'Huge explosive move' coming in 2022, this sector has 100% upside - Chris Vermeulen
Chris Vermeulen, chief market strategist at https://TheTechnicalTraders.com discusses with David Lin, anchor for Kitco News, the stock market sectors with the largest upside potential for the New Year, as well as the sectors investors should avoid.
"GDX and SLV were in a bear market just a week ago," Vermeulen said. "They have moved to a recovery stage. Now they're in yellow, which is accumulation. They're starting to just get some momentum in them, and they're starting to get into another bull market. Gold should rally to $2,600. Gold miners, I think, will have a huge, explosive move."
Vermeulen noted that gold and the mining stocks, in particular the GDXJ ETF which tracks mid-tier miners and junior explorers, will rally separately from the stock market.
"I don't think they're going to break out with the stock market as much. I think they're going to slowly keep warming up and creep to the upside and then just take off come late December, early January," he said.
Once gold breaks out of its current range, the mining stocks will follow and "go ballistic," seeing potentially 100% returns in the next bull cycle, Vermeulen said.
On stocks, Vermeulen prefers the technology and financial sectors in 2022, owing to renewed risk-on appetites from markets and higher interest rates, which should benefit financial institutions.
For more information on short-term market action to expect, watch the video above.
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By David LinFor Kitco News
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