Posts

GOLD CONTINUING TO BREAKOUT BUT IS A CORRECTION DUE?

Chris Vermeulen, Founder of The Technical Traders joins me to a close look into gold – what’s driving the move, what the technicals are saying about this fast move higher, and if a correction is due. We also look at the gold stocks, silver, and USD all within the context of gold.

Be Sure to check out my post on gold stopping later this year – HERE

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Chris Vermeulen

Next Bull and Bear Markets are Now Set Up

Sharing market analysis and my opinions every day is far from easy and sometimes I feel like a song on repeat. My focus and goal has always been to try to alert fellow traders and investors of what is unfolding now in the financial markets around the globe because it appears we are about to experience another financial life-changing event much like the 2000 stock market top, and the late 2007 bull market top which will play out over the next 24+ months

If you lost money during the last bear market then you need a new game plan to take advantage of falling prices and the solution is not just to by gold, silver, and miners. In fact, you could lose a lot buying and holding them over the next year if you are not careful. We all know what the precious metals sector did during the last equities bear market (they crashed 64% with the stock market before starting to rally).

2007 Bull Market Top – SP500 and XAU Gold Miners Index

From a technical analysis standpoint, we are still a long ways away from a confirmed bear market. We do need a see a rather larger drop to break the December low we saw in the SP500 index. But, each month more warning signs pop up to confirm we would be in a full-blown bear market b the end of 2019.

Miners 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 16% while the SP500 is up only 6%, this feels like the start-of-the-end if you know what I mean.

It’s a known fact that stock market prices lead earnings, news, and the economy. Stock prices start to flatten, chop sideways, and sell off typically 3-6 months or more before negative data starts to become daily headline news.

I have been predicting a top for form since early 2018 with the book I co-authored called “The Crash of 2019 and 2020 – How You Can Profit” only available to subscribers of the Wealth Building Newsletter.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand guide and charts. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

Concluding Thoughts:

In short, the financial markets including commodities move in a wave like pattern and you want to own them and be to long when they are rising, and in cash or sell short (inverse ETF) when they are falling.

Everyone is excited about the gold, silver, and miners market here and now, but if everyone already owns them, and is buying more, that’s the signature herd/masses set up that we could see that market pullback hard here at any time.

The reality is, we just sold our gold and miners position because we expect a pullback/correction. Just like we played that last move in metals from the Sept bottom we called and exited near the top in mid-March. I got lots of flack for selling because everyone was SCREAMING BULL MARKET FOR METALS/MINERS (just like now) but what followed, yup a multi money correction that allowed us to take the next wave in this market which we just closed the positions.

The reality is, we never know which rally will be the TRUE breakout rally, and which selloff ill be the one that starts a new down trend, but we must stick with strict trading rules for long term consistent gains. We can reenter a position at any time with a click of a button and I don’t get worked up if I don’t get in at the exact bottom or out at the exact top because that is just called luck. The key is to get the middle low-risk gains, time and time again.

FUN FACTS
FIFTEEN 5% WINNERS = 107% ROI
JUST $500 PROFIT PER/MONTH = 30% ROI WITH $25K ANNUALLY
POSITION SIZING = TRADING SUCCESS

As a technical analysis and trader since 1997 I have been through a few bull/bear market cycles, 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 are massive/life-changing if handled properly.

I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 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.

Chris Vermeulen
www.TheTechnicalTraders.com

Summer is Breaking Out—and so is Gold – Weekly Wrap-Up

Summer is Breaking Out—and so is Gold - Weekly Wrap-Up (June 21, 2019)

Today marks the summer solstice: the official first day of summer and the longest day of the year. And as gold continues its breakout, it could be a long day indeed for bankers.

On this edition of the Wrap-Up, Eric Sprott gives you all the gold and silver news you need, including:

• Why top of range targets aren’t as crazy as they might seem

• How the breakout will affect the mining shares

• Plus: Why the U.S. price will catch up fast

“I love going back to the call we had three weeks ago, when I said I’d read an article that I really believed in that suggested gold would have a rally for 5-7 weeks… We’ve had three of them now! This rally started at $1275. We’re at $1400. That gentleman, Chris Vermeulen, and I’ve got to give him credit for being prescient… The first target was $1450, but he actually thought it was going to go to $1650. And I want the listeners to think about that: $1650! What would happen?”

 

Chris Vermeulen Comments:

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

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. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, 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)

SUBSCRIBE TO MY TRADE ALERTS AND 
GET YOUR FREE SILVER ROUNDS!
Free Shipping!

Chris Vermeulen
Founder of Technical Traders Ltd.

Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls

The Federal Reserve announced they were leaving rates unchanged on Wednesday, June 19.  The markets were expecting this or a quarter percent price decrease.  Initially, the markets reacted to the news by moving to the downside recently. The markets immediately reversed the upside rather dramatically showing that investors believed that that may move into an easy stance within a few months.

The big movers after the bad news which we expected were in gold, silver, miners and the US dollar.  Subscribers locked in another 17.4% winning trade on this fed news while the US dollar rotated lower on Tuesday, June 18 prompting a further downside move after the bad news. It is very likely that the US dollar will move lower an attempt to retest support near 96.50.  A weakening US dollar will help to support the US stock market and precious metals prices.  Additionally, a weaker US dollar will help support trade, economic growth, employment, and GDP output.

We believe the US stock market is nearing upper resistance.  We still believe the US stock market will eventually attempt to move about the psychological levels of 3000 for the S&P, 30,000 for the Dow and 340 SPY.  This move to new all-time highs will likely result in a ”scouting party” type of price pattern where price attempts to identify new resistance, slightly above the psychological levels, then reverses back below these levels to retest support.

Our continued belief that a large pennant/flag formation is unfolding has not changed. As technical analysts, we need to wait for the new price peak form before we can identify where the upper channel of the pennant/flag formation is trending. We would urge traders to be conscious that any outside move in the stock markets as a very limited upside potential from current levels. The SPY is trading at 293 and we believe upper resistance will be found slightly above 300. Thus, we really have about a $7 or $8 move to the upside from current levels – only about 3% to 4% more room to the upside.

The transportation index paints a very clear picture of price channels, support and resistance, and expected price rotation going forward. The current price channels indicate a high target area near 5250.  This upward channel range is still only 3% or 4% higher from current levels.

After this peak level is reached the market should reverse downward attempting to retest support. We believe we are very close to a market top at this point and believe that the US stock market may attempt to move above the major psychological levels – as indicated above.

There are a few items which could change our outlook currently.

A.  Positive news regarding trade issues with China

B.  Renewing or new central bank easing policies

C.  Any type of dramatic positive economic news

D.  China attempting to resolve banking issues by taking the problems and addressing them with capital/gold reserves.

Ideally, there are quite a few opportunities for the stock market rally far beyond the psychological levels. Yet with only about 14 months to go before the US presidential elections and no indication that any of our four critical components for renewed price advance are anywhere close to being accomplished, we hold to the belief that the markets will complete the Pennant/Flag formation as we have originally been stating.

We urge traders to pay attention to precious metals and the US and foreign stock markets as we enter this critical phase of the market. We believe the US stock market will continue to rotate within the channels clearly on the transportation index chart.  We believe any excessive fear will become evident in the bond markets and precious metals well before the US stock market rotates lower.

In our opinion, this is not the time to buy into technology or the US stock market expecting a massive breakout to the upside. We are urging our clients to be very cautious over the next 30 to 60 days and to trade with short profit targets in mind. There are a lot of moving components throughout the global economy and we are urging our members to be very aware of the larger patterns that are setting up.

Our super cycle research has given us a very clear picture as to what to expect over the next 16 months or longer.

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts. Visit our website to learn how you can see what this research is telling us.

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. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:

1oz Silver Round FREE 1-Year Subscription
TWO 1oz Silver Rounds FREE 2-Year Subscription

SUBSCRIBE TO MY TRADE ALERTS AND 
GET YOUR FREE SILVER ROUNDS!
Free Shipping!

Chris Vermeulen

Precious Metals Breakout Rally or Reversal Time?

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

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. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, 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)

SUBSCRIBE TO MY TRADE ALERTS AND 
GET YOUR FREE SILVER ROUNDS!
Free Shipping!

Chris Vermeulen
Founder of Technical Traders Ltd.

King Dollar Rides Higher Creating Pressures On Foreign Economies

One of the biggest movers of the day on Friday was the US dollar.  The US stock market appeared very weak prior to the opening bell and precious metals, especially gold, appeared to be rocketing higher.  Almost right from the open, the markets washed out the fear and changed direction. The US dollar did the same thing.

This renewed strength in the US dollar continues to baffle foreign investors and foreign governments as they continue to try to support their economies and currencies against a stronger and more agile US economy and currency. Even as the US dollar strength is frustrating many investors, it is also attempting to keep a lid on traditional safe havens such as precious metals.

This further complicates many foreign nations because their gold reserves are not appreciating at the same rate that their currencies are devaluing. Couple that with capital outflows, consumer protectionism, waning economic outputs, and the need to protect local currencies to avoid populist panic, and King Dollar seems to be riding high.

A friend of ours and foreign currency trader suggested we read the article below today.

Does China have enough US dollars to survive the US trade war?

We’ve authored many articles about the US dollar over the past few months.  We believe the strength in the US dollar will continue and that a support level above $92 is likely to continue to support the price for some time. That being said, the current price rotation near $96.50 provides a recent low price rotation level that could turn into future support after recent highs near $98.40 are broken.

Many times you’ve probably read our comments about a “capital shift” and how this shifting capital across the planet will be driving future investment in the US and other foreign markets.  At this point in time, it’s almost like a dog chasing its tail.  The more support the US dollar receives, the more pressure there is for foreign markets to support their currencies and economies. The weaker foreign economies become and foreign currencies devalue, the more demand for US dollars increases to help offset local weakness. It starting to become a vicious cycle.

We believe the defined price channel between the two magenta colored lines will continue to dominate US dollar price activity until price breaks through either the upper or lower range of this price channel. The current support near $96.50, will likely turn into a new price floor once price breaks above $99.

There are a number of factors that could ease the upward pricing pressure in the US dollar.  First, increased economic output and activity in foreign markets illustrating economic growth and prosperity would likely ease the capital shift into the US stock market and US dollar. Once foreign markets begin to act as though real opportunity exists over an extended period of time, then the dominance of the US dollar may begin to weaken.

Additionally, suitable trade deals, such as we witnessed between the US and Mexico recently, will help to alleviate currency pricing pressures on foreign currencies. This strength in foreign currencies presents an opportunity for global investors to take advantage of pricing gains.

Stronger foreign currency valuations and economic output will help to ease the US dollar dominance eventually.  Until that happens, as traders we need to be aware of the pricing issues related to the capital shift that is taking place, the pricing pressures on precious metals, and the likelihood that foreign investors will continue to pile into US equities while King Dollar is dominating.

Pay very close attention to foreign market weakness and news of banking issues or government bailouts of foreign banks. Much like the US credit crisis in 2008/2009, bank failures and extended credit risk exposure can lead to waterfall events.  This would be our biggest fear for the global economy if foreign governments and banking institutions are not properly prepared for extended devaluation periods. If things really started to crumble overseas we could see gold and the dollar move up together, it has happened before in times of crisis.

We’ll keep you informed as we see things transpire. In the meantime, King Dollar rides high end of the sunset and foreign governments/nations will continue to attempt to support their economies and currencies. Eventually, the fear factor will push precious metals broadly higher.

We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

Happy Fathers Day Guys!
Chris Vermeulen
Founder of Technical Traders Ltd.

Precious Metals: T-Minus 3 Seconds To Liftoff

We take great pride in our research team’s ability to make accurate predictions and calls in the markets.  In addition to the many predictions and calls we’ve made over the past few years, our Gold prediction from October 2018 continues to astound many industry professionals. We receive emails from people asking how we were able to make such an incredible call in Gold 6 to 8 months before these price moves?  We politely tell these people that our research team and our proprietary predictive modeling tools assist us in finding and making these incredible predictions.  The simple answer is it takes hard work, specialized tools and a lot of skill and research.

Please take a minute to review some of our research from January 2019 that highlighted this incredible prediction for Gold and the supporting, more recent, research posts suggesting Silver is the real sleeper trade.

January 28, 2019: MULTI YEAR BREAKOUT IN METALS

June 7, 2019: ADL PREDICTIVE MODELING SUGGESTS A BIG MOVE IN SILVER :

June 2, 2019: IS SILVER THE SLEEPER RALLY SETUP OF A LIFETIME?

Today, we are highlighting what we believe is the momentum impulse move in Gold that will become the catalyst for the future move in Gold & Silver throughout the rest of this year and likely all of 2020.  The key element to launch Gold and Silver beyond current resistance levels is bound by two factors and could be boosted by a third.  The first two factors are “fear and greed”.

Investors are continually searching for suitable investments with healthy returns and moderate risk.  As we have learned from the past, capital will flow into any investment, even instruments that include incredible long term risk factors, when the opportunity exists for gains and risk is mitigated.  The current upside price move in Gold is just such an event.

The recent news items add additional fuel to the Precious Metals rally because they foster increased fear related to the global economy and potential military action or increased uncertainty.  This fear translates into the action of “protect my investments that may be exposed to greater risk and find an investment that reduces this risk and provides for greater returns/gains”.  That is the question Gold investors are asking themselves all over the world right now.

The booster fuel, which would drive Gold and Silver into another galaxy is the US Dollar.  If the US Dollar were to weaken, even by 4% to 7%, while a global uncertainty event continued to unfold, we believe this valuation pressure would push Gold and Silver well above our current expectations.

When we think about the current environment for precious metals, one has to understand that fear and greed don’t have to be tangible or overwhelming.  This process is almost like a perpetual motion machine.  Once the process gets started where investors pile into Gold because of the fear and greed factors, the price of gold rises.  Because the price of gold rises, traders start to pay closer attention to what is happening in gold and the greed factor starts to increase.  Once they are convinced this is a bigger opportunity and their fear levels are still valid, the conclusion is “I don’t want to miss this move in Gold, so I’ll get it now – before the big move happens”.

It is as simple as that.  And this is why we are saying “T-Minus Three Seconds” before the big breakout move really takes shape.  That is our way of saying, it could happen any day now.  The breakout move and the momentum base appear to be ready to go.

This Gold daily chart highlights the recent upward price move and shows just how quickly price can rally.  This resulted in a $75 price rally (+6%) in a matter of 10+ days.  Imagine what that will look like after Gold breaks above $1650 on the fear/greed move.

This Gold Weekly chart highlights what we expect to be the first upside leg – the move to $1450.  After that, we expect a brief pause in the rally (possibly 7 to 21+ days), then another big move higher where the price will rally above $1650.  That bigger move should solidify the focus of global investors and, much like the big move in Bitcoin, should attract a large number of investors not wanting to miss the rest of the upside move.

Silver is what we are calling the “sleeper trade” for precious metals bugs.  Sure, Gold has all the action right now because it is the leading metal to offset this fear/greed factor.  Silver always lags behind gold because it is the “little brother” to the bigger players in gold.  As our research has shown, when the move begins, Silver is actually a better trade than Gold because it will likely increase in price by a factor of 1.4 to 1.8 compared to the rally in gold prices.

We believe the next move in Silver will target $18 to $20.  These price levels below $15 are a gift for anyone willing to take the trade.

This Monthly Silver chart shows what we believe will be the upside price waves as silver advances past $22.  Read the research posts, above, again to learn more about our more detailed expectations.  It is all right there for you to see and understand.

T-Minus Three And Counting.  We believe this setup is about to break to the upside and there is not much time left to see prices near these levels.  Below $1400 in gold and below $15 in silver are about to end.  When this really does begin to lift off as we’ve been predicting, we may never see these price levels again.  Well, at least in the foreseeable future.

CONCLUSION AND UNIQUE OPPORTUNITY

Its been an incredible year and a half for many reasons. We and our Subscribers portfolios are up over 91%. We called forecasted each and every move in gold 8 months before it all unfolded right down to the week for the low/bottom.

This May we said it was a sell in May set up and we profited from the rally leading into May and traded and inverse ETF to profit from the correction. We then profited from the safe haven money flow into the utility sector which rallied while the stock market fell. And to top it off we shorted the vix spike for a quick 25% gain during a time when everyone else was panicking.

So what does this all this mean? It means we have a good pulse on the major markets and can profit during times when most others can’t.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new book/guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

I am going to give away and ship out silver rounds to anyone who wants to trade and invest with me for the next 1-2 years through my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, 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 27 silver rounds I’m giving away
so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS TO GET YOUR FREE SILVER!

Chris Vermeulen

US Stock Market Setting Up A Pennant Formation

As we’ve been warning over the past few weeks and months, the current price rotation in the US stock market is very much related to the strength of the US Dollar and the continued Capital Shift that is taking place as trade issues and currency valuations drive investors into the US equity and debt markets as protection against risk.  We talk about some of these new Super-Cycles starting and how we can take advantage of them in this new guide.

The US Dollar stalled today after a recent price decline from just above $98 to a current level near $96.60.  Over the past 15+ months, the US Dollar has risen from lows near $88 to highs near $98 – an 11.2% price rally.  Meanwhile, many other foreign currencies have collapsed over this same span of time.

We believe the continued Capital Shift is driving further investment in the US stock market and debt market as a way to avoid the risks of further currency valuation declines and as a means of protecting wealth.  Until this currency dynamic changes, we expect the strength of the US economy and US Dollar to continue to push investors into the US equity markets.

This being said, a very interesting dynamic is starting to set up.  Gold and Silver have started to move higher while Oil, Natural Gas and other commodities are pushing lower.  This type of activity in the commodity markets suggests some increased fear is driving investors away from speculating on increased global economic activities and pushing capital into expectations of a market top or deeper correction.

We’ve read recently where institutional traders have started initiating heavy short positions in the US markets and we believe these investors have jumped the gun a bit.  We don’t see how or where a massive US market collapse is likely given the current strength in the US Dollar and the US economy.  Yes, at some point this dynamic may shift and at some point, we may see a fairly deep correction of 12% to 18%.  We believe that a top may happen in August or September 2019 – after the US stock market (DOW) reaches new all-time highs above $30k.

Right now, we believe the first rotation of our expected Pennant/Flag formation is starting to set up and we look for early signs in the DOW and TRAN charts.

This TRAN chart shows price rotation near the CYAN resistance level originating from the late April peak and spanning the early May price high.  We believe this resistance level may play a key role in understanding how and when the next upside price leg begins to advance.  We expect a downside price rotation to take place pushing the TRAN towards the $9600 level over the next few days/weeks.

This YM chart highlights a similar price pattern, but clearly illustrates one key difference – the New Price High.  This fundamental element of Fibonacci price theory is that any attempt to break a past critical price high which results in a “new price high” designates the current trend as Bullish.  Within Fibonacci price theory, price is always seeking to establish new price highs or new price lows – AT ALL TIMES.  Therefore, a new price high or new price low is very significant.

The TRAN chart may continue to consolidate below the CYAN resistance level whereas the YM chart may attempt to push higher, with a bullish bias, setting up a Pennant/Flag formation as we expect.  This would indicate that even though economic and transportation expectations are waning, the bullish bias in the YM suggests the Capital Shift factor is still pushing the US stock market upward.

Pay close attention to that big blue ellipse near the top of the chart.  We drew that in place many months ago as an indicator of where we believe critical resistance is should the markets attempt to push higher and attempt new all-time highs.

We still believe this resistance is valid and as price rotates into the Pennant/Flag formation, we’ll extend this resistance forward – carrying the same slope and angle forward.  If the YM is going to attempt a move to above $30k before our expected August/September 2019 top setup, it will have to push well above this resistance zone to accomplish this move.

Watch Gold and Silver over the next 3 to 4 weeks as any perceived weakness will push the precious metals higher still.  We believe Gold will reach $1450 this summer and possibly higher before August as smart money rotates into the safe havens in anticipation of a bear market.

If you wanna become a technical trader with use and trade ETFs then be sure to join our Wealth Building Newsletter today and get our daily video analysis and swing trade alerts. In the past 17 months, our newsletter trade signals have generated 91% ROI for its subscribers, be sure to join before the markets start making new big moves and profit with us!

Chris Vermeulen
www.TheTechnicalTraders.com

This weeks Gold, Silver, Oil, and SPX Price Forecast

In fact, there are several super cycles starting to take place as we head into 2020 and beyond which Brad Matheny and layout in our new book: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

If you wanna become a technical trader with use and trade ETFs then be sure to join our Wealth Building Newsletter today and get our daily video analysis and swing trade alerts. In the past 17 months, our newsletter trade signals have generated 91% ROI for its subscribers, be sure to join before the markets start making new big moves and profit with us!

Chris Vermeulen www.TheTechnicalTraders.com

US Markets Rally Hard – Could Another Big Upside Leg Begin?

Closing out the first week in June 2019, the US stock market rallied hard from recent lows and prompted many traders/investors to rethink their future plans.  At the same time, Gold and Silver began a decent price rally of their own while Oil found support just above $50.  It certainly has been an interesting week for traders.  One that was full of incredible opportunity as many symbols rotated 6 to 12% or more over the past 10+ days.

The fact that Oil is finding support above $50 while Gold and Silver continue to rally suggests that fear may be entering the metals market while Oil may have found a temporary price bottom near $50 to $51.  Weakness in the US Dollar is also helping both Oil and Metals to push higher.  Our recent research suggests that the US Dollar will find support near $95 indicates the US Dollar may fall a bit further – pushing Oil and Metals a bit higher.

The strength in the US stock market near the end of the week suggests fear of any US collapse or future economic concerns appears to be abated.  It is very unlikely the US major indexes would rally as they have on any extreme fear of any major US calamity or economic concerns.  A slightly weakening US Dollar and moderately strong US economic data continues to suggest the US stock market may continue to be the repository of funds for foreign investors for many years to come – or until something dramatic changes in the US.

It is rather simple to understand the capital process that is at work in the global economy at the moment; until foreign market valuations and expectations appear to be opportunistic for future returns, the US Dollar and the US stock market are the most likely targets for foreign investment and safety.  Weakening currencies, weakening global economies and weakening commodity prices will push capital away from foreign markets and into safety.  Safety will be found in the US markets, precious metals and possibly Crypto currencies.  Anything that avoids deflationary risks and credit/debt risks.

This YM Weekly chart highlighting our Fibonacci price modeling system shows how dramatic the upside price reversal was by the end of last week.  The closing candles created an Engulfing Bullish candlestick pattern which is typically quite bullish.  The fact that price closed above the GREEN Fibonacci trigger level is further indication that a renewed price rally may begin soon.  Support near $24,000 appears to be quite strong and any further downside price risk must first break this level.  As long as support holds and price continues an upside bias, there is a very strong potential for a move to above $28,000 in the works.

This NQ chart highlights a similar price pattern and suggests the NQ needs to climb above $7600 before a true rally can begin.  Ultimately, the upside targets for this move are near $8500 or higher based on current price rotation.  Support near $6800 is critical – so price must stay above this level for any future rally to continue.

We authored a VIX/Volatility article just a few days ago that highlighted our believe that the VIX would trade lower, within a sideways price channel till near the end of July or August 2019 – then begin another VIX Spike move upward.  This coincides with the current research we are seeing where the US stock market will likely continue to push higher, very possibly setting new all-time highs again, before any real risk of any downside price collapse happens.

Follow our research and don’t miss these opportunities.  We’ve been warning our followers for months that 2019 and 2020 are going to be incredible years for skilled traders.  These recent 10 to 20% moves in Gold, Silver, Oil and many ETFs are just the beginning.  Our research team and trading team are ready to help you find and execute for better success.

Chris Vermeulen
www.TheTechnicalTraders.com