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Is Silver The Sleeper Rally Setup Of A Lifetime?

Our research team believes Silver could be the Sleeper Rally setup of a lifetime for investors if the global economic cards continue to get scattered and crumpled over the next 10+ years.  The recent rally in Gold got a lot of attention last Friday (the end of May 2019).  We had been warning about this move for the past 8+ months and generated an incredible research post in early October 2018 that clearly highlighted our belief that Gold would peak above $1300 early in 2019, then stall and move toward $1270 near April/May 2019, then begin an incredible upside price rally in June/July/Aug 2019.  We couldn’t have been more clear about this prediction and we posted it publically in October 2018. See This Previous Gold Forecast Snapshot

Now, our research team is going to share with you some incredible insights into what may become the most incredible trade setup we’ve seen in the past 12+ years – the Sleeper Silver Setup.

Going all the way back to the early 1970s, when the Hunt Brothers ran most of the metals markets, we can see the incredible price rally in Silver from $1.28 per ounce to nearly $41.50 in late 1979.  This move setup with a very simple pattern – a high price breakout in 1973 that broke a sideways price channel and initiated a nearly 6+ year rally resulting in an incredible 3142% price increase from the lows.

Could it happen again?

Well, after this incredible price peak, the price of Silver languished and moved lower, eventually bottoming in 1991 near $3.50.  After that bottom setup, the price of Silver setup another sideways price channel and traded within this range until a 2004 High Price Breakout happened AGAIN.  It seemed inconsequential at the time – a rogue high price near $8.50.  Maybe that was it and maybe price would just rotate lower back to near the $4.00 range??

This High Price Breakout setup an incredible price rally that resulted in a continue price advance over the same 6+ year span of time.  This rally was not as big as the 1974 to 1979 price rally in percentage terms, but it was much bigger in terms of price valuation.  The 1979 price peak ended at $41.50 and resulted in a $40.25 price increase whereas the 2011 price peak resulted in a $46.32 price increase.

Will it happen again in our lifetime?

As incredible as it might seem, we believe Silver is setting up another High Price Breakout pattern that should conclude within the next 2 to 4 months with a price high near $22.50 to $24.00 (see our proprietary Fibonacci price modeling projections below).  After this peak is reached, hold on to your hat because we believe the upside price rally could mimic past rallies and attempt to immediately move the price of Silver to well above $85 per ounce.  Ultimately, we can only guess as to where the top of this move may end – but we can safely estimate it will likely top somewhere between $90 and $550. This, of course, will require some type of major bear market is other asset classes and possibly some global crisis but we believe it is very possible in due time.  Our predictive modeling systems will help us determine where the actual price peak will be as this unfolds over time.

And there you have it – one of the most incredible trade setups you’ll ever see in your lifetime.  Yes, it may happen twice in your life or more, but we believe this setup in Silver is just weeks or months from initiating the next upside price leg (the High Price Breakout) and we are alerting you now to be prepared.

UNIQUE PHYSICAL SILVER OPPORTUNITY:

We should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members was a quick 3.11% winner. Our VIX ETF trade also hit our 25% profit target within a few days of entry.

Now, I have a few silver rounds here at my desk I am going to give away and ship out 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)

I only have few 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!

Chris Vermeulen

Gold, Silver, Oil, Cryptos

UNIQUE OPPORTUNITY: First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!” which is what has been happening.

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members has already hit our first profit target, and our VIX ETF trade also hit out 15% profit target and we the balance of it is still up 25% as of yesterday.

Second, my birthday was this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. 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 few 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!

Chris Vermeulen

US Memorial Day Weekend Market Analysis

The US Memorial Day weekend is set up to become a very interesting time for investors.  The EU voting is complete and the change in EU leadership may move the markets a bit.  China appears to be playing a waiting game – attempting to hold the US/Trump at bay until after the 2020 US elections.  This week is certain to be very interesting for traders/investors.

The European stocks moved higher in trading on Monday as the relief from the EU election event and support for auto shares pushed the markets higher. The transition in the EU over the next few months will solidify into a political and social agenda.  The EU leadership must acknowledge these future objectives of all parties in order to maintain some level of calm.  It is evident that many EU nations are relatively satisfied with the current leadership while others are transitioning into more centrist leadership.  The next 4+ years will be full of further transition in the EU.

China is another global issue that is relatively unsettled.  We’ve been doing some research with regards to China and the potential future political and economic pathways that may become evident in the near-term future.  Our biggest concern is that China has been inflating their economic levels for decades and the true scope of the Chinese economy may be much weaker than everyone expects.  If our suspicions are correct and China has been inflating economic levels for many years, then the transition to a consumer/services-driven economy may be dramatically over-inflated and the US/China trade issues could be biting much harder than the Chinese want to admit.

The “Sell in May and go away” market saying may become absolute truth in 2019.  Our expectations are still suggesting that an attempt at new market highs may take place before August 2019, but the current market rotation (lower) is setting up a very strong potential for further downside price action at the moment.  Our proprietary Fibonacci price modeling system is suggesting the $7294 level in the NQ is key support.  Below this level, the NQ could break much lower and potentially target $6850 or lower.

 

The YM is setting up a similar price pattern with resistance near 25,840.  We believe this resistance will push prices lower as we move further into early June.  The potential for some type of surprise economic data or Fed/Global market move after this weekend is somewhat higher than expected.  There is a lot of shifting taking place throughout the globe and we believe this turbulence will reflect in the US market soon enough.

 

As of right now, our expectations are that a brief upside price rally will take place over the next 4~7+ days before a continued downside price trend may become evident.  Pay attention to the news cycles for key elements that could drive the US stock market lower.  We will continue to update you with regards to our proprietary research and expectations.  The next 7+ days will likely be nothing but sideways price rotation within a Pennant/Flag formation.

Read our research to understand how this setup coincides with the GOLD price setup and why it is important to understand why July 2019 is so important.  Please take a minute to review these recent research posts that focus more on the US Dollar and Gold, and also the July turning point for US Stocks.

4 DAYS LEFT TO GET YOUR FREE SILVER ROUNDS WITH SUBSCRIPTION!

We continue to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members for 4.4% already, and our VIX ETF trade we closed for a 25% last week.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. 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:

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

Chris Vermeulen

Eye Opening Currency Charts – Why Metals Are Falling

The incredible strength of the US Dollar over the past 12+ months has put downward pricing pressure on Gold and Silver.  I believe this downward pricing pressure could be muting any upside price advanced in Gold and Silver by as much as 20% to 30% or more.

The US Dollar has turned into the global “safe-haven” for international investors and foreign governments.  Over the past 6 to 12 months, or more, the US Dollar has been the only fiat currency to see any strength and upward trend.  All the other major global currency levels have fallen – some dramatically lower.

The EUR, GBP, AUD, CAD, and CHF have all fallen sharply over the past 6 to 12 months as the strength of the US Dollar and US Economy continued to surprise many.  We’ve been calling this a “capital shift” that started back in 2015~2016 – when the 2016 US Election cycle began and China began to implement capital controls.  At the same time, foreign nations such as Brazil and Venezuela began to shift into an economic abyss while the UK dealt with BREXIT negotiations.  All of these external factors created an environment where the US Dollar became a global safe-haven for global investors – all of which were seeking US equities and US Dollars to hedge weakening foreign currencies and weak foreign stock market performance.

 

I think that the US Dollar strength, in combination with the continued foreign Gold acquisitions has amounted to a resolved “reversion” in Gold prices that could reflect a 10% to 20% price anomaly.  In other words, the strength of the US Dollar has muted the advancing price of Gold by our estimates of 2x to 2.5x the strength of the US Dollar.  Over the past 12 months, the US Dollar rallied from 89.42 (April 2018) to 97.92 (May 2019: current price).  This reflects a 9.60% increase in the value of the US Dollar.

If my research is correct, the price of Gold should have rallied by about 18% to 26% from the April 2018 levels IF the US Dollar had not appreciated in value as it has.  Therefore, the true price of Gold should be somewhere near $1600 (18% above April 2018 levels) to $1700 (26% above April 2018 levels) if we attempted to eliminate the “reversion effect” of the US Dollar strength.

We come to this conclusion by statistically analyzing the US Dollar strength after April 2018 and how Gold reacted to this strength – by falling over 12.5% from near $1350 to a level near $1170.  That range of time reflected an 8% price advance in the US Dollar.  Thus, a ratio of 1.5 to 1 has clearly been established within that move.  More recently, from August 2018 till now, the US Dollar has rallied 1.47% while the price of Gold has rallied 8.87%.  The current price of Gold is -5.60% below the April 2018 price level.

If we were to assume that the rally in the US Dollar deflated the price appreciation of Gold by nearly equal ratios, then we take the April 2018 price of Gold ($1350) and add the related price variances of Gold over this span (essentially reverting the price of Gold to April 2018 US Dollar levels : $1350 * 1.27) and we end up with $1714.50.  This reflects a greater than 30% price anomaly from the current price of Gold.

Gold Futures – Goldchart by TradingView

We need to ask ourselves one simple question, what would it take for Precious Metals and the global stock markets to revert back to these expected price levels?  Would it be a move away from the US Dollar?  Would it be some shift in foreign currency valuations?  Would it be a combination of factors that drive greater fear into the markets and reflect a US Dollar valuation decline?  In the second part of this article, I will explore some possibilities and explain why I believe we are just days or weeks away from finding out exactly what will cause this price anomaly to revert along with my proprietary gold price cycle forecast.

I just highlighted the strength of the US Dollar in comparison to other foreign currencies and suggested this US Dollar strength may have created a “price anomaly” setup in Precious Metals – specifically Gold.  I believe a very unique setup is happening in the global markets right now and that the price of Gold is substantially undervalued compared to risks that are present throughout the global economies.  I believe the strength of the US Dollar has muted the upside potential of Gold by at least 20% to 30% over the past 12+ months and I believe a shift is taking place where Gold is starting to break these pricing constraints.

If the analysis is correct, I believe traders only have about 3~6+ weeks before we’ll find out why and what will cause this price anomaly to revert back to what I believe is “price normalcy”.  The strength of the US Dollar, as well as the continued global “capital shift” where foreign investors are piling into the US stock market and US Dollar related investments, have continued to put incredible pricing pressures on Precious Metals.  We believe this “shift” may be about to revert back to some levels of normalcy in term of Precious Metals pricing.

I believe a major Pennant/Flag formation is setting up in Gold where this price anomaly event will be resolved.  This type of price anomaly reset, or reversion will prompt a massive upside price advance in Gold and Silver that will attempt to restore proper pricing levels to the Precious Metals commodities.  I believe we are just weeks away from the completion of this Pennant/Flag apex/breakout event and believe the upside price targets identified align with a series of key events that are likely to unfold over the Summer months of 2019.  Take a few minutes to read the recent three-part research post regarding these events and how they relate to the global stock/commodity markets here.

 

Our predictive modeling systems have been warning that a price advance in Gold and Silver will take place between April/May of 2019 and Aug/Sept or 2019.  We are calling this the “initial upside price leg” because we believe this upside price move will be just the beginning of a much larger move higher for Precious Metals.  We’ve highlighted some of the biggest concerns we currently have related to the global stock market price appreciation levels and the concerns related to the US Presidential Election cycle in precious articles – Please read them here :

We believe it is imperative to alert all investors/traders of this event and to attempt to allow all investors/traders to plan for what may become one of the biggest global stock market swings in recent history as well as one of the biggest moves in Precious Metals in history.

My proprietary cycle analysis and trade signals are suggesting a mild price recovery in Gold will prompt moderate upside pricing pressure over the next 10~20+ days.  This aligns perfectly with our Pennant/Flag formation, see the previous chart.  It would be expected that Gold prices would form a moderate price support level near $1270 before moving back up to the upper Pennant price channel, near $1295.  Then, price should set up the “Apex Breakout” move – which will likely be a “washout-low” price rotation (somewhere near or below $1270) with a very quick reversal to the upside – breaking $1330 and rallying much higher.  This type of rotation is very common and often prompts traders to jump into short positions on the “washout-low” formation before getting clobbered on the reversal/rally.  Be prepared.

 

Lastly, we want to alert everyone to a chart we’ve been following that could become a determining factor for the future of the global stock market levels, the US Dollar and Precious Metals.  The one thing we don’t want to see is a massive decline in yield in the 2 Year Treasuries.  This would indicate failed growth expectations throughout the globe and, in particular, reflect concerns that the US markets could contract/decline in-line with further global market devaluations.

We’ve already been trying to warn investors that the US Presidential Election cycle will likely create a stalling price pattern in the US stock market.  We’ve been warning, for the past 18 months, that Gold is setting up a massive bottom/breakout formation.  We’ve recently highlighted the global concerns (Europe, China, US, and others) that may combine to create something like a “perfect storm” for currencies and the global equities markets.  If that translates into “yield weakness” in the US Treasuries, think about how that would translate into the Precious Metals “reversion” that we are suggesting is only a few weeks away?

Chart courtesy of www.crescat.net

 

We strongly urge investors to pay very close attention to our research and prepare for this event.  Yes, the Capital Shift event is still taking place and as long as nothing disrupts this shift, capital will continue to flow into the US Dollar and US Equities.  Our concern is that the charts are telling us we are very near to the end of this event cycle and we are alerting all of our followers so they can prepare for this move.  It may start out mildly – it may not.  We do know that our predictive modeling systems are suggesting that July/August 2019 are on our radar for a major price rotation/event.

UNIQUE OPPORTUNITY

First, we typically see stocks sell-off and as the old saying goes, “Sell in May and Go Away!” which is what has been happening.

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members has already hit our first profit target, and our VIX ETF trade also hit out 15% profit target and we the balance of it is still up 25% as of yesterday.

Second, my birthday was this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. 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 25 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

 

Markets Rally Hard – Is The Volatility Move Over?

Many traders are watching the recent 3-day rally thinking “this is the end of the downside price move” and targeting new entry positions for the eventual upside price breakout.  We’re here to warn you that our ADL predictive modeling system is suggesting we could see more volatility over the next 45+ days before a price breakout sets up.

Our Adaptive Dynamic Learning (ADL) predictive modeling system is something we like to keep away from public view for the most part.  It is not something we share with the public often because it tends to show quite a bit of information about the future to skilled eyes.  Today, you are going to get a glimpse of the ADL system on Weekly and Monthly TRAN charts to help you understand what to expect over the next 45+ days.

The ADL predictive modeling system is capable of learning from past price action and modeling “price DNA markers” based on a custom inference engine we created for this utility.  That means it is capable of learning from any chart, any interval, any price data and any type of price activity while mapping the price data, technical data and corresponding future price activity into what we call and DNA price chain.  After that mapping process is complete, we are able to ask it to show us what it has found and how current price bars align with the DNA mapping to show us what is likely for the future.

This Monthly TRAN ADL chart shows two ADL DNA Marker data points.  The first data point, April 2018, consisted of 12 unique ADL price instances and suggests a moderate upside price bias may continue until near the end of July or early August 2019.  August 2019 appears to be a “price anomaly” setup with a target price level near 10,000 for that month.  Thus, August 2019, or any time +/- 30 days from that month, could be very volatile.  The second data point originates from June 2018 and consists of 4 unique ADL price instances.  The lack of ADL price instances (4 vs 12) is not as important as the predicted outcome of this DNA marker.  ADL instances with small numbers of matching instances tend to be unique price data – something that is not seen in price that often and somewhat rare.  This ADL data point is predicting a moderate upside price bias until June/July 2019, then the DNA marker is telling us that a downward price bias should start and that these future predictions do not have a strong probable outcome.  This means August through November 2019 could be very volatile and result in unexpected price actions.

 

This next chart is a Weekly TRAN ADL chart that suggests 2 or 3 more weeks of moderate upside price bias before a big decline in prices headed into June 2019.  If we follow the DASH lines on this chart and count the weeks going forward, it appears June 2019 will result in a moderate price decline toward the recent lows – possibly a bit lower.  Then it appears the TRAN will stall near 10,200 – possibly moving a bit higher near the middle/end of July.  After that, the ADL predictive modeling system is suggesting that the TRAN will break down below the 10,200 level and potentially head much lower – towards the 9,600.

The timing of this is interesting because it suggests the current US/China trade issues will not result in more price decline for the next 30+ days.  Yes, we’ll like to see more price rotation, but the potential for a massive price decline over this span of time is rather muted.  We may see a retest of the 10,200 level near Mid-June, but price should find support at that time and recover towards the 10,400 to 10,500 level near early July.  Mid to End July looks very weak – where price may break aggressively lower, below 10,200 and attempt to target the 9,600 level.

This next chart is a Weekly TRAN chart showing our Adaptive Fibonacci price modeling system.  The Fibonacci price modeling system is one of our standard analysis tools.  This utility is suggesting that price weakness may set up a Descending Flag formation over the next few weeks/months.  This type of pattern suggests that a breakout move will result after the apex is reached.  The YELLOW trend line on this chart may become a downside price target if our ADL predictions are correct and the TRAN price breaks down toward the 9,600 level or lower.

 

Take another look at the end of the first, Monthly ADL chart.  See those YELLOW upside ADL arrows on the right side of the chart?  Those are the current ADL predictions for October, November, December 2019.  This prediction suggests that the Apex Breakout move at the end of the Descending Flag formation will be an upside price breakout sometime near the end of 2019.

Be prepared for another increase in volatility in Early June and Early/Mid July.  Our predictive modeling systems are suggesting a breakdown in price will happen near these dates and this downside move should result in increased VIX/Volatility when the breakdown happens.

This does not appear to be the BIG CRASH that everyone is talking about.  It appears to be a normal price pattern setup as weakness settles in and the TRAN appears to retest the 10,000 level (support) with the potential of moving slightly below this level.

We’ve just highlighted what our predictive modeling system is currently proposing will happen over the next 6+ months in the TRAN.  If you know anything about the TRAN, you should be able to translate this into a trading road-map for the next 6+ months in the US markets.  What is the value of having something like the ADL – being able to look into the future and see what is likely to happen 4 to 6+ months into the future?  Visit www.TheTechnicalTraders.com to learn how we deploy these proprietary tools for our members to help them find and execute better trades.

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 20% already.

Second, my birthday is only three 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 a few 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 a few 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

How Sustainable Is The Move Into Safe Havens?

Chris Vermeulen. Founder of The Technical Traders joins me to share his thoughts on the recent flow of money into safe haven assets. During the selloff, yesterday in US markets money moved into bonds, gold, and back into the USD. We discuss just how long this run could last and which sectors Chris is the most bullish on.

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.

Second, my birthday is only three 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 3 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 3 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

Our Long-Anticipated Gold Momentum Rally Begins

Over the past 6+ months, we’ve been covering the price rotations in precious metals very closely.  We’ve issued a number of amazing calls regarding Gold and Silver over the past few months.  Two of the biggest calls we’ve made were the late 2018 research post that suggested Gold would rally to above $1300, then stall.  The other amazing call was our research team’s suggestion that April 21~24 would see Gold setup an Ultimate Base, or what we were calling a “Momentum Base”, near $1250 to $1275.

We issued both of these markets calls many months in advance of these dates/price levels targeting these moves.  In both cases, we issued these market calls well over 60 days prior to the move actually taking place.  The accuracy of these calls can be attributed to our proprietary price modeling solutions as well as the skill and techniques of our research team.  Don’t mind us while we take a few seconds to take credit for some truly amazing precious metals calls over the past 6+ months.

This Weekly Gold chart highlights just about everything we have been suggesting would happen over the past 12+ months.  The rally in Gold from below $1200 to almost $1350 setup an upside price leg that we believe is still just beginning.  The rotation lower, after the February 2019 highs, setup the Momentum Base near April 24 – RIGHT ON TARGET.  Now, the upside price advance that we’ve been predicting should launch Gold well above the $1400 price level appears to be setting up.

Our Adaptive Dynamic Learning price modeling system, as well as our Adaptive Fibonacci Price modeling system, have been key elements to unlocking these early calls.  You can read more about our earlier Gold and Silver calls by reading this article: https://www.thetechnicaltraders.com/adl-predictions-for-price-of-gold/

The next leg higher for Gold will see a price peak near $1450 before another brief sideways/stalling pattern sets up.  After that, our research suggests a rally will quickly drive Gold prices above $1550 (or much higher).

 

As we’ve been suggesting, Silver will likely lag behind Gold by about 20+ days.  We believe Silver is going to see an incredible upside price move – even bigger than Gold in percentage terms.  Our belief is that Silver will be trading above $26 to $28 per ounce – almost DOUBLE the recent low price level, when Gold will be trading just above $2000 per ounce.  The reason for this is the relationship between the Gold/Silver/US Dollar pricing levels – called the Gold/Silver Ratio.  The chart is below

When the ratio is above 0.80, we consider this to be a “Moderate Peak” zone for Gold.  Where the price of Gold (per ounce) represents more than 80 ounces of Silver.  The ratio of the price of Gold to the price of Silver is a fairly common measure to determine when Silver is very undervalued compared to Gold.  When the ratio typically falls above 0.80, then the price of Silver is very cheap compared to the price of Gold.  When this ration move above 0.90, these levels are Extreme Peaks in the disparity of pricing between Gold and Silver.  These are the areas where both Gold and Silver rally back to restore a ratio level closer to 0.60 or 0.65 (or lower).

This would indicate that the price of Silver will rally much faster than the price of Gold and in order for this ratio to move back to the 0.06 level, Silver would have to rally at a rate of 1.35:1 or 1.45:1 compared to Gold.

Custom Index – chart by TradingView

 

This Weekly Silver chart highlights the levels we are watching for the upside breakout in Silver to begin – $15.40 or higher and we believe the upside price move in Silver till accelerate well above $18 per ounce very quickly.  Again, the move in Silver will likely lag behind Gold by at least 20+ days.  So now if the time to buy Silver in physical form (or any form) as we prepare for this move.  Once it starts, we can promise you that the rally will be impressive and quick.

 

Watch how Gold and Oil react over the next few weeks as Fear re-enters the global markets.  Our belief is that Oil will fall while Gold initiates the first leg higher, towards $1400 to $1450 before stalling.  Once this happens, we can be certain a new upside price advance is beginning in Gold and this could be a fairly strong indicator that the markets are weakening and there is increased global fear.

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.

Second, my birthday is only three 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 4 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 4 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

Silver Sets Up A Long-Term Wave B Bottom

Precious Metals traders have been hanging on every turn in the markets over the past 2+ years.  The upside price move in early 2016 setup a very strong expectation that further upside price moves were about to result in an upside price explosion in metals.  Remember, 2016 was a very big US Presidential election year.  2020, being the next big US Presidential election year, is only about 7 months away and the rancor has already started in the news cycles.

Our proprietary Fibonacci price modeling system is suggesting that Silver has set up an ABC bottom in Oct/Nov 2018 and has already initiated an A/B upside price leg that should result in a C or C/D/E price advance over the next few months.  Our Fibonacci price modeling system is suggesting an upside price target of $22 per ounce for this move, which breaks the previous July 2016 highs of $21.22.  We believe the ultimate upside target of this next bullish move is bear $28 to $29 based on longer-term Fibonacci price modeling.

Initially, this upside move must break the $16.30 level, which represents immediate resistance.  Then, it must push above the $18.66 level, which represents secondary resistance.  Once Silver passes the $18.66 level, the last leg higher will attempt to break the $21.22 level and push up into new recent highs (higher than the 2016 highs).

We believe the current US Presidential election cycle will be full of twists and turns – most of which will be very public and explosive.  We believe this election cycle will create a certain level of fear in the markets that are above and beyond what we have seen over the past 15+ months.  In a method that is very similar to what happened in 2016, the public will become entrenched in the election cycle process and the global economy may suffer slightly as the political shenanigans continue to play out on our TVs, newspapers and web browsers.

The October/December 2018 lows were, most likely, the lowest price levels we will see going forward.  Additionally, the current price levels, below $15 per ounce, may be the last time we’ll have the opportunity to see prices this low in a number of years.  Our price modeling is suggesting that Silver and Gold will begin a Momentum Base Rally from these lows that may last many years.

If you want to know when we get long Silver next be sure to join our Wealth Trading Newsletter and get our trading signals. In fact, we are giving away and shipping FREE Silver rounds for select membership levels for the next few days.

Chris Vermeulen

Precious Metals Give Traders Another Opportunity

We know many of you follow our research posts and have been waiting for the Gold/Silver setup we predicted would happen near April 21~24, 2019 back in January 2019.  Well, it looks like our predictions were accurate and the current downward price rotation in Gold/Silver are the opportunities of a lifetime for precious metals traders.

Our original research regarding the predicted Gold price rotation and breakout initially posted in October 2018 and was updated in January 2019.  You can read our updated post here.

This research suggested, back in October 2018, that gold would rally above $1300, then stall and setup a momentum base near April 21~24, 2019.  Currently, we are actively seeking entry positions in Gold, Silver and many other stock market sectors related to the metals and miners.

We’ll start by highlighting the Gold to Silver price ratio.  When this ration moves well above 80, it is generally considered a long term buy trigger.  The reason for this is that this ratio attempt to reflect the price of Silver to the price of Gold.  When this level reaches above 80, it traditionally reflects an extremely cheap price ratio for both Gold and Silver and usually prompts a big price advance in the near future.

 

Taking a look at historical price moves for both Gold and Silver, we fall back to the big upward price advance that began after the 2009 market crash.  One thing that all traders and investors must understand is that, currently, Silver presents an incredible opportunity for bigger returns than Gold.  Yes, Gold will likely rally higher and provide an incredible opportunity for upside gains.  Yet, historically, Silver begins to move a bit later than Gold does and the upside potential of Silver tends to be 40~70% greater than the upside potential for Gold.

Take a look at this comparison chart, below, of the 2009 to 2011 price move.  Gold shot up nearly 100% – as shown on the chart.  Silver shot up over 150% when the breakout move happened a bit after the Gold move started.  We expect the same type of price advance pattern in the near future.  We expect Gold to begin the move higher and Silver to lag behind this upside move a bit – possibly for a few months.  Eventually, Silver will break to new multi-year highs and could rally 130% to 220% above current levels – possibly higher.

 

Over the next few months, we believe increased volatility in the US stock market may drive prices a bit lower as price rotates near all-time highs.  We believe this rotation, coupled with foreign market concerns (think Brexit, Europe, China, South America) as well as the US Election cycle may cause the markets to enter a period of stagnation and sideways trading.  These impulses may become a catalyst for precious metals to break recent highs and begin an upward price advance as a general increase in FEAR settles into the global markets.

We do believe Gold and Silver will likely move a bit higher over the next 30+ days as the US stock markets continue to push higher towards new all-time highs.  Yet, if the volatility increases, as we expect, and a bigger price rotation takes place (see the chart below), we believe Gold and Silver may experience another price drop to near or below current levels before a massive upside breakout move begins.  Historically, the price of Gold contracts throughout the initial price correction phase of the S&P500 and begins to accelerate upward near the end of a correction phase.  This is because investors and traders are typically shocked to see the correction take place and move into a protective mode as true fear sets in.  When fear subsides, traders move out of precious metals and back into stocks.

 

Our current expectations are that Gold will continue to push lower, below $1275, in an attempt to establish our April 21~24 momentum base.  This base should be at or near ultimate lows for the price of Gold and we would expect a pennant or sideways price channel to complete this bottoming formation.  Ideally, any price move below $1250 is a gift for skilled traders.  We’ll just have to wait to see where this bottom sets up before we know just how low Gold will fall before the next leg higher.

We believe the next upside price leg in Gold will push prices above $1400 initially, likely in May or June 2019.  After that peak is reached, we believe a period of rotation and a potential for a price decline is very real.  We believe this next leg higher will really to levels above $1400, then price will stall and retrace – possibly retracing back to levels below $1300 again.  It would be at that point that skilled traders should consider this the last opportunity for long entries before the bigger move to the upside.

 

Our research into this move, which initiated back in October 2018, has called these rotations almost perfectly.  If our newest research is correct, you will have at least two opportunities to enter fantastic long trades in Gold and Silver, one setup hitting between April 21 and April 28 and another setup after the initial upside price rally retraces (likely in June or July 2019).  After that last retracement, we believe the bigger upside rally will begin and both Gold and Silver will initiate a rally that could be an opportunity of a lifetime for skilled traders.

Follow our research by visiting www.TheTechnicalTraders.com to learn how we can help you find and execute better trades in 2019 and beyond.

Chris Vermeulen