Stocks Could Go ‘Absolutely Ludicrous’ Before The Next Correction | Chris Vermeulen
Speakers
Chris Vermeulen
— Chief Market Strategist, TheTechnicalTraders
Summary
Chris Vermeulen discusses the current market rotation, staying long S&P 500 and NASDAQ with risk management, and warns of a potential euphoric blowoff top. He is bearish on Bitcoin and gold short-term, and watches the US dollar for a breakout. He avoids oil due to choppy conditions.
- Chris Vermeulen remains long the S&P 500 and NASDAQ (QQQ) following positive money flows and momentum.
- He is scaling out profits and using trailing stops to manage risk.
- He expects stocks could have a final euphoric rally before a sharp correction.
- He is bearish on Bitcoin, seeing potential drop to $45,000 or lower.
- He is bearish on gold short-term, targeting $3,600 per ounce.
- He is watching the US dollar index for a potential breakout above 100, which could be a defensive trade.
- He advises against trading oil due to choppy, news-driven conditions.
- He notes TSX outperformance as an early warning sign for broader market.
Trade Ideas
Ride uptrend with risk management
The S&P 500 and NASDAQ are in an uptrend supported by positive money flows and momentum. Chris Vermeulen has been long since April 9 and is scaling out at targets but still riding the trend higher. He expects the market could have a final euphoric leg before a sharp correction, so he manages risk with trailing stops and partial profit-taking.
Watch dollar breakout opportunity
The US Dollar Index is forming a large basing pattern. If it breaks above 100 and closes above 101, it could rally 5-8% and serve as a defensive play against falling stocks and metals. Chris Vermeulen is not in it yet but is watching closely and suggests UUP as the vehicle.
Gold expected to drop to 3600
Gold is in a short-term bearish setup. The euphoric phase is over and the market is targeting a pullback to around $3,600 (a ~20% decline). Although the long-term trend remains bullish, the near-term price action and a potential dollar breakout point to lower prices. He is not shorting but advises avoiding gold until it reaches those lower levels for a re-entry opportunity.
Bitcoin dangerous, steer clear
Bitcoin is in a bear market with lower highs and lower lows. It has broken its correlation with the NASDAQ and is suffering from money rotating into precious metals and equities. He sees potential for a drop to $45,000 and possibly $16,000. He recommends steering clear of Bitcoin entirely.
Up Next
This The David Lin Report video, published June 04, 2026, features Chris Vermeulen discussing SPY, QQQ, UUP, GLD, BTC. 4 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Chris Vermeulen · Tickers: SPY, QQQ, UUP, GLD, BTC