Here's Our "Accurate" Stock Market Predictions on the Next Major Move

The term Stock market predictions is a very controversial topic and does seem to give off a negative/non-credible overtone to most traders, investors and the general public. We all know you cannot predict the market with 100% certainty, but knowing that you can still predict the market more times than not if done correctly. Keep in mind that the term “market prediction” is also known as a market forecast or technical analysis outlook and is nothing more than a estimated guess of where the price for a specific investment is likely to move in the coming minutes, hours, days, weeks and even months.

Getting back on topic, this report clearly shows how the US dollar plays a dominant role in the price of other investments. Understanding how to read the Dollar Index will make you a better trader all around when trading stocks, ETF’s, options or futures.

SP500 Stock Market predictions – 10 Minute Chart:

These charts clearly show the inverse relationship between the stock market and the dollar index. Knowing how to read charts (candle sticks, chart patterns, volume etc…) is not enough to give you a winning edge. You must also understand inter-market analysis as all markets are linked together in some way and the dollar plays a major role in where stock prices will move next. Review the charts and comments below on how I came up with my stock market prediction and trade idea.

Gold Market Prediction – 10 Minute Charts

Gold is another investment which is directly affected by the price of the dollar. Review charts for more details.

Long Term Stock Market Forecast:

The weekly dollar chart is VERY IMPORTANT to watch as a short term trader and long term investor because trend changes in the dollar means you open positions will also likely change direction.

So, if we apply technical analysis to the dollar chart as seen below. You will notice we are able to create a market forecast and predict roughly where price is likely to move and how long it should take to get there. If the dollar can break above the red resistance level then we can expect a rally for 4 – 8 weeks and a price target around the 87-88 level.

If this is the case then stocks and commodities would likely do the inverse price action and move lower, sharply lower…

Stock Market Predictions & Gold Market Forecast Conclusion:

In short, the next weekly candle stick on the dollar chart could be a game changer for those who are long the overall stock market.

I will admit that the current market conditions are not easy to trade because of all the headline news rolling out of Europe each week along with economic data. And I feel as though we have been tip toeing through a mine field for the past 12+ months waiting for extremely negative news are extremely positive news to trigging a wave of buying or selling that will make our jaw drop, but it has yet to happen. Remember always use stops and don’t get over committed in a headline driven market.

If you would like to receive my free weekly analysis like this, be sure to opt-in to my list. 

Just click here to visit at The Gold and Oil Guy and sign up.

Chris Vermeulen

Gold’s 4th Wave Consolidation Nears Completion and Breakout

Back in August with Gold running to parabolic wave 3 sentiment induced highs, I warned of a major top and multi month correction.  We all know that the fundamentals for the shiny metal are stronger than ever, but you must keep in mind that the market prices all that in well l in advance.  Coupled with excessively bullish sentiment that was capped off by a USA Today cover with Gold on it, it was easy to see a major sentiment correction and therefore price decline was at hand.

If we fast forward a few months from my then blasphemous call for a top and multi month consolidation, we can see that Gold has lost favor with the taxi driving crowd and the shoe shine group both.  What has in fact happened is we have had what I call a 4^th wave triangle pattern, which works to consolidate prior gains. Triangle simple let the economics of the underlying security or commodity catch up with the prior bullish price action.  In this case, Gold was in a powerful wave 3 stage advance from the October 2008 $681 lows and over a 34 Fibonacci month period of time.  When everyone on the stage was convinced this act would continue, it was time for the curtains to draw.

The 4^th wave so far has been characterized by a typical pullback in terms of price and also time.  The drop to the $1530’s is a normal 31% Fibonacci retracement of the entire 34 month advance.  In addition, the pattern that has clearly emerged lines up as a typical 4^thwave triangle pattern, which has 5 total waves within.  Waves 1, 3, and 5 are down and 2 and 4 are up.  We are currently finishing wave 4 to the upside from the low $1600’s and likely to see a wave 5 near term to the downside.  As long as Gold holds above $1681 levels, I expect we will see a breakout north of $1775 to confirm that wave 5 up in Gold has begun.

Targets for the 5^th and final wave of this suspected 13 year cycle of Gold begin at $2360 and then we will update from there.  Below is the chart I sent to my paying subscribers last Thursday and we can see that this pattern is still playing out.  Aggressive investors would be wise to get long the metal on this final pullback, with a stop below 1680 to be conservative.

If you would like to have forecasts for price and pivot points in advance on the SP 500, Gold, and Silver that keep you on the right side of the markets, check us out at Market Trend Forecast.com

David Banister

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COMEX Drops Nepalm Bomb on Silver, What Next for the Precious Metals?

What was David Banister thinking......


What was I thinking trying to forecast a normal “wave 4” correction in Silver without the required insider information that the COMEX was going to raise margin/equity requirements four times in a week? My pullback silver low target of $40.10 was obliterated after two consecutive days of equity requirement increases early last week, knocking silver into the low 33’s before it got off the mat and staggered around a bit. Gold followed right behind as margin calls and stop losses required over- zealous traders on the long end to liquidate everything they could find to avoid complete meltdown of their trading accounts.

That is all well and good, but now all of my subscribers want to know just one thing…what now? For starters, Silver had completed an A B C rally pattern from around $18.50 in late August to $49.90 about eight Fibonacci months later. I had written about that coming rally late last August with Silver at $18.73, so we were prepared for the opportunity. I even looked for long term targets as high as $45. That rally was pure crowd behavior in motion, and when you reach the extremes of a “C Wave” in optimism, the next leg down (Which I call the “D wave”) is extremely difficult to predict. I trade A-B-C patterns all the time, looking for that imminent “C wave breakout”, and last August I forecasted a huge move in Silver mostly because a very long B wave triangle had just about completed, and the powerful C wave rally was nigh.

Now that we ended that rally by touching the all time highs near $50 from 1980, it was clear we would have a corrective pattern, and the problem was trying to come up with a reasonable “Crowd Behavioral” bottom pivot forecast amidst the COMEX interfering. This D wave ended in catastrophe for those who were over exposed, or shall I say… “Greedy”. You know what they say on Wall Street, Hogs get fat and pigs get slaughtered. Well, for those who want to dip their toe back in the water, here is the likely path going forward.

1. I expect Silver to recover over several months and re-attack the $50 zone again.
2. Silver will get past $50 by year end and probably reach $60 before the next strong correction.
3. With three years left in the Gold and Silver bull cycle from 2001, there is a very good chance silver will be well north of $100 an ounce by 2014, but one week at a time.

I do not trade Silver or Gold futures, and never have… I just forecast direction and price as best as I can for my subscribers. Probably one of the reasons I’ve been lucky and accurate for many years is I have no bias, as I am not forecasting my own book… just what I see. Near term look for Silver to try to rally back to about $38 to $41.50 ranges, with another pullback to follow.



Gold should have bottomed at $1462 in what I call an “A wave” down, with the “B wave” currently bouncing to about $1520 if I’m right. Once this bounce is completed, I look for a soft pullback to $1489 or so, followed by a strong rally to re-test the $1577 highs. Gold should reach a minimal target of $1627 on this final 5th wave up from the January 1310 lows, with potential to spill higher than that.

Silver has tripped on itself for now, and Gold will probably move a tad smoother over the near term, but look for Silver to regain it’s sprinting abilities this summer-fall and re-take the baton from Gold and continue it’s out-performance. If you would like to have frequent updates during the week, lots of good charts, and avoid scratching your head while the action unfolds, take a look at Market Trend Forecast.Com for a special coupon offer today, or sign up for our occasional free reports!

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