Is money finally starting to leave the market?

February 24, 2021

Chris Vermeulen, Founder of The Technical Traders kicks off today by taking a close look at the current rotation within the markets, out of tech and into the re-opening stocks. The key to consider is if money is slowly starting to exit the market rather than simply rotate within it. Chris shares levels to watch in the broad averages and how he is managing his portfolio.

Click here to visit The Technical Traders website to follow along with Chris’s trades.

    Feb 24, 2021 24:33 AM

    TLT Monthly (intraday):

    Feb 24, 2021 24:35 AM

    Thanks Chris……

    Feb 24, 2021 24:40 AM
    Feb 24, 2021 24:44 AM
      Feb 24, 2021 24:50 AM

      Bobby’s comment….
      NFG is going to be a highly volatile stock. 81% of the shares are in the strongest of strong hands between management, insiders and institutions. That means it wouldn’t take much to move it up or down. As I have recommended many times in the past, learn to think for yourself if your intent is to make money. You can’t make money investing with the herd, they always lose money. Buy when NFG is cheap feel free to trade it if it gets too stupid. It will go up and down violently. Don’t get shaken out.

        Feb 24, 2021 24:52 AM

        Right now New Found Gold and Great Bear look to be the biggest potential juniors in Canada. Both have giant drill programs.

          Feb 24, 2021 24:09 AM

          Jerry, I see you really do like Bob-by, just having a little fun! LOL! DT

            Feb 24, 2021 24:09 AM

            I do like Bobby……even when he is an a++, but, heck, so am I at times… LOL

          Feb 24, 2021 24:12 AM

          Jerry, don’t forget ESKYF. It’s got a lot of juice too.

          Feb 24, 2021 24:34 AM

          Jerry, the price of New Found Gold is up today, I hope it isn’t being interfered with. DT

            Feb 24, 2021 24:10 AM

            THe big 8 can do what ever they team up to do….. JMO….

            Feb 24, 2021 24:12 AM

            Not sure how many…people control the 81%……so, disregard the *8……

          Feb 24, 2021 24:59 AM

          Sky Gold is up over 20% for no reason and it is in the area of New Found Gold. Maybe keep an eye on it…news or something coming or just reacting to NFG. Labrador Gold is on the same fault as NFG and it is down. Hummm….

            Feb 24, 2021 24:04 AM

            Sky Gold might be Schwab error. It shows in my account over 20%, but if I hit Sky Gold on Schwab Research it is about +7% and if I go to OTC Markets it is +13%. that gives me a lot of confidence.

            Feb 24, 2021 24:36 AM

            Hi David. Sometimes the OTC tickers can simply be reflecting a catchup to the primary listing, as they are more thinly traded and can have more erratic moves. For pricing movement, it’s best for tracking the primary and most liquid ticker.

            In Skygold, for example, the main ticker SKYG is up today 3.85%, likely in sympathy with the other mining stocks heading higher today. I do see on Yahoo finance where the OTC ticker SRKZF is up 13.16%, but again that seems like more of a catchup move or a result of wider bid/ask spreads resulting in that pricing and not indicative of the primary listings movement today.

    Feb 24, 2021 24:49 AM

    long AR

      Feb 24, 2021 24:39 AM

      Nice Tom. I’m also long AR Argonaut Gold, and believe they have a fantastic growth profile over the next few years as Magino and Cerro Del Gallo come online to production, and they are going to move from a 150K-200K gold ounce producer, up to a 300K-500K ounce gold producer annually. They should have very nice optionality to rising prices for a mid-tier.

    Feb 24, 2021 24:05 AM

    Where did Glen disappear to? Miss his contributions greatly.

    Feb 24, 2021 24:02 AM

    It looks like another positive green day in the Precious Metals space again today, with most miners trucking higher, along with the PM ETFs.

    Most of the Copper miners in my portfolio are still rocking higher, but I did trim back greatly my position in (FIL) Filo Mining today, as it was up over 11% with double the average volume, and it’s unclear in the short term how much more juice Copper and the related stocks have before taking a brief pause.

    With so many markets up in the stratosphere from Cannabis, to Cryptos, to the General Markets, and few market bears out there anymore, there seems to be a layer of complacency from the larger investing universe that stocks can only go up, and it gives me an uneasy feeling. As a result, I picked up some exposure to volatility increasing this morning through (VXX).

    Wishing everyone here at the KER good trading.

      Feb 24, 2021 24:05 AM

      Regarding Copper – It has had quite an amazing run higher, currently at $4.29. Stellar!

      The question is how much longer can Dr Copper keep this up before it needs to pullback and rest for a little bit?

        Feb 24, 2021 24:42 AM

        Possible Copper Top:
        Current (13:36): 4.3112
        BackBox(2.000): 4.3685
        (Mar 2020 – Dec 2017)

          Feb 24, 2021 24:56 AM

          Using numbers:
          BackBox(1.7860): 4.2695
          Average: 4.3190

            Feb 24, 2021 24:00 AM

            CPER much higher. COPX under Monday. Divergence Top?

          Feb 24, 2021 24:20 AM

          BDC – Thanks for the thoughts on Copper and the Copper mining ETF.

            Feb 24, 2021 24:59 AM

            My pleasure. This may be a good example of what was mentioned earlier, where if COPX closes below Monday, and even if CPER itself is MaxSat(7) today, the average will be 3.5 and displayed in the “Copper” (Latest High) MaxSat box as either 3.5{6} or 3.5{6,6.25}: (display methods still ‘WIP’).

            Folks will be able to see this trend brewing well ahead of time, and can act accordingly.

            Feb 24, 2021 24:27 PM

            Interesting readings on both CPER and COPX, and monitoring the Copper situation will be instructive on the base metals in general. Also, Copper hasn’t had $4 handle like this in many years, so it has really been breaking out, but surely some profit takers will acting soon, as most of the miners have been on a run for months now. I pulled profits on Filo Mining today, but left my other positions on to keep riding the trend.

            Feb 24, 2021 24:01 PM

            Makes sense. STATS is a guide only — hopefully helpful.
            Market Close Update (date+):

            Feb 25, 2021 25:37 AM

            Followup: Wednesday’s Copper High (1D) = 4.3623

            Feb 25, 2021 25:38 AM

            If Copper breaks higher, the next target is 4.70-4.75

    Feb 24, 2021 24:43 AM

    14 RSI ON COPPER IS 88.4 %
    I just sold my 2nd 30%trade in Capstone

    Feb 24, 2021 24:31 PM

    Copper is getting over bought and is due for a correction and consolidation. Gold appears to be where people should be focused now for the next 2 months as far as buying some companies that have come off their highs and are now looking very attractive.

      Feb 24, 2021 24:34 PM

      Doc – Do you think it is time to pull a few chips off the table with WRN here?

      I’ve got a nice in the money position, but since they have both Copper & Gold, and because of the massive size of their development project, I’m hesitant to do much other than keep accumulating it.

        Feb 24, 2021 24:39 PM

        Ex, see below. Too often I exit too early and end of kicking myself in my derriere—I have multiple bruises over the years–I’m not about to do that with WRN—I completely agree with your statement—especially with the fact I feel we’re just at the beginning of a new commodity cycle, I’m not going to pull chips off the table on some of these stocks. By the way, I purchased a tad more of SAND today. My equites in my portfolio have now edged up to 44% from 39%. I’m going to be focused on gold stocks that have been crushed over the last few weeks.

          Feb 24, 2021 24:54 PM

          I agree with Doc on the focus on have a greater lean toward gold stocks at his time.

            Feb 24, 2021 24:08 PM

            Can, I believe you’re going to have a long time to increase your position on gold stocks. I’m waiting until March before I get too serious since the odds are that gold retreats a little more in March and maybe also in April. I have been purchasing some gold stocks but slowly since there could be more pressure on gold.

            Feb 24, 2021 24:30 PM

            Doc have you had a look at the newly launched Aris Gold yet? It has quite an extensive team and a few big names on the board, and they rolled up Caldas Gold to relaunch it. I added a bit more to my recently started Aris Gold position again today.


            Feb 24, 2021 24:44 PM

            Ticker is ARIS.

            Feb 24, 2021 24:10 PM

            Hey Doc, I fully appreciate your call for a drop over the next while, but I’m not thinking it’s going to roll the same way. I am seeing gold at $2051 by Oct 1 based upon one of my views. So, am keeping an eye on that line of sight.
            I do hope gold hobbles here for a bit so I can benefit from further alignment of my portfolio.

          Feb 24, 2021 24:07 PM

          Yeah, I was just considering trimming back some of the WRN position, because it has run nicely here, and then wait for any corrective pattern in the copper stocks to accumulate more at lower prices. However, as mentioned above, I still consider it to be undervalued due to the massive size of their copper/gold deposit, and it’s possible the precious metal component may keep it from correcting as much as other copper/base metals stocks may from these levels.

          As for SAND it’s a beauty at these levels, but I’m pretty stocked up on it, and as mentioned a few days back, it’s become my largest precious metals position, as an anchor for slow and steady growth for the years to come. I don’t expect it to perform nearly as well as many of the individual miners, but I see it is far less risky than individual miners, and should be a nice call option on rising metals prices, and improving production metrics from it’s partners. With over 200 PM royalties and streams in the Sandstorm portfolio, I’m comfortable having a heavier weighting to it for the long game. Like you had mentioned, I’d always intended to get it going again as a piece of the PM portion of my portfolio, but then watched it run away. Then last March & April, I kept telling myself I’d pick it up, but was overwhelmed with with good deals, and passed on it. The recent last few months of underperformance by SAND got me interested to start buying over the last 2 months in multiple tranches, and I see the downside risk being much lower than other names in the PM space. However, as you mentioned above, there are some that have been crushed over the last 7 months that look prettying intriguing at present.

          Feb 24, 2021 24:15 PM

          Ex, thank you for alerting me on this company—I was completely unaware of it. I like it when you bring in companies no one is talking about.

    Feb 24, 2021 24:35 PM

    If my copper stocks pull back to consolidate, I’ll add to them since the long time charts and the beginning of this commodity cycle tell me we have a long ways to go.

    Feb 24, 2021 24:47 PM

    Buying copper stocks today is like buying gold stocks last August, not a good idea. Copper and COPX are at or very near an intermediate top so the coming correction will probably not be a short and mild consolidation.

      Feb 24, 2021 24:53 PM

      I have a tendency to agree with my man Matthew on this one.

        Feb 24, 2021 24:28 PM

        It is rotation time. Copper/commodities in general, Bitcoin, and the stock market will be under pressure while the gold space rises, the miners in particular…

          Feb 24, 2021 24:14 PM

          Hey Matt, Are you playing your Newmont and Barrick as longer term holds or are you playing them as you will on your Brixton and Impacts, where I figure you’re in for a quicker pop and play actioned at a key price point?

            Feb 24, 2021 24:22 PM

            Most of those shares will probably be sold once or twice a year based on the usual technical stuff and a much smaller amount will be traded often based on short term swings and other opportunities. The approach is often the same with many juniors, especially that blue chip of tiny caps, Impact Silver.

            There is still a chance I’ll have to sell soon if gold breaks down but I have a feeling both companies will refuse to follow gold lower as long as gold’s new low is only modestly lower (no more than $50-$60?). Within reason, I will average down as I did today.

            Feb 24, 2021 24:55 PM

            With the central planners now behaving more insanely than many experts thought possible not long ago, it makes more sense than ever to also chart everything in real money. Otherwise, reality can be so distorted that our judgment is thrown way off. Barrick priced in gold is an eye-opener and shows clearly the significant support that Barrick is at. Breakage here is actionable (sell). In addition to two perfectly good fork supports, there’s the price-action way to the left (Oct/Nov 19 and Jan 20) providing support. This area should hold unless something big and not good is coming our way. A big bad development could be Barrick-specific or, more likely, something like a market crisis or geopolitical event (like sweeping mine nationalizations or horrible, crippling new mining laws — I expect neither, fwiw).

            Feb 25, 2021 25:58 AM

            Thanks Matt.

            It’s a more difficult spot to play in given the way things may roll from here.

            I don’t see it playing out like the more typical scenario where we experience a quick drop and then we figure out when to hop in. This one has a different sense in terms of timing in that it feels we are teetering.

            I see a short term weakness in gold price, followed by some oscillation in the short-mid term, but then a bigger rally upward into the Fall.

            I just cant get a sense of whether or not share price will take a plunge from here. If I had to guess, based upon my sense of the way this market has been performing, then it would be wise to cautiously bet we’ll see some downside. I hope you won’t have to sell out of your trades because that’ll mean we’re all going to see some continued lowering of prices. 🙂

            But, you and others here are by far better TAs and immediate term view.

            I always appreciate your insight. Thanks again.

            Feb 25, 2021 25:11 AM

            We are getting a glimpse of what I mentioned above. NEM is currently up while GLD is down 1.5% and Barrick is outperforming gold as well.

            Still, you are right to be cautious in this somewhat strange market. There are bullish and bearish crosscurrents that are more closely matched than usual.

      Feb 24, 2021 24:13 PM

      I’m not sure what kind of correction Copper will have from here mild or zesty…. but it has run really far in relatively short order, and so have the Copper stocks. I sold one of my copper stocks today (FIL) Filo Mining, which I also still consider undervalued for the size of their assets and with the Lundin family involved, but it’s had a good run so far, and I want to start reducing down a bit of my copper exposure. I just went from 10 copper companies, down to 9. Still debating trimming back a few others in position sizing… decisions…

        Feb 24, 2021 24:31 PM

        Copper has been in hockey stick mode lately gaining 22% in under 3 weeks. Yes, it can definitely extend but the risk-reward picture is not good at all.

          Feb 24, 2021 24:40 PM

          I agree Matthew. I’m trying to debate how much to trim on the Copper stocks in my portfolio, as it has been a good run lately, and exceeded my expectations. I’ve been working on not selling too early in a rally, and have sat on my hands in a few of the Copper stocks, where I had opted for trimming back Nickel/Platinum, Uranium, and Lithium stocks instead over the last few week. Now I’ve been buying those back gradually, but am thinking of reducing my Copper exposure a bit down as a rebalancing initiative.

    Feb 25, 2021 25:57 AM

    Interesting thoughts from Chris. That turn around after Powell basically pumped the markets is now key. Would have liked to have heard Chris’s thoughts on that. A one day reaction or are we back in those Obama years where Yellen just pumped the markets – the Fed has your back???