Financial Reset In 2024: ‘Everything Will Sell Off’ Except This

Here is the December installment of Chris and David talking all things stock market on The David Lin Report!

Also, stay tuned to learn more about an exciting project that Chris is working on that involves climate science and how this information can be shared via entertainment learning.

Watch The Free Interview Here

Key Questions Asked:

1. The S&P 500 looks like it may end 2023 at a year to date high. Do you think a Santa Claus rally will continue to push the S&P 500 higher?
2. As a chartist, how do you trade with regard to seasonality?
3. Why are whole number prices important to trading?
4. Was there anything surprising over the past year?
5. Is the Russell 2000 heading toward a double top along with the S&P 500?
6. Is hedging a good idea when there is conflicting data concerning short and long-term views/projections/opinions?
7. What is the difference between small and large-cap stocks?
8. If someone handed you a billion dollars, interest-free, and due back in five years, would you take it?
9. How has gold been moving within the trading day and what does this indicate for future direction? Why are miners and silver struggling to break out to the upside? Is silver overdue for a rocketship-style move?
10. Will oil recover from the highs earlier in the year?
11. What are the technicals of the US dollar showing may happen? Will it rip higher and head toward the highs of 2000? What would this mean for precious metals?
12. What are your least and favourite assets for 2024?
13. What is Asset Revesting?
14. Tell us about the Goldilocks Mission you are working on!

Watch The Free Interview Here

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Understanding Market Dynamics To Identify Changing Trends

Chris sits down with Craig Hemke of Sprott Money to talk about where the markets may be going. Topics and questions we cover include the following:

• What are the best assets to be in as we move into September and the coming Fall season? 
• If Crude and Gold are holding their value, what does this indicate may happen to the overall markets next?
• What does it mean if Copper continues to decline?
• As yields go higher, is there potential for Bonds (TLT) to test new lows?
• Should investors who have the buy and hold strategy being deployed in their portfolios begin to consider a different strategy?
• What will turn a fear of missing out (FOMO) into outright fear in the market?
• Looking at the Gold chart, what levels should we be watching now for support and resistance?

          Watch Todays Free Video Here

How Should Investors Prepare For A Market Correction Or Bear Market?

Chris and Tom, of Palisades Gold Radio, cover a range of topics through the lens of technical analysis. They delve into the following questions:

• Where is capital flowing to in the current market environment? What are the stages of the market and where are we right now? Why is the 150-day moving average important for gauging what stage the markets are in?

• Comparing the S&P 500 to precious metals or miners, when will money flow toward the latter? How are the stock market and miners correlated? What do the topping candles on the monthly Gold chart indicate?

• Can the US dollar and Gold go up together or will they work against each other? Is Gold the ultimate safe play for global investors?

• What is the outlook for oil and how does its current position compare to 2007? What is the importance of established support levels and price action?

• AI stocks seem to be holding the market up right now. What happens when these begin to falter?

• How important is it for investors to be prepared for when the markets begin to roll over? What are the dangers of ignoring this eventuality? And what does a drawdown actually mean for an investor? What are the dangers of the Buy-and-Hold, diversification, and dividend-paying strategies?

• How do you pull money out of the stock market with your strategies? Is frequent trading better than having fewer trades? What is an Asset Revestor? What indicators, trend analysis, risk, and position management tools are used to protect capital and grow your accounts?

        Watch Chris' Interview Here

Why Gold And Oil Falling In Value Are A Bad Sign For 2023

In the past two weeks, stocks have struggled to break through resistance and extend the holiday rally. I wrote about it in the post Stock Indexes Rejected At Resistance Signal Another Correction. But what is a more bearish sign is seeing commodity prices starting to fall. There are a couple of reasons this is a warning signal for traders and investors, and I will show you exactly what they are....Continue Reading Here.

Crude Oil Prices - Will They Hold Above Key Support Level Or Begin To Unwind?

Talk of a global recession may prompt a broad decline in crude oil prices as the excesses of the past 10+ years unwind. This unwinding process pushed to the forefront for traders and investors has been prompted by a massive inflationary expansion after the COVID-19 lock downs. How will it play out in the short term and long term?

We believe crude oil will contract as the initial reduction in demand associated with high priced gasoline and oil products and the threat of a global recession recede. This decline in crude oil prices is complicated as China/Asia economic and COVID crisis events continue to disrupt consumer discretionary income and asset valuation levels.....Continue Reading Here.

Crude Oil Breaks Downward – Rejecting The $120 Price Level

The recent downward Crude Oil trend may have caught many traders by surprise. Just before the US Fed raised interest rates on June 15, 2022, Crude oil was trading above $120ppb. Less than 5 days later, it collapsed -12% and has continued to trend lower. Currently, Crude Oil is near -17% lower than recent highs.

It appears Crude Oil has confirmed resistance near $120 and is devaluing as consumers pull away from traditional driving/spending habits while the Fed aggressively attempts to burst the inflation bubble. This type of contraction in Crude Oil is very similar to what happened in 2008-09 when the Global Financial Crisis (GFC) hit – Crude Oil collapsed more than -70% after IYC started trending lower in 2007....Continue Reading Here

Trading Crude Oil With USO

Crude oil, like most commodities, is not priced as a single data point like a stock. Instead, commodities, like oil, trade via futures contracts. A futures contract is an agreement to buy or sell a particular commodity or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quantity and quality specifications to facilitate trading on a futures exchange....Continue Reading Here.

Utilities Rising & Transporters Sinking - Sector Rotation Is Providing Clues

Historically, investors gravitate toward more defensive and commodity focused sectors, such as precious metals, energy, commodities, and utilities, in late cycle bull markets. Recently, the stock market is beginning to show us signs that the bull market may be coming to an end. 

Commodities such as energy, grains, and precious metals have all experienced nice rallies. Price action also confirms money flow coming out of transports and into utilities....Continue Reading Here.

Stocks Fall as Gold and Oil Jumps Amid Tension Over Ukraine - FED

The FED has made it very clear that it will raise its benchmark interest rate, the federal funds rate. This could have severe consequences and even lead to a financial crisis. They are too far behind the curve and will be labeled a major policy error in the future, most likely. They have put themselves in a situation where they are now their own hostage. They need more leadership to describe what a soft landing is going to look like. They have been too slow to act, and now they are going too fast. The “Powell Put” has now been put out to pasture.

We believe that the FED will make more rate hikes than they have announced. Goldman Sachs thinks there will be four 25-basis-point increases in the federal funds rate in 2022. Jamie Dimon, CEO of JPMorgan Chase, said, “he wouldn’t be surprised if there were even more interest rate hikes than that in 2022. There’s a pretty good chance there will be more than four. There could be six or seven. I grew up in a world where Paul Volcker raised his rates 200 basis points on a Saturday night.”

Mr. James Bullard of the St. Louis FED spoke out in an arrogant tone that aggressive action is now required. The markets translated this to mean that the FED was going to call an emergency meeting as soon as this coming week to hike interest rates by no less than 50 basis points. This sent interest rates soaring and stock prices plummeting.....Read More Here. 

Technology & Energy Sectors Are Hot – Are You Missing Out?

One of the biggest movers over the past few months has been the recovery of the Oil/Gas/Energy sector after quite a bit of sideways/lower price trending. You can see from this XOP chart, below, a 44% upside price rally has taken place since early November, and XOP has recently rotated moderately downward – setting up another potential trade setup if this rally continues. Traders know, the trend if your friend. Another upside price swing in the XOP, above $72, would suggest this rally mode is continuing.

Recently, we published a research article suggesting a lower U.S. Dollar would prompt major sector rotations in the US and global markets where we highlighted the fact that the Materials, Industrials, Technology, and Discretionary sectors had been the hottest sectors of the past 180 days, but the Energy, Financials, Materials, and Industrials had shown the best strength over the past 90 days....Read More Here.

Crude Oil Stalls in Resistance Zone

Clear Price Channel May Prompt Big Breakout or Breakdown Move in Oil

In this report, we discuss the recent price action in crude oil and how economic conditions and the pennant flag chart pattern is indicating a big price move is about to take place over the next few weeks. While some of you may want a clear, bold prediction as to whether a breakout or breakdown may happen, as technical traders, our job is to predict different possible setups and identify the criteria that will tell us when to enter the trade upon confirmation.

Crude Oil has continued to retest the $41.75 to $42.00 resistance level over the past 30+ days. My research team believes this represents a very clear indication that further failure to advance above this level will prompt a moderate price decline – likely breaking below the $36.00 ppb price level.

We believe the completed Pennant/Flag Apex, highlighted in Light Green on the Crude Oil Futures chart below, represents a technical pattern suggesting a new price trend is pending. The recent sideways price action, highlighted by the Gold Rectangle on this chart, shows the range of price recently that is currently presenting a very clear support level (near $36) and a very clear resistance level (near $42)....Continue Reading Here.

Crude Oil Breaks Lower - Sparking Fears of Another Sub $30 Price Collapse

Research Highlights....

* Breakdown in Crude Oil sparks talk of sub $30 price 

   targets. 

* Initial support likely near $32 to $33. 

* Predictive Modeling suggests deeper price lows may be 

   reached before November 2020.

Have you been paying attention to Crude Oil recently? Prices have collapsed over -15% from the recent highs near $43.78. You may remember a research article I posted originally in July 2019 suggesting a big breakdown in Crude Oil was going to take place in early 2020 and extreme volatility was likely between February 2020 and April 2020. Our researchers predicted the following within that research article:

“If our ADL predictive modeling is correct, we will see rotation between $47 and $64 over the next 3+ months before a breakdown in price hits in November 2019. This will be followed by two fairly narrow price range months (December 2019 and January 2020) where oil prices will tighten near $45 to $50. After that tightening, we believe an extremely volatile price move will happen in February through April 2020 that could see oil prices trade as low as $22 and as high as $51 over a two to three-month span.”

Then, in early March 2020, we published this follow up article on our Crude Oil predictions. Within that article, we updated our analysis to include the following statement:

“If our research is correct, Crude oil may find a bottom somewhere near $17 to $24, the potential rally back up to somewhere above $37 - 41 ppb before staging another massive selloff. The massive volatility suggested by the ADL system also suggests a broad price range over the next 60+ days.”....Continue Reading Here.

Energy Sets Up Near Major Resistance - Breakdown Pending

Our research team believes Crude Oil and Energy, in general, has stalled near major resistance and maybe setting up a big downside move as the COVID-19 virus continues to roil regional and global economies.

The recent news that the COVID-19 virus cases have skyrocketed suggests further economic shutdowns may push oil prices below $35 ppb over the next few weeks and months. Our researchers believe Oil has already set up a resistance level near $42 and will begin to move lower as concerns about the economic recovery transition through expectations related to oil demand going forward. We believe the renewed global economic demand for oil will present a very real possibility that oil could collapse below $35 ppb over the next 30 days.

We believe this pending downside move in Crude Oil will set up a great trade opportunity in ERY, the Direxion Bear Energy 2x ETF. At this point in time, we are just waiting for the technical confirmation of this trade trigger. Once we receive confirmation from our price modeling systems, we believe ERY may rally 20% to 30% or more from current levels....Continue Reading Here.

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Retail Traders & Investors Squeezed to Buy High Risk Assets Again

Yes, we certainly live in interesting times. This, the last segment of our multi-part article on the current Q2 and Q3 2020 US and global economic expectations, as well as current data points, referencing very real ongoing concerns, we urge you to continue using common sense to help protect your assets and families from what we believe will be a very volatile end to 2020. If you missed the first two segments of this research article, please take a moment to review them before continuing.

On May 24th, 2020, we published this research article related to our super cycle research. It is critical that you understand what is really happening in the world as we move through these major 21 to 85+ year super-cycles and apply that knowledge to the data we have presented in the first two segments of this research post. Within that article, we quoted Ray Dalio from a recent article published related to his cycle research.

That rather chilling statement suggests one thing that we all need to be aware of at this time: what the current and future economic cycles will likely present and how the world will navigate through this process of a cycle transition....Continue Reading Here

How You Can Prepare for a Bear Market/Economic Reset

Virus cases are starting to show up in other countries with Brazil spiking this week and China warning the virus is mutating quickly and in a very bad way.

We are expecting terrible retail sales for another quarter, they are currently worse than 1992, and manufacturing numbers will be horrible again as well. More negatives are starting to show up again for stock prices and investors hence the recent correction.

It does not matter what the markets do going forward. A new bull market or bear market won't catch us off gauge as technical traders. Why? Because we follow price, not predict and bet on predictions. If you want to learn how follow the markets to trade and invest with a simple step by step strategy we provide that here in this 30 page guide and show you what charts and indicators to follow.

Don't get me wrong, I would actually prefer a bear market because so much more money can be made in a short period of time, plus we would have the opportunity to re-invest our money into companies with high growth potential and dividends for pennies on the dollar.

We had a big reversal candle on the weekly chart after the stock indexes hit both price and Fibonacci resistance, and the Fed trimmed back on market stimulus last week. This is a Fed induced rally, which, if you ask me, is a dead cat bounce before things get really ugly once this bounce fizzles out.

My research team issues a major "Black Swan" warning on February 21, 2020 – just four days before the start of the current market collapse. Now, we are issuing a "bottom" call near a specific date in the future. This means incredible opportunities for skilled technical traders/investors that know how to trade in this increased volatility.

When is the bottom supposed to happen, and where will it be priced? Those answers are only available to my members as it is specialized proprietary research. Still, even if you know when and where the bottom would likely be in the markets – what would you do differently today to attempt to profit from this incredible setup?

• We called the gold bull market for nearly six months in advance last year.
• We called for $17 Crude oil four months ago.
• Recent 35% rally call, and what is next for the SP500 near term

I've been trading the markets since 1997, and I've never seen anything like what is happening right now. Sure, I've seen numerous market events where risks appeared to be excessive, and there were incredible opportunities for traders using our market research and trade signals – but nothing compares to what is happening right now.

My research team has poured through months of data and run our advanced predictive modeling systems. We've mapped out various cycle events 200+ years into the future and can identify price/trend events based on our proprietary research tools. The alignment of major super cycles, minor cycles, global economic credit expansion, and the COVID-19 virus event, has created a once in a lifetime opportunity for all skilled traders and investors. I'm simply amazed that some of the best analysts on the planet continue to miss these big setups.

The bottom will happen, and we believe we've pinpointed a date range and price for the bottom in the global markets. After that, there is a specific process that the global markets will begin that will set up a once in a lifetime opportunity for skilled traders and investors. Trust us, very few people are prepared for these super cycle events or the associated price trends that are about to unfold.

Right now is when you want to start preparing for these events and these super cycles. This is truly a once in a lifetime event if you understand what is really happening to the global markets. The opportunities for you and your family are incredible – if you know how to play these cycle events. If you don't, then you will likely experience extreme difficulty in navigating the next 15+ years successfully.

Please visit The Technical Investor to learn more about our us and our investing portfolio newsletter. We are attempting to help you create massive opportunities from these major cycle/economic events and to help you preserve and protect your wealth.

Protect and Grow Your Wealth Made Simple - Click Here

Chris Vermeulen
Chief Market Strategist
The Technical Traders

Our MarketClub Members Bailed Before Crude Oil Went Negative

If the world wasn't strange enough right now, the crude oil market just took it up a notch. On Monday, April 20, 2020, the May contract for WTI Crude Oil fell to negative $37/barrel, bizarre territory after a record breaking price drop.

Futures traders are rightfully concerned about decreased demand, overproduction, and limited storage space. MarketClub members were thankfully sitting on the sidelines (or were riding the move down) after getting an exit signal for this liquid energy fund.

See The Signal Here

What’s the Next Move for USO?

MarketClub members have the Chart Analysis Score at their fingertips. If and when the USO trend reverses, members will see the score increase and will receive Trade Triangle signals as the ETF establishes new short term, intermediate, and long-term bullish trends.

Want the score and signals for USO or any other energy stock or ETF?

Join MarketClub now and get immediate access!

We Adjusted Our Retirement Account Positions with This Major Signal Issued - Did You Get The Signal?

Our trading partner Chris Vermeulen, who are readers have followed for a while now, is loving what is happening in the markets for the last three weeks. He wants a big bounce here because it is going to set us up with a huge long-term investment position once price confirms this next entry signal.

Last week Chris issued a trade alert to members of his long-term investing newsletter. This allows you to protect your wealth and assets while continuing to take advantage of opportunities generated by the U.S and global markets over the next several months and possibly into next year. This is the first trade alert issued in 2020 of this kind, and he may have another very soon, but it's not too late to take advantage of the first signal.

If you are a trader or investor, with a retirement account of any type, or have assets in the stock market, then you need to take action and sign up to get these important investment trade signals.

We all have trading accounts, and while our trading accounts are important, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes.

If they are not protected during a time like this, you could lose another 25-50% or more of your entire net worth. The good news is we can preserve and even grow out long term capital when things get ugly like they are now and Chris shows us how.

Check It Out Here

Sincerely,

Chris Vermeulen
Founder of The Technical Traders

Three Charts Every Trader and Investor Must See

Understanding the stock market and its potential through the use of technical analysis and historical price events has been proven repeatedly to outperform all forms of fundamental trading styles. The following is a story that walks you through my experience, the shift in my mindset and how I came to the conclusion that the three charts I share in this article are critical to your understanding of to make money in today’s market!

When I first learned to trade, I got all caught up with researching companies and finding the ones with the best earnings and future growth. I did that for several years after studying and following many “professional traders” who said it was the best way to trade and invest long term. We lost our shirts during the 2000 bear market by continuing to trade on fundamentals as stocks fell in value week after week. Even the companies that showed quarterly earnings growth fell in value – none of it seemed to make any sense to me, and it was very frustrating.

Losing money when buying the best companies made no logical sense, making me step back from the markets and ask myself, ‘what am I doing wrong here‘. People today are asking themselves the same question given today’s dizzying markets:

· Telsa shares fell from $971 a share down to $347, whopping 63% drop, in only a few weeks and then rebounded again too xx

· Netflix is down 30%, even though people are stuck at home desperately trying to find things to watch)

· Amazon has fallen 26% in the past couple of weeks despite soaring demand for their delivery services

· GDXJ, the gold miners sector that is typically a safe haven during times of volatility, crashed 57% even though gold is usually a safe haven during times of volatility.

So, what was I doing wrong? I started calling and visiting traders who were making money during the bear market to see what they were doing, and 100% of them were doing the same thing – Trading with Technical Analysis. I wasn’t doing anything wrong, per se. I was simply using the wrong tools and analysis for success!

What is Technical Analysis? In short, it’s the study of price, time, and volatility of any asset using price charts and indicators. Traders use technical analysis to find cycles and patterns in the market and trade on the analysis of preferred indicators as opposed to the fundamentals of a company and/or the economy in general.

When you start studying technical traders, you will notice every trader has a particular time frame, a preferred set of indicators, and trading frequency that fits their unique personality and lifestyle. Their brains can see the charts in ways you and I may not see them to predict future price direction over the next few hours, days, weeks, or months ahead. I quickly learned there are infinite ways to trade using technical analysis.

I was very surprised by how much these pro traders allowed me. While standing over their shoulders, I was looking at their charts to try to divine their high-level strategies and learn how they think, analyze, and trade. It was amazing how different each of them traded the market. Some traded currencies; others traded stocks, indexes, options, futures, etc. Most were day traders, swing traders, or a mix of the two. But none of them gave me their secret sauce. That is why I turned 100% of my focus to technical analysis. I was excited at the prospect of being able to profit from both rising and falling prices and no concern for anything other than price action reduced my research time dramatically. It was and is the biggest AH-HA moment of my life and a turning point for my career as a trader.

The year was 2001, when I made the shift to technical analysis. I unsubscribed from everything fundamental based. I canceled my CNBC, stopped listening to news, and stopped reading other people’s reports altogether. My goal was to create my own technical trading strategy that best suited my personality and lifestyle. I would have to discover the securities I was most comfortable trading, the frequency I would trade, and the type and amount of risk I was prepared to take.

I traded options, covered-calls, currencies, stocks, ETFs, and futures. From day trading to position trading (holding several months), I tried it all, hoping something would click for me to pursue at a much deeper level. Day trading, momentum, and swing trading were my sweet spots. Having three of them was a bonus as I know some traders only ever master one in their lifetime if they are lucky. I grew a liking for trading the major indexes like the DJIA, S&P 500, and Nasdaq… great liquidity with big money always at play.

Along my journey, I realized that if I could predict the overall market trend direction for the day or week, then I could day trade small cap stocks in the same direction as the index, knowing 80+% of the stocks follow the general stock market trend. I could generate much larger gains in a very short period of time. As time went on, I became comfortable predicting, trading, and profiting from the indexes, and my new trading strategy began to emerge.

I was fortunate enough to start learning about the markets and trading in college with a $2,000 E-Trade account, and then retiring (kinda) in 2009 at the age of 28. I built my dream home on the water, bought cars and boats, and spent time traveling with my growing family. I love trading and sharing my analysis with others – it is better than I had ever imagined and why I continue to help thousands of traders around the world every day with these video courses Trading System Mastery, and Trading As Your Business.

I contribute 100% of my trading success and lifestyle to the fact that I embraced technical analysis, where my strategy involves nothing more than price movement, position-sizing, and trade risk management techniques. All these allow me to easily reduce exposure, drawdowns, and losses with proper position sizing and protective strategies. If you want quick and simple, read about my journey and core trading tools in my book Technical Trading Mastery – 7 Steps to Win with Logic. My strategy is represented by human psychology and historical trading, as expressed in the three charts below.

Chart 1 – Human Psychology is What Drives Price Action

This chart is my favorite as it explains trader and investor psychology at various market stages. It also includes a simplified market cycle in the upper right corner, letting you know where the maximum financial risk is for investors and the highest opportunity for a trade.

Chart 2 – 2000 Stock Market Top & Bear Market That Followed

The chart may look a little overwhelming, but look at each part and compare it to the market psychology chart above. What happened in 2000 is what I feel is happening this year with the stock market sell-off.

In 2000, all market participants learned of at the same time was that there were no earnings coming from their darling .com stocks. Knowing they were not going to make money for a long time, everyone started selling these terrible stocks, and the market collapsed 40% very quickly.

What is similar between 2000 and 2020? Simple really. COVID-19 virus has halted a huge portion of business activity, travel, purchases, sporting events, etc. Everyone knows earnings are going to be poor, and many companies are going to go bankrupt. It is blatantly clear to everyone this is bad and will be for at least 6-12 months in corporate earnings; therefore, everyone is in a rush to sell their stock shares and are in a panic to unload them before everyone does.

Chart 3 – The 2020 Stock Market Top Looks to Be Unfolding

As you can see, this chart below of this year’s market crash is VERY similar to that of 2000 thus far, it’s based on a similar mindset, which is the fear of losing money, which causes everyone to sell their positions.

I am hopeful that we get a 25-30% rally from these lows before the market starts to fall and continue the new bear market, which I believe we are entering. Only the price will confirm the direction and major trend to follow, and since we follow price action and do not pick tops or bottoms, all we have to do is watch, learn, and trade when price favors new low risk, high reward trade setups.

It does not matter which way the market crashes from here, we will either profit from the next leg down, or will miss/avoid it depending on if we get a tradable setup. Either cause is a win, just one makes money, while the worst case scenario just preserves capital in a cash position, you can’t complain either way if you ask me.

Before you continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!

Concluding Thoughts

In short, is if you lost money during the recent market crash, then you likely have not mastered a technical trading strategy and do not have proper trade management rules in place. All traders must manage risk and trades to be sure you lock in profits and limit losses when prices start pullback or collapse. Without either of these, you will not be able to achieve long term success/gains, and that’s a fact.

While we can all make money during a bull market when stocks are rising, if you cannot retain or grow your account during market downturns, then you may as well be a passive buy and hold investors. You are better at riding the emotional investor rollercoaster without wasting your time and effort as a trader if you are not going to spend the time and money to learn to follow someone to become a successful trader. Without proven trading strategies or someone to follow, you are more likely to underperform a long term passive investor.

I get dozens of emails from people every week trying to trade this wild stock market and use leveraged ETFs, which doing so during these unprecedented market conditions is absolute craziness if you ask me.

These people think that because there are big moves in the market, they should be trading. That big money should be made trading them, which drives me crazy because it could not be further from the truth unless you are a scalp or day trader. To me, in this market condition, it’s about preserving capital, not risking it, in my opinion.

A subscriber to my market video analysis and ETF trading newsletter said it perfectly:

“Always intrigues me how many amateur surfers get to the north shore beaches in Hawaii, take one look at monster waves and conclude it’s way too dangerous. Yet the amateur trader looks at treacherous markets like these and wants to dive right in!!” Richard P.

I have to toot my own horn here a little because subscribers and I had our trading accounts close at a new high watermark for our accounts. We not only exited the equities market as it started to roll over we profited from the sell off in a very controlled way.

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts, visit my ETF swing trading visit my website at The Technical Traders.

Chris Vermeulen
Founder of The Technical Traders 

Revisiting Our July 2019 Crude Oil Predictions & Our 2020 Forecast

When it comes to our Adaptive Dynamic Learning (ADL) predictive modeling system, we get asked questions from our friends and followers about how it could predict a virus event or how it could predict a price event so far out into the future. The truth of the matter is the ADL predictive modeling system doesn’t predict unknown virus, banking or other types of events.

What it does do, quite well we might add, is identify historically accurate price events (almost like unique DNA markers) and attempts to identify future price events that align with recent price bar (DNA) setups. In other words, it maps the markets highest probability outcomes by studying past price activity and using a unique DNA like mapping system. Once this analysis is complete for any chart, we can ask it what is likely to happen in the future.

On July 8, 2019, our researchers did exactly that and posted an article regarding our findings that many people continue to write us about. Some, at first, in total disbelief that Crude Oil could fall to levels below $40 ever again and others that wanted to know how we came up with these numbers. We set our ADL system to show us what is expected on a Monthly Crude Oil chart going forward and it draws the likely outcome and volatility (highs & Lows).

Here is a link to the original article....Just Visit Here

This Screen Capture From The Original July 2019 Article Clearly States

If our ADL predictive modeling is correct, we will see rotation between $47 and $64 over the next 3+ months before a breakdown in price hits in November 2019. This will be followed by two fairly narrow price range months (December 2019 and January 2020) where oil prices will tighten near $45 to $50. After that tightening, we believe an extremely volatile price move will happen in February through April 2020 that could see oil prices trade as low as $22 and as high as $51 over a two to three-month span.

The most critical component of this early research is the statement we have timed perfectly with our system was “we believe an extremely volatile price move will happen in February through April 2020” and the following price predictions.

The ADL predictive modeling system provided us with a hint that volatility would skyrocket throughout this time in Crude Oil. And, as we all know, this next Daily Crude Oil chart highlights the incredible collapse from early January 2020 (near $65.00) to levels just below $50 in early February. After that, the high price level was near $54.50 and the current low price level is $27.34. We believe this downward price rotation in Crude Oil completely validates our earlier ADL predictive analysis.

Imagine having this type of forecast for our trading and investing! Be sure to opt-in to our free market trend signals newsletter before closing this page so you don’t miss our next special report!

What's Next With The Price of Crude Oil?

Based on short term Fibonacci price momentum targets we could see fall as low as $17 per barrel, but this price target will change dramatically over the next few days depending on if oil bounces higher from here it is now.

If our research is correct, Crude oil may find a bottom somewhere near $17 to $24, the potential rally back up to somewhere above $37 - $41 ppb before staging another massive selloff. The massive volatility suggested by the ADL system also suggests a broad price range over the next 60+ days.

Thus, we believe crude oil will attempt to form a bottom below $30, then attempt a brief rally to “fill the gap” (or partially fill the gap). After that, supply side economics will take over and crude oil should begin to move back towards the to $30 price level again – just as our ADL predictive modeling system suggested.

As of today, we are getting dozens of emails asking about what we see for the US major markets and global markets with our systems. Everyone wants to know “what’s next?”. Most of that research is delivered to our active subscribers/members and you can gain access to that information simply by visiting my website. You really don’t want to miss these next huge moves.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for short term swing traders.

Visit my ETF Wealth Building Newsletter and if you like what I offer, and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen
The Technical Traders

Energy Continues Basing Setup - Next Breakout Expected Near January 24th

After watching crude oil fall from the $65 ppb level to the $58 ppb level (-10.7%) over the past few weeks, we still believe the energy sector is setting up for another great trade for skilled investors/traders.

We are all keenly aware that winter is still here and that heating oil demands may continue to push certain energy prices higher. Yet winter is also a time when people don’t travel as much and, overall, energy prices tend to weaken throughout Winter.

Over the past 37 years, the historical monthly breakdown for crude oil is as follows....

December: Generally lower by -$0.33 to -$0.86. Averages to the downside: -3.65 to +3.08
January: Generally lower by -$4.57 to -$6.72. Averages to the downside: -2.68 to +2.27
February: Generally higher by +$8.41 to +13.73. Averages to the upside +3.07 to -2.54
March: Generally higher by +7.33 to +$15.62. Averages to the upside by +2.84 to -2.14

Over the past 25 years, the historical monthly breakdown for natural gas is as follows....

December: Generally lower by -$2.34 to -$5.26. Averages to the downside: -0.81 to +0.69
January: Generally lower by -$5.14 to -$7.97. Averages to the downside: -0.69 to +0.45
February: Generally lower by -$1.48 to -$3.62. Averages to the downside -0.50 to +0.49
March: Generally higher by +0.63 to +$1.88. Averages to the upside by +0.41 to -0.70

Over the past 35 years, the historical monthly breakdown for heating oil is as follows....

December: Generally lower by -$0.16 to -$0.37. Averages to the downside: -0.14 to +0.09
January: Generally lower by -$0.52 to -$0.96. Averages to the downside: -0.09 to +0.10
February: Generally higher by +$0.48 to +$1.06. Averages to the upside +0.11 to -0.08
March: Generally higher by +0.03 to +$0.11. Averages to the upside by +0.09 to -0.10

This data suggests an extended winter in the U.S. may prompt further contraction in certain segments of the energy sector that may prompt an exaggerated downside price move in crude oil and natural gas. heating oil may rise a bit if the cold weather continues well past March/April 2019.

Conversely, if an early spring sets up in the U.S., then crude oil may begin to base a bit as people begin to traveling more, but heating oil and natural gas may decline as cold weather demands abate.

Heating oil has almost mirrored crude oil in price action recently. Our modeling systems are suggesting that crude oil may attempt to move below $40 ppb. This move would be a result of a number of factors – mostly slowing global demand and a shift to electric vehicles. We authored this research post early in January 2020 – please review it.

January 8, 2020: Is The Energy Sector Setting Up Another Great Entry?

We believe any price level below $40 in ERY is setting up for a very strong basing level going forward. We have identified two “pullback zones”. The first is what we call the “Deep Pullback Zone”. The second is what we call the “Deeper Pullback Zone”. Any upside price move from below $40 to recent upside target levels (above $50) would represent a 25%+ price rotation.

Historically, February is a very strong month for ERY. The data going back over the past 12 years suggests February produces substantially higher upside price gains (+1899.30 to -394.28) – translating into a 4.8:1 upside price ratio over 12 years. Both January and March reflect overall price weakness in ERY over the past 12 years. Thus, the real opportunity is the setup of the “February price advance”.

We believe any opportunity to take advantage of this historical technical price pattern is advantageous for skilled traders/investors.

This is a pure technical pattern based on price bar data mining. This is something you may not have ever considered unless you had the tools to search for historical price anomalies and rotation patterns. We have created a suite of tools and price modeling systems we use to help our members find incredible opportunities – this being one of them.

Get ready, February will likely prompt a very nice rally in ERY if historical price triggers confirm future price activity. The price pattern in February suggests a large upside price move is likely in ERY and we believe these low price basing patterns are an excellent opportunity for skilled traders.

Join my Wealth Building Newsletter if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.

Chris Vermeulen
The Technical Traders