Bombshell Report: Economy Shrinks In Q1, Markets Tank; 'Worse Things Are Coming' | Chris Vermeulen

Summary

Chris Vermeulen of The Technical Traders discusses the first negative Q1 GDP print, weak economic data, and his view that equities have triggered a bear-market signal with further 20%-30% downside. He sees a complacency rally that should be sold, expects gold’s parabolic move to correct, and is watching bonds/TLT for a bottom while holding a contrarian bullish dollar view. He is also bullish on Bitcoin only if it can break resistance, with a technical target near $135K, and treats crude oil’s break below $65 as a recession signal.

• U.S. Q1 GDP contracted, PCE inflation rose, and consumer spending slowed.
• Vermeulen says equity markets are in a bearish phase and expects at least 20%-30% downside, with SPY targets 460-417 and possibly 275.
• He views gold as a parabolic bubble likely to correct 15%-35% before a later supercycle re-buy.
• He is watching TLT/bonds for a bottom and a potential significant rally, but not buying yet.
• He is contrarian bullish on the U.S. dollar due to extreme bearish sentiment and a 2008 analog.
• He is fairly bullish on Bitcoin, targeting $135K if it breaks resistance around $104K-$108K, but warns it may still sell off with stocks.
• He sees crude oil’s break below $65 as a leading indicator of economic weakness.