This shortened holiday week has been full of crazy price rotation, political intrigue, surprise news events and, we are certain, full of headaches for some traders. Still, we managed to pull out four consistently profitable trades for our members by sticking to our proven trading systems and deploying effective position sizing techniques. Not a bad week for us at all.
Today, we are writing this research post to highlight that price is still not “out of the woods” in terms of price structure and/or price rotation. Yes, there was quite a bit of external news that drove prices higher on Thursday and Friday (BREXIT, Earnings, and China decreasing the lending rates as well as decreasing bank asset levels in an effort to prompt more lending). These news items continue to drive price action and rotation. The VIX has settled at 15.00 as of Friday – the lowest level seen since early August 2019. Our opinion is that this is just a brief pause before more chaos hits the markets.
The BREXIT news was straight out of a suspense novel. At the very last minute, a coalition of political interests changed direction in an effort to stop the NO-DEAL BREXIT that seemed to be almost a sure thing. We don’t have any more information than what is printed in the news publications, but we believe the NO-DEAL BREXIT will happen this year.
Earnings were mixed with some interesting surprises. Jobs data came in relatively strong on Friday with higher earnings and higher working hours, yet job creation levels fell a bit from expected levels.
China seems to be relaxing its bank restrictions in an effort to jump-start their local economy. We read that current debt levels are 300% of GDP in China (and that only accounts for debt that is stated in official economic data). If one were to include the shadow banking system and corporate debt/bonds, we believe it could be as high as $425% of GDP or higher.
Then we have multiple countries in crisis (risk of bankruptcy) where the IMF is likely to try to develop some type of “bailout” solution. The most recent is Argentina. Additionally, the IMF has introduced new Cryptocurrency regulations that may stifle some emerging market ICO and existing Crypto operations as the IMF attempt to get a handle on these unregulated threats to traditional currency policies.
And we are just scratching the surface so far… What next – right?
Well, here is a Weekly ES chart highlighting the Fibonacci price structure that appears to be, very much, in need of establishing fresh new highs in order to confirm this continued bullish trend. Right now, very similar to what happened in 2018, we are nearing an October date, near all-time highs, with fresh signs of weakness appearing throughout the global economy. Trade issues continue, people are talking about recessions and Gold and Silver have started an incredible upside move. Will the US stock market continue to rally from this point or rollover into a price correction?
It all depends on what happens over the next 2+ weeks and if the “capital shift” that we have continued to suggest is driving capital in the US stock market hasn’t broken rank yet. If foreign capital is continuing to pour into the US stock market for safety, then we may very well see another attempt at new all-time highs. If the recent weakness has spooked some investors out of the markets as Gold and Silver have caught their attention, then this capital shift may be much more muted at this time – meaning price volatility is much more of a concern.
SP500 Stock Index – Weekly Chart
The ES price will attempt to either move to new all-time highs or roll lower and take out the 2728 level. We believe the key to this future direction lies in which news items play out over the next 2+ weeks and if the price is able to return back to a “true price exploration” mode (without the news events).
Weekly Transportation Sector Index Chart
This weekly TRAN, Transportation Index, highlights a broader picture of why our researchers are still concerned about a market correction. The fact that the price peaks have continued to move lower as a series of lower high price peaks is very concerning.
This is indicative of a downward price trend or a trend that is consolidating lower. The strength of support near 9695 is the only real strength we see in this TRAN chart in terms of “support for an upside move”. The TRAN chart price must break this downward series of lower price peaks in order for the US markets to really enter a new bullish price trend. Until that happens, we continue to stay worried that the foundation of the US markets may be crumbling below our feet while the party rages on in the US major indexes.
CONCLUDING THOUGHTS:
Our August 19th prediction of a breakdown event has obviously been invalidated by this recent upside price move. Depending on which way price breaks out of pattern will either validate or invalidate our expected forecast. As of right now, it looks like our August 19th prediction has been invalidated and we were wrong thinking it would break down. With that said, we had three winning trades we closed out last week for solid profits and a new high water-mark for our trading portfolio.
Although, until the US stock market rotates higher to establish new all-time highs, we are not out of the woods yet. This recent upside price move has not completely invalidated the chance of a breakdown because we have not already validated “new price highs” which are required in Fibonacci price theory. Right now, we are in the midst of volatile price rotation and we are loving every minute of it.
This is the type of price action that is perfect for skilled technical traders. Trade setups continue to pour into our systems. As we stated near the top of this article, we had a series of great trades this week resulting in nearly +15% total profits for our members. If you are a skilled technical trader, then this is the market for you to really shine.
Be prepared for these 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.
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I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime
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 are massive/life-changing if handled properly.
https://thegoldandoilguy.com/wp-content/uploads/2019/09/21-1.png470850adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-09-09 13:29:102019-09-09 13:29:10Price Structure Still Suggests We Are Within Volatile Rotation
As we close out the week and watched the markets trade in a rotational price manner, it became very clear to us that the patterns setting up in price continue to support our overall analysis of the markets and the potential for a bigger downside price move. We issued a call that an August 19th breakdown was expected on or near the trigger date (Aug 19th). We’ve taken some heat from our followers and readers regarding this call and the fact that the markets have yet to really breakdown below current support levels.
As we’ve learned from our experience and previous analysis/calls – the markets can continue to act in ways that run counter to our analysis for much longer and in a much more irrational manner than we can survive the risks associated with any irrational price moves. Yet, at this point, we don’t see anything irrational in the markets – we see opportunity.
Our last few trades for our members have been incredible successes – totaling more than +30% over the past 5 trades. We believe our research team and proprietary price and predictive modeling systems have clearly identified price weakness in the markets. Until price confirms otherwise, our believe is that price will attempt to move lower – establishing new lows. Before we get into the details, be sure to opt-in to our Free Market Forecast and Trade Ideas Newsletter
Important Japanese Candlestick Reversal Patterns
The Doji Star and Shooting Star Japanese Candlestick patterns are part of a unique group that identifies potential price reversals, support/resistance and can often build into other types of patterns. Our belief is these setups in the current chart will eventually create an Evening Star formation with a downside price move early next week. This type of pattern would confirm resistance near the body of the current Doji or Shooting Star candlestick and also confirm our analysis that a price breakdown should continue.
SP500 – ES Daily Chart Highlights the Doji Reversal Pattern
This ES Daily chart highlights the Doji pattern created by the close of Friday trading near 2923.75. The fact that price narrowed on Friday into a Doji pattern forming below the previous highs suggests general weakness in price and a possibility that early next week we may see price breakdown to complete a Harami or Doji Star Reversal Pattern.
Dow Jones – YM Daily Chart Highlights the Doji Star Reversal Pattern
This YM Daily chart shows a similar pattern – another Doji Star setup. The Doji pattern sets up right at a key resistance level, near 26,400, and aligns with other chart and patterns to warn that price may weaken into a strong Candlestick reversal pattern. All it would take is for the price to move below 26,000 and begin a new downside leg.
Transportation – TRANS Daily Chart Highlights the Shooting Star Reversal Pattern
This TRAN chart shows a true Shooting Star pattern. The unique shape of the Inverted Hammer candlestick (part of the Umbrella Group) shows clearly. The gap between the last to candlestick bodies sets up the Shooting Star pattern. This is a classic Top Reversal setup. Found at this point in price action suggests price may be set up for a big breakdown. At the very least is shows clear resistance is at 10,130 and that we must be aware that price was rejected at this level.
Financials – XLF Daily Chart Highlights the Doji Start Pattern
Lastly, this XLF Daily chart shows a true Doji Star pattern where a Doji candlestick sets up with a gap between the real bodies of the last two candlesticks. Again, this pattern sets up just below $27 which has continued to operate as strong resistance. Any breakdown in this sector early next week will confirm this pattern and set up a Three River Evening Star pattern – a Sell Signal.
CONCLUDING THOUGHTS:
Every one of these patterns provides a clear definition of resistance and also show price weakness set up near the end of last week. At this point, we are just waiting to see what happens early next week after a long holiday weekend. Based on our past research, we believe the downside potential far outweighs the upside potential – unless some major news event pushes the price much higher – like the news of the new US/China trade talks.
We would advise traders and investors to take advantage of these higher prices to pull profits out of open long positions and take some risk off the table at this juncture in price. We entered a new trade today and our portfolio is primed and ready for big moves going into next week.
We believe our super-cycle research and other proprietary modeling systems are suggesting that price weakness will dominate the markets for the next few months. Ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis and recession.
In short, you should be starting to get a feel of where commodities 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.
Our researchers have identified a very rare type of price pattern that is typically associated with explosive trend changes and trends. We call this type of pattern a “Sandwich” pattern because of how price reacts within a range. The IWM, Russell 2000 ETF, is illustrating a nearly perfect example of this pattern right now.
Daily IWM chart (Russell 2000 Small Cap Index)
This close up view of the Daily IWM chart highlights the Sandwich pattern over the most recent 5 trading days and how price enters this volatile period, rotates around within a range, then settles near the upper or lower end of the range before a price breakout occurs. Notice the earlier Sandwich pattern setup and how price settled near the bottom of the range before a downside price leg pushed the price much lower.
It is our belief that the IWM could be setting up for a significant reversal or breakout based on this Sandwich pattern os be ready for an extended move.
Longer-term View of the Daily IWM chart
Here is a longer-term Daily IWM chart that highlights previous Sandwich patterns for you to review. We go into more detail and a very interesting setup in the IWM and transportation index that took place in 2008, same set up we see now. See charts and report here.
One thing to understand about the Sandwich pattern is that it is an early warning sign that price has reached an inflection point and will likely attempt to break out or reverse down from the ranges set up within the Sandwich pattern.
Also, you can see from the examples, above, that these patterns can take many bars to form and are sometimes somewhat convoluted in structure. The most recent Sandwich pattern is unique because it is very defined over the past 5+ days. We believe an upside price pop to the upside could turn into a “washout high” price setup.
Compare this price activity to the SPY chart and you’ll see that the IWM, Small Caps, are operating as a leading price indicator for the potential breakout/breakdown move that may happen in the immediate future. We see similar types of price rotation, but nothing as clear as we see on the IWM chart.
The fed news is shaking things up and our analysis stats this month could be the market top. We expect Aug 19th-ish… but this month is the window we feel it may happen. Stay tuned to our research – this is going to be fun to trade.
WARNING SIGNS ABOUT GOLD, SILVER, MINERS, AND S&P 500
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 yourFREE PRECIOUS METAL and get enough trades to profit through the next metalsbull market and financial crisis!
Chris Vermeulen – www.TheTechnicalTraders.com
https://thegoldandoilguy.com/wp-content/uploads/2019/08/I1.png522850adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-08-02 10:26:202019-08-02 10:26:20Small Caps Setup A Very Rare & Interesting Price Pattern
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
https://thegoldandoilguy.com/wp-content/uploads/2019/06/29.png387700adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-06-13 11:38:152019-06-13 11:38:15US Stock Market Setting Up A Pennant Formation
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
Our Adaptive Dynamic Learning (ADL) predictive modeling system is suggesting that Silver is currently well below the projected ADL price level. We believe the current pricing pressure in Silver is related to global central banks attempt to regulate precious metals prices over the past 24+ months. We believe the upside move in Gold will eventually roll into Silver and the ADL predictive modeling system is suggesting Silver is currently 34% undervalued.
Our ADL predictive modeling system is capable of identifying highly probable price outcomes in the future by tracking and mapping historically accurate similar price DNA patterns. The chart below shows exactly why we believe Silver is setting up an ADL price anomaly where a big upside price reversion should take place over the next 30 to 90 days.
It is difficult to attain an exact date for the reversion move, yet we know that the ADL predictive modeling system is suggesting Silver should be trading above $17 right now. Over the next 4+ weeks, the ADL suggests price should be above $18. The current price, near $13.95, is well below these ADL predicted levels. Thus, we believe a price reversion process will take place to drive the price of Silver upward toward the ADL predicted levels.
Now, if you take a look at our Silver Cycle Momentum chart below you can see that the current price of silver is just starting what looks like a new uptrend.
We believe the current upside price move in Silver is just the beginning. This may, very well, be the last time we’ll see sub $14 levels for quite a while in Silver. We believe skilled traders should be taking advantage of these historically low levels right away to prepare for the upside price move. Keep in mind the market does not move straight up and while I am bullish this me not be the exact time to by silver.
Become a technical trader by watching my daily analysis video each and every morning before the opening bell, and take the same trades I do with my trade alerts at the Wealth Building Newsletter.
Chris Vermeulen
www.TheTechnicalTraders.com
https://thegoldandoilguy.com/wp-content/uploads/2019/06/20.png640907adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-06-07 17:29:042019-06-07 17:30:03ADL Predictive Modeling Suggests A Big Move In Silver
We want to take a moment to point out that a Fibonacci 100% price move setup may prompt an upside price swing over the next few days and weeks. Many traders fail to identify this setup and get caught up in the current price trend. This happens because we lose focus on the fact that price always moves in segments or legs – from one peak or trough to another peak or trough. The process of creating these segments or legs is usually structured in these types of Fibonacci price increment, and Fib targets I have personally found to be the most accurate for spotting profit taking and turning points.
We provide two very clear examples of this type of setup and how it has worked in the past. We urge all traders to understand there are many examples of larger Fibonacci price expansion legs throughout history. These examples of the 100% Fibonacci price leg are unique instances of price movement and, after confirmation of a base/reversal, can become very valid trading signals.
This first example is the ES (E-Mini S&P Futures). You can see from this chart the earlier examples of the 100% Fibonacci price legs working in the October 2018 downward price move. The current downward price legs have set up a perfect 100% Fibonacci price expansion leg and we believe support may form near $2732.
We would normally wait for some type of price confirmation that this level is going to act as support – for example, a solid reversal bar or Japanese Candlestick price pattern. After confirmation is achieved, a price rotation equal to 60% to 95% of the last downward price leg can be expected.
This next example shows Crude Oil and the most recent downward two Fibonacci Price Legs. The first resulted in a very quick upside price rotation (highlighted by the green arrow near May 20). The second downside Fibonacci Price Leg just ended near $53.30.
It is our belief that Oil will find support near this $53.30 level and rally back above $56 from these lows. The only thing we are waiting for is some type of technical price confirmation of this bottom setup and we can expect a 4% to 8% upside price swing in Crude Oil.
Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals. This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members.
The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time. Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide.
More eye opening charts on currencies and gold here
We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade. We’ll see how this plays out over the next few days and weeks. Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point. A bullish price pullback in a downtrend.
https://thegoldandoilguy.com/wp-content/uploads/2019/06/6.png623888adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-06-03 20:42:582019-06-03 20:47:25Fibonacci Support May Signal Bounce in Oil & Equities
I have been pouring over the longer term charts as we’ve started to see Oil and Gold move in directions that would indicate increased fear throughout the global markets while a contraction in economic activity/oil prices appears to be setting up for another big move. The objective is to attempt to identify longer-term volatility expectations and price targets. To accomplish this task, we use our Adaptive Fibonacci predictive modeling utility on 3 Week charts because they provide a unique look at price activity and are a bit more reactive to shorter-term price activity than Monthly price bars.
We found some very interesting components by reviewing these charts of the ES, NQ, YM, and CL. We believe we are setting up a 2~4+ week sideways price rotation in the US stock market as price attempts to consolidate within this range before a broader breakout/breakdown move could happen. Just as we predicted many months ago, the July 2019 price peak we suggested could form appears to be setting up with a sideways pennant/flag formation as investors digest the economic and global trade war news data.
Eventually, the price will make a move in an attempt to break this sideways price channel and our predictive modeling solutions can help us to understand how these price setups will playing out. Let’s get into the charts and research.
As we start to pull apart the data from these charts, we urge you to pay attention to two things – the range of the current Bullish & Bearish Fibonacci Price Trigger levels and current price rotations of price peaks and troughs over the past 40 to 60 bars. It is very important to understand and attempt to use the “new price high” and “new price low” Fibonacci price theory that we keep talking about in our articles.
This first chart is the ES 3-Week chart highlighting the range between the Fibonacci Bullish and Bearish Price Trigger Levels (highlighted in light-CYAN). It is important to understand why the current bearish price trigger level is so far below current price levels. The Adaptive Fibonacci modeling system adjusts trigger levels based on recent price activity and price volatility to attempt to identify when the price is congesting in a sideways price trend or trending upward or downward. When price congests in a sideways form, the Adaptive Fibonacci modeling tool identifies this and determines that price would need to move to new levels in order to qualify for a new bullish or bearish price trigger. In this case, it is suggesting that price would need to fall below $2014 before this 3-Week chart would qualify the move as a “new bearish trend”.
That is a big move from current levels. It totals more than -750 points – a -27.5% price decline.
Currently, as long as the ES price stays above the $2633 level, the Fibonacci predictive modeling system is still suggesting the Bullish trend is intact and should continue.
This NQ 3-Week chart is setup in a similar manner to the ES chart. Although the Fibonacci volatility range on the NQ chart is much more narrow than the ES chart, the Fibonacci modeling system is still suggesting that the current trend is still Bullish and the key levels for the triggers are $6792 for the Bearish Trigger level and $6556 for the Bullish Trigger level.
Because of the narrow volatility range and because the Bearish trigger level is above the Bullish trigger level, we believe a price rotation where the price stays above $6800 is very likely over the next few weeks. Obviously, should price break below the Bearish Trigger level, then we would begin to become concerned that a broader downside trend is being established and start to look at the Fibonacci downside price targets (near $5815 & $3900). Until that happens, expect sideways price rotation with a 250 to 500 point range on average (about 2x the Fibonacci volatility range).
The YM is really the key to understanding just how the markets are going to play out over the next few weeks and months. The extremely large Fibonacci volatility range on the YM chart highlights the potential for the wild sideways price rotation that we are expecting over the next few weeks and months. Remember, our analysis from many months ago suggests a price peak will likely form in July/August 2019 and prompt a broader downside price move after this peak completes. Our expectation that a current sideways price channel is setting up leads us to believe the apex of this sideways price channel may result in a very brief price rally (pushing prices back towards recent highs) before rolling over and starting a new downside price move to coincide with our July/Aug 2019 predictions.
One way or another, it appears the DOW/YM will be leading the way in terms of price volatility and rotation. The wide range between the Bullish and Bearish Fibonacci Price Trigger Levels is suggesting that price volatility is increasing and that the YM would have to move to levels above $29,750 or to levels below $18,875 before establishing any new price trends. The past Fibonacci trigger levels help us to understand key price levels as this future move takes place.
Past Fibonacci Trigger Price levels are $26,025 for a Bearish Price Trigger level and $24,770 for a Bullish Price Trigger Level. This means if the price is below $26,025 – we should expect a bearish price trend to continue and if the price is above $24,770 – we should expect a bullish price trend to continue. Yet, price is current BETWEEN both of these levels, so what should we expect right now? When the price is in between these levels, like now, we typically look for the last price rotation (peak or valley) and for the last level that was crossed (in this case the $26,025 Bearish level) and would conclude:
The trend is currently Bearish and the $26,025 level is key to maintaining this bearish price direction. Should price move back above this level and close above this Bearish Price Trigger Level, then we would consider the trend “moderately bullish” while we wait for a new Price Trigger Level Breach to setup.
Lastly, Crude Oil. We’ve been writing to all of our followers that we felt Oil was setting up for a price rotation many weeks ago. We warned that the $65 price level may be the end of the move and that the $55 to $50 levels are the likely downside targets. The volatility range is somewhat narrow and the last Trigger Level that was breached was the Bearish Trigger Level near $68.75. Therefore, we believe the recent downside price move, below the $60 Bullish Trigger level, results in a new Bearish price trend with immediate targets near or below $50. Ultimately, the $42.40 level may be the longer term downside price target – which would coincide with a broader commodities slowdown and global economic activity contraction.
So here is what you need to know to go into this weekend and for the next 4+ weeks.
Expect the US stock market to trade in a moderately volatile sideways price channel for the next 4+ weeks.
Expect the end of this price channel to result in a “false rally” move that may push prices towards recent highs before faltering and rotating back to the downside.
Expect this END of the sideways price channel to happen sometime near mid-July or early August 2019.
Expect Gold and Oil to continue to react as “fear measures” over the next few weeks/months as global traders reposition their assets throughout this rotation.
Expect a bigger price move near late July through September~October 2019 as this volatility move really begins to take root with equities.
Follow our research and learn how we can help you stay well ahead of these price moves. We’ve just highlighted what is likely to happen over the next 30 to 60 days in this research post. Want to know how we are going to trade these moves? Join our other members to see how we create success and keep our members ahead of these big moves. Also, if you wanted me to ship you free silver rounds with a subscription to this Wealth Trading Newsletter you better join today as this offer expires June 1st.
https://thegoldandoilguy.com/wp-content/uploads/2019/05/33.png368700adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-05-31 23:47:412019-05-31 23:47:41Adaptive Price Modeling Suggests Big Rotation In US Dow Stocks
Our research team, at www.TheTechnicalTraders.com, have been pouring over the charts and data to identify what is likely to happen over the next 60+ days in terms of global stock market volatility vs. the US stock market expectations. Recently, we posted a research article highlighting our Adaptive Dynamic Learning (ADL) predictive modeling system on the Transportation Index (https://www.thetechnicaltraders.com/markets-rally-hard-is-the-volatility-move-over/). This research suggests we are still going to experience increased price volatility over the next 30 to 60+ days and that price rotation may become somewhat of a normal expectation throughout the rest of 2019.
We believe the key to understanding price volatility over the next 30+ days lies in understanding the potential causes of uncertainty and capital shifts that are taking place around the globe.
Next week, On May 23~26, 2019, the European Elections take place (https://www.telegraph.co.uk/politics/0/european-elections-2019-uk-vote-date-results/). This voting encompasses all 26 EU nations where all 753 European Parliament seats may come into question. The biggest issues are BREXIT and continue EU leadership and economic opportunities for members. The contentious pre and post-election rancor could drive wild price swings in the global markets over the next 10+ days.
A tough stance between both nations, the United States and China, have left trade talks completely unresolved (https://www.reuters.com/article/us-usa-trade-china/chinas-tough-trade-rhetoric-leaves-talks-with-u-s-in-limbo-idUSKCN1SN207). At this point, the currency market is attempting to absorb much of the future expectations while the US/China stock markets react to immediate news events and perceived future economic outcomes. Overall, until this issue is resolved for both nations, the news cycles will likely drive increased price volatility across the global markets.
The US 2020 Presidential Elections are ramping up with over 24 Democratic potentials attempting to unseat President Trump. The current new from DC regarding the continued DOJ investigations and political posturing regarding Barr, Nadler and a host of other DC actors is setting up for a “cliff hanger” outcome over the next 12+ months. This will likely become one of the most hotly contested US Presidential election events in decades. The news of investigations, political corruption, and a potential US political “coup” attempt is certain to keep everyone guessing over the next 2+ years.
The markets are reacting to this volatility by attempting to adjust valuations expectations and future economic outcomes in multiple forms; currency price valuations (attempting to adjust to a shifting future economic landscape as well as to attempt to mitigate risk/capital/credit issues), Stock Market price valuations (attempting to further mitigate risk/capital and credit issues, and debt rates (attempting to effectively price risk and output expectations for the future).
Here is a map of the Currency Market over the past 12 months. We can see the dramatic shift that has taken place since the price peak in February 2018.
Overall, the US Dollar has continued to strengthen over the past 12+ months and is regaining the “King Dollar” status as the global uncertainty continue to plague foreign and EU markets. We don’t expect this to change in the near future.
Our continued research into the current price rotation in the US and global markets suggest that we are going to continue to experience moderately high price volatility across all markets over the next 30 to 60+ days – possibly well into the end of 2019. As we suggested, above, the uncertainty relating to the multiple election events and global trade/geopolitical events do not present a foundation of calm and collected future guidance. The only thing we can suggest regarding these future expectations is that the US and more mature global markets should be able to navigate these uncertain times much more effectively than emerging or “at risk” foreign markets.
Below, you will see a global Heat-Map spanning one week. Traders should take special notice that certain EU countries are surviving the recent global price rotation quite well (France, Netherlands, Switzerland, Ireland, Germany, and others). We believe this is the result of the fact that these economies are rather mature and consistent in their output and expectations. Pay attention to the South American, Asian and Caribbean nations. It would appear that a fairly strong price contraction is taking place throughout much of these nations as the focus shifts towards the more mature markets.
The following One Month global Heat-Map highlights a slightly different economic picture for some nations, yet confirms the shorter-term (weekly) trends for many others. Bermuda, Cayman, Germany, and Switzerland appear to be the Bullish Leaders over the past 30 days while the rest of the globe appears to be slipping into Bearish price trends. Canada and the UK appear moderately mixed with some green showing on the heat-map – which would be expected as both of these nations are considered mature global economies with strong economic ties to the US.
We believe the next 10~30+ days are going to be filled with moderate price volatility and we expect a setup in the global markets, near the end of June 2019, where a massive price volatility explosion may take place. This could be correlated with some trade issue, some fallout of the EU elections or some breakdown in credit/debt risks taking place between now and September 2019. We’ll go into more detail in Part II of this research post.
This is proving to be an incredible trading year for traders who follow our trade alerts newsletter.
For active swing traders, you are going to love our daily trading analysis. On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is exactly what is happening now right on queue. In fact, we closed out our SDS position on Thursday for a quick 3.9% profit and our other new trade started Thursday is up 18% already.
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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 a few more 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:
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https://thegoldandoilguy.com/wp-content/uploads/2019/05/7.png359700adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-05-20 10:07:242019-05-20 10:07:24US vs. Global Sector Rotation – What Next? Part 1
Last year just days before the big Bitcoin breakdown we notified everyone publicly to get ready for a swift drop from $6000 to $4000 which played out perfectly within a few days. Our cycle system and technical analysis skills combined can pack a powerful punch and this one of those incredible moves where the stars aligned for us as traders.
We then further updated our followers in March of this year that a breakout was about to take place and a run to $6000 should take place. After that upside breakout move on April 8th, we posted this video further confirming $5800-$6000 was still the target.
Today/May Bitcoin appears to be setting up a broader top formation that suggests another move lower is about to unfold.
This first Daily chart highlights both support and resistance in Bitcoin. The Resistance goes all the way back to July 2018 where a Three River Morning Star pattern set up a gap with a Doji Star formation. This created the support level that was ultimately broken in November 2018. Support formed near $4000 in early 2019 with similar types of gap formations. This support level was ultimately broken in April 2019 with a move back up to resistance near $6000.
We believe the setup of the most recent price activity is setting up a classic three mountains top formation. A weak price rotation prompting a downside price move right now could be a short term ultimately top with next support near $5000. We believe a fairly quick downside price move toward the $4400 level (or lower) – near support.
Once price move to near the $4400 price level, or lower, if the support level is broken, we could see the price of Bitcoin fall all the way towards the $3500 level or lower. Fibonacci price theory suggests the failed high price move, near $7500, would represent a major failed high. This failure suggests a move lower attempting to establish a new price low. For this to happen, the price of Bitcoin would have to fall below $3000 which may sound crazy, but so was $20,000 bitcoin!
Watch for a reversal to unfold in the coming days, could be another opportunity to profit from another cryptocurrency collapse. Any failure of this breakdown/reversal move would suggest Bitcoin is setting up a new Pennant/Flag formation where the price will trade sideways before prompting a bigger breakout move. We believe a price breakdown is about to unfold and we expect prices to fall below $4400 within 14 to 28 days.
If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.
https://thegoldandoilguy.com/wp-content/uploads/2019/05/chart20.png675982adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2019-05-08 13:58:532019-05-08 13:58:53Bitcoin Setting Up For Another Drop
