gold news

 [Music] I'm Charlotte Mloud with investingnews.com and here today with me is Christopher Muan, chief market strategist at the technical traders.com. Thank you so much for being here. Great to see you again. Always a pleasure, Charlotte. Thanks for having me. Really good to have you here once again. And of course, there's so much going on that we have to go over, but we'll start as usual with gold. So, our last conversation was back in January, which isn't really too long ago, but we've

seen an incredible move in in gold since then. So, let's start with kind of a broad question there. Has the speed and the extent of gold's move surprised you? How are you feeling about that? Yeah, gold's gold's been on fire. We're definitely in a uh a bullish environment for for gold. We're in a very sweet spot which you and I have have kind of covered before when we take a look at um the overall kind of cycle that the markets go through. I believe we're in this topping stage three phase. But the

the key point here with precious metals is simply we tend to see gold do very well just before a major market top. And I believe the market has put in a top and so this is when gold, silver and miners generally kind of can buck the trend and really extend. Now, gold is the is kind of the the poster child. It's the one the whole globe likes. It's slower moving. More investment capital moves into it because it's more stable. And so, when we actually look at the charts of of gold, you can see we've had

this huge rally really for quite quite some time. Just continues to push higher. You and I had talked a long time ago about 270050 to the $1,800 level being a major target. This is going all the way back from the 2015 lows and also all the way back to the 2003 lows. Both time frames pointed to this as being a significant pause and we hit that level and we actually saw a very a significant pause and correction. And so right now we're what I call is kind of like a blowoff phase where we're seeing gold just kind

of take off. It's becoming mainstream in terms of it's in the media hitting all-time highs. And so now it's like we can really just uh predict forward kind of one little leg at a time using technical analysis how far gold can run each time it creates a fresh new pattern. And for example, the daily chart shows a really nice uh pattern. It's hit one of its measured moves which we expecting uh just a couple days ago. And if we use Fibonacci Charlotte, like you and I have touched on many times, we

take the recent low and we go up to this first rally and this tight little pullback. And this is a tight little bull flag. This is a high momentum trade. I was sharing with people as it was unfolding saying this is a high momentum trade that we should see gold pop all the way up to this one level, which is the 100% measured move. And we've seen that and now gold's going into a correction. And this is the same type of scenario when gold hit the 20 2750 2800 area. Usually we're going to

see a very sharp pullback, heavy volume and then the market needs to digest before it starts to move higher. So, gold hit that this week and now gold has a little bit of a bearish pattern and based on the this recent pullback using Fibonacci, we can get an idea of where gold could go next week, which based on where it's at right now, we could see gold probably fall another 4% or so. This is a little bare flag pattern which points to lower pricing. A bare flag is known as the halfway point. So at the

halfway point from the high and we can just focus downward where that should go. So we're looking around 3145 for gold to potentially kind of digest this most recent kind of pop in price and um and then then from there we can gauge where that next rally will be. Uh because what this will create is a another pullback and a low and then we can use Fibonacci to kind of stair step where the next upside target is. So, you definitely don't want to be betting against gold. Gold is in a bull market.

It's in a sweet spot, but the key thing here is, and I don't know if I have a a chart of this on me, but there is a if we look at the monthly chart of gold, we've got these blowoff phases that take place, and it's if I just go back to 2000, uh, all the way early 2000. So, here was a blowoff phase very similar to this blowoff phase we're in right now. We also had one over here and we had one just before the 2008 financial crisis and we even had one over here. And believe it or not, all of these are

about a 22 to 24% push to the upside. And these are similar scenarios where gold has been in a strong uptrend for a long time and then suddenly everybody piles in and seems to just run it higher as kind of FOMO sets in. And so we have seen gold right now just run roughly 22 24% to the upside just like every other time. And so I do believe we're going to see it have a a bigger pause and pullback and I think we're going to go into a bit deeper of a correction which you and I have talked about and like

gold is in an uptrend but it will pull back with the broad market when we go into a recession uh temporarily. And so I think we're going to get into a scenario where it's finally going to start to run into some steam based on this kind of FOMO trade of money piling in at the last minute just before it it has a bigger correction just like in 2008 where gold pulled back about 34%. So, I do believe gold is on its last, this is the monthly chart, the last month or two before we see it stall out

and reverse back down and then go into a pause in a pullback that could be anywhere from about 15 to maybe even 34% correction, which you know go bucks the trend. Everybody, everybody right now is super bullish on gold. They don't want to hear that. They don't believe it. But the technicals are actually pointing to a roughly 20 to 34% pullback in gold once it puts in a top. And I believe the topping phase is right now is starting to get put into place. And just this this wick here where we see price run

way up and then get slammed back down. By the time this month closes, it'll be very interesting. This could be a topping candle, a reversal candle, which signals we're going to see several months bars after this to the downside as it unwinds. So, this is what I've been waiting for is the top in gold, the reset, the financial reset in the markets, and then precious metals are going to be the ultimate buy in my opinion once we see gold in and silver and miners kind of crack back down,

build a launch pad, and then I think we're going to see, you know, incredible multi-year rally in gold again to some astronomical pricing. So, that's kind of it from in a nutshell, uh, you know, based on the monthly charts. Yeah, I think that's a really good overview of where gold is right now, how we got here in a little bit on where we're going. And I think you're right, maybe people don't want to hear that gold is set to go down, but if we hear that it's then going to go up even further, maybe that

isn't quite so bad. So, one of the points that I wanted to ask you about is, and you've outlined it a little bit here, I think, what would be a compelling level to get into gold at the moment for for you? What would you look at as a good point? Yeah. So, Fibonacci is one of the most powerful sequences in the universe. It's it's it's in pretty much everything. So, I like to always use Fibonacci extensions to project forward targets. And I like to use Fibonacci retracements to figure out how much something can

pull back. And so, if we take a retracement from the 20 just going to zoom out a bit so people see the visual here. Um, from the 2025 low and we go all the way up to this market top. This is showing that the sweet spot for gold to pull back just happens to be right where I kind of drew this line. The sweet spot for gold is between this 38% and a 50% retracement, meaning it'll give back 38 to 50% of this of this most recent move here of of the overall leg up. So, we're looking at potentially

2275 all the way to about 2560. That would be a bare market financial reset where even though gold is a good defensive safe haven, it still gets sucked down with the market when everybody has forced liquidation, margin calls and and pure panic. When there is pure panic in the market, even the best investments and the best stocks still get hit and they get pulled down. And and a good example of this is just looking at gold recently and the um the daily chart like we saw panic selling in the stock market a couple weeks ago. And

even though gold is in the you know every year gold's in a better position to do to to be that star performer, but gold still fell 7% with the stock market when everybody panicked. And so that's what happens in a financial reset in a bare market is everybody starts to panic and even the best and the most solid pardon the pun investments more or less go down with it. So um you we do need to be prepared for a bigger potential pause and pullback in gold which I see as purely a opportunity. I don't look at it

as a bearish view. I say this this pullback is an opportunity. It's also needed if gold keeps going straight up. the more it keeps going straight up, the more likely it is to come straight back down. So, it's not sustainable. So, this is the sweet spot. And percentage- wise, um, we can , you know, from the high and we go down to these levels, we're looking at 26 to about a 34 35% correction, which is exactly what we happen to see also in gold when it had this uh pullback during 2008. So, everything is aligning. It's

not what people want to hear because everybody's super bullish. But the the the gold chart is showing on multiple time frames is getting exhausted. It's almost there. The what's going on with other assets are also showing that the the I think the economy is starting to weaken. Um other sectors are starting to weaken. And the dollar index like this is the one this is the other trade that has got the opposite. The dollar right now is the most hated. It has it's oversold. A lot of this move in the

dollar and gold is based on on tariffs and uncertainty and fear. So, it's a news-driven move and things that happen based around news that create a huge, you know, wave of investors to go in one direction is usually given back. So, the dollar is actually starting to show signs on the shorter term charts. It's oversold. Everybody's moved has has given up on the dollar who who is going to sell it. And now we're probably going to start to see the dollar come back up and and rally, which again goes against

the grain. When when gold's hitting all-time highs, if you talk bearish on it, everybody hates you. When the dollar is going down, they say it's the worst thing ever and you say it's coming to a bottom, everybody hates you and says you're wrong. But it's these extreme sentiment conditions when when you have the most hatred. If you're saying what you say, that's usually a major turning point. And so that's what we've seen with the dollar is it's it's broken

lows, it's created a flush out, we've had the volume. If the dollar rallies, we're most likely going to see gold come down. They usually go in opposite directions. And that's what we can see, you know, over the last three months here, very specifically based around tariffs kind of kickstarting this trend. Okay, really good additional context on gold there. and we can move over and I'll ask you a little bit more about what's going on with the US dollar because thinking back to that January

conversation that we had, you had told us that you got the the get out signal from the stock market and you moved over into the US dollar index. So, how how did that end up playing out and is is that still how are you looking at it now? Yeah, so we did play the US dollar index. It was a very short trade um in terms of time. Like we were only in it for about a week. we moved out of it. Uh we we got long the dollar and it started to roll over. So we moved out of it a long time ago. We've moved to cash since

then. So uh we've been sitting in cash for a while and if we take a look at for example um the long-term trend of the markets, uh right now we're just you know technically we've entered a new bare market phase and and really at this point the dollar is not trending up. So we don't want to hold the dollar index as a trade itself. Um, so right now we're sitting in cash and we're just collecting interest until there is a new opportunity in this market. And um, so yeah, the the dollar trade, I think

maybe last time you and I were talking, uh, that was a short-term trade and it didn't pan out. I think we took about a percent and a half loss on it, which in the grand scheme of things is pretty little, but we did move out of that and just moved to cash to protect our capital because the dollar was clearly starting a downtrend and we didn't want to hold it. Right now the key I think for investors to understand is what's been happening here for the last several months. This is the weekly chart of the

S&P 500 index. Uh the internals have been breaking down in a very bad way. Very similar to what we saw over here when the market um put in a talk just before a bare market in 2022 where the market sold off. This time around though it's a lot worse. This time everything is warning a much bigger correction. not so not so much a little bare market like 2022, but an actual financial crash. And so I think we're going to see a bare market rally and bounce. A dead cap bounce is what they call it. And then I

think we're going to go a whole lot lower and and see a big collapse in the market. So um definitely don't want to be holding the dollar right now. It is still in a downtrend. But um it looks like it is putting in signs of a bottom. And typically when we go into a very chaotic world and it in chaotic markets, the dollar does tend to shine. Um, and uh, usually what's most out of favor will rise from the ashes and become the most favorable. It's just the way it goes. Gold's the best right now. The

dollar's the worst. It, you know, we're probably going to see a swing around. Um, and it usually takes sentiment to be at extremes, which I believe we're getting to those extremes. The dollar is definitely the most hated and um, the gold is like the most loved right now in terms of best and kind of worst performers. Okay, thanks for going into the US dollar index. I think that really illustrates how how quickly you do some of these things and how short-term they really can be. So that's that's very

useful for for me to understand. We'll take a little bit more of a closer look at the stock market. So we talked about how you had gotten that get out signal in January. You talk about now how we're going to be heading toward this this downward momentum and obviously you've gone to cash as you've been talking about. any any specific numbers that you could put on what you see coming for the stock market so people can understand? Yeah, so there's there's definitely some interesting price action happening in in

the um in the stock market. So for example, like Fibonacci is one of my favorite tools. We take the COVID low, this extreme low that we had, which was a very significant turning point in the market um based on the rally that went up to the 2022 highs and then they that small bare market kind of reversal. If we carry that forward to get an idea of where the index should run, you can see we we came up to the 618 level. Typically, when the market runs to the 618, this is called the golden ratio, the golden number. The 618 is the most

powerful number in the Fibonacci sequence. And if you go to that level and the market pauses, has a little bit of a hiccup, then you pretty much know, okay, the analysis is drawn correctly. And if you have a hiccup there, you almost always go up and hit that 100% measured move. It doesn't matter what time frame you're on. It doesn't matter what asset you're looking at. This is like I actually did a video of the how to do this on my YouTube channel because Fibonacci is like the best way for day

traders and long-term investors as I'm showing you here, but we hit this 100% measured measured move. It tagged it a couple times and now the market is selling off. That's what happens when we hit these levels. Just like I showed you in gold, uh, Charlotte, once you hit that 100% measured move, you quickly see a pullback. It's it's where momentum roll um, stalls out, it's an invisible resistance area that just kind of seems to happen in the markets. And so now the dollar has pulled back and it's putting

in a bounce. And I believe this is just going to be a bare market bounce before we go um, even lower. And uh, we can use Fibonacci retracement to figure out where that could pull back. And there's a few different levels here that we could we could look at. Um, obviously there's a a potential for the S&P 500 to drop down to the about the 460 all the way down to about the 415 level. Now, this to me is actually the conservative play. That's a that's a you know a 15 to uh 23% correction. I think it could go a

lot further than that, but this will probably be the next area where it runs into support and puts in some type of bounce before going lower. So the, you know, the market has a lot of volatility right now. The Magnificent 7 has have turned a corner. They've gone from being bullish and dragging the stock in indices higher to being bearish and now they're pulling them down. And so where the Mag 7 goes, uh, it used to always be where Nvidia goes, the market goes. Well, more or less where the Magnificent

7 go is kind of where the broad market is going to go. And it's interesting because today today if we were to look at the indices, the Russell 2000 was down about a percent this morning. It's still down 610 of a percent. Yet the NASDAQ is up positive. And so the NASDAQ is kind of clouding and and creating camouflage. People think the markets are up because they follow the MAG 7 and they follow the NASDAQ for for growth. But we have been seeing like the SPY is is negative, the the Dow's negative, the Russell. the

broad market in general is actually going lower and it's not very healthy. It's just the mag sevens seem to skew and make people think things are bullish. Um so I think people need to be aware we're going to have I think another big drop another 24% from where we are. I think we could go a lot deeper than that in in the long run. Um, if you if we were to draw from the last bare market lows, I mean, we're looking way down, breaking um coming all the way down to breaking the 2022 lows and

actually coming right into the middle of this range, which is a huge, huge correction, which a lot of people are calling for like a 50 to 70% correction. Um, a lot of technical traders, even economists, um, but I usually try and take it one leg at a time, figure out what that current price pattern is pointing to and then actively manage and trade around that and then wait for the next one to set up. Uh but I think people need to be very aware that the market I believe has put in a major top and this is a false rally. This is a

bare market rally that's going to suck a lot of people in uh to buy and realize okay that was just a bounce and it's going a whole lot lower for probably several years. Yeah, I think definitely it can be a very dangerous situation out there if you don't know what's going on. I am curious also to get your thoughts on the outlook for the bond market. So there's been a lot of talk about what's going on there, including speculation that Trump kind of toned down his tariff rhetoric because of concerns about what

was going on there. So wondering what you see coming in that respect. Yeah, the bond market is um it's again everything is kind of at extremes and is probably going to push where people don't want it to to move. So this is just looking at the TLT, the bond market and the most recent price action. We've seen bonds have quite a quite a pullback and and a pause here. And if we use Fibonacci extension again, which I I live and breathe by this for for analysis uh ways, um we could get a gauge of where the downside is for

bonds. And I'm going to show you bonds and then also show you the um 10-year note um as well. So typically, if bonds go down, that means yields and interest rates are going up. And so this is pointing to a fairly significant drop in the bond market. So based on where prices are as you and I are speaking today, we're looking at potentially like another nine or 10% drop in the bond market, which if we were to zoom way back on the charts, this is um I'll just drop to a weekly chart. Uh this is going

to make a new major major low on these charts and that is going to put a lot of investors. It's going to freak out a lot of investors because people are moving into bonds. Look at the the high volume here in the TLT. People have been moving into bonds for for really the last year saying, "Oh, bonds are going to bottom. Bonds are going to bottom." And they're really they're holding those taking a lot of risk and then the market is going to hit some lower lows and most investors are going to probably panic,

which is usually what puts in a market low. So, I think there's a lot of downside in bonds still potentially. There's a lot of talks about tariffs and rising um uh inflation. And then if we take a look at uh interest rates, and interest rates really aren't my thing, but if we look at the big chart of interest rates and and use Fibonacci extension and we have a very very bullish scenario for interest rates, uh which would bring us back up to like historical norms, which is like an 8%

interest rate. As yields rise, bonds go down. So they have an inverse chart pattern and you could look at either one and they're just going to go in opposite directions. And obviously, you know, people will say obviously if we hit 8% the US is going to go broke. Um they're not going to do that. They're going to do QE. So we just have to see how things are going to unfold. But the charts are showing higher interest rates, which means uh inflation could be here to stay for a while. They could increase. It

also means bonds are probably going to collapse. Um I'm not sure which is leading which to be honest. I don't know if bonds are foreshadowing a rise in interest rates um or or what, but um the bond market is not in the clear and I think investors who are trying to pick a bottom in bonds and and think they're safe are are in for another wild ride. And um a 9% drop in bonds does a lot of damage to people's portfolios. Uh because typically people have large amounts of bonds in their portfolio and

they they don't realize they think most of the downside risk is out but it's I don't think it's out yet. Okay, really good to go into that as well. And so, so we've got your outlook for the stock market. We talked a little bit about interest rates and inflation and what could be going on there. When you look at the US economy, what are you seeing coming there? We've got all these reemerging headlines on recession or worse things than a recession. People have a lot of different ideas. What are

your thoughts? Is that something that that you look at or or you mostly stick with with the charts? I do I do look at economic data. I mean, I cover quite often. I think the economic data. Um, I don't really listen to the news. I don't buy into the stories and and the politics and stuff. I just look at the charts and the data. Just the visuals of the of the data to me paint the picture. I don't need to know the all the fake stories or reasons why people think something's happening. So, if you follow

just the charts, uh, to me, I see unemployment starting to rise. I see um interest rates potentially might rise and hurt businesses a lot. Um, I think uh credit card delinquencies have skyrocketed. Home prices are not I mean they're they're dropping like flies. Uh there's huge supply and people just aren't willing to to buy them at the pricing. So, we're going to see a collapse in the housing market. I think the housing market is going to trigger panic among investors because most

investors own a property or multiple properties and it's usually a huge chunk of their their net worth. And when they see their home properties or the rental properties dropping hundreds of thousands of dollars in a relatively short period of time, plus the stock market and the bond market, they'll start to panic. And that's when people start liquidating and they're like, I don't know what to do. Just sell everything and move move me to cash or move me to gold. But typically when that

panic hits in the economy, that's what triggers that panic selling and all assets go down. Real estate, gold, people liquidate everything. And then once the dust settles, it's almost like my kids love to scare me. They always jump around corners. And uh you know, you get that initial scare and once your heart rate kind of comes down and you you you relax, then you can actually make some logical decisions. But when we enter into a bare market and things collapse, people panic and they sell

everything. That is their scare. And then once they've sold everything, they're like, "Okay, I don't know what to do. I don't trust the system. I don't like the stock market, all that stuff." They're like, they'll just say, "Just put me into gold." And gold has been performing exceptionally well. In fact, at the pricing it's at right now, I think it's like a way better performer in the long run than the stock market has. So, all these scenarios come into

play and they're like, you know, I'm going to go into gold. It's big. It's boring. It's slow. It's not, you know, connected to the stock market where I just lost my shirt. Uh so that's when gold bottoms first. We'll tend to see gold, silver, and miners be the first to come out of this correction and when we see the miners participating and outperforming gold dramatically. Then we'll be like, okay, that's the sign that this space is coming to life. So I think that's going to happen hopefully

by the end of this year, if not early next year, is going to be that next precious metal wave that I mean we've all been waiting forever for. it feels like where miners you can hold them for five or 10 years and they go up hundreds or thousands of percent and gold will double and triple I think from where it is. Um so that's kind of like the economic data is telling us things are slowing but it's a huge process. We just have to let the markets and the cycles work themselves out and um yeah it's

just it's a it's a waiting game. You really do have to be patient. You can't rush these moves. As much as I know a lot of people, including myself, want to get into minors, um, you have to like sit on your hands and be patient. You got to like cherrypick, uh, the opportunity and the time. Yeah, absolutely. I I had on my mind to ask you, what about the gold miners? So, I think I think we've covered that fairly well. It's still not quite their time in for you. What about silver? I know we've

touched a little bit briefly on silver as well, but maybe we take a closer look at silver. I remember at the the beginning of the year you weren't feeling too overly optimistic. It wasn't quite silver's time yet. How how are you looking at it now? Yeah, I mean silver I'm not I'm not a big fan of silver here. I think silver is actually the one I'm really excited about when we start after we've had a financial correction. I think silver and miners are kind of the play. Forget gold. It'll be like

let's move to the fastmoving stuff. Um but silver has took a huge hit with the recent panic selling. I can't remember what percentage-wise uh silver fell uh in the last month, but you know, gold pulled back six or 7%. Um and we saw silver silver pulled back about 22%. So, you know, silver is really volatile and it hasn't really recovered. It's had a bounce, but it looks like a bearish bounce. It's an oversold. It's bottom picking. It's people hoping it's going to take off, but really, I think silver

has kind of topped out and um it's going to struggle to make some multi-year highs. It has a very volatile chart pattern that that also indicates longer term it's it's ready to go down. Um so I'm not a big fan of silver. Gold really is the one and the only part in the precious metal space I think to be in involved in. It's the most consistent. The whole world is buying it whereas silver and miners are more of a speculative play and it's they're they're more sensitive to fear. As soon

as they're selling or a bit of fear they drop like a rock. We're very small markets. Whereas when there's fear in the world, people around the world actually say, "I'm gonna buy some gold." Um, so there's a lot of global support I think for gold itself and silver to me is just it's just too fast, too moving, too speculative. Um, and speculative stuff usually has more emotional traders. So they're more inclined to panic and spook and, you know, buy high and sell low. Just they're constantly

feeling like they're missing out on a move. They get in and then it drops and they're like they get out because they're like, "I timed it wrong." And it's just the way that volatile assets are usually have more volatile traders, you know, around them. Yeah, I think that that makes a lot of sense. So, we've got gold and cash. These are places to be right now. Anything else you're looking at as a place of of safety or any other trades that are intriguing to you right now? Maybe not

from a safety perspective, but they just look interesting. Yeah, the I believe it or not, Bitcoin is actually starting to show some interest in terms of another big trade setup. So, if I just show you the chart of Bitcoin here, um we had a really nice trade uh with Bitcoin uh earlier in the year. Um we had this bull flag pattern right through here and we ended up getting long here. We end up getting we the Fibonacci target really gave us a topping phase. So, for example, this is the monthly chart of Bitcoin. I hadn't

traded Bitcoin for like a decade it felt like before this. I have it from a Bitcoin from forever ago. But the Fibonacci target was saying we're going to have a max out of 108. And so we did. We got into Bitcoin. We got out at 108. Closed the position. But now it's trying to build what is another bull flag. So this here was a bull flag pattern, a very strong chart pattern, and now it's rallied up and it's trying to build another bull flag. Now it's not the sexiest bull flag. It's it's got some

troubles. It's still struggling, especially on the daily and weekly charts. But if it can build some strength and hold its ground and move up and get into this kind of area over here, there could be a very good opportunity for Bitcoin to go a lot higher. And so I am keeping my eyes on it. Um the last trade was a very very successful trade. And just based on this move in Bitcoin, we can gauge where the upside target is for this next run, which it brings us up to 135,000 for Bitcoin, which at the current price is

roughly a 40% move. And the last move we did was about 40%. From where we got in, it was a 40% move uh for for Bitcoin as well. Uh so it's moving up kind of in in steps, measured steps in a very controlled way. So, this is one opportunity that it might buck the trend. Maybe Bitcoin is not going to follow the NASDAQ lower, uh, which it has been doing for a while. It's starting to buck the trend and move higher even though the stock market is going down some days. So, it could come into play as an alternative. I know it

is an alternative asset, but it could buck the stock market and actually move higher. So, it's a wild card. Um, you never know if it's going to move with or against the stock market, which just adds another layer of risk. you know, you kind of have a 50/50 coin toss if something's going to go up or down, but if you don't know if it's going to move with or de decouple from the stock market. Now, you kind of have like a 33% chance of of the trade playing out. So, and that's the same with gold miners.

You never know if they're going to sell off when there's a down day in stocks or if they're going to go up. And that's why a lot of people who trade mining stocks suffer a lot because you actually only have like a 33% chance of that trade working out. and people don't realize it because of the relationship of how precious metals can fall in as a defensive play and other times they don't. Um, and Bitcoin does the same thing. So, that is the only other area. Right now, we're kind of sitting on our

hands. Um, we hold physical gold. We're sitting on our hands with cash, keeping our eyes on on crypto for a potential short-term kind of uh rocket ship kind of play, a discretionary play. But other than that, that's about it. It's uh preserve your capital because the stock market might have a much larger correction and and the whole point of that is really to look at believing we could be going into a stage four decline. A stage four decline is like what we saw the tech bubble is the 2008

financial crisis and people right now I think are in the complacency move Charlotte where they I keep seeing people saying stock market's going to be at new all-time highs. They're all picking up Tesla. They think it's a steal. Nvidia is a steel. All these companies and I I believe we're about to go break down in a bigger way and they're going to start to get anxiety eventually. They have denial. They won't believe how much they're down. Uh and they can't get out of the trade, which

is the typical bare market trap is you're like, I'm down so much I might as well ride it out, which is the worst thing you can do because you're generally going to when you're down 50 to 60 or 70%. You're going to be like, if it goes much further, I'm going to lose everything. And that's when people panic out and they actually have this anger and depression phase. It's a very dangerous phase. In 2008, there was 8,100 people who committed suicides directly related to falling stock

prices. So, this is no joke and it's why I'm sharing trying to share this these bigger patterns and people need to understand this is dangerous stuff. And a perfect example of people getting on the wrong side right now, Charlotte, is I had a member share this chart with me yesterday. It shows how many how much people have been piling into leveraged long ETFs. So, people betting that the market is bottoming and going higher. Just in one week, there was $6.6 billion moving into the leveraged ETFs. But look at the last

month and a half. It's just everybody's piling in thinking the stock market's going higher. They're completely complacent that we're on a downswing for a financial reset. And if the stock market falls 50%, how much do the leverage ETFs fall when they're at 2x? They fall a lot. They do a lot of damage. People blow up their accounts. And um this is telling us people are trying to pick a bottom. And when people are trying to pick a bottom, just like in the bond market, they're all trying

to accumulate and buy the bottom in bonds. It's generally not the bottom. Um so that's what people need to be aware of, I think. Wow. I think that's a pretty wild chart to look at. So thank you for sharing that one. That's everything from me and I think we got a nice summary of where you're at right now and what you're looking at and ended on some good advice, but if you had any any final brief thoughts to share, I go ahead please. Yeah, that I mean that's it. Protect your capital. Um don't worry

about FOMO of missing out on future gains. You can always buy back into the markets long-term. They should be making higher highs. Might not take it might take five or six years to get back here, but um protect your capital. If you protect your capital, you protect your lifestyle and your stress. And uh that's what I focus on is how do we as investors who um who have a lot of capital, protect it so that you don't have to downgrade your lifestyle, you don't have to stress about it. And

that's what we do. We step aside when the market's chaotic. We benefit from bare markets. And then we have all our capital to reinvest in all the things we love when the economy's just devalued everything and everything's either at fair value or undervalued. Doesn't matter what you get in, it's pretty much an incredible opportunity looking forward a few years. So, um, protect your capital. Don't try and make a bunch of money this year. It's more so keep your money so you can invest it later

and then crush it after that. Okay. Well, really good as always to have you on and hopefully we we check back with you soon and see where we're at moving forward. Sounds great. Pre appreciate it. Of course. And once again, I'm Charlotte Mloud with investingnews.com and this is Chris Muan with the technical traders.com. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below.

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