Stock Selloff & Why Gold & Silver Could Skyrocket

Craig Hemke (00:00) Greetings once again from Sprott Money at SprottMoney.com. It's now the month of March. Holy smokes, where is time going? And as usual, we're gonna start the month with our precious metals projections. Joining me, your host, Craig Hemke, is our usual co-host, Chris Vermeulen of the TechnicalTraders.com. Chris, one of Eric's favorite technical analysts. It's always good to get his opinion. Chris, nice to see you.

Chris Vermeulen (00:33) Good to see you, Craig. Always a pleasure.

Craig Hemke (00:36) It is an interesting time to be alive. There's certainly no shortage of stuff to talk about this month. I don't know about you, I get to go see my tax guy today. So I got that to look forward to at the end of the day. It was either a root canal or go see the tax guy.

Chris Vermeulen (00:41) Yeah.

Craig Hemke (00:54) Anyway, it is tax season. Remember, as you are funding or even looking to consolidate your IRA or RRSP accounts, Sprott Money can help you with that and get yourself some physical metal stored safely and conveniently. Go to SprottMoney.com. They will tell you all about it. You can actually give them a call. Somebody will walk you through the process. If you've always heard about physical metal IRAs but have never really known how it works, that number is right there on the screen. 888-861-0775. The good folks at Sprott Money are there to help answer any of your questions about your retirement accounts in this tax season. All right, my friend. I tell you, you know, I always try to remind people. I mean, the fun part about this monthly show that we do is you just give an unbiased technical opinion about the markets. And I know a lot of folks like me, we focus on fundamentals, and fundamentals, at least at this time, are pretty consistent. But for the metals, the technical picture across the markets can change day to day, almost week to week, as technical indicators get violated and everybody starts to pile in one way or another. As this month of March begins, there's a lot of worry about stocks. Anybody watching this can go on the Sprott Money channel.

Chris Vermeulen (02:10) Mm-hmm.

Craig Hemke (02:23) And go back just to last weekend, I had a great discussion with Michael Oliver. Michael was talking about how the next big boost for gold and silver is going to be a rotation out of stocks as stocks decline. Not like he thinks it's going to happen, you know, 20% down in three days, that kind of thing. Just a gradual loss of confidence shift from growth into value, that kind of stuff. So anyway, there's a link right there. I encourage you to watch that too. But the stock market here in early March is starting to look a little shaky. So I thought from a technical perspective, Chris, that's where we should start. Do you want to look at the NASDAQ or the S&P? What do you think?

Chris Vermeulen (03:03) Yeah, we can look at both real quick here. I think one of the key things here is that obviously the technicals can flip and flop depending on the time frame that we're looking at. If we look at the big picture and the weekly chart of the S&P 500 going back to the 2007 market top, we see these waves of bullishness and bearishness. If we zoom in from COVID to where we are now, we’ve got these multiple waves, and it’s important to know where we stand on long-term and short-term time frames. After COVID, we went into a bullish environment. 2022 was a bearish environment. And right now, from a long-term investor standpoint, the short-term trend is down. We’re seeing lots of blood on the street right now, but the trend is still up based on long-term price action and money still flowing into the stock market. Big dips are still getting bought up, so it's not the end of the world where we're at right now in terms of the market. Long-term investors can still be kind of long the market and probably anticipate some type of bounce. But as we look at the shorter term, the S&P 500 daily chart shows an important level at the low we saw on January 13th. If we draw a line across that...

Craig Hemke (04:21) Yeah.

Chris Vermeulen (04:28) I was telling subscribers this morning in the pre-market video to watch for the markets to fall today. If it breaks that low, we’ll probably see elevated volume to the downside. There are a ton of stops set at this level. And we’ve seen that perfectly on the futures chart. This is a panic sell-off day, meaning stops are getting run. Everybody has that very obvious stop level, and that’s what’s triggering today. We’re seeing a flush down of high-volume selling, and then we’ll likely see an oversold washout low, which usually firms up for a strong bounce. We have the washout right now, and if we look at this daily chart, we see a washout low. The market will probably close somewhere around the level it's at today or even higher, forming a big lower wick. Then, we’ll probably see some big bounce. But overall, a lot of damage has been done to this short-term chart. The trend is definitely down, and this key level was definitely pierced.

Craig Hemke (19:40) All these moving parts, brother, and you do a great job at keeping track of them all. Tell everybody about where they can find your work.

Chris Vermeulen (20:43) Sure, yeah. They can go to my website, which is thetechnicaltraders.com. I share my trades, my analysis, and walk through the charts just like you and I are doing right now, Craig. If you like the 30-minute chart I was showing to find out when the markets are overbought, oversold, or to know when a trend is changing and understand the panic selling and the FOMO indicator, go to my website and check out my book, "Technical Trading Mastery." I show you exactly how to set up that 30-minute chart so you can spot panic and FOMO, overbought, and oversold conditions. It's all in that book with details and formulas. You can also find my videos and analysis on YouTube at TheTechnicalTraders.com.

Craig Hemke (21:38) Fantastic. And of course, you can come back in April for another Precious Metals Projection podcast. If you missed the Michael Oliver video posted late Friday or early Saturday, subscribe to the Sprott Money channel so you don’t miss a thing. Subscribe, like, and help Sprott Money cast a wider net. And one last reminder, don’t forget about your IRA or your RRSP. Go to SprottMoney.com for more information. Chris, thank you so much. Always a pleasure.

Chris Vermeulen (22:26) It was a pleasure. All right, take care, Craig.

Craig Hemke (22:28) From all of us at Sprott Money, SprottMoney.com, thanks for watching. Keep an eye on this channel. The month has just begun, and there’s a lot more information to come in the next couple of weeks.