The Daniela Cambone Show Aug 25, 2025
“The Magnificent Seven have been dragging the stock market higher, but underneath the hood a lot of stocks are struggling,” says Chris Vermeulen, founder and CIO of TheTechnicalTraders.com. “They’re putting in major tops or hitting resistance levels. I do think we could see a huge collapse at any point. We just need some tipping point, some piece of data that could turn the tide.” Looking at patterns from past years, Vermeulen warns: “If the market does roll over here, we can see a very simple repeat where the market drops back to the April lows. That’s a good 20 plus percent haircut in price.” Meanwhile, he sees a rare opportunity in gold: “Gold is screaming—it’s like something is about to break. Charts point to a 20-plus percent move.”
Is Wall Street’s “Magnificent Seven” propping up a house of cards?
Chris Vermeulen warns that beneath the flashy gains of Big Tech, the rest of the market is flashing red. If his analysis proves correct, investors could be staring down a 15–25% correction—or worse, a financial reset reminiscent of 2008. With cracks spreading through the S&P, Russell 2000, and microcaps, the illusion of strength is fading fast.
This isn’t fearmongering—it’s strategy. And if you’re not preparing now, your wealth could be at risk in the next massive market crash.
Market Cracks Beneath the Magnificent Seven
The S&P 500 looks strong on the surface. But peel back the layers and you’ll see:
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RSP (Equal-Weighted S&P 500): Stalling near resistance.
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Russell 2000 (IWM) and Microcaps (IWC): Showing what could be a major double top.
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MAG7 Camouflage: Mega-cap tech drags indexes higher, masking weakness in the broader market.
As Vermeulen notes, the setup eerily mirrors April 2024 and April 2025, when markets plunged 15–20%. The playbook is repeating, and Wall Street is sleepwalking into it.
Fed, Fear, and the Tipping Point
Markets are attempting to price in Jerome Powell’s Jackson Hole comments. But history shows:
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Good news often sells off—as traders take profits.
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Bad news can spark rallies—because the fear is already baked in.
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Heavy selling in Big Tech signals that investors are no longer comfortable hiding in MAG7 stocks.
Translation: the trigger doesn’t matter. All that’s needed is a catalyst to flip sentiment, and the floor could drop out.
Gold: The Market’s Canary in the Coal Mine
Gold isn’t just holding steady—it’s screaming a warning.
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In 2007, as the S&P topped, gold surged 37%.
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Today, charts show the same bull-flag breakout pattern.
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Fibonacci targets point to $3,700–$4,100 per ounce, with potential spikes toward $4,500.
Vermeulen calls it a “rare setup” with explosive upside potential. And it’s not just charts—COMEX deliveries show massive physical accumulation. The smartest money is stacking metal before it disappears from the market.
Silver: The Wild Card
Silver’s chart is noisy, but the upside is real.
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Short-term target: $40.75
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Breakout potential: $50 all-time high
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Historically mirrors gold’s 30–40% surges during market panics
But silver moves fast—sometimes in one or two days. Blink, and the opportunity is gone.
Gold vs. Miners: Don’t Be Fooled
While gold miners (GDX, GDXJ) are showing strength, they’re still tethered to the stock market. When equities fall, miners feel the drag.
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In 2007, physical gold outperformed miners with less volatility.
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Silver also matched gold’s gains, but with higher risk.
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The true “wealth preservation play” is still physical gold and silver—tangible assets outside Wall Street’s paper casino.
Why Physical Gold and Silver Matter Now
If this really is the calm before the storm, the race for tangible wealth protection has already begun:
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Wealth Preservation: Unlike stocks, gold never goes to zero.
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Inflation Hedge: Fiat currencies erode, metals endure.
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Gold vs. Dollar: As confidence in the dollar weakens, gold strengthens.
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Crisis Insurance: In a financial reset, physical metals are often unobtainable at any price.
Vermeulen himself admits: “I just keep stacking it. I want to have it in hand.”
Conclusion
A massive market crash may not happen tomorrow—but the setup is here, and the warning signs are undeniable. Whether the correction is 15%, 25%, or the start of a reset, the message is clear: the time to prepare is before the panic, not after.
Gold is screaming. Silver is surging. Are you listening?
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