Investing Videos

This Technical Trader Ignores the News, Only Follows Price. Here's What the Charts Are Showing Now.

The video features technical trader Chris Vermillion, who argues that market direction should be read from price action alone, not from news, economic data, or geopolitical events. He emphasizes that AI‑driven technology stocks are the primary engine lifting the S&P 500 and Nasdaq, while traditional dividend‑paying sectors such as utilities, consumer staples, and health care lag behind. Vermillion points to several technical signals: an equal‑weighted S&P 500 flirting with a double top, a concentration of gains in a handful of tech and semiconductor names, and a historically low put‑call ratio paired with a subdued VIX. He warns that when utilities (e.g., XLU) begin to outperform the broader market, it often precedes a 5‑8% correction in equities. Key quotes illustrate his stance: “I wait for price to give us a clean direction,” and “when utilities outperform, expect a correction.” He cites the DRAM ETF’s 100% rise in six weeks and the recent pull‑back as evidence of a feeding‑frenzy bubble, while noting that silver’s wild swings are typical of market tops. For investors, the takeaway is to monitor sector rotation and technical barometers rather than headline‑driven narratives. A shift toward defensive sectors or a rise in volatility metrics could signal the end of the AI‑fuelled rally, prompting risk‑adjusted repositioning before a potential pull‑back.