Discussing Precious Metals’ latest bounce and rally and recent trends in the stock market are Chris Vermeulen, founder of The Technical Traders, and Kerry Lutz from the Financial Survivor Network.
The markets had a relatively large correction and huge sell-off in the SPY 500 in the last couple of weeks. Panic took hold, and the VIX spiked. From the low to the high, we swung 4-5% on a daily basis. With the recent bullish news from the Fed, we are starting to see this turnaround. Is this a bounce or a rally or perhaps a knee-jerk reaction?
As positive news hits the wires, money flows back into the market, buying the dip in the lucrative speculative stocks. Having said this, the market is still showing signs of fatigue, so be careful of the news-based one-day bounce. As technical analysts, we watch the charts, not the news.
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