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US Equities Mount Impressive Early Recovery

October 16, 2018 Chris Vermeulen As fast as the downside breakout occurred, the upside recovery appears to be taking place as Q3 Earnings begin to hit the news wires.  This past weekend, the news cycles and market experts all seemed to have opinions about where the US equities market was headed after last week’s price collapse.  We’ve read everything from warnings of a $20 trillion dollar collapse to seeing Bloomberg’s SMART INDEX chart showing equity valuations are near historic market bottoms.  It seems everyone wanted to get out and share their opinions – I guess we are no different. The facts still remain the same, until the global market dynamics change and the US equities markets break the defined price channels that have been well established, we do not see any reason to consider a 6~8% correction life-threatening.  In the total scope of the price range, this move represents less … Continue reading

Keep A Proper Perspective About This Recent Move

October 14, 2018 There has been quite a bit of information and opinion in the news recently regarding the recent downside price action in the US Equities markets.  We’ve seen everything from “The sky is falling” to “The markets will rally into the end of the year”.  If you’ve been following our research and analysis, you already know what we believe will be the likely outcome and if not – keep reading. There are a number of key components of the global economy that are of interest currently; US Treasuries, Precious Metals, Emerging Markets, the European Union, Trade Issues and Capital Shifts. When one considers the scope of the entire global market environment in terms of these individual issues, a fairly clear picture of what is really happening begins to take shape.  Here is our summarized opinion of the current state of the global markets. Capital is shifting (again) as … Continue reading

Micron/China Holding Markets Back

July 5, 2018 Just before the July 4th holiday, the US equity markets were about to rally above a defined wedge formation that has been defining price range for the past 7+ days.  As the markets opened on July 3rd, prices had already started to rally and appeared to be ready to rocket higher by a decent amount.  Yet, by early morning, news that China had banned Micron chip sales in a patent case caused the markets to reverse quite steadily.  This news, as it relates to US chip manufacturers and a major part of the NASDAQ, creates a temporary speed bump in the perceived rally that we have been expecting for weeks. The Technology sector makes up a very large component of the US major indexes.  Other than the DOW, technology firms are spread across nearly every sector of the US major indexes and this case may have some reach to it.  … Continue reading

Gold & Miners To Rally s US Equities Fall On FEA

June 25, 2018 The US Equities markets rotated over 1.35% lower on Monday, June 25, after a very eventful weekend full of news and global political concerns.  Much of this fear results from unknowns resulting from Europe, Asia, China, Mexico and the US.  Currently, there are so many “contagion factors” at play, we don’t know how all of it will eventually play out in the long run. Europe is in the midst of a moderate political revolt regarding refugee/immigration issues/costs and political turmoil originating from the European Union leadership.  How they resolve these issues will likely be counter to the populist demands from the people of Europe. Asia is in the midst of a political and economic cycle rotation.  Malaysia has recently elected Prime Minister Dr. Mahathir Mohamad, the 92-year-old previous prime minister (1981~2003) as a populist revolt against the Najib Razak administration.  In the process, Mahathir has opened new … Continue reading

Oil Targeting $58 PPB Before Finding Support

June 13, 2018 With the G7 meeting concluding and the world about to start reacting to what was said and what was heard, it is time to take a look at the Crude charts with our Advanced Fibonacci price modeling system.   Our research team, at www.TheTechnicalTraders.com, believes Crude will continue to drift lower over the next few weeks testing the $60 ppb level before breaching this support level and ultimately targeting $58 or lower.  Lacking a real resolution to the trade and other global issues, we believe continue global economic pressures will drive oil prices dramatically lower over time – at least through the Summer months. This Monthly Crude Light chart shows our Advanced Fibonacci price modeling system at work.  As of right now, we see a recent price rotation top (highlighted by the RED DOWN TRIANGLE) near the right edge of price as well as the RED and GREEN … Continue reading

Gold and Silver Setting Up For A Sleeper Breakout

  June 11, 2018 As the world continues to see economic improvements, specifically within the US and major global markets, Gold and Silver are relegated to an after-thought by investors.   Why consider Gold or Silver when the NASDAQ or S&P leaders are rallying 2%+ per week? Well, the recent G7 meeting and President Trump’s meeting with Kim Jung Un in Singapore may spark a little interest in these shiny metals as they setup a “rope-a-dope breakout” for those not paying attention. One of the easiest components of Fibonacci price theory is the concept that “price must always attempt to establish new price highs or new price lows within price rotation – ALWAYS”.  For those of you that are familiar with our research, visit www.TheTechnicalTraders.com if you are not, you know that the lack of new price highs indicates a downward trend may have formed.  Conversely, a lack of new price lows indicated … Continue reading

Upside Dow Breakout May Be Just The Beginning

 

 

At this point, all we can say is “Wow – did you see that breakout?”.  If you have been following our analysis, you already know we’ve been predicting this upside price move for over 4 weeks with our specialized price modeling systems, cycle analysis models and other specialized trading tools.  Last weekend, we posted very detailed analysis of the Elliot Wave and Fibonacci price levels that suggest we could see another upside price move that no one is expecting.

Please take a minute to read our two recent Elliot Wave research posts before you continue reading this post.  We want to make sure you understand the components of this price setup and what we believe will be the most likely outcome.

The upside breakout in price on Monday actually originated with an upside gap Sunday night.  This upside gap was likely the result of a combination of factors, yet it supported our analysis that the US major markets are poised for a dramatic upside price move soon.  Our Elliot Wave analysis suggested we could be setting up for a Wave 3-d upside price move that will end with a corrective price move sometime in early/mid 2019.  In order to confirm this analysis, we have to see new all-time price highs established before the end of 2018 with a solid upside price rally in place.

While the YM (DOW) was the only US major to show a clear upside price breakout, we believe the other US major markets will follow along soon enough.  We have highlighted what we believe is a critical support zone on this YM chart to try to illustrate that price rotation is normal.  We expect to see a 1~2% price rotation throughout this upside move that is completely natural and healthy for the markets.

 

Again, this is completely natural as the YM (Dow Jones index) is tied to the DOW Industrials and the Transportation Index which are breaking out this week. A breakout move like this in the YM suggests that the overall US economy is strengthening and that the future expectations are good that increased levels of transportation of goods will unfold. In our next post we will go into detail on these two sectors and show you some new opportunities emerging.

Additionally, we wanted to show you this NQ chart that is waiting for breakout confirmation from price.  Sometimes, the US majors do not always move in unison.  There are times when the S&P or the Nasdaq will move with greater velocity while the other US majors appear to move in a more muted manner.

The NQ, being tech-heavy, relies more on earnings and revenues from the FANG group.  A move higher in the NQ would indicate that future earning and revenue expectations are strengthening.  This is something we believe will happen in the near future as we expect the NQ to follow the YM with an upside price breakout very soon.

We are still very early in this trading week and we have lots of time for this move to unfold.  We can help you find and execute better trades with our advanced market timing and trade setups for active traders.  Our members already know what our predictive modeling systems are suggesting for the next 5+ weeks.

Our 53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

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Fibonacci Price Ladder Points To Higher Prices

This first Daily ES chart shows a pretty big picture of the Fibonacci price legs (the Fibonacci price “ladder” as we will refer to it in this article) and how these legs work in tandem with other types of support and resistance channels/level as price expands or contracts within new trends.  As you probably remember, one of the key factors to understanding Fibonacci price theory is that “price MUST attempt to establish new highs or lows at all times”.  Therefore, as we can see by recent price action, new price highs have been reached.  This is a clear indication that a new bullish trend is in place and we should now be searching to key levels to enter new trades.

We know the massive support zone exists below 2620 in the ES and we know a critical price channel exists between 2625 & 2660.  We don’t believe price will retrace enough to threaten any of these levels.  We believe price may retrace to near 2700 before finding additional support and developing a new base for a “ladder move” higher (likely to near 2855).

 

To confirm this analysis lets take a look at the YM (DOW futures) Daily chart below as well.  The Daily YM chart, below, paints a fairly similar example as the ES (S&P500 futures) chart, above).  Yet, this YM chart shows that the recent high price is very close to the Fibonacci 100% price level (a “ladder rung”) and should find moderate resistance near this level (24993).  We expect price may rotate lower to near 24598 before finding support and establishing a quick, possibly V-shaped or large lower wick type price rotation, bottom that would propel price higher to the next Fibonacci ladder leg near 25937.

 

This, zoomed in view of the Daily YM price chart below with our Fibonacci price levels drawn, helps to better understand what we expect to see.  As we keep trying to instill into your thinking, “price MUST attempt to establish new price highs or lows as it continues to develop trends and trend reversals in Fibonacci Theory”.  Therefore, price MUST attempt to rotate lower after establishing a new price high (as it has done recently) only to FAIL to establish a new price low (which would be a move to below 23460 – a long way away).  In doing so, the failure to establish a new price low (through price rotation) would indicate that price MUST do what?  That’s right, establish another NEW PRICE HIGH.

It is our belief that any price rotation below 24700, when price appears to be holding or forming support, would be a tremendous opportunity to identify new long entries.  Of course, the deeper the downside move, the better the entry levels will be created, but we don’t believe this future downside price rotation will be very deep – possibly just below 24500 as the lowest points for the YM.

 

If you have been following our research and analysis, you know we called this move nearly a month ago and have been sticking to the analysis of our advanced modeling and predictive analysis systems.

We offer some of the most complete and informative research anywhere and we invite you to visit www.TheTechnicalTraders.com to learn how we can help you find and execute better trades.  Your subscriptions help us continue to deliver these incredibly valuable research reports and we urge you to consider how our work has helped you over the past few months.  If you feel our work is superior and valuable, then support our research team and start using our research. 2018 is proving to be a fantastic trading year and we urge everyone to join us in creating greater success.

Our articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.

Chris Vermeulen

New Articles from Chris Vermeulen – The Technical Traders


Hello Investors,

I am happy to now be sharing some great investment content with you from
our friend Chris Vermeulen at TheTechnicalTraders.com.

US Indexes Setup Bottom Confirmation Pattern

Congestion Basing Can Present Incredible Opportunities

Enjoy the read,

Dudley Pierce Baker
Founder – Editor
http://JuniorMiningNews.com
http://CommonStockWarrants.com

Congestion Basing Can Present Incredible Opportunities

  May 12, 2018 Chris Vermeulen     Our research team wanted to alert our followers to the incredible opportunities that continue to present themselves in the current market.  While many people have been overly concerned about a market top and price rotation in the US majors, the Energy sector and many others have seen incredible price moves. Take a look at this XLE chart as an example.  Yes, we know that Oil has rallied from about $60 to closer to $70 recently, yet we want you to focus on the price pattern that setup this move in XLE.  Specifically, we want you to focus on the Multi-Month Base pattern in price between early February and early April of 2018 as well as the upside breakout that followed. In true technical analysis theory, price tells us everything and indicators assist us in relating current price movement/action to historical price movement/action.  … Continue reading