The Worst Case Scenario - Chris Vermeulen #5612

Summary: Where are the markets heading? Chris Vermeulen comes on the show to talk stock markets, precious metals, oil, and the other industries we’ve kept our eye on. The predominant theme right now is panic selling; people are eager to get out of the stock market, but with this selling comes strong rallies. Gold is hanging on by a thread, and needs to show more consistency in order for it to look promising. We are also seeing the energy sector struggle; Chris points out that all assets follow the broad market, and advises not to get overly confident in this circumstance. Ultimately, capital preservation is the most important thing right now—with an emphasis on low risk investments.

Highlights: -We’ve were seeing a rally over the last few weeks, but now we’re experiencing panic selling; people want to just get out of the markets -We’re in a strong down-trend. Bonds and equities are selling out; however, this could give us a bottom for a tradable bounce -With panic selling comes strong rallies -Downward price action will bring the stock market down into a major support zone. From here we could see a 5-10% bounce in the market -Gold is hanging onto a thread; if it breaks, it could go back to 1300 -There’s going to be a lot of volatility/pain for those who don’t have a plan to get out of the precious metals -The market is trying to suck people in to get traders excited -It needs to hold 21 for more than a day to actually be interesting -The energy sector is struggling

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