This Asset Is Repeating 2008; About To ‘Go Off A Cliff’ Warns Trader | Chris Vermeuelen
Speakers
Chris Vermeulen — Chief Market Strategist, TheTechnicalTraders.com
— Chopping Block co-host
Summary
- Precious Metals Correction: Vermeulen argues that Gold and Silver are repeating the 2011 and 1980 topping patterns. He has sold his entire physical metal position, anticipating a significant wash-out (Silver potentially to $28) before a multi-year bull run resumes.
- Tech Breakdown: The "Magnificent 7" stocks have broken critical support levels. Vermeulen projects a 20% pullback in these leaders, which would drag the Nasdaq down by roughly 9-11%.
- Bitcoin Cliff: Bitcoin has broken its 150-day moving average and formed a bear flag. The technicals point to a drop toward $51,000, coinciding with a broader equity market sell-off.
- Cash is King: The strategist is currently largely in cash, avoiding volatility until the "stage four" decline washes out weak hands.
Trade Ideas
"Bitcoin is about to go off a big cliff here... It is definitely broken down below the key moving average [150-day]." The chart shows a "bear flag" pattern. When price breaks the 150-day MA and slopes downward, it signals the start of a bear market. Technical targets point to $51,000. Sell/Short. Bitcoin is acting as a high-beta asset that will liquidate alongside the broad stock market. Unexpected crypto-specific news catalysts that decouple Bitcoin from traditional equities.
"We're still long the S&P 500... but the rest is sitting in cash." While he is macro-bearish, the S&P 500 is holding up better than the Nasdaq. He is holding a small tactical long position to catch short-term bounces but expects it to eventually "get sold off into." Tactical Hold / Watch. He is effectively waiting for the S&P to break down like the Nasdaq before liquidating the last of his equity exposure. The "Stage 4" decline accelerates immediately, bypassing the short-term bounce he is positioned for.
"The Magnificent 7 have put in what looks to be a topping formation... if the Mag 7 falls that much [20%], it will pull the Nasdaq down about 11%." He specifically highlights Microsoft (MSFT) as having a "huge double top formation." The Mag 7 stocks are the primary drivers of the index. If they break support (which he claims happened the prior Thursday), the entire index loses its structural integrity. Bearish on Tech. The breakdown suggests a transition from a bull market to a "Stage 4" decline. A short-term "bear market bounce" driven by oversold conditions or contrarian sentiment before the selling resumes.
"We could see miners fall about 15% very quickly here... pointing to potentially another big leg down." Even though long-term moving averages are sloping up, the short-term volume and price damage suggest miners will act as high-beta stocks during a market correction, falling faster than the physical metal. Avoid miners until the broad market wash-out is complete. Gold prices stabilizing while general equities crash, potentially causing miners to act as a defensive haven (though Vermeulen deems this unlikely).
Chris Vermeulen
Chief Market Strategist, TheTechnicalTraders
Vermeulen explicitly stated, "I closed out the rest of my physical metal positions. So I'm completely out of metal." He notes Silver charts point to a drop to $41 or even $28. He compares the current price action to the 2011 and 1980 tops, where a sharp drop was followed by a rebound, and then a massive secondary collapse. He believes the "easy money" has been made and the risk is now to the downside. Exit long positions and move to cash. Wait for the crash to re-enter for the long-term cycle. A parabolic "blow-off top" where prices scream higher (e.g., Gold to $3,000+) before crashing, though he views this as lower probability.
Up Next
This The David Lin Report video, published February 13, 2026, features Chris Vermeulen discussing BTC, SPY, QQQ, MSFT, GDX, GLD, SLV. 5 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Chris Vermeulen · Tickers: BTC, SPY, QQQ, MSFT, GDX, GLD, SLV