2026 Will Be ‘Roller Coaster’ For Markets; Trader Reveals Best & Worst Assets | Chris Vermeulen

Key Concepts

• Imminent Market Correction: A significant market downturn is anticipated, potentially wiping out substantial retirement savings within 6-8 months.
• Vulnerable Assets: Bitcoin and the “Magnificent 7” tech stocks are identified as particularly susceptible to sharp declines.
• Technical Analysis Focus: Utilizing technical indicators like Fibonacci extensions, moving averages, and candlestick patterns to identify market cycles and potential reversals.
• Proactive Risk Management: Emphasis on preparing for a bear market while acknowledging the current upward trend, with a strategy focused on protecting capital and lifestyle.
• Cyclical Markets: Recognizing the cyclical nature of markets and the importance of adapting investment strategies accordingly.

Precious Metals Outlook (Silver & Gold)

Silver experienced extreme volatility, surging to $82 before a 15-16% intraday drop to $72, stabilizing around $75. This is considered a warning sign of a potential “blowoff top,” exacerbated by margin increases forcing liquidation. The broader precious metals sector (platinum, palladium) shows signs of being “frothy,” reminiscent of 2007. Silver’s price action aligns with Fibonacci extension levels, initially targeting $72, where emotional volatility is expected. Gold is showing a stronger chart pattern but also signals a potential correction, with a short-term target of $51,000 - $52,000 followed by a significant pullback in 2026. Despite being a physical silver holder, Mulan is considering liquidating some holdings, emphasizing the importance of recognizing bearish engulfing candles (red candles engulfing previous day’s price action) as potential reversal signals, though not definitive. A potential spike above $100 is possible for silver, but likely short-lived, followed by a correction and a new floor around $50.

Technical Analysis & Market Indicators

Key technical indicators include bearish engulfing candles, pennant formations (indicating consolidation before a potential breakout, often downside), and moving averages. A sloping down 150-day simple moving average suggests a shift to a downtrend, and a 50-day MA crossing below it (“death cross”) is a strong bearish signal. Fibonacci extensions are used to identify price targets. Sentiment analysis is also employed to gauge market extremes. The current market is characterized by a period of sideways trading, with the duration of this consolidation potentially correlating with the magnitude of the subsequent market move.

Bitcoin & Stock Market Analysis

Bitcoin is at a critical cycle low but showing signs of stalling, with a pennant formation on the weekly chart suggesting a potential downside move to around $48,000. It’s not viewed as a leading indicator for stocks, but a stock market sell-off could trigger a significant Bitcoin decline. Buying Bitcoin at current levels is discouraged. The “Magnificent 7” tech stocks are considered particularly vulnerable in 2026, facing a potential “precipitous fall” of 50-60-80% due to “mass psychology” and widespread investment, even irrespective of earnings. A mass exodus of investors, including retirees, is anticipated to exacerbate the decline.

Dollar, Treasuries & Forecasts

The dollar could rally to 109-114, especially during a stock market correction. The bond market (TLT) is attempting to form a bottom but needs a significant rally to confirm a bullish trend. Yield movements are not actively traded. Overall, a bearish outlook is held for stocks, anticipating a major correction, though a continued rally is possible if all sectors break out.

Investment Strategy & Services

The core investment strategy focuses on protecting lifestyles and improving sleep quality by avoiding bear markets. This involves a “slow and steady” approach with 5-12 ETF trades annually, aiming for “high average returns” and “very low drawdowns.” A “technical investor strategy” is offered to determine whether to invest in equities (bull markets) or step aside (bear markets), incorporating long-term trend analysis, short-term sector trading, and options trading. A promotion offers new subscribers before midnight on New Year’s free physical gold and a one-hour group video call.

Conclusion

Christopher Mulan presents a fundamentally bearish outlook, anticipating a significant market correction capable of substantial losses. His analysis emphasizes the importance of technical indicators, recognizing cyclical market patterns, and proactively managing risk. While acknowledging the current upward trend, he advocates for preparing for a downturn, particularly focusing on avoiding vulnerable assets like Bitcoin and the “Magnificent 7.” His investment strategy prioritizes capital preservation and lifestyle protection through a disciplined, data-driven approach.