'We've Seen a Wave of FOMO Buying': Vermeulen on Market Bounce

Why It Matters

Understanding the FOMO‑driven rally helps investors navigate short‑term pullbacks while staying aligned with the broader upward trajectory, influencing portfolio allocation decisions across equities and commodities.

Key Takeaways

• FOMO buying drove recent US equity rally, prompting short‑term pullback.
• Vermeulen expects S&P 500 to gain ~7% before next resistance.
• Small‑cap and micro‑cap stocks lead the ongoing long‑term uptrend.
• Gold could reach $8,000/oz, but near‑term volatility remains high.
• Apple’s September CEO transition may reignite investor optimism.

Summary

Chris Vermeulen, founder and CIO of Technical Traders, opened the segment by describing the recent surge in U.S. equities as a classic wave of FOMO buying. He noted that while the rally pushed the S&P 500 to fresh record highs, the influx of short‑covering and new money has set the stage for a modest, sideways correction.

Vermeulen highlighted that small‑cap and micro‑cap stocks are the primary drivers of the long‑term uptrend, and his five‑year chart analysis suggests the broader market still has roughly 7% upside before encountering its next technical resistance. He warned that the current optimism may be overstretched, urging investors to expect a brief breather rather than a sharp reversal.

He also turned to commodities, projecting gold could climb toward $8,000 per ounce and silver toward $165, though he cautioned that daily charts show heightened volatility and a potential downside if the U.S. dollar rallies. On the corporate front, Vermeulen flagged Apple’s September leadership change as a catalyst that could restore the “Steve Jobs‑style” excitement many investors feel is missing.

The overall message for market participants is to stay invested in equities, especially the resilient small‑cap segment, while managing risk through position sizing and monitoring precious‑metal trends. The upcoming Apple CEO transition and any shift in macro sentiment will likely shape short‑term market dynamics, but the long‑term bullish bias remains intact.

Original Description

Chris Vermeulen, founder & chief investment officer at The Technical Traders LTD, joins BNN Bloomberg to discuss portfolio strategy.

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