War Shock and Market Reality, Why I Move to Cash and What Comes Next
In my conversation with David Lin, we broke down the market reaction to the U.S. strikes on Iran and the immediate spike in oil and gold. These types of overnight surges often look dramatic, but historically, they tend to be emotional, capitulation-style moves that can fade once cooler heads prevail. At the same time, equities are gapping lower, key technical levels are under pressure, and Bitcoin’s chart is showing clear signs of distribution. When risk assets start rolling over together, that is not the time to be aggressive. That is why I have moved entirely to cash and am waiting for higher-probability setups to develop.
We also discussed bonds beginning to show signs of life and why gold, despite its spike, still needs to build a proper base before it becomes technically attractive again. The focus right now is not chasing headlines or reacting emotionally. It is about reading the charts, respecting trend shifts, and protecting capital when risk is elevated. Markets move in cycles, and panic-selling phases can unfold in stages. The goal is to step aside during unstable conditions and be prepared when true opportunity returns.
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The topics David and I discussed include:
- 0:00 – Intro.
- 1:06 – Oil price moves
- 8:17 – Equities gapping down, key levels, and trading philosophy
- 18:52 – Bitcoin
- 21:40 – Bonds and life signs
- 23:42 – Gold, silver, and miners
Chris Vermeulen
Chief Investment Officer
TheTechnicalTraders.com
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