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CRUCIAL WARNING SIGNS ABOUT GOLD, MINERS, SILVER, SP500
In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here. I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here. On June 26th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis. More recently on July 16th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts.CONCLUDING THOUGHTS:
In short, you should be starting to get a feel of where each commodity and asset class is headed for the next 8+ months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.FREE GOLD OR SILVER WITH MEMBERSHIP!
Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.comMINERS ARE OUTPERFORMING US EQUITIES – TOP IS NEAR!
Last month I talked about how I have been waiting for gold miners to start outperforming the US stocks market. Once miners start outperforming in a big way (just like we saw in 2007), we know the stock market is topping out and something really bad is about to happen. In the last couple of weeks, the gold miners index is up over 20% while the SP500 is up only 4%, this feels like the start-of-the-end if you know what I mean. Gold miners and silver broke out today in a big way which could very well be the start of an epic rally for the precious metals sector as we heading into the end of the year. Looks at the SP500 index in the chart below which is of the 2007 bull market top. Currently, the SP500 has formed a very similar pattern in 2019 and with the precious metals rocketing higher I think it almost lights out for the US equities. See my updated chart showing where gold miners and the stock market is today within this cycle: https://www.thetechnicaltraders.com/next-bull-and-bear-markets-are-now-set-up/TRANSPORTS, INDUSTRIALS, and SMALL-CAP STOCKS Confirm Market Is Topping
Based on the 2008 weekly chart below the US stock market could be literally 2-6 weeks away from collapsing. What makes this even scarier is that the market liquidity is the worst its been in my 23 years of trading. This means when the selling starts we will likely see some sort of flash crash as we saw in 2008, 2015, and 2018. Price drops so quickly that by the time you figure out what you want to do and get your money properly positioned most of the move is already finished. See 2008 and 2019 Comparison Charts here.CONCLUDING THOUGHTS:
Pay attention to our research because we feel the market could breakdown on weakness later this week or early next week. Our predictive modeling systems are suggesting an August 19th, 2019 breakdown date and we are only about 25 trading days away from that date. In short, the bear market has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Stay Tuned for My Cycle Analysis Article Next! Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free. I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally also and some of these supercycles are going to last years. We go into great detail with this simple one of a kind and a real eye-opening financial market research booklet full of timely charts. As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly. FREE GOLD or SILVER WITH MEMBERSHIP! So kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.comNasdaq Daily Chart
This Daily NQ chart highlights the Fib Target Resistance level and shows our proprietary Fibonacci price modeling system’s current downside price targets (7760, 7400 and 7265). These downside price target will change as the new price peak is established near the 8031 price level.Nasdaq Weekly Chart
This NQ weekly chart highlights the same suggested resistance level (the YELLOW LINE drawn near the recent highs) and highlights deeper Weekly Fibonacci downside price targets near 6950, 6000 and 5950. Our expectations are that economic weakness and price rotation will set up and begin a downside price move on or near August 19, 2019, based on our cycle research. We believe this move will initially target a -6 to -9% downside price move, then extend into a much deeper price decline ending near the start of 2020 or within Q1 of 2020. See my current trend and trade signals for the SP500 index here.Conclusion:
Our researchers believe traders should be actively scaling back existing long positions in preparation for this top setup. Key psychological levels have already been reached and the minute the NQ breaks above 8000, the key Fibonacci target level and the key psychological level (8000) become critical elements for the market top formation. Now is the time to plan and prepare for these incredible price swings in the markets. The next 18-24 months are certain to present technical traders with countless opportunities for success with these bigger price moves. Our recent calls in the markets have resulted in over 42% in total gains over the past 60 days. Isn’t it time you learned how www.TheTechnicalTraders.com can help you find and time better trades?BECOME A TECHNICAL TRADER AND PROFIT WITH US
Chris Vermeulen Technical Traders Ltd.BECOME A TECHNICAL TRADER TODAY AND TRADE WHAT MATTERS – PRICE ACTION! CLICK HERE
Chris VermeulenBECOME A TECHNICAL TRADER TODAY AND TRADE WHAT MATTERS – PRICE ACTION! CLICK HERE
Chris VermeulenSmart traders are already asking themselves “where is the bottom for this move”. They’ve likely been through these types of rotations in market price before and understand the fundamentals of the US economy are strong enough to support further upside price activity in the near future. The current US/China trade worries could result in a pricing disruption of 4 to 8%, seen as rotation, yet the US Fed is continuing to leave rates unchanged and most US economic numbers are still posting strong levels.
So, smart traders want to know where the bottom in the market is likely to be found and when they should start to accumulate new long positions – which is understandable. We’re here to help.
Our proprietary Fibonacci price modeling system is one of the unique modeling tools we use to hone into any market move. The reason for this is because it shows us so much data that we can “read into” our analysis/research. The other reason is that it is an “adaptive learning” model – which means it continues to learn from price data and adapt its analysis of that data.
Let’s start with the Weekly YM chart. The GREEN highlighted box on this chart shows where the past two Bullish Fibonacci price trigger levels were generated. These, obviously, become key support levels going forward. The narrow ORANGE box near the current peak is the resistance channel we highlighted many weeks ago that suggested a volatility rotation peak may be setting up. We have also drawn an oblique/circle on the chart in BLUE that highlights upside Fibonacci target price levels.
It is our opinion that a further downside leg, possibly to levels below $25,000, are possible as this Shake-Out continues and as the global markets continue to revalue expectations. We are watching the currencies very closely as the Chinese Yuan has devalued extensively over the past few days. This US Dollar strength will keep metals fairly flat while prompting some extra stability in the US stock market over time.
This next chart, the NQ Weekly, shows a similar chart format to that of the YM. Clear resistance can be seen near the recent highs and support is found near the $6600 level from previous Fibonacci Bullish Price Trigger Levels. The NQ, being very heavily weighted in Technology and Internet stocks, may have the ability to fall the furthest within this price rotation – possibly as much as -700 to -800 pts before finding support. Currently, a support level near $7400 is the first level we are watching. If the NQ breaks below this level, then we could see a much bigger move to the downside unfold fairly quickly.
Lastly, the Transportation Index (TRAN) is showing us that the downside price move may have already reached a level that may prompt intermediate price support – or a potential base formation. The $10,400 to $10,500 level, which was already reached, appears to be the initial support level for the TRAN. It would make sense that the TRAN may begin to base near this level over the next few days/weeks while the US stock market attempts to hammer out a bottom.
Ultimately, the $10,000 level has proven to be very strong historical support for the TRAN. So any breakdown in this index would immediately prompt a target level of $10,000 for the next support level. Again, pay attention to the US Dollar and Gold as this movement continues. Any real fear will translate into a weaker US Dollar and increasing prices in precious metals.
In closing, we believe the early signs of a potential price bottom are setting up right now. This may not be the ultimate bottom, but the clear support level in the TRAN is a very good sign that the markets are setting up a support base that may prompt some sideways trading over the next few weeks as the market continues to digest all this global trade news. A deeper “washout-low” price formation may set up in the INDU or the NQ over the next few days which means we may see a deeper price rotation before the downtrend actually ends.
Right now, pay attention to our continued research and we’ll help you find the bottom when it forms. Our current expectations are for a continued downside price move that will establish a washout-low formation over the next 3 to 10 trading days. We’re not out of the woods yet, but we are starting to see the early signs of price support – which means a bottom may not be too far off.
UNIQUE OPPORTUNITY ONLY IN MAY
On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is excactly what is happening now right on queue. In fact, we closed out our SDS position today for a quick 3.9% profit and our other new trade started today is up already 10%.
Second, my birthday is only a few days away 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.
Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 13 left as they are going fast so be sure to upgrade your membership to a 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 13 more silver rounds I’m giving away
so upgrade or join now before its too late!
SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!
Happy May Everyone!
Chris Vermeulen
Now that the April 21 ~ 24 Gold “momentum base” prediction that we’ve been discussing for the past 4+ months has past and appears to be accurate, we think it is time to start warning of increased market volatility and the potential for a market “shake-out” to happen. Last week was a key component to our future price predictions and market projections. We believed our proprietary price modeling systems were accurate and had latched onto a key component of the markets – the “momentum base” call in Gold for April 21 ~ 24 of this year. Remember, this original research post was made in September 2018 – over 7 months ago. We kept refining our research over the past 4+ months and warned, repeatedly, that this base in Gold would likely prompt a market shake-out over the next 30~60+ days.
The moves in the major markets, over the past few weeks, have been very telling. With the SPY and NASDAQ pushing to new all-time highs, strong earnings (overall) and the global markets setting up for another shoe to drop (at some point in the future), it leaves many questions for skilled traders. What’s going to happen next and what should we expect from price?
Well, we have a few simple answers for you regarding the next few weeks expectations as well as some bigger future predictions.
First, Crude Oil rotated dramatically lower on Friday. This was a big downward price rotation considering the Trump/Iran deal stance early on in the week. A disruption in the supply of Oil is often a driver of bigger market swings. I learned a long time ago to watch Gold and Oil all the time. These are often the leading commodities that reflect fear/greed in the markets and potential global unrest.
With Crude Oil slipping below a key Fibonacci trigger level (at $65.25) and another key Fibonacci trigger level sitting at $61.60, it seems rather obvious that Oil may slip back below $60 on deeper price rotation over the next few weeks which could lead to a bigger “shake-out” in the markets. We recently posted an article about how Oil could rotate lower and retest the sub $55 level (https://www.thetechnicaltraders.com/oil-may-be-setup-for-a-move-back-50/ ). At this point, a breakdown of oil prices below the $61.60 level would indicate the very strong potential for further downside price.
Precious metals have setup our momentum base/bottom on the dates we predicted over 4+ months ago (April 21 ~24). It is incredible that our ADL price modeling system can be so accurate so far into the future. Our proprietary price modeling systems provide us with an incredible advantage over most other research firms. The ADL and Fibonacci price modeling systems are predicting an upside price advance of at least 12% to 20% over the next few weeks. Read one of our original research posts here: https://www.thetechnicaltraders.com/45-days-until-a-multi-year-breakout-for-precious-metals/
The upside price potential in precious metals should not be overlooked. Additionally, the implication that some other global market malaise could unfold between now and the end of 2019 to drive precious metals prices even higher is fairly strong. We’ve been warning that Europe, China, and even the US markets could come under some pricing pressure or increased volatility as the US markets establish new price highs. It makes sense that traders would be preparing for another deep price rotation as prices near previous peak levels.
The Transportation Index rotated downward near the end of the week quite hard. Thursday, April 25, saw the Transportation Index fall over -250 pts (over -2.25%) after briefly breaching a key resistance level near $11,050. As we’ve been suggesting, the Transportation Index typically leads the markets by a few week/months and we follow it as a means of understanding future trends, risks and price rotations. Right now, the Transportation Index is suggesting increase price rotation and price volatility is likely to “shake-out” the markets for a while.
Lastly, the YM (Dow Futures), is setting up in a very narrow price channel below the recent all-time high established in early October 2018 (at $26,966). This decreased price volatility suggests that the US major indexes are setting up for a price breakout move. Congesting price channels suggest that price is stuck within a defined price range/channel and the ultimate breakout move will likely be a big breakout move to one side or the other. We have our suspicion as to which direction the move will likely be and we’ll share it with you now. Our longer-term analysis suggests that price will continue to push higher while attempting new all-time price highs. Our expectations that price volatility will increase throughout the rest of 2019 suggest we could see some very big price swings over the next 7+ months. But for right now, we believe this YM price channel will result in a brief upside price breakout that will push the YM price to new all-time highs (briefly) before retracing to form another extended sideways price channel near $27,000. Stocks, in general, are doing well as all our positions rallied last week with one stock jumping over 11% in one session.
Below, we have included a Daily YM chart that highlights this current price channel in MAGENTA. Pay very close attention to this channel as we near the eventual price breakout that will end this congestion. Weakness may prompt a “false breakout” to the downside, suckering in shorts, before a continued upside rally pushes prices over the $27,000 market, then stalling to set up the next Pennant/Flag formation. We’ve seen this type of price action many times in the past. Any downside “false breakdown” would prompt a big increase in volatility. This aligns with our broader market analysis. The push to the upside to establishing new all-time highs also aligns with our broader market analysis. Thus, we expect a pretty big series of price events to unfold over the next 2~5+ weeks.
If you like our research and want to learn how we can help you find and execute great trades, please visit www.TheTechnicalTraders.com. Get ready for the next big moves and learn how our team of skilled researchers and traders can help you stay ahead of these market moves.
Chris Vermeulen
www.TheTechnicalTraders.com