‘Financial Crisis’ Approaches, Bitcoin To $100k In ‘Market Bloodbath’ | Chris Vermeulen

‘Financial Crisis’ Approaches, Bitcoin To $100k In ‘Market Bloodbath’ | Chris Vermeulen

economic momentum is waning says our next guest how is this going to translate to the markets well right now Bitcoin for example looks strong it’s just surpass $70,000 so we’re going to be talking about risk assets like Bitcoin tech stocks and the S&P 500 and a few sectors as well with our next guest Chris for Mullen Chief Market strategist at the technical traders.com for contacts Chris to still long the markets but he sees a financial crises Brewing this is what he told me offline we’re going to be talking about what this financial crisis means so uh yeah exciting episode tune in novium this episode is sponsored by novium a very interesting pen stay tuned for a message it’s a hover pen it’s probably the coolest pen I’ve ever seen so stay tuned for a message on that Chris welcome back to the show yeah thanks for having me David always a pleasure well let’s just start from what I just said you told me offline you’re seeing signs of quote unquote maybe a financial crisis Brewing so walk us through these signs let’s have a discussion all right sure yeah let’s uh if we take a look at things from a really high level there’s there’s a cycle that goes through pretty much everything in life but the stock market the financial um risk assets we have obviously Peaks where if you were to implement Capital near the top you have maximum risk which I believe we are in this uh opportunity right now of if you put money to work you could lose a lot of money or suffer a heavy draw down and then we have cycle lows and understanding these Cycles is part of it and I believe for for a while you and I have been talking about this David that uh more or less we’re kind of in a stage through topping phase and there’s four stages to the market long story short um we don’t need to cover all the details but I believe we are in this topping phase things are starting to happen in terms of certain assets coming to life um and and different momentum things shifting but as you mentioned some of the big picture when we look at what’s going on with some economic data and and and economic um uh Cycles here we’ve got a the unemployment rate when it crosses above the 24mon moving average which is the red lines on this chart we pretty much always have some type of financial correction financial crisis something we never really know what it is until after it’s happened but we just know that Rising unemployment typically leads to uh weaker times and what’s interesting here is and I mentioned this many many months ago is you know eventually this this whole Beast of everybody’s spending money and buying toys and traveling and and everything just being so overpriced yet people are still willing to pay with all this inflation uh they’re going to run out of money people are not good with money in general they’re most people live paycheck to paycheck I think there’s a stat out there 52% of Americans have less than $2,000 in their bank account at any given time uh so you know that that’s one of the that’s a major problem and with um unemployment starting to rise there’s going to be more people running out of money because they don’t have any and what’s really interesting David is when we look at the aggregate um EX exess uh Savings in people’s bank accounts uh from covid it shot higher people got all kinds of money funding businesses did well savings just skyrocketed for people here we are now 2024 we’re in the hole and I just read a report about how credit card debt is starting to Skyrocket because people have burnt through their savings now they have to borrow money and they’re living you know on a credit card uh and this is this is the beginning of you know I think a major downturn in the economy of um sales for businesses are going to slow down oil’s oil is starting to get hit really hard which maybe we want to touch on later but I think that’s because people are starting to see the economy is slowing I think a recession is coming fewer products sold means fewer product shipped oil is used in most products in some way at least to ship it uh so all these things are coming around and precious metals are coming to life which are one of those last Commodities that do very well just before we see a recession kind of our stock market decline kick in so those are some of the big picture kind of things that are running out of have run out of steam and have actually change directions as people’s savings are now and uh in unemployment before we move on to the next topic I want to spend a minute to talk about our sponsor today novium which has a really unique and interesting product possibly the coolest pen I’ve personally seen it could be the perfect Father’s Day gift or a cool thoughtful office president for a colleague or a manager the hover pen defies gravity and levitates Ates on a stand with the use of magnets making an elegant statement for any office or home setting this pen is crafted from aircraft grade aluminum which gives it a polished finish and it’s available in four different colors the hover pen is refillable and offers a more comfortable and pleasant writing experience than most other pens due to its ergonomic design no vm’s hover pen was also one of Time magazine’s 20122 inventions of the year and it has recently wrote out its hover pen future Edition a found a pen like no other I’ve seen or you as well probably so act now you can get 10% off your hover pen using the code David Linn free international shipping is also available to most destinations so use the link in the description down below or scan the QR code here just check it out look at it take a look for yourself I think the pen speaks for itself good summary Chris I want to talk about savings and what this means so you’re right it’s come down now there’s a few ways to look at it first is that while maybe people are spending money that’s why their savings rate is going down that could be good for the economy right you want consumption to go pick it back up especially since nobody was spending money but on nobody but people weren’t spending money during the pandemic because they were locked down therefore the economy didn’t do too well the other way to look at it is you’re right they didn’t they don’t have money to spend they have to use their credit card and actually this stat May support that point delinquency rates on credit cards are rising they have been they’re now at the highest level since 2011 so which makes more sense to you Chris well I mean I think I think people are are spending money on cards and with unemploy employment going up there’s going to be more people having more delinquencies we’re already starting to see that even on on mortgages uh for homes uh so all of this kind of is connected as as people run out of money um and they they spend what they had they’re going to go to debt and then of course they’re not going to be able to pay their debt because they don’t have jobs or don’t have enough income they can’t manage it they’re outliving their their their income level whatever it is uh I think I think all these things are are pretty accurate as what’s going on I mean I would say um the momentum has shifted from kind of a Feeding Frenzy of people as you mentioned not being able to spend money during the first little bit of covid uh and and saving up and it created this big big bound but now we’re actually lower than we were so people are are poor than they were before other than assets that they hold like a home or something like that but uh I think this is a very negative sign for the economy at what point do you think this is going to start translating into the stock markets this downturn in the economy that you’re talking about uh I think I think it already has I think um I mean really this chart actually topped out right almost when small caps like the AR ETFs and and a bunch of different like small cap stocks in general topped out uh simply because aggressive uh a lot of aggressive Traders move into the market when they’ve got excess money they want to bet and buy these high-risk or lotto ticket type of stocks uh and as soon as as soon as uh more or less this started to uh top out here I think we started to see the the the market start to sell off and um you know this this dropping down in value you’re right it it has an angle that it could be good for the economy as this drops people are spending money stimulating the economy which is true uh but for when it comes to the stock market I think uh I don’t think this money was really flowing so much into the stock Market I think this was flowing more into real estate and and potentially some different assets uh versus just the stock market uh so that’s kind of kind of kind of my take there I want to come back to the markets and fundamentals in just a bit but this is interesting news I need to get your opinion on or reaction to so roaring kitty is back again we talked about him last time he’s back on the news uh Keith Gil is his real name uh ER trade the pl uh trading platform is now having internal discussions according to CNBC about whether to ban Keith Gil uh the mem stock Trader who just disclosed a big position in GameStop from the trading platform over concerns regarding potential Market manipulation The Wall Street Journal reported on Monday so GameStop as you know spiked earlier this week uh because Keith Gil went on social media and disclosed he had I can’t remember exactly how much but he had a lot of money um in that position and then things pumped the next morning and then it came back down so uh this is this is what’s moving the markets we’re talking about the markets it’s things like this not the entire Market Per Se just one particular stock uh but this is what and by the way yesterday I don’t know if you’re aware but uh there was a technical issue um at the New York Stock Exchange and share and stocks like Berkshire haway shares a Class A shares were down 99.7% at one point I think that issue got rectified but I someone sent me a screenshot of that that you know must have given people a heart attack so I just want to get your reaction to what’s going on um this week yeah when it when it comes to GameStop type of stuff I mean I think those are they’re fairly contained it’s one stock it’s a bunch of hype there’s always people breaking the law and breaking the rules in the financial system uh so I don’t put too much waiting I don’t put any waiting into individual stocks around that when it comes to the the NYSC having um uh the glitch and and obviously that stuff I think that could have been part of why we started see uh the stock market sell off we saw some pretty good selling um in the morning I think it was 40 stocks got halted and all kinds of stuff you know this just reaffirms like you know the FED not that long like just before what was it um Silicon Valley Bank went you know more or less bankrupt um the FED came out and said oh everything’s stress test the banks are solid and then like 48 hours later a bank goes bankrupt um and they have to like bail it out this just goes to show how brittle like the financial system is a little glitch and one of the Sol most solid companies Berkshire or Investments you know can lose 99% of its value um so you know I think things are really fragile I think there’s going to be a huge banking crisis I think there’s there’s all kinds of stuff that is going to kick in and this is why it’s super important I think to protect your capital and not just ride out any storm because this storm that’s coming is going to be just like all those other nasty storms a lot of people still remember the 2008 they remember the tech bubble Bur first um those are the two that I have lived through and uh we’re going to have something just like it again either you protect yourself or Andor profit from it or you ride out an absolute nightmare of a of a scenario and who knows what’s going to break every time there’s a different reason for correction stock market might break there could be a banking system break again could be a combination um so I think it’s just important to to be be aware that this is part of the game um nothing is is 100% % safe but you definitely have to be aware that we’re getting into fragile times even even the Toronto Stock Exchange I think they said the volume was down I can’t remember what they said but it was very very low they haven’t seen low daily volume levels on the uh on the TSX at this level for a very long time there it’s just dried up no one’s really that interested in the stock market right now and the whole AI craze is getting re-energized a bit with Elon you know coming out with his own resparking that in Nidia and uh Intel and I think um AMD now trying to really get in there um take some of that market share so it’s definitely skewed and this is what happens during a stage three topping phase is we have these crazy pops and drops and volatility yeah and you know something will be hot one week and then it rolls over so these are all the signs that we have increased volatility and stability in the market and it’s kind of you know really hanging on to what Nvidia is doing or the semiconductor space is is doing a lot of the heavy lifting okay so you mentioned banking crisis I know that’s not what you’re calling for you’re not saying it’s going to happen now you’re saying that’s one of the nightmare scenarios but walk us through the logic of how it could happen what kind of banking crisis are we talking about Chris yeah I mean every like if if we were to kind of just kind of walk through it through a basic highlevel logical way is we have unemployment rates starting to rise people have now burned through a lot of their savings yeah um they moved to credit cards a lot of banks have their own credit cards um eventually people can’t pay their credit cards so the banks take a hit for defaults eventually then people can’t pay their mortgages and they start to default now the banks are stuck with homes that they’re not getting paid for and then home values start to fall and then the banks are backwards on homes and foreclosures and it’s just it’s just a a big wave of just bloodbath after bloodbath and the banks are the kingpins they just they take all the debt and then they spend it all and they don’t even have the money but they lend it out and um they go backwards on it so it’s just this big process and this wave happens like over and over again but they generally happen 5 10 15 20 years apart depending on on the type of wave that it is and most people don’t realize it or they they don’t pick up on it because they forgot about it or they haven’t lived through one yet um so it’s just a cycle when when when business when we go into a recession and businesses start laying off this this wave of default starts across the board and um it just carries through to the banks the banks are the ones holding almost all the debt at the end and if they’re not getting paid on their debt and those assets are falling in value you know there goes the banking uh the banking system they start to go bankrupt so that’s uh it’s a big problem let’s take a look at some risk Assets Now Chris Bitcoin so starting with Bitcoin and then we get to stocks it doesn’t look like Bitcoin for now thinks there’s a financial crisis but we can talk about that we can talk about why it’s maybe moving in an idiosyncratic way and discuss where momentum looks like it’s headed so again $70,000 what does the chart look like to you in terms of what is next yeah so this this chart looks looks really good I mean in terms of uh it has put in a major basing formation if I was just drawing the chart we’ve got a really critical level right through around this level on the chart so it carved out a major base it built a Launchpad which you could say this is a cup and handle pattern which is one of the strongest patterns uh when it’s built in a basing formation like this uh and then it broke out of that level and now it is is it’s rocketing higher so there there’s a few interesting levels that we can look here I think the the most interesting one right now is if we kind of zoom in a little bit I love to use Fibonacci extension because it it is I found one of the most accurate ways to forecast where this price momentum the strength should carry us and if we apply Fibonacci extension to this chart pattern uh it gives us some upside targets of where Bitcoin should go so the next stop like this rally here this pullback and rally and now we’ve got this next Little Bull flag or or pennant formation these are all um the uh bullish patterns pointing to the next level which is around around $80,000 you can see 70,000 in change um if we hit that level and it has a little bit of a pause or hiccup there for a few days or a week or so uh then we’re most likely going to go up and hit this this next Target of 90,000 um but depending on how far back we want to go so that is a conservative view I believe Bitcoin wants to go a lot higher um if we were to kind of uh look at this uh much larger picture here whoops uh and use the monthly chart in Fibonacci this is kind of hard to see I kind of messed up the charts here let me just uh yeah that’s okay well while you’re doing that it looks like it’s gone above the uh upper end of that uh moving average does that look like an overbought indicator for you um like over here yeah uh no it’s actually a high momentum move if it can hold above this light blue line that’s that means it’s in a high momentum move and it it it’s primed and ready to keep going so if we were this was the basing formation I drew on the chart on that daily chart I drew a line right across this level on the daily chart so this was the base that it Formed if we apply Fibonacci extension which is the start of this breakout rally and down to the pullback we saw just um a month ago this projects for where Bitcoin could go which is dramatically higher this brings us up to about 87,000 and 106,000 um so I mean this this this J pattern is very strong and I would say Bitcoin is rising more so like I’m not a Bitcoin expert but it is seen as an alternative Curr currency gold is seen as an alternate currency both of them are going up they both see problems in the markets and I think that’s why money is flowing into these they’re like hey I don’t trust the dollar I don’t trust the stock market um and I think that’s why they’re going up is because I believe they actually both see a crisis coming and we typically see gold do very well near the the right at the end of a stock market major top which it’s doing and Bitcoin I think is carrying that same characteristic uh and I think it’s also a lot of the same investors people who get are into gold or into Bitcoin um because it’s an alternate currency right and um a lot of people into precious metals don’t trust the system they don’t trust currencies so uh this is this is this is the upside potential there’s there’s a lot uh going here now there will be some resistance area at 100,000 typically on whole numbers like 100,000 there’s going to be um sellers lurking up there my general rule is if a Target is above uh a major whole number like 100,000 I usually opt in for this level to take partial profits or or move stops up be aggressive simply because what people will do and naturally do is if it rallies up here and they say hey if it hits 100,000 I’m selling my my Bitcoin I’m selling a chunk of it so naturally if it was to Rally up it’s going to trigger all kinds of people and it it could create a pullback and a consolidation for several months um or who knows it could create a bigger pullback but um that is that’s the next level I think we could hit a 100,000 on bitcoin um really over the next based on this chart pattern four five six months wonder if Bitcoin is also in a stage three topping pattern like it is with stocks so I I draw this parallel because as you know Bitcoin has been trading in tandem with the NASDAQ for a number of years now um in fact if you overlay the NASDAQ on top of Bitcoin you’ll know exactly what I mean so I wonder if you think if Bitcoin is going to go to perhaps 100,000 perhaps momentum is also favoring the NASDAQ and the big tech stocks for now as well what do you think uh yeah so I mean we have seen so this is going back to 200 and uh I guess depends on how far you want to go back but I would say bitcoin’s been following the bottom chart here is QQQ which is the NASDAQ so they both pulled back together and kind of formed a base and start to move up um yeah there there’s potential I mean I’m still long the equities Market I think the equities Market still has another leg up for another month or so I think we’re very close to an end for the stock market but the trend is still up people are still accumulating uh money’s still flowing in um I I I still put Bitcoin in its its own category I I picture the stock market as an asset class I picture gold as an asset class the dollar as a different and I picture Bitcoin as as its own I they may move in tandem at times but they still I I believe like you know if we were to to look at these charts um they they follow very closely but not always the same and Bitcoin I think is a lot like gold and gold miners and silver that at any point they can disconnect from moving with the stock market because gold miners sometimes move perfectly in sync with the stock market and then depending on the mindset and the fear levels it can flip on a dime and it’ll do the exact opposite stock market goes down gold stocks rally they become a defensive play so Bitcoin has that characteristics which I I see uh regularly some days um that it can disconnect so I look at it as its own Beast track it as its own value don’t put waiting into other assets um just focus on that one and it’s inter workings uh is kind of how I look at it all right well on that note let’s pivot to uh the stock markets now we I’m not talking about meme stocks anymore I’m stock about the broad stock markets uh how’s the S&P 500 looking is it the same thesis more or less as the NASDAQ it it is I mean it’s got a to me it’s got a very strong uh chart pattern I I think it’s kind of had a reset so more or less we had a major Trend reversal back here in November we played this big move to the upside but once it has a trend change you know it usually likes to have some type of pause or digest uh a little bit of a correction and I think we’ve seen the same we’ve seen the market reset we saw a bunch of fear we saw the vix Spike we saw Panic selling on the Pall ratio uh now it’s rallying up and it’s forming you know a pattern here that is a bull flag that is pointing to higher pricing I can see the SP 500 rallying about 5 to 7% uh over the next month or so uh which brings us in line same with the NASDAQ I see about six s% to the upside with the NASDAQ and that brings us in line with with seasonality the seasonality chart um typically shows the stock market tops out usually June to July somewhere in that window and this chart pattern says we have one more month so that brings us right to July which is right in the middle of the the time when the stock market uh can top out so I like the equities Market still um all the signs are there that I think the long-term trends and the economy is shifting gears and uh you know but we don’t trade we don’t trade data like that we don’t trade big picture stuff we we trade the charts follow price uh but yeah it looks looks really good you can see here on our 30 minute chart on on the left lime green means the market is like Panic selling it’s oversold and it’s usually When Buyers step in so we saw a wave of this and typically when we have a wave of this type of selling that’s when it’s cleansing the market people are bailing out betting on falling prices and then the market shoots off without them and takes off so we just had what looks to be a reset and now the market I think is ready to uh to move up okay so I think what I’m getting from this conversation we’re having today is that short to medium term you are still bullish and you in fact you said it’s you’re you’re still long and so momentum is still on the upside for stocks in this stage3 topping pattern stocks and risk assets like Bitcoin correct yeah okay so I think the question everyone’s wondering watching this is what indicators should we look for for a Market turn in other words a top and then finally a stage three correction uh yeah so depending on your time frame like we need we need the trend to turn down we need a lot of selling we need we need to see big heavy volume selling to the downside so we need a lot of damage to the Chart we need a huge correction to really kind of mute and and um kind of neutralize this this uptrend that we’ve since seen since November uh the pullback we saw kind of in April really is just it’s a really controlled pullback it was it was actually a very nice pullback in the market it’s reset things it didn’t do really any damage to the Chart but if if we start to see the market go and break below this 5,000 level on the SP 500 if it starts to break and close below there then I would say okay well listen we are now more or less uh you know we’re putting in some type of topping formation depending on how it wants to go you could say this is a shoulder this is a head uh it could form a bearish pattern here which becomes the other shoulder and it could break down this could become a a triple top or a double top uh but more or less David we need we need to see a lot of pressure we need to see selling back down to this threshold level and then um see if it actually starts to break below it and of course we’re going to want to see what other assets are doing during that time what is gold doing what are maybe utilities doing um what’s the dollar doing um you know we’re going to bring in a bunch of different stuff what are large caps or small Caps doing or dividend stocks all of those things will give us an idea of what the biggest investor is doing with their money and which which way that money is Flowing if they’re you know moving out or or moving in still and accumulating it’s interesting how you’re talking about a breakdown of the charts before you confirm a bearish bias right um you’re not saying let’s time the top you’re not saying these are the indicators that will point to a top what is your philosophy overall on timing tops and bottoms yeah that’s a good question so I think anybody who’s an active Trader or investor has all probably had one or two really good scenarios where you’ve you’ve bought a bottom made a fortune or you picked a top and shorted it and you made a fortune they are super hard to do you win like one or two out of 10 when you lose you lose a lot when you win you win a lot but it’s it’s not worth it so I’m all about you know uh identifying when a trend is losing speed taking off partial profits when it starts to roll over get out and get back in um I’m I’m All About following the trend and so I don’t care about trying to pick a top in the market I’m looking for these nice big trends generally from like you know November up into this area uh and then eventually when it stalls and runs out of speed and starts to go down based on our analysis then I just want to get out I don’t care if I get out up here I don’t care if I get out you know even down here I’m just looking for this safe middle Zone and to get that middle Zone you you have to get in later after the trend has already had a nice move up that’s when the trend is confirmed and then you ride it up and then it loses moment momentum and then you’re like oh I think it’s starting to go down and then eventually as it starts to go down and kicks into a downtrend we get out you know somewhere over here so we’re buying after the bottom we’re selling after the top that is how that’s how you do it like that’s really unless you’re get you want to guess and try and pick um you have to get in after a trend starts and get out when it’s confirmed that it’s over or else everything else really is just guessing and if you if you nail a few of those guesses you get this false belief that that you can do it and no one can really pick tops and bottoms consistently H so yeah it’s just an expensive game gets you it makes you more active get your emotions going it cost you a lot of money in the long run I know guys who have been trading and investing for 20 30 years they’re part of our newsletter and that they finally are like letting go of they don’t worry about the first rally like if you take a look at these these lows uh the market rallied like 7% in like a week and a half or two weeks and and we didn’t get in and you’re either in the mindset of we just missed a huge move we should have had that which those Traders generally don’t do very well because they’re expecting to pick the bottom or the trend changes gear and we move in and we catch the new wave that’s rolling through and we don’t care about the 7% and we don’t care about giving back you know five six% in a market top it’s just part of trading well on that note tell us about how you trade asset Reves what is that for the new viewers out there how does that work and you kept talking about protecting your Capital protecting your wealth how are you doing that uh yeah so more more or less the way I do that is if if you go to the technical traders.com you can go to our strategy asset reesing and you can see how we go about doing this but long story short is I focus on an asset hierarchy so we always want to own whatever is at the top of the list usually the index has the most volatility so we want to own it if it’s not favorable we move to a different asset class so if the stock market’s going down you don’t want to hold a whole bunch of different sectors and stocks they’re all going to go down uh so you might as well move to a different asset that’s going up it could be bonds it could be the dollar US dollar Index you might have to sit on the sidelines and cash if nothing meets our criteria and just collect your your on average you know 5% return a year right now um so we move through and we hold one or two ETFs at any given time we hold more or less one asset class at a time it’s either stocks bonds or currency uh and our alternate Position will be some in cash as we pull off profits um and so that that’s the whole focus is to only hold things that are moving up and and during covid this like our strategy here we’ve got them layered in like here’s the SP 500 as it broke down this was before we really knew covid was a thing the charts said hey get out there’s huge selling going on we got out of the SP 500 we moved into bonds because bonds matter criteria it rallied 19% in nine days hit our targets and then we sat in cash and we collected dividend in interest for another uh month while we waited for the stock market to strengthen and then we bought back into the stock market and rode it up for another 18% so at a time where most people are losing their shirts they don’t know what’s going on we not only avoided the crash we profited from the Skyrocket uh skyrocketing Bond values and then we sat in cash collecting interest when the whole world was falling apart at that point and we had no assets other than cash um so this is what we do is we literally just rotate to whatever asset is going up and as we move down this list as the markets get more wild we move to slower and slower assets meaning they’re less volatile we can rest more as the world’s getting crazier um and and that’s the whole point of the strategy and and this is kind of you know what it looks like is this dark line here is it’s I call it CGS the consistent growth strategy it just inches its way up the chart uh from the 2008 Market top we’re still outperforming the NASDAQ the sp500 the Buy and Hold and it’s just slow we have 5 to 12 trades a year usually one ETF position at a time and um we just hold whatever asset class is going up would you call yourself a would you call yourself a momentum Trader I would say more of a a trend Trader because we’re identifying Trends but we use momentum big big momentum behind the scenes to say hey this trend has momentum what’s the difference between a trend and a momentum um a trend means it’s trending in a Direction it’s going up down or sideways momentum is how much power is behind it does that Trend have a lot of money moving in is it moving faster is it is it trending up faster uh so it’s kind of the power behind something right it’s uh it’s just like when you’re in the ocean surfing you wait for those sets of waves those waves have momentum behind them they got power and so when we identify a trend if if there isn’t power behind it we don’t want to jump on a little Ripple just even though we know there’s a wave coming we’re like let’s wait for something strong where there’s a herd of people piling in driving that wave that that price action of that asset we want to jump on it when there’s you know when there’s a swell coming and right now are you saying I think you were telling me momentum is kind of fading behind this trend is that what’s going on right now in the stock markets yeah I think the long-term economic momentum is stalling we can see that I think with unemployment and and savings and all those things but when it comes to the actual stock market itself yeah I I we’re in a topping phase the longterm Trend momentum is starting to stall but it doesn’t mean the stock market can’t keep going up um so even though I’m I’m bearish and I always see this in the comments people are like oh he’s super bearish he’s always bearish it doesn’t matter if I’m bearish or not I’m trying to mentally protect and and and and prepare people for what could be coming no you know what it is it’s okay I I have to say something to the audience I know a lot of people don’t watch past the first minute and so the first minute of this interview is Chris talking about how the econ economic momentum is slowing please if you’re well if you’re watching this at this point please just watch the rest of it I think Chris is going to you know give you a much I think holistic explanation more rounded explanation than just the first minute but anyway yeah you’re right people are calling for you to be bearish but long term you’re bearish shortterm you’re not right how much cash do you have right now uh we’re 100% in the equities Market okay yes because that I ask you that every time because that rotates too it’s not always 100% great uh I want to finish off on a few um well just one or two assets so you mentioned the TSX the TSX is predominantly resourc driven so let’s take a look at oil WTI it’s been trading rangeb the last couple months what’s going on here uh so I’m looking at uh C the crude crude Futures here um I mean they they’ve completely fallen out of bed for for crude oil um we saw a bit of a bottoming formation uh formed through here and then it finally broke through and and it’s been trying to find support here over the last month and uh really just in the last few days it just refused to to find support OPEC kind of stuck their head out there and and did some production stuff uh now we got you know not the best economic data starting to come out with uh manufacturing numbers being soft so if production and and sales and things are slowing that means there’s going to be less demand and so investors are are dumping oil they they see fear they see slower times coming less demand um so I mean it is now in a downtrend it was it was clinging on it was holding on to this kind of in this support range for for about a month and we were waiting to see if it was going to find a market in rally here but now it has kind of broken down based on this chart pattern in fibon it’s set to go down to about 70 $70 a barrel over the next it could happen any day at this point the way that it’s going down but uh it has momentum here to get back down to these lows which will be a a fairly be a fairly strong support level it really goes through this chart way back uh in 2023 so if it does dip down here I have no doubt it’s going to probably find some support and bounce for a while but I’m bearish on oil it broke down and doesn’t look look the greatest here okay finally utilities I want to bring up utility xlu ETF yeah you have that ready already uh this is huge rally uh is that is that um people switching into a defensive sector or is there something going on beneath the surface yeah this is this is people money wants to move into a defensive sector obviously no matter what happens in the world we still need electricity running water all that stuff uh so people have been moving in there and we saw this in covid too we saw when utilities dramatically outperform the sp500 if I we can see the last time we saw this dramatic outperformance in utilities something bad happened and and we had we had the covid crash we we see this over and over again utilities will do very very well for a little window outperform the stock market and then of course they crash with the stock market because something breaks in the in the system something breaks in terms of some type of news or bad economic data or just the trend changes something so this this is definitely um a little bit of a bearish sign that people are moving into this defensive sector and um trying to preserve their Capital but what people don’t realize David and and this is the same with the Aristocrat dividend ETFs and people who just own high dividend paying stocks is they don’t realize them and all the other passive investors who believe the same thing and are told by advisers like move into dividend stocks you can just you always get dividends the problem with dividend stocks and utilities is they sell off more than the stock market index does so you know uh dividend stocks sold off more than the SP 500 they dropped more than utilities Dro more than the SP 500 they they are dangerous people realize these when the market goes into a bare Market these stocks get hit and the reason is the majority of stock market investors are 50 plus they’re all doing the same strategy they’re buying utilities and dividend stocks and they all freak out and panic at the same time they’re all watching the same news they don’t understand charts and they all dump their stocks and they all own the same stocks so they get hit harder than everything else so dividend stocks are super dangerous um utility stocks are really dangerous to hold during downturns you’re actually holding something more volatile than the stock market itself and people don’t realize it until they take the loss they’re like and then it’s too late they’re already lost their money but these are the things that it’s painful because I see it happen over and over again and they’re like I thought I was good I held dividends and Bank stocks and and I don’t know why they got hit so hard but this is just what happens it’s the same investors hold the same things and they all panic at the same time I want going to read you uh I’m going to close out by reading you an article from tech radar this came in um in response to Jensen W CEO of Nvidia making a speech about a new product their new Blackwell cluster which is a new GPU it’s a cluster of 8 gpus it pulls apparently 15 kilowatt of power that’s 15,000 watts of power divided by 8 that’s about 1870 uh 18 uh 1,875 watts per GPU now Jansen hang is talking about a million Blackwell gpus uh going online uh as part of this AI Trend now to give you context that’s 1.875 gaw of power uh so basically a Blackwell cluster is doubling the power consumption of already existing chips a million a million blackw gpus is going to be 1.875 is going to use 1.875 gwatt of power for context to typical nuclear power plant only produces one gwatt of power what this author is trying to say is that at the current rate of of um of of scaling of gpus we’re not going to have enough power on the grid right right so yeah it’s the end of the world these robots are going to get so smart so powerful more or less Nvidia is going to need to like get into the uranium space and have their own nuclear plants right to power their own product so potentially a you know a reason to Long utilities or uranium or other base Metals but uh we can discuss that in more detail next time this is a great session already great Market overview tell us where we can find your work Chris yeah sure people can go to the technical traders.com and uh I cover the charts just like you and I did but usually at a much more granular level and shorter term picture stuff and uh uh yeah I share videos and uh analysis and the trades that I do I put on these ETFs and I share them with everybody else and they can subscribe and follow along I usually provide a morning video before the opening bell so everybody knows what’s going on and if there’s any gaps or anything they won’t panic because they’ll understand uh why and and what it means let’s uh Follow Chris in the link down below I’ll put a link to the technical traders so click on that link thank you Chris we’ll see you again next time thanks David Take Care thank you for watching don’t forget to like and subsscribe

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Chris Vermeulen, Chief Market Strategist of The Technical Traders.com, discusses signs of a burgeoning financial crisis, how the markets will react, and how to position your trades accordingly.

Chris’ last interview with me: https://youtu.be/dRBo9olC2hQ?si=QV_IRtRKvzul_K7e

*This video was recorded on June 4, 2024

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0:00 – Intro
0:53 – Financial crisis signs
5:20 – Personal savings
7:40 – Market sell-off
8:18 – GameStop craze
12:40 – Banking crisis
14:22 – Bitcoin
19:15 – NASDAQ
21:27 – S&P 500
28:03 – “Asset Revesting”
33:04 – Crude oil
34:50 – Utilities

#stocks #bitcoin #trading