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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)

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Chris Vermeulen
Founder of Technical Traders Ltd.

Small Caps May Lead A Market Rally

We believe a unique Pennant/Flag formation is setting up in the US stock markets. We believe the Small Cap sector may provide a better technical reference to the price breakout we are expecting in late August or early September than the mid or large-cap sectors.  The charts tell a very interesting story when comparing the different sectors to the SPY.

As most of you are well aware, the very deep selloff between October and December 2018 prompted a low price pivot point that most technical analysts are using as a reference to support. What we find interesting is that these Small Caps have really failed to mount any type of price recovery.  We believe this is because of the continued capital shift where foreign investors and institutional investors are piling into mid-cap and large-cap equities chasing dividends and safety.  The small-cap index chart may provide the best technical reference for the pennant formation and eventual breakout move.

This weekly chart of TNA highlights exactly what we are referencing in comparison to the mid-cap and large-cap charts. Pay very close attention to the support level near $53.50.  Also, notice that define panic formation setting up after the December 2018 bottom. We believe the price rotation in the small-cap index is clearer and more identifiable than the rotation in the mid-And large-cap indexes.  We also believe the small-cap index will show early warning signs of price weakness or strength after the apex of this move.

The mid-cap and large-cap weekly charts paint a very different picture than the small-cap chart. We can see the upward price slow after the bottom in December 2018 was much more aggressive. We can also see an upward sloping Pennant formation setting up between the lower, blue, price channel and the magenta upward sloping price channel from the recent lows.  Please pay close attention to the upper and lower support zones we drawn on this chart. Any future break down in price will likely find support near the upper support zone and possibly pause near this level before attempting a breakdown further if needed.

This last SPY weekly chart highlights the similarities between the made In the large-cap indexes. The way price reacts to these channels as well as creates these Pennant formations in unison is rather interesting. Compared to the small chart, the TNA, it is clear that the main and large-cap prices are moving somewhat in tandem.

At this point in the process, we are waiting for wave 3 to end and wave 4 to begin of the pennant formation.  As price continues to consolidate within the pennant range, we should take advantage of opportunities that exist within this rotation and prepare for a brief breakout to new all-time highs. After new all-time highs are reached, we believe an immediate downside price rotation will begin sometime in September 2019 and last possibly into October or November 2019 – possibly longer.

Pay attention to vertical line number 10 on this chart. This price cycle reference occurs on September 8, 2019. It also occurs right after the apex of the pennant formation between the red and magenta lines. Our researchers believe a washout high price rotation, targeting new price highs, will be the likely resulting breakout move.  After the washout high exhausts, we believe an immediate downside move will likely begin and push prices back below the 282 to 270 level while attempting to find support.  Ultimately this downside move may attempt to retest the 240 level or lower. Time will tell.

Our suggestion is to pay attention to the small-cap index in relation to the mid-cap and the large-cap symbols. We believe the small-cap sector will provide greater detail for technical analysts and researchers. Overall, every one of these charts paints a fairly clear picture. We believe our research is accurate and that the market will do exactly as we are suggesting. The only thing that we are unsure of, at this point, is where the new all-time high price level will peak.

Our ADL predictive modeling system is providing some guidance in regards to this peak level.  We will continue to provide further guidance and research as these price swings continue. It would be wise to prepare to trade a tightening price channel as this pennant formation continues – then be prepared for some very big price swings in late August and all through September.

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.

Markets Waiting to Decide, Up or Down

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 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

THE NEXT WEEK WILL BE VERY IMPORTANT FOR US MARKETS WHICH IMPACT ALL THE OTHER MARKETS

Chris Vermeulen, Founder of The Technical Traders joins me for a look at the energy sector, metals, and US markets. He points out that the US markets, as well as the metals, are at very important levels. Over the next few trading days, a decision will need to be made by the US markets which Chris thinks could be lower.

Click here to visit The Technical Traders website and follow along with what Chris is trading.

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

Technical Analysis Shows Aug/Sept Market Top Pattern Should Form

We have been pouring over the data and currently believe our earlier prediction of a July/August 2019 market top should be revised to an Aug/Sept 2019 expected market top pattern.  The following research posts we authored recently suggested a top may form in July/Aug 2019 and believe this critical top formation would form at new all-time highs.  We still believe this is possible regarding the price predictions, yet we believe the price top will now form near the end of August or early September after an extended Pennant/Flag formation is completed.

Please review the following research posts by our team…

June 5, 2019: Fear Drives market Expectations: HERE

May 14, 2019: Trade Issues Will Drive Market Trends, Part II: HERE

March 31, 2019: Proprietary Cycles Predict July Turning Point For Stock Market: HERE

Using our proprietary price modeling tools and systems, believe the critical price peak in the US stock market will now happen between August 26 and September 20 (see the chart below).  A number of key factors are lining up to extend this topping pattern into August/September and the key component is the formation of the Pennant/Flag formation and the fact that this price pattern must complete before a breakout/breakdown move is possible.

An upside price bias will continue throughout the formation of the Pennant/Flag formation leading to a moderate price breakout where the S&P will briefly break through the $3000 price level, then stall – forming the Top pattern/rotation we are expecting.

A continued Capital Shift will drive prices higher over the next 45 to 60+ days where foreign capital will continue to chase the strong US Dollar and the strength of the US stock market.  The true critical price move, where our analysis will become even more important, happens after September 1, 2019 – where the Pennant Apex and a critical inflection point are set.

On June 5, 2019, we posted this VIX chart in the article listed above.  The US stock market will rotate higher in an upward price bias over the next 45+ days.  This will project the Pennant/Flag formation and set up the critical top pattern that we are expecting in late August or early September.  When you look at this chart of the VIX, below, consider that the upside price move in the VIX may be delayed by about 10 to 15 days based on our newest analysis.  We still believe the VIX expansion will happen as we are suggesting, we are altering the timeline of these predictions to support our newest research.

As we move closer to these critical dates, we’ll keep you informed of our expectations and what new information our predictive modeling systems are suggesting.  In the meantime, get ready to play some moderate price swings.  Don’t get caught on the short side of this move just yet.  We have no real confirmation that a large downside move will take place over the next 60+ days and these early shorts are going to feel a lot of pressure over the next 45 to 60+ days if the market moves higher.

This is one scenario of how the stock market may play out, we have a few others we are following with subscribers to our Wealth Building Newsletter with much more detail. Each day we share a pre-market video and show you where all the major markets are headed for the day, week and month ahead. The analysis is done on the futures market but we focus on trading ETFs for the indexes and commodities.

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

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

Natural Gas Moves Into Basing Zone

After an incredible rally in Natural Gas that our researchers called perfectly in November 2018, another opportunity for an upside price move appears to be setting up for later this year. We believe the current price lows, near $2.30, are setting up for a bounce and then will drop and form a basing pattern near $2.00 before rocketing higher.  It is this last move to the downside which will set up the incredibly deep price base and oversold conditions for the upside price move in late August/September 2019.

We’re issuing this research post to alert all of our followers to our research and to allow for proper price rotation for this base to set up and conclude before jumping into any false triggers that may occur on the Daily or Weekly charts.

Start by taking a look at this Monthly NG chart showing how extended high price peaks are usually followed by extended price declines.  It is very unlikely that any upside price move will begin before late August or early September 2019.

In fact, our data mining utilities confirm this by suggesting that June, July, and August are all typically lower price months by a factor of 1.5:1 and 2:1 mostly over the past 24 years. September is the first monthly data point to break this cycle with a positive historical price bias of nearly 9:1.

Therefore, the closer we get to September 2019, the more likely we are going to see a basing in price near $2.00 (or below) and traders would be wise to prepare for this move before it happens.

Our Weekly Fibonacci price modeling system is suggesting a moderate move upward of about $0.25 is likely over the next few weeks before price may rotate lower, again, and attempt to fall below the $2.25 level as it continues to rotate towards the ultimate base.

Our researchers believe the ultimate price base will be near $2.00 (roughly between $1.85 and $2.15) as our Weekly Fibonacci modeling tool is suggesting.  After price establishes the new price peak in late June, we’ll have more data to compare for the proper location of the ultimate price base.

This Daily chart highlights our expectations for NG over the next few weeks – fairly strong potential for a move higher, above $2.50, where the price will stall and reverse back to the downside.  Ultimately, this peak will turn out to be nothing more than required price rotation to support the ultimate base pattern setup later in August or September 2019.

Don’t get too excited about Natural Gas just yet.  The setup and future trade are in the process of creating a deep price base that will likely end near late August or early September 2019.  We believe September 2019 will be the breakout month for NG as a price advance really takes hold.  If historical data is any guide, the 9:1 upside bias of September following the 1.4:1 downside bias of August suggests that the September upside price move could push NG prices well above $3.50 or $4.00 very quickly.

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

Fear Drives Market Expectations

The continued upside price move in Gold is a very clear sign that fear is starting to enter the global markets again.  We read an article last night that suggested many professional fund managers are preparing for a bigger downside price move as well as expecting the US Fed to potentially decreased interest rates over the next 12 to 24 months as the expected downside price move takes place.  We understand this concern by many industry professionals and share some of their same concerns, yet we believe these individual are far too early in shifting their stance in the markets right now.

As you may be aware, our research does not show any major downside risks until later in July 2019 or August 2019.  Even then, the price of the Dow Jones Index would have to fall over 18% before the December 2018 lows become threatened.  The current upside price recovery, with the Dow Jones up over 400 pts from the lows on Monday, June 3, suggests the US market and the Capital Shift that has been taking place over the past 24+ months is still rather strong with investor buying dips. We told our followers this bounce was about to happen the day before it bottomed here.

It seems that everyone is trying to pick a top or call the big crash right now.  Back in November 2018, it seemed like every professional trader we knew was advising their client “This is the BIG ONE” and suggesting the US markets could never recover from a deep sell-off like the one we experienced in late 2018.  Yet, here we are, after reaching near all-time highs again, rotating a bit lower and the same voices seem to be stating “This is the BIG ONE” again.

Allow us to help clear up what is likely to happen based on our research and proprietary modeling tools.

This first chart of the VIX (Volatility Index) shows what we believe to be the most likely outcome over the next 30+ days.  After a spike in the VIX in early may which our followers profited over 25% in a few days, we believe a downward pricing channel will set up where the VIX will continue to drift lower – eventually settling back below 14 again for another setup.  It is very likely that this volatility consolidation coincides with a US stock market price recovery over the same span of time.  We’ll get into more detail in the following charts.

Eventually, sometime in mid-July or mid-August, we expect the VIX to spike well above 20 to 22 as a broader US stock market price collapse takes place.

Throughout our expectations, we expect the US Dollar to enter a similar type of price pattern – setting up a Pennant formation after a moderately deep price correction nearing the $95 level.  We believe the US Dollar will continue to move lower, driving precious metals higher, where the $95 support level is the key target.  Once this level is reached, we believe the US Dollar will rotate higher and attempt a move above $97.50 again – possibly attempting new price highs.  These new highs are likely to happen in early to mid July 2019.

Our last chart highlights what we believe will happen in the Dow Jones Index (as a general market example of what will likely happen in the ES, NQ and YM).  As you can see, we believe the downside price swing that has currently taken price nearly -7.25% lower should be very close to completion.  We believe the $24,300 to $24,600 level will act as strong support for this move and prompt another upside price leg over the next 7 to 14 days.  We believe this upside price leg will push the DJI price level back towards the $26,000 level by late July or early August 2019.

We are suggesting that the early move into a protectionist stance by professional traders may be about to experience some extreme pressures.  Should the US/China trade issue or the Mexico trade issue lessen or be resolved over the next 60+ days, the US stock markets could rally towards new highs fairly quickly.  If things stay the same as they are now, we expect price to move exactly as we have highlighted on these charts.

Near the end of July or sometime in August 2019, we expect a bigger top formation to setup where a moderate price collapse may take place.  Everything must setup perfectly for this to happen and we still have 40 to 60+ days of trading before this setup gets closer.  Lots of things can happen over this span of time, so pay attention to our continued research to stay ahead of these moves.

One thing you can do to prepare for any future price volatility or rotation is to accumulate Gold and Silver positions near recent lows. If you like precious metals see my forecasting signals here  This increase in volatility means that precious metals should continue to push higher as fear becomes more rooted across the globe.

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.

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Chris Vermeulen