stocks rallied, real estate went ballistic. Nobody wanted gold. It was boring. And then suddenly out of nowhere, gold started to run higher. And it was telling us something big and bad was going to happen in the economy, which it did. We had the 2008 financial crisis. Well, based on this rally up, typically the market wants to pull back anywhere between 38% and 61% of that move. And so this tells us using Fibonacci retracements, when gold gets down into this spot, we should be looking for it to find support. So, we can we can take that forward and look at the next kind of level here. Uh we can go back and we'll just go right to where we are right now. Let me just zoom this out a bit. If we were to take a look at this last rally of where uh gold could could pull back from here, depending where the top is, obviously if if gold does keep pushing higher, the middle ranges will will move up as well. But at this point it is saying we could see gold fizzle right back down into the 3,300 you know potentially all the way back down into the 2600. And if we if we just grab what what percentage that is that is about 30 35%. And interestingly enough if you look at the 2008 financial crisis gold actually pulled back it was 34%. If we look at the the previous selloff and pull back here it was about 44%. So, we just need to figure out where once gold puts a reversal bar in, then we can drop this on and be like, "Okay, this is where the next support level is for gold where we could look at it." And again, if it drops down there, I it could spend years building a new launch pad and working itself up before it goes higher again. So, with that said, if we go back to the comparison chart of 2007 and 8, let's just look at that financial crisis. we saw the stock market crash. Uh gold pulled down 34% during that crash, but then gold shot higher and took off. So, if we were to fast forward to where we are right now, um I I could see the stock markets starting to roll over and potentially having a a big sell-off. And I think gold will eventually I think gold's going to push higher for a little bit longer, but I do think gold will eventually pull back and and and it'll pull back to one of these levels that we just talked about. I think we could see it down towards that 3,300 potentially. And when it gets down to that level, uh it'll be very, you know, eyes on the charts going, okay, let's see if it can build a base and reverse direction. Because once it does that, I think we're going to be something like this. it'll be the the um 2008 bottom. This huge multi-year run, I think, will be the start of the multi-year run for for gold. So, again, if I was to just draw this out, we could potentially if if gold rallied, you know, 180% from there, say gold comes down to this mid zone, we could go 180%. I mean, we're looking at, you go way back up here, you're looking at $8,500 gold. So, there's just there could just be this big hiccup that is going to catch a lot of investors offguard. And that's what we're kind of I'm trying to mentally prepare people for is we have the perfect setup and the feeding frenzy right now in this space that it actually looks like we're about to step into one of these sharp pullbacks, but it this pullback will be, I think, the ultimate opportunity before it it takes off. You and I talked about this probably a year or two ago. I've been talking about how when the stock market and the economy tops and we have a reset, gold is going to pull back and then it's going to have that big multi-year run. And so this is what I'm I'm kind of waiting for. In fact, I'm I'm I'm very excited for the stock market to correct and a reset and for everything to do this because after this there's so much opportunity in the world in business, in equities, and gold and miners once we have this this reset. So that's that's my outlook on on gold and silver will follow suit. >> That's exactly what I was going to ask you. Is is silver a similar situation there playing out in terms of the price? I think people are especially interested in silver right now just because we're at this level that we've really only seen a couple of times before. >> Yeah. I mean, in reality, if you depend how you look at it, like I'd be more excited about gold because it just keeps hitting all-time highs. And we're like, well, silver, well, heck, it was here, you know, 45 years ago. So, it's just it's just hitting resistance again. It's actually not performing that well in the grand scheme of things. Other people will say, well, yeah, it's still down here, and with inflation and all that stuff, silver should be like $150 or $400. I've seen some pretty crazy high pricing for silver. Um, but silver will follow suit. But you know, silver's extremely volatile. I mean, if we look at the 2000 um 2008 financial crisis, it fell like over 60%. Um COVID, it fell fairly sharply. We saw, you know, it it has big big corrections along the way. So, um it it's going to be a roller coaster ride. This is what happens. If you do the buy and hold and you you just you buy into the overall um theme of precious metals being a safe haven, you can end up riding some pretty big roller coasters and have like a decade here and there or multiple decades of no returns where I just really follow the money. I'm like, "Hey, if it's running, I want to be part of it. If it's not, I'll get back to gold and silver later." Right now, like we're long long I'm long metals, physical metals, but eventually I'm going to sell some out. I'm actually getting closer to exiting a large portion of my physical metals once I start to see the charts starting to break down. And I do plan to reby later um going forward. There's there's some huge gains on on paper that I kind of want to lock in. And I don't I never really have that feeling of of missing out too much. I don't mind if things take off. There's always another investment. There's always another sector or asset that I can take part of. I I hate to hold something that goes straight up and I know it's parabolic and I know, you know, it can come straight back down. I hate to hold through that. That's kind of my specialty is being a technical trader, following price, managing positions, and I don't want a roller coaster ride with my my investment capital. I own it when it's going up. I get out of it when it's not. And I just I just hold whatever asset at any given time is the best one to hold. I think that's a nice reminder because maybe people think they only have one chance to get it right, but no, you can you can come back to it later just as you said there. >> For sure. >> Right. And I want to touch a little bit more on what's happening with the stock market because you're right, we've been talking about this for quite a while about how we need to see this correction. And my question, I think, is how has it managed to hold on so long? >> Yeah. Well, I mean, there's quantitative easing. There's I mean, we have we have this new phase, right? So, we're we're in this phase. If we were to look at the stock market stages, so I I believe we're kind of entering this euphoric phase right now. Um euphoric phase. You and I have mentioned this before. I believe we're in this like stage three like the markets are putting trying to put in a major top here. But what's really interesting is the markets keep going higher because we have some huge heavy weights, some tech heavy weights pulling things up. So precious metals tend to come to life right near a stock market top. They're outperforming. We've seen this over and over again. That is that's what's happening there. But if we take a look at the business in the economic cycle, which is this yellow cycle, you can see we're in this innovation and adaptation phase. And the innovation right now happens to be AI. Everybody's bringing it on board. The AI companies are the big techs. They have the heaviest waiting in the stock market and it's the crowded play. Everybody wants to own AI. Everybody's funding AI startups. Uh and that's that's just keep creating this feeding frenzy and the the big mag sevens are more or less dragging the indices higher because of all this excitement. But the reality is most stocks are still really struggling. A good example of this is you know people who got into like the ARC ETFs. If we look at the ARC ETFs, it's a perfect example of the phase that that we went through. So that chart I showed you, you have a you have a stage one and then you have a stage two and then you have a blowoff phase and this stage three top and then it breaks down and and now we're starting to see them come back to life. People are piling into small caps and micro caps. And this is one of the red flags that the market is in this feeding frenzy of people thinking, hey, just get into the small caps. I do think we're going to see this top out and we're going to roll over and we're going to see the stock market sell off in a big way. But when you look at, you know, the majority of growth stocks, they're nowhere near the highs that we saw back in 2020 and 2021. Um, so people just need to be aware. We're we're in I believe we're in this final stage is we just need the momentum to stall out and gold going parabolic and really taking off with big volume across the board in silver, platinum, platium and miners is telling us that everybody is now fleeing equities today. The equities are down and and everybody's piling into the precious metal space. That's just a shift of ass of assets moving from or money from one asset class to another. And so as the stock market rolls over, uh, they're going to, I think, continue to push the miners and the metals higher, and that is a warning sign. So, um, yeah, I mean, I just can't I can't say it enough. People just need to be aware and have an exit strategy for when it comes to an end. >> Absolutely. And one one small follow-up question here on the stock market is who who is participating right now for the most part part in the stock market? And the reason I ask partially is because we're seeing more and more mainstream headlines about gold, these big firms suggesting higher allocations to gold, things like that. So any comments there? >> Yeah, I I think it's kind of part of the feeding frenzy. I mean, just like when Bitcoin, you know, topped a long time ago, years ago, the the the kind of first major serious peak. I mean, it was on the radio, buy Bitcoin now, buy it on your credit card. you know, once everybody starts recursors and money managers are in a really difficult situation. It's almost like they can't win no matter what they do. Uh, unfortunately, they want to look good. They they they need to move into the assets that are moving. And so, gold has had this huge miraculous rally. It's outperforming. And so, you naturally have to people naturally want to get into it. And the advisor is like, well, it's trending up. We should get into it. And so usually I think you know they the masses get in kind of near a major market top and I think I still think there's room to go when advisors start moving investors money in that's going to help push price even higher but eventually that will fizzle out and it's just one of those signs that a lot of people are getting into it kind of all you know the fact that it's gone parabolic and and people are just starting to recommend gold believe it or not that is you know not not the greatest sign. Um, when we when we look at the stock market, you know, we've got this this big bar that we had from last week and this is we we have this bearish price action. This is called an inside inside uh bar here. More or less, we have a big down bar and then price is kind of drifting and working its way up. Usually, this pattern resolves with a great big red bar back to the bottom and then usually it continues to to go even lower. So these last few days stuck inside this giant red bar are bearish and it's just the market got hit really hard. Now it's in shock. Investors and traders are wondering like which way is this going to break? Is it going to continue to rally or is it going to break down? Based on our technicals, we're I'm seeing the market's going to want to break down. And for for a couple reasons, if we take a look at this color-coded chart of the NASDAQ, this is the market sentiment. This is telling me it's my own custom custom tool that says, "Hey, even though the stock market was hitting all-time highs, big money investors were rotating money out of the market. It's like they knew something was coming. Regular investors were piling in. Big investors were moving out. And then we got big bad news of tariffs." Well, here we are right now. We've I've been sharing this and saying, "Listen, we have big money moving out of this stock market. Yet the everyone you know is buying small caps and micro caps and and miners. Uh you know we have this big shift happening underneath the hood of the markets and now we've got this this bearish looking price action which could lead to a very big selloff. The market and the smart money is telling us something is is about to happen and it doesn't look good. Uh, and if this does happen, I think it'll add fuel to the fire for gold because pump money is going to come out of the stock market and people go to whatever else is working at the time, which is gold, silver, and miners. So, that's kind of my take on the markets right now. >> Yeah. And as we can see, it all it all comes together with the precious metals side. I do I want to spend a little bit of time on platinum and palladium as well, which I think you mentioned a couple of times. Definitely, we're seeing prices moving there. There's more interest. I'm seeing questions about these metals as well. A lot of what I'm hearing, I'm hearing platinum mentioned more as an opportunity versus palladium because there's the Russia supply risk for palladium, but I'm wondering for you because you take a charts perspective, what are you seeing for both of those metals? >> Yeah. Well, I would say, you know, people have been piling in. It had a big breakout. really it's getting close, you know, to running out of steam along along with pretty much all precious metals, the gold and silver. If we were to just look at this last run right through here, using Fibonacci tools, we can get a gauge of where that next resistance area is. So, it is telling us that somewhere up here around 1,900 is going to be the next measured move. That's where naturally the universe, the the people in this asset are going to stop buying and the the selling is going to start. Now, that also happens to be a previous high um on the charts, which is pretty significant. When these two line up, you better be careful when it gets up there. It could get rejected very quickly. There's not a whole lot of upside left. There's, you know, maybe 10% upside in platinum. So, that's my take. You know, the majority of the move is done in my opinion for the moment. Now, if we were to look at Platium uh and take a look at that, we can see just let this load. You can see it still has a bit more potential in terms of it's nowhere near the highs in the past. It's it's really starting to rocket higher on the monthly chart. If we do zoom in on on the monthly chart a bit and look at it, we can also give this this projection and it looks like it it's hit kind of its shortterm move just based on percentage. So, it's already kind of blown past its 100% measured move and it's hard to get a gauge of where the next level is. And if we draw a horizontal line from where it is right now, it's gone up to here. And here's our 100% measured move. You can see this was a very significant level. It was a major low in the past. It was a low here and then it became a top here. And so now we're back into resistance. Um so again, I I do think most of the upside for these two metals are are probably they're they're running into overhead resistance um around this level. Gold and silver I think are more so have have actually more percentage upside than these and um they're because they're more mass you know mass psychology you get more people wanting to get into gold and silver a lot of people will be like I don't know how to get into platinum or platium so I just don't think you're going to get the same move into this space but they have been performing very well >> got it I think that makes sense so we have stock market flashing warning signs for us we have precious metals perhaps getting to the point where they are running out of some steam. So, if you had to sum up your strategy right now, how would you put it? Are you focusing on on getting into cash? What are you looking at doing? >> Yeah, good question. So, we moved to cash this week. Uh we have liquidated. So, we are holding we've we've sold one of our gold trades. We or our only gold trade that we had for a short-term trade. We have now moved to cash with our equities a few days ago and we're now waiting in cash just earning interest waiting for a new opportunity. Is it going to be, you know, the markets if it sells off? You definitely don't want to be holding stocks. And it, you know, I think precious metals has the upside. As a long-term investor, I own physical metals. I believe gold's still going higher. I'm not looking to sell long-term investment for gold yet. But as a short-term trader, we hit our target and now we're in no man's land. When we hit targets, I always execute trades and I get out and because I I I follow rules. If based on the chart leading up to that trade says, "Hey, gold should go to this price. If it does, it's a it's a done trade." And so that's what we did. It was a quick 15% gain in and out. Uh right now, cash is king. I think other than long-term gold and silver investors, I think you can ride that move higher. But as a somebody with an equities portfolio, I think you're carrying a ton of risk. the momentum has rolled over. Insiders and big money flows are moving away from the equities markets. Something is something bad is brewing because the stock flows are going out and because gold's skyrocketing. Both of those are a warning sign to an investor. So sometimes the best move is to do nothing is to move to cash and let the chaos hit and just be happy you're not part of it and then you can regroup uh once there's a new opportunity. And I think that's a point that you've emphasized for us many times in the past. So, thank you for going over that again and it's a nice place to end on unless you had any final thoughts that you would leave investors with right now. >> No, I think you nailed it with all your questions. I think we covered we covered the gauntlet there. >> Yeah, I feel like I I know what you're doing. So, thank you so much for coming on once again and hope to have you back soon. >> Thanks, Charlotte. Always a pleasure. >> Of course. And once again, I'm Charlotte Mloud with investingnews.com and this is Christopher Muan. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]