{"id":1089281,"date":"2018-10-15T14:50:33","date_gmt":"2018-10-15T14:50:33","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=1089281"},"modified":"2018-10-15T14:50:33","modified_gmt":"2018-10-15T14:50:33","slug":"keep-a-proper-perspective-about-this-recent-move","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1089281","title":{"rendered":"Keep A Proper Perspective About This Recent Move"},"content":{"rendered":"
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October 14, 2018<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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.\u00a0 We\u2019ve seen everything from \u201cThe sky is falling\u201d to \u201cThe markets will rally into the end of the year\u201d.\u00a0 If you\u2019ve been following our research and analysis, you already know what we believe will be the likely outcome and if not \u2013 keep reading.<\/p>\n

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.<\/p>\n

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.\u00a0 Here is our summarized opinion of the current state of the global markets.<\/p>\n

Capital is shifting (again) as the US Technology and high return sectors come under pressure.\u00a0 What happens, typically, in this type of environment is that capital moves away from risk (into cash or other suitable investments) as these sectors continue to weaken.\u00a0 Capital will return to these sectors once the risk factor diminishes or abates.\u00a0 Once the S&P fell below the 2915 level, a number of Sell Programs generated extensive downside pressure on the markets \u2013 in a way, creating a \u201cwash-out low\u201d price rotation fairly early in this move.\u00a0 Investors and capital will return into these sectors over time as they find support and wash out the extended volatility that is currently at play in the markets.<\/p>\n

This capital shift is not unique to just the US markets though, there are other factors involved as well.\u00a0 News that Asian investors have been pulling out of the US Real Estate markets at a record pace, as well as the US Fed actions raising rates recently, has put additional pressure on the valuation\/pricing levels in the US equities market.\u00a0 This is likely the reason why Gold and Silver rocketed higher last week.\u00a0 This pricing pressure, even though it was known prior to this downside price move, was not much of a concern for investors because the US stock market indexes didn\u2019t show worry or concern for this issue.\u00a0 There was no real issue with downside pricing concerns.\u00a0 Once the S&P broke that 2915 level and the sell programs kicked in, this became a real issue for many.<\/p>\n

Yet, the longer-term perspective of this market has not changed much since early 2016.\u00a0 Take a look at this chart that highlights the pricing channels established in the S&P of the past 20 years.\u00a0 Each of these paired price channels originates at a low price point and reflect price range, slope and volatility as the progress further to the right.\u00a0 Notice how the original (GREEN) and most recent low-price range (GOLD) reflect a broader price range where volatility was higher and the slope is slightly lower than the shorter-term price channels.\u00a0 These reflect broader price support channels and help us to understand the core slope levels of price advance.<\/p>\n

The shorter-term price channels (YELLOW, MAGENTA, BLUE & ORANGE) illustrate the \u201cimpulse channels\u201d that are a result of localized or consensus advances.\u00a0 In other words, these types of advances are the result of some impetus event like Quantitative Easing, policy changes, US Election results or any combination of social & economic improvement factors.\u00a0 Price is always attempting to rotate as it attempts to establish new highs and lows.<\/p>\n

\"\"<\/p>\n

We try to stress one key Fibonacci Price Theory component to all of our followers:<\/p>\n

\u201cPrice MUST always attempt to seek out and establish new price highs or new price lows\u201d<\/p>\n

This one premise of Fibonacci Price Theory is so important to understand in the greater context of price movement.\u00a0 On a Daily chart, the recent downward price swing may look frightening, but on this Monthly chart, it falls right in line with the ORANGE price channels (which happen to be the most recent and most aggressively upward sloping price channels over the past 20+ years).\u00a0 Additionally, the price has advanced above the Upper GOLD price channel range and back into the BLUE price channel range in late 2017 and early 2018.\u00a0 At this point, price appears to be accelerating quite well and these new support levels (BLUE, ORANGE, and GOLD) are critical to understanding the basics of Fibonacci Price Theory.<\/p>\n

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So, as you listen to the talking heads on TV and in the news cycles, please understand that true price theory teaches us that \u201cuntil price breaks recent critical lower or higher price levels, the market price will always attempt to rotate in an effort to seek out and establish new price highs or new price lows\u201d.<\/p>\n

This rotation is very healthy for the markets, overall, and this price rotation may, eventually, prove to be a retest of price support before a further advance.\u00a0 Our research team believes the low established near 2712 will likely continue to operate as critical price support as this price rotation continues to extend.\u00a0 Our research team also believe a new price advance phase will become established shortly after November 8~12.\u00a0 Our predictive modeling systems suggest a new price upswing will begin to take place after these November dates.<\/p>\n

We urge all of our followers to visit our website,\u00a0www.TheTechnicalTraders.com<\/u><\/strong><\/a>, to learn how our dedicated team of researchers and technical traders can assist you in finding and executing better trades, stay ahead of these markets move and properly prepare for the opportunities created by these swings in price.\u00a0 Additionally, take a minute to review some of our past research posts,\u00a0www.TheTechnicalTraders.com\/FreeMarketResearch\/<\/a><\/u><\/strong>, to see how we predicted this downside price rotation over 3 weeks before it happened.\u00a0 It pays to have a dedicated team helping you understand and profit from these market price swings.<\/p>\n","protected":false},"excerpt":{"rendered":"

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.\u00a0 We\u2019ve seen everything from \u201cThe sky is falling\u201d to \u201cThe markets will rally into the end of the year\u201d.\u00a0 If you\u2019ve been following our research and analysis, […]<\/p>\n","protected":false},"author":1,"featured_media":689341,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4,373],"tags":[375,138,137,135,338,374],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089281"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1089281"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089281\/revisions"}],"predecessor-version":[{"id":1089283,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089281\/revisions\/1089283"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/media\/689341"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1089281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1089281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1089281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}