April 16, 2019
May 1, 2019
Investors don't forget the great opportunities available with stock warrants:
Chris Vermeulen, Founder of The Technical Traders joins me to take a look at the overall makeup of money in the markets. With a couple of the major averages hitting all time highs recently the run looks to be getting a little tired. Chris thinks we could see a general rotation of money into the risk-off sectors for investors looking for depressed areas. Pay close attention to the time frame Chris outlines though.
April 22, 2019
Investors don't forget the great opportunities available with stock warrants:
A very interesting price pattern is setting up in the financial sector that could lead to a very big move in the US & Global markets. Remember how in 2008-09, the Financial sector and Insurance sector were some of the biggest hit stock sectors to prompt a global market crisis? Well, the next few weeks and months for the financial sector are setting up to be critical for our future expectations of the US stock market and global economy.
Right now, many of the financial sector stocks are poised near an upper price channel that must be breached/broken before any further upside http:/price advance can take place. The current trend has been bullish as prices have rallied off the December 2018 lows. Yet, we are acutely aware of the bigger price channels that could become critical to our future decision making. If there is any price weakness near these upper price channel levels and any downside price rotation, the downside potential for the price is massive and could lead to bigger concerns.
Let’s start off by taking a look at these Monthly charts…
This first Monthly Bank Of America chart is best at showing the price channel (in YELLOW) as well as a key Fibonacci price level (highlighted by the MAGENTA line). We’ve also highlighted a price zone with a green shaded box that we believe is key support/resistance for the current price trend.
As you can see from this chart, since early February 2018, the overall trend has shifted into a sideways bearish trend. The price recovery from December 2018 was impressive, yes, but it is still rotating within this sideways/bearish price channel. Our belief is that this YELLOW upper price channel level MUST be broken in order for the price to continue higher at this point. Any failure to accomplish this will result in a price reversal that could precipitate a 30% price decline in the value of BAC. In other words, “it is do-or-die time – again”.
This Monthly JPM chart shows a similar pattern, yet the price channel is a bit more narrow visually. We have almost the same setup in JPM as we do in BAC. The same channels, the same type of Fibonacci price support level, the same type of sideways price support zone (the shaded box) and the same overall setup. As traders, we have to watch for these types of setup and be aware of the risks that could unfold with a collapse of the financial sector over the next few weeks.
We believe the next few weeks could be critical for the financial sector and for the overall markets. If weakness hits the financial sector as global growth continues to stagnate we could enter a period where the global perception of the future 12~24 months may change. Right now, perception has been relatively optimistic in the global stock markets. Most traders have been optimistic that the markets will recover and a US/China trade deal will get settled. The biggest concern has been the EU and the growth of the European countries.
What if that suddenly changed?
We are not saying it will or that we know anything special about this setup. We are just suggesting that the Monthly charts, above, are suggesting that price will either break above this upper price channel or fail to break this level and move lower. We are suggesting that, as skilled traders, we need to be acutely aware of the risks within the financial sector right now and prepare for either outcome.
This last chart, a Weekly FAS chart, shows a more detailed view of this same price rotation and sideways expanding wedge/channel formation. Pay very close attention to the shaded support channel shown with the GREEN BOX on this chart. Any price rotation within this level should be considered “within a support channel” and not a real risk initially. We want to see price break above the upper price channel fairly quickly, within the next 2 to 5+ weeks, and we can to see it establish a new high (above $78 on this chart) to confirm a new bullish price trend. Once this happens, we’ll be watching for further price rotation and setups. If it fails to happen, then the RED DOWN ARROW is the most likely outcome given the current price setup.
Any downside price move in the Financial sector would have to be associated with some decreased future expectations by investors. Thus, our bigger concern is that something is lurking just below the surface right now that could pull the floor out from under this sector. Is it a surprise Fed rate increase? Is it some news from the EU? Is it a sudden increase in credit defaults? What is the “other shoe” – so to say.
Be prepared. If all goes well, then we’ll know within a few more weeks if the upside price rally will continue or if we need to start digging for clues as to why the support for the financial sector is eroding. This really is a “do or die” setup in the financial sector and we urge all traders to pay very close attention to this sector going forward. We believe it will be the leading sector for any major price weakness across the global markets.
Do you want to find a team of dedicated researchers and traders that can help you find and execute better trades in 2019 and beyond? Please visit www.TheTechnicalTraders.com to learn how we can help you prepare for the big moves in the global markets and find better opportunities for greater success in the future. Our team of researchers and traders continue to scan the markets for new trades and incredible research for all our members and followers.
Chris Vermeulen, Founder of The Technical Traders has been relatively bearish on gold over the past couple months. Now that we have this down move in gold and gold stocks he weighs in on how low the metal could go and how long the downtrend could last.
Our researchers, at Technical Traders Ltd., believe this current upside price move is nearing the end of any immediate upside potential. Yes, back in December 2018 and before, we called for an “Ultimate Low” pattern setup followed by an incredible run to new all-time highs when almost everyone else was calling for a continued downside price move. Now, that the YM/DOW is only 640 points away from reaching all-time highs again, we believe a new price peak will setup sometime near June/July 2019.
Our researchers believe the continued upside price bias will stay in place for at least another 30 days and that the YM.DOW will establish new higher all-time highs in late April or early May 2019. We believe once a “scouting party” type price move completes above the all-time highs near $27,000, a sideways price rotation will begin that may last as long as 25 to 55 days. Our predictive modeling systems are suggesting that June/July are important months for the global equities/stock markets and we believe we’ll know more about the setups that will prompt bigger moves as we get closer to these dates.
Right now, our researchers are suggesting the upside move in the YM/DOW is likely to push higher by +2.5 to +3% or slightly more. Once the $27,000 level is breached to the upside, traders should begin to become much more cautious of price rotation and volatility. As we head into June/July/August 2019, be prepared for a spike in volatility/VIX as price rotation is likely to become much more aggressive.
Read our most recent research to learn more about what we believe will happen over the next few months. Get ready for some bigger price swings and prepare for the last bit of upside price trending before a price peak sets up near June/July. Ultimately, we believe there is an opportunity for skilled traders that can see and create opportunity from these moves. We’ve been warning that 2019 is going to be an incredible year for skilled traders – our call near the end of 2018 that this move higher would target new all-time highs is proof of the opportunity that exists if you pay attention to our research. Do you know of any other firm that called this move as accurately as we did?
On September 17, 2018 our Predictive Trading Model Suggests Falling Stock Prices During US Elections.
Please visit www.TheTechnicalTraders.com to learn more about how we help our members learn to find and execute incredible trading opportunities. We’ve recently launched a new technology solution for our members that delivers our incredible research and trading solutions. 2019 is going to continue to be an incredible year for skilled traders – you won’t want to miss these big moves that are setting up.