Chris Vermeulen: Dollar Collapse Could Trigger New Highs in the Metals
Palisades Gold Radio, Released on 11/9/21
Time Stamp References:0:00 - Introduction0:35 - Powell QE Taper1:53 - Risk-On in Equities4:57 - Seasonal Rallies6:10 - Dollar Effects & Gold10:13 - Dollar Confidence12:26 - Focus on Price13:56 - Silver16:23 - Energy & The Miners19:54 - Dr. Copper & Commodities21:27 - Inflation & Input Costs23:01 - News & Pullbacks25:06 - Equity Bull Run & Risk26:40 - Trailing Stops27:51 - Wrap Up
Talking Points From This Episode- Recent moves in the markets and equity outlook.- Dollar at a key level and the implications for metals.- Thoughts on silver and the next rally.- Inflation expectations and where prices will remain.
Tom welcomes Chris Vermeulen, founder of Technical Traders, back to the show.
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Chris discusses the recent moves in the markets and why money has resumed the move into equities. We're seeing a new rally in most equities and this could spill over to the metals. The Russell 2000 is responding well and it could move 25% up. He believes this cycle may come to an end in January. September and October are often weak for markets but it's not unusual to see rallies in November. Once the momentum starts everyone tends to pile in.
The dollar is trading at the very significant 94 levels and should it collapse this could be the impetus to drive the metals higher. Precious metals are pushing on the dollar and we're seeing a momentum shift in GDXJ. This pressure may be a sign that the dollar is failing.
He prefers to focus on price but if other indicators and fundamentals line up those just act as a confidence booster.
Chris discusses the potential for silver to have an explosive move at some point. It appears to be putting in a bottom but it still has a ways to go before we're through resistance.
Energy prices may cause problems for miners since fuel costs are a big factor in mining. This may place pressure on metals and miners for a while. Energy sector stocks are likely to do very well but a rally may be short-lived.
He expects elevated prices for commodities for the next couple of years before everything normalizes. Prices will likely never come down to where they were a few years ago. Many things will remain more expensive.
Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic.
Chris Vermeulen: Dollar Collapse Could Trigger New Highs in the Metals added by Herman James on 11/08/2021View all posts by Herman James ?+'