First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!”
So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.
Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.
For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25 subscribers. You can upgrade to this longer-term subscription or if you are new, join one of these two plans, and you will receive:
1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)
2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)
I only have 25 silver rounds I’m giving away
so upgrade or join now before its too late!
https://thegoldandoilguy.com/wp-content/uploads/2019/05/chart9.jpg9451442adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-05-02 10:40:032019-05-02 10:40:03Interest Rates, US Dollar, Canadian Dollar
The US Federal Reserve announced today they are leaving rates unchanged based on their latest meeting. The markets should take this as a sign of relief. Yet, hear all-time highs and expecting the Fed may actually decrease rates a bit, the market reacted with quiet price rotation near these highs.
The US Fed could have shaken up the markets even more, but we believe this move by the Fed will be interpreted as “Fed Uneasiness” with regards to the overall US and global economy at the moment. A failure to prompt a rate increase could be seen as weakness by the Fed and uneasiness over the fragility of the US and Global economies. Once this shake-out settles, the markets will go back to doing what the markets always do – interpreting future fair values.
The $INDU rotated much lower today, ending the day almost exactly at a key support channel level (the YELLOW line). Further price weakness could push the $INDU below $26,000 fairly easily if the current high price level is fragile and weak. Price rotation is one of the most basic aspects of all price activity. The price must rotate in order to establish new price highs or lows. As volatility decreased over the past 30+ days, it would not be unexpected to see price retest the $26,000 level, or lower, in an attempt to resume a price trend or re-establish price support before attempting another move higher.
The move in the NQ today was much broader than the move in the $INDU. The Technology heavy NASDAQ 100 rotated downward, below the historical price support channel, and is currently resting just above the previous all-time price high near $7724. Again, the Fed’s inaction may be interpreted as an expectation of market weakness over the next few months. Thus, traders reacted to this move by interpreting this weakness in the Fed to raise rates by selling.
Overall, leaving rates unchanged may be very healthy for the US and global economies. The US Dollar continues to strengthen and this shake-out may be just what is needed before the Summer season for the price to continue trending.
We’ve recently warned that the US major Indexes are nearing our Fibonacci upside price targets and that we believe the upside price move may continue for another 20+ days still. This current rotation may be very short-lived – possibly only 5~10 days of lower/sideways price action before trends resume an upside price bias. Time will tell.
Overall, our prediction that a shake-out was about to happen appears to be unfolding just days after we made the claim. Our longer-term analysis is still the same – continued upside price bias as earnings and fundamentals drive prices closer to our Fibonacci price targets before any bigger price reversal may set up sometime in July/Aug 2019.
UNIQUE OPPORTUNITY
First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!”
So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.
Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.
For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25 subscribers. You can upgrade to this longer-term subscription or if you are new, join one of these two plans, and you will receive:
1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)
2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)
I only have 25 silver rounds I’m giving away
so upgrade or join now before its too late!
Our research continues to support a Bullish price bias over the next 30+ days, very likely reaching to new all-time highs again, before June/July 2019. For many months, other researchers have continued to predict “doom and gloom” with warnings of Treasury yield inversions, global collapse events, and other crisis events. Yes, we believe continued price rotation will drive future price swings and they could be volatile moves – yet we believe any crisis event will actually become an incredible opportunity for long traders to BUY into the markets at extreme lows.
Recently, our researchers focused on OIL and the Transportation Index as key elements suggesting this upside move is far from over. Oil has moved from below $55 ppb to well above $60 ppb. We believe this move will continue higher to target the $64 ppb level were resistance is likely to be found. We do believe that some price rotation in Oil is likely to happen in the Summer months – when travel increases and Summer blend gas hits the markets. Winter has been uniquely difficult this year and the rise in Oil prices, where OPEC and foreign market events have attempted to push prices above $50 ppb, is warranted given global economic activities.
While Oil continues to climb, the Transportation Index is also rallying above recent resistance near $10,500 and pushing higher targeting the $11,250 level. This is important because the Transportation Index typically leads the US economy by about 3~6 months and is a key indicator of investors future expectations for the US and global economy. Any push above $11,000 in the Transportation Index would likely mean we are going to attempt to reach all-time highs near $11,634. A move like this would likely push the US Stock Market Indexes well above recent all-time highs as well.
Much of our recent analysis has been an attempt to relate the opportunity that exists over the next 30~60 days in the US Stock Market. For well over 12 months, we’ve been suggesting a capital shift is taking place where the US stock market, and the US Dollar, are uniquely positioned to become safe-haven investments for foreign investors. We believe this process is still taking place and we believe the US market could continue to push up to new all-time highs before another rotational move sets up. Our most recent research suggests a peak may form near June/July 2019 that should concern traders. Until then, we believe the upside price bias will continue and we still believe new all-time highs are about to be reached.
As of today, we have technical confirmation that a renewed upside price move is taking place and we continue to watch the precious metals for any signs of a base/momentum bottom. Follow our research and learn how we can help you find and execute better trades.
Take a minute to find out why Technical Traders Ltd. is quickly becoming one of the best research and trading services you can find anywhere. We are about to launch a new technology product to assist our members and we continue to deliver incredible research posts, like this one, where we can highlight our proprietary price modeling systems and adaptive learning solutions. If you want to stay ahead of these markets moves and find greater success in 2019 and beyond, then please take a minute to see how we can help you. Once this June/July peak begins, you won’t want to miss the next big move… Join www.TheTechnicalTraders.com today.
Chris Vermeulen
https://thegoldandoilguy.com/wp-content/uploads/2019/04/Featured-Image.png387700adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-04-03 15:58:452019-04-03 15:58:45Why Are The Markets Ignoring The Treasury Inversion?
