The David Lin Report 2008 'Violent Pullback' Returns: Gold To Nosedive, Nothing Is Safe | Chris Vermeulen
Oct 23, 2025
Chris Vermeulen, Chief Market Strategist at TheTechnicalTraders.com, dives deep into the recent 6% drop in gold prices, analyzing the market's parabolic moves and drivers like FOMO. He compares current trends to the 2007-2008 market behaviors, discussing possible pullbacks and rebound scenarios. Vermeulen warns against equity investments, highlighting significant money flow warnings and advocating for cash positions during volatile times. He emphasizes cautious approaches to trading, advising against chasing risky assets while outlining his strategies for navigating these uncertain markets.
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Parabolic Metals Rally Is Crowd-Driven
- Precious metals rallied parabolically and then experienced a sharp, sudden sell-off that resembles bubble behavior.
- Chris Vermeulen sees the current move as a crowded, FOMO-driven trade vulnerable to abrupt reversals.
Gold May Pull Back Sharply Then Rebound
- Gold could still have more upside but is also susceptible to a large Fibonacci-style retracement between ~38% and ~61%.
- Vermeulen expects a sharp pullback like 2007–2008 rather than a decade-long 2011-style dormancy, then a rapid rebound.
Match Reaction To Your Timeframe
- Decide by timeframe: momentum traders follow short-term downtrends while swing investors may view this as a routine pullback.
- Avoid panicking; wait for technical confirmation of a top before exiting long-term holdings, says Chris Vermeulen.