By Cory
Metals Blastoff About To Happen
This post is courtesy of our friend Chris Vermeulen. The focus is on metals and he has a very positive outlook for all those bulls out there. Pay attention to the time frame however because we might remain in a slow market for a little longer.
Click here to visit the original posting site.
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If you’ve followed our analysis long enough, you’ll understand that we have been bullish yet cautious of this market move. Our research team at ActiveTradingPartners.com has been warning our members of the potential for a volatile and possibly viscous retracement in the US majors for weeks. We understand that capital, as a source that requires ROI and degrees of certainty, is moving into US equities at an incredible pace and that the last 8+ months fantastic moves in the US markets are related to expectations of greater economic activities related to President Trump and new policies. Yet, we also understand that the markets just don’t up straight up forever and that capital, once risk is evident, will find other sources of ROI should the globe or the US become more volatile. Hence, our position that “Risk” is relatively high at the moment for any unexpected retracements.
Our research team has been focused on primarily four components of the market with regards to factoring in Risk. Before we get into what these four components are and why we are paying close attention to them, lets take a few minutes to understand the “setup” and what we believe will be the result.
The “Setup” is that bullish trending should likely continue in the US Majors until something dramatic and unexpected derails this move. Volatile retracements in the range of 2~4% should not be unexpected. Any move like we’ve seen over the past 8 months where price enters a nearly parabolic uptrend should restore some normalcy with moderate price retracements. This is the nature of price – it rotates attempting to identify key support and resistance levels. Global capital is rushing into the US markets as other markets languish and the new Trump presidency offers a glimmering opportunity for capital to gain ROI within the US. This is why, we believe, the US markets have moved so strongly over the past 8+ months.
Now that we understand the “Setup”, lets review the current market environment. Given the recent news of political turmoil in DC and the foreign news of a faster Brexit, China’s potential slowing and variances in global economies that were not expected, we have been paying attention to those four key components trying to identify early signs of weakness or rotation to alert our members. What are they?
_Metals
_Transportation
_Healthcare
_Technology
Why these components? We’ve selected these components because they translate to core components of the US and global economies as well as key indicators of consumer spending and consumption. The Metals and Transportation sectors show us how fear and greed are playing out in the markets (wheras Transportation typically leads the markets by 2~4 …read more
Source:: The Korelin Economics Report
The post Chris Vermeulen – The Gold and Oil Guy – Mon 6 Nov, 2017 appeared first on Junior Mining Analyst.