Market Is 'Ticking Time Bomb': Chris Vermeulen On What's Next For Dead Cat Bounce

Watch on YouTube ↗  |  May 14, 2025 at 21:32  |  28:08  |  The David Lin Report
Speakers
Chris Vermeulen — Chief Market Strategist, TheTechnicalTraders

Summary

Chris Vermeulen of The Technical Traders tells David Lin that the current equity rebound is a dead cat bounce, not a sustainable new bull market, and he expects a rollover into a larger sell-off. He sees gold, silver, and gold miners as having topped and due for a substantial correction. Bitcoin is his most bullish idea, while dividend stocks are warned as risky at current levels and better bought after a financial reset.

  • Chris Vermeulen argues the equity rally is a bear-market bounce and expects the S&P 500 to roll over lower.
  • He says gold and silver face a substantial correction after hitting Fibonacci targets and showing high volatility.
  • Gold miners have hit major resistance and look vulnerable to a bigger correction.
  • Bitcoin is his most bullish idea, with a bull-flag target around $135,000.
  • Dividend stocks are presented as risky and crowded, with high downside risk in a market selloff.
  • He prefers waiting for a financial reset to buy beaten-down dividend ETFs like SPYD.
Ideas
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 0:17
S&P rally is a dead cat bounce.
Chris views the April-May rebound as a dead cat bounce / bear-market rally rather than a new bull market. Momentum has stalled and rolled over, the S&P 500 has reached his 5,800-5,900 Fibonacci upside target, and sentiment has swung from bearish to very bullish with money piling into the riskiest sectors. He expects the rally to roll over into a bigger sell-off and thinks the market has a lot lower to go.
SPY HIGH
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 10:34
Gold and silver face correction.
Chris sees the gold rally as ending after a 22%-24% surge into a 100% Fibonacci measured move, with a double top and unusually high daily volatility signaling a turn. He expects a substantial correction, potentially like 2008's 34% drop, and says gold and silver move as the same trade, so both would be pulled down if the stock market rolls over. He would not buy gold at these highs and believes the easy money has already been made.
GLD SILVER HIGH
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 14:14
Gold miners topped, correction coming.
Gold miners have rallied into major prior pivot resistance and look like they have put in a major top alongside gold. Chris thinks the miners are being rejected, are crowded after their big run, and will see a bigger correction; if the broad market rolls over, miners and gold get beat up.
GDX GDXJ HIGH
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 18:12
Bitcoin bull flag targets 135k.
Bitcoin is Chris's most bullish idea. It has a monthly bull-flag setup with moving averages fanning out, has paused at resistance, and points to a target around $135,000. He is long, has trimmed profits, and expects a quick roughly 40% move higher if the stock market does not stall; global mass participation could cause a fast breakout.
BTC HIGH
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 21:51
Dividend stocks are a risk now.
Chris warns that dividend stocks are a crowded, dangerous defensive holding: they carry as much or more downside risk than the S&P 500 in crashes, are dumped together by the same older investor base, and recover far less. He says investors should not buy them at current nosebleed levels just for a roughly 3% yield because they may take a bigger haircut than the broad market if this market rolls over.
Dividend Stocks HIGH
Chris Vermeulen Chief Market Strategist, TheTechnicalTraders 24:48
Buy SPYD after financial reset.
After a financial reset or crash, Chris likes buying beaten-down dividend ETFs, citing his 2009 purchase of a dividend ETF similar to SPYD that yielded 16% and then doubled. His plan is to avoid dividend stocks at current highs and wait for a selloff to buy them when yields are elevated and prices are discounted.
SPYD MED
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This The David Lin Report video, published May 14, 2025, features Chris Vermeulen discussing SPY, GLD, SILVER, GDX, GDXJ, BTC, Dividend Stocks, SPYD. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Chris Vermeulen  · Tickers: SPY, GLD, SILVER, GDX, GDXJ, BTC, Dividend Stocks, SPYD