The David Lin Report Market Is 'Ticking Time Bomb': Chris Vermeulen On What's Next For Dead Cat Bounce
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May 15, 2025 Chris Vermeulen, Chief Market Strategist at The Technical Traders, dives into the current market landscape, describing it as a 'dead cat bounce' rather than a true rally. He highlights Bitcoin as the most promising investment, far outpacing gold and equities. Vermeulen explains the dynamics of rising 10-year yields, the volatility of dividend stocks, and trading patterns in gold. He shares strategic insights for navigating market fluctuations, emphasizing the importance of reinvesting in high-performing assets to mitigate risks.
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Market Likely a Dead Cat Bounce
- The current rally is likely a dead cat bounce within an overall bear market.
- Investors are moving aggressively into risky stocks, mistaking the bounce for a new bull market.
Dead Cat Bounce Defined
- A dead cat bounce can be large but is a rally within a downtrend with stalled momentum.
- Without breaking previous highs, rallies are likely bear market rallies until proven otherwise.
Money Flows Drive Asset Moves
- Money flows from defensive assets like gold and bonds into riskier equities when market sentiment turns bullish.
- This money movement explains the inverse correlation between bonds, gold, and stocks.