How to Time Market Tops and Bottoms

On this first full weekend of Summer, we thought we would revisit our June 3, 2019 research post regarding a price pattern we love to trade – the Fibonacci Extension Bounce. This pattern sets up fairly often and the key to understanding this pattern and where these trades present real opportunity is in understanding the price dynamics behind these extensions. There are many instances where a Fibonacci price extension level will fail to promote a price bounce or rebound – and the price will just keep trending higher or lower past the extension level.

You can read our original research post here that clearly shows the bottom and our price targets.

Pay very close attention to the price levels and setups of the charts within that June 3, 2019 post. These setups are based on what we term a “100% Fibonacci Extension” from a previous trend reversal (peak or valley). The concept of this trading pattern is that the initial “impulse” price move sets up the first leg of a move. The retracement price move sets up the entry trigger for the second price leg – the next 100% price leg. The bottom, in this case, of the second 100% price leg sets up the “end of the move” and the potential for a price rotation in the opposite direction (likely resulting in a 38% to 61%+ retracement move).

In both instances of our June 3 calls, Crude Oil and the ES followed through exactly as we predicted.

This first chart of Crude Oil shows how price bottomed near $52 and has recently advanced to levels near $58 after reaching the 100% Fibonacci extension levels. As this move higher extends to levels near the ORANGE moving average line on this chart and/or beyond the $58 to $59 target level we originally drew on our June 3rd charts, we would consider the upside price move “completed” based on our expectations. Yes, these types of trend could extend even further beyond our expectations. But our objective, as skilled traders, is to target and profit from the highest probability objectives – which was the move from $52 to near current price levels.

Follow the MAGENTA lines on these charts to see the Fibonacci Extension Pattern Setup. They are not hard to see on the charts when your eyes are trained to identify them.

This ES Daily chart shows the incredible +230 point rally that took place after our June 3 research post and after the Fibonacci extension pattern completed. It is really hard to miss the opportunity with a move like this. Again, follow the MAGENTA lines on this chart to see the Fibonacci Extension pattern setup.

At this point on the ES chart, the upside price rally has resulted in a 161% (roughly) upside price advance of the previous Fibonacci Extension pattern (last leg). This upside price leg range, 161%, suggests the upside price move should be close to ending soon. There is a possibility that price could advance to levels near 200% of the previous price leg range, but traders would be chasing a 25% further upside advance that may only be a low probability outcome.

Our advice for skilled traders is to pare back existing open long trade positions near these new all-time highs. The price advance appears to have reached levels that suggest the upside advance may be nearing an end point for the US stock markets. After such a big upside price leg, we have to be cautious near these new all-time highs that further price rotation may become a concern.

Oil, on the other hand, could continue to rally because it has only advanced 61% of the last Fibonacci 100% price leg. The global concerns regarding Iran and the US, as well as global economic concerns, could push Oil back up to the $60 to $62 level before reaching a peak.

Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals. This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members.

The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time. Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide.

More Eye Opening Charts on Currencies and Gold Here

We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade. We’ll see how this plays out over the next few days and weeks. Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point. A bullish price pullback in a downtrend.

BECOME A TECHNICAL TRADER TODAY AND

TRADE WHAT MATTERS – PRICE ACTION!

CLICK HERE

Chris Vermeulen

Could Gold Rally Above $3750 Before December 2019?

We asked our researchers a question recently, “Could Gold rally above $3750 before the end of 2019?”. We wanted to see what type of research they would bring to the table that could support a move like this of nearly 200% from current levels. We wanted to hear what they thought it would take for a move like this to happen and if they could support their conclusions with factual conjecture.

Now we ask you to review these findings and ask yourself the same question. What would it take for Gold to rally above $3750 (over 200% from current levels) and why do you believe it is possible?

Our research team came to two primary conclusions in support of a Gold price move above $3750 :

A) The U.S. Presidential election cycle/political environment could prompt a vicious global economic contraction cycle of fear and protectionist consumer and corporate activity that propels the global economy into a deflationary (mini-crisis) event.

B) The global trade wars could complicated item A (the U.S. Presidential election cycle) and create an accelerating component to this global political event. The result is the mini crisis could turn into “ a bit more” than a mini crisis if the global trade wars prompt further economic contraction and disrupt global economic activities further.

Our research team suggested the following as key elements to watch out for in terms of “setting up the perfect storm” in the global markets.

A) The U.S. Dollar falls below $94 and continues to push a bit lower. This would show signs that the U.S. Dollar is losing strength around the world

B) The Transportation Index falls below $4350 and begins a bigger breakdown in price trend – targeting the $3000 level. This would indicate that global trade and transportation is collapsing back to 2007-08 levels.

C) Oil collapses below $45 would be a certain sign that global Oil demand has completely collapsed and the sub-$40 level would very quickly come into perspective as a target.

D) Global Financial stability is threatened by Debt/Credit issues while any of the above are taking place. Should any of the A, B or C items begin to take form over the next few weeks or months while some type of extended debt or credit crisis event is unfolding, it would add a tremendous increase of fear into the metals markets.

Our researchers believe the US Dollar is safe above the $91 level throughout the end of 2019 and that any downside risk to the US Dollar would come in brief price rotations as deflationary aspects of the global economy are identified. In other words, at this time, we don’t believe the US Dollar will come under any severe downside pricing pressures throughout the end of 2019. We do believe a downside price move in the U.S. Dollar may be setting up between now and early July 2019, but we strongly believe the $91 to $93 level is strong support for the long term.

The Gold Spot price / the US Dollar price chart highlights the incredible upside price move in Gold after 2001-02. It was almost a perfect storm of events that took place after this time to prompt a move like this to the upside. Not only did we have multiple US based economic crisis events, we also had a series of global economic “shifts” taking place where capital and assets were migrating all across the globe searching for superior returns. Could this happen again?? Of course it could. Although, we believe the next move in precious metals will be met with a completely different set of circumstances – very likely targeting foreign nations and not the U.S. economy.

This SPDR GLD chart shows a moderately safer play for investors and traders. The potential for a 20%+ upside price move over the next 60+ days is quite likely and our belief is that traders should be able to trade GLD throughout many of the upside and downside price rotations over the next few weeks and months. Ultimately, if you are skilled enough to pick proper entries, a decent trader could focus on GLD and pick up 65% to 120% ROI over a 7 to 12 month span of time.

– Our Last Gold Forecast From October 2018 Unfolding Perfectly –

Pay attention to where the opportunities are for your level of skill and capital. As we’ve been saying for many months, 2019 and 2020 will be fantastic years for active traders. Stick with what you can execute and trade well because there will be dozens of trades available to most traders over the next 16+ months.

Overall, our research team believes that precious metals have just begun to move higher on a WAVE C impulse move. We authored a research post suggesting that Gold and Silver were currently 20 to 30% undervalued back in late May 2019. The current upside move in Gold and Silver may be just the beginning of a much bigger move.

Ideally, we believe this initial impulse move will end above $1650. From these current levels, that reflects a 25% to 30% upside move in GLD. If any of the fear inducing items, listed above, begin to take shape over the next 12+ months, we could certainly see Gold above $2100 before too long. $3750 may seem like “shooting for the stars”, but all it takes is a combination of fear and deflation/inflation to drive investors into a gold hoarding mode just like we saw after 2003-2004 and that move prompted a 500% price rally from the $300 base level. That same move today would put the current price of Gold near $7800. It might seem like it could never happen – but it could.

Bottom line, we forecast the markets and share some extreme analysis like this to open your eyes to some potential opportunities. But, you cannot just jump into gold or miners after reading this and think you are set for success. The markets are never that simple. You must actively adjust and trade with the market and our daily video analysis is what will keep you on the right side of the market more times than not. This week, we locked in some profits on our long gold ETF, and gold miners ETF, why? because our analysis says both of these are at resistance and could pullback before heading higher. We don’t buy, hope and hold, we enter positions, lock in profits, rinse, and repeat over and over again.

Get my daily video analysis and trade alerts today by subscribing to the Wealth Building Newsletter.

Chris Vermeulen
The Technical Traders

Fibonacci Support May Signal Bounce in Crude Oil and Equities

We want to take a moment to point out that a Fibonacci 100% price move setup may prompt an upside price swing over the next few days and weeks. Many traders fail to identify this setup and get caught up in the current price trend. This happens because we lose focus on the fact that price always moves in segments or legs – from one peak or trough to another peak or trough. The process of creating these segments or legs is usually structured in these types of Fibonacci price increment, and Fib targets I have personally found to be the most accurate for spotting profit taking and turning points.

We provide two very clear examples of this type of setup and how it has worked in the past. We urge all traders to understand there are many examples of larger Fibonacci price expansion legs throughout history. These examples of the 100% Fibonacci price leg are unique instances of price movement and, after confirmation of a base/reversal, can become very valid trading signals.

This first example is the ES (E-Mini S&P Futures). You can see from this chart the earlier examples of the 100% Fibonacci price legs working in the October 2018 downward price move. The current downward price legs have set up a perfect 100% Fibonacci price expansion leg and we believe support may form near $2732.

We would normally wait for some type of price confirmation that this level is going to act as support – for example, a solid reversal bar or Japanese Candlestick price pattern. After confirmation is achieved, a price rotation equal to 60% to 95% of the last downward price leg can be expected.

This next example shows Crude Oil and the most recent downward two Fibonacci Price Legs. The first resulted in a very quick upside price rotation (highlighted by the green arrow near May 20). The second downside Fibonacci Price Leg just ended near $53.30.

It is our belief that Oil will find support near this $53.30 level and rally back above $56 from these lows. The only thing we are waiting for is some type of technical price confirmation of this bottom setup and we can expect a 4% to 8% upside price swing in Crude Oil.

Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals. This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members.

The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time. Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide.

More Eye Opening Charts on Currencies and Gold Here

We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade. We’ll see how this plays out over the next few days and weeks. Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point. A bullish price pullback in a downtrend.

BECOME A TECHNICAL TRADER TODAY AND

TRADE WHAT MATTERS – PRICE ACTION!

CLICK HERE

Chris Vermeulen

Eye Opening Dollar and Currency Charts

The incredible strength of the U.S. Dollar over the past 12+ months has put downward pricing pressure on Gold and Silver. I believe this downward pricing pressure could be muting any upside price advanced in Gold and Silver by as much as 20% to 30% or more.

The U.S. Dollar has turned into the global “safe haven” for international investors and foreign governments. Over the past 6 to 12 months, or more, the U.S. Dollar has been the only fiat currency to see any strength and upward trend. All the other major global currency levels have fallen – some dramatically lower.

The EUR, GBP, AUD, CAD, and CHF have all fallen sharply over the past 6 to 12 months as the strength of the US Dollar and US Economy continued to surprise many. We’ve been calling this a “capital shift” that started back in 2015~2016 – when the 2016 US Election cycle began and China began to implement capital controls. At the same time, foreign nations such as Brazil and Venezuela began to shift into an economic abyss while the UK dealt with BREXIT negotiations. All of these external factors created an environment where the U.S. Dollar became a global safe haven for global investors – all of which were seeking U.S. equities and U.S. Dollars to hedge weakening foreign currencies and weak foreign stock market performance.

I think that the US Dollar strength, in combination with the continued foreign Gold acquisitions has amounted to a resolved “reversion” in Gold prices that could reflect a 10% to 20% price anomaly. In other words, the strength of the US Dollar has muted the advancing price of Gold by our estimates of 2x to 2.5x the strength of the US Dollar. Over the past 12 months, the US Dollar rallied from 89.42 (April 2018) to 97.92 (May 2019: current price). This reflects a 9.60% increase in the value of the US Dollar.

If my research is correct, the price of Gold should have rallied by about 18% to 26% from the April 2018 levels IF the US Dollar had not appreciated in value as it has. Therefore, the true price of Gold should be somewhere near $1600 (18% above April 2018 levels) to $1700 (26% above April 2018 levels) if we attempted to eliminate the “reversion effect” of the US Dollar strength.

We come to this conclusion by statistically analyzing the US Dollar strength after April 2018 and how Gold reacted to this strength – by falling over 12.5% from near $1350 to a level near $1170. That range of time reflected an 8% price advance in the U.S. Dollar. Thus, a ratio of 1.5 to 1 has clearly been established within that move. More recently, from August 2018 till now, the US Dollar has rallied 1.47% while the price of Gold has rallied 8.87%. The current price of Gold is -5.60% below the April 2018 price level.

If we were to assume that the rally in the U.S. Dollar deflated the price appreciation of Gold by nearly equal ratios, then we take the April 2018 price of Gold ($1350) and add the related price variances of Gold over this span (essentially reverting the price of Gold to April 2018 U.S. Dollar levels : $1350 * 1.27) and we end up with $1714.50. This reflects a greater than 30% price anomaly from the current price of Gold.

Gold Futures 

We need to ask ourselves one simple question, what would it take for Precious Metals and the global stock markets to revert back to these expected price levels? Would it be a move away from the U.S. Dollar? Would it be some shift in foreign currency valuations? Would it be a combination of factors that drive greater fear into the markets and reflect a U.S. Dollar valuation decline? In the second part of this article, I will explore some possibilities and explain why I believe we are just days or weeks away from finding out exactly what will cause this price anomaly to revert along with my proprietary gold price cycle forecast.

I just highlighted the strength of the U.S. Dollar in comparison to other foreign currencies and suggested this U.S. Dollar strength may have created a “price anomaly” setup in Precious Metals – specifically Gold. I believe a very unique setup is happening in the global markets right now and that the price of Gold is substantially undervalued compared to risks that are present throughout the global economies. I believe the strength of the U.S. Dollar has muted the upside potential of Gold by at least 20% to 30% over the past 12+ months and I believe a shift is taking place where Gold is starting to break these pricing constraints.

If the analysis is correct, I believe traders only have about 3~6+ weeks before we’ll find out why and what will cause this price anomaly to revert back to what I believe is “price normalcy”. The strength of the US Dollar, as well as the continued global “capital shift” where foreign investors are piling into the US stock market and US Dollar related investments, have continued to put incredible pricing pressures on Precious Metals. We believe this “shift” may be about to revert back to some levels of normalcy in term of Precious Metals pricing.

I believe a major Pennant/Flag formation is setting up in Gold where this price anomaly event will be resolved. This type of price anomaly reset, or reversion will prompt a massive upside price advance in Gold and Silver that will attempt to restore proper pricing levels to the Precious Metals commodities. I believe we are just weeks away from the completion of this Pennant/Flag apex/breakout event and believe the upside price targets identified align with a series of key events that are likely to unfold over the Summer months of 2019. Take a few minutes to read the recent three-part research post regarding these events and how they relate to the global stock/commodity markets here.

Our predictive modeling systems have been warning that a price advance in Gold and Silver will take place between April/May of 2019 and Aug/Sept or 2019. We are calling this the “initial upside price leg” because we believe this upside price move will be just the beginning of a much larger move higher for Precious Metals. We’ve highlighted some of the biggest concerns we currently have related to the global stock market price appreciation levels and the concerns related to the US Presidential Election cycle in precious articles – Please read them here :

• Proprietary Cycles Predict July Turning Point For Stock Market
• U.S. Election Cycle Will Create Increased Volatility

We believe it is imperative to alert all investors/traders of this event and to attempt to allow all investors/traders to plan for what may become one of the biggest global stock market swings in recent history as well as one of the biggest moves in Precious Metals in history.

My proprietary cycle analysis and trade signals are suggesting a mild price recovery in Gold will prompt moderate upside pricing pressure over the next 10-20+ days. This aligns perfectly with our Pennant/Flag formation, see the previous chart. It would be expected that Gold prices would form a moderate price support level near $1270 before moving back up to the upper Pennant price channel, near $1295. Then, price should set up the “Apex Breakout” move – which will likely be a “washout-low” price rotation (somewhere near or below $1270) with a very quick reversal to the upside – breaking $1330 and rallying much higher. This type of rotation is very common and often prompts traders to jump into short positions on the “washout-low” formation before getting clobbered on the reversal/rally. Be prepared.

Lastly, we want to alert everyone to a chart we’ve been following that could become a determining factor for the future of the global stock market levels, the U.S. Dollar and Precious Metals. The one thing we don’t want to see is a massive decline in yield in the 2 Year Treasuries. This would indicate failed growth expectations throughout the globe and, in particular, reflect concerns that the US markets could contract/decline in line with further global market devaluations.

We’ve already been trying to warn investors that the U.S. Presidential Election cycle will likely create a stalling price pattern in the US stock market. We’ve been warning, for the past 18 months, that Gold is setting up a massive bottom/breakout formation. We’ve recently highlighted the global concerns (Europe, China, US, and others) that may combine to create something like a “perfect storm” for currencies and the global equities markets. If that translates into “yield weakness” in the US Treasuries, think about how that would translate into the Precious Metals “reversion” that we are suggesting is only a few weeks away?

We strongly urge investors to pay very close attention to our research and prepare for this event. Yes, the Capital Shift event is still taking place and as long as nothing disrupts this shift, capital will continue to flow into the U.S. Dollar and U.S. Equities. Our concern is that the charts are telling us we are very near to the end of this event cycle and we are alerting all of our followers so they can prepare for this move. It may start out mildly – it may not. We do know that our predictive modeling systems are suggesting that July/August 2019 are on our radar for a major price rotation/event.

UNIQUE OPPORTUNITY

First, we typically see stocks sell off and as the old saying goes, “Sell in May and Go Away!” which is what has been happening.

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members has already hit our first profit target, and our VIX ETF trade also hit out 15% profit target and we the balance of it is still up 25% as of yesterday.

Second, my birthday was this month, and I think it's time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer term subscription or if you are new, join one of these two plans listed below, and you will receive:

(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE 

(Could be worth a lot in the future)

I only have a limited number of silver rounds I’m giving away ​​​​​​​so 

upgrade or join now before it's too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!
Chris Vermeulen

Crude Oil Fails at Critical Fibonacci Level

Crude Oil recently rallied up to the $63 level and failed. This level is a key Fibonacci price level based on our proprietary adaptive Fibonacci price modeling system. It represents a Fibonacci Long Trigger Level that would suggest that a new bullish price trend could setup if and when the price of Crude Oil rallies and closes above this level.

The fact that Crude Oil rallied above this level early on Monday, May 13, and failed to hold above this level suggests this is a failed price rally and a failed attempt to rotate higher. The failure of this price move suggests that Crude Oil may fall below current support, near $61, and begin a new downside price leg over the next 10+ trading sessions.

This Daily Crude Oil chart highlights the narrow price range, between $61 and $64.75, where a range of support and resistance levels are found with our proprietary Fibonacci modeling system. The fact that this failed price rally cleared the $63 level, then fell sharply afterward suggests that support for any upside price rally in Crude Oil is very weak. We would expect the price to rotate lower and retest the $61 level before breaking this level and moving much lower to find ultimate support.

We continue to attempt to reinforce one basic Fibonacci theory price rule for all of our followers to understand: Price must ALWAYS attempt to establish new price highs or new price lows at ALL TIMES.

We want to continue to push this message out to our followers so they can begin to understand how this price theory rule actually works in real-time application. This failed attempt to break the Bullish Fibonacci price trigger level is/was an attempt to establish a new price high. Failure to establish this new price high suggests that price will attempt to establish a new price low.

This weekly Crude Oil chart highlights the key Fibonacci trigger price levels that are located in a very narrow range near $63.25. The failed move higher, suggests a new price low will be attempted and ultimate support is currently near the $52.25 level.

With the US/China trade new still hitting the news cycles, we expect some extended volatility in the markets as well as currency price fluctuations in an attempt to mitigate the trade/stock market volatility/pricing. Additionally, we expect commodity price levels to come under continued pressure for two main reasons:

A. the U.S. Presidential election cycle continue to draw attention away from economic activity, and....

B. the global economy is already showing signs of economic and manufacturing weakness.

This US/China trade issue will certainly put more pressure on commodity prices while creating a renewed level of FEAR in the markets.

As we’ve been warning everyone for the past 5+ months – get ready for some really big moves in 2019 and 2020. This type of market is a skilled traders dream come true. Big moves, big rotations, and big profits. Also, if you have not read our Recent Gold Bottom article be sure to read that now.

This is proving to be an incredible trading year for traders who follow our trade alerts newsletter.

For active swing traders, you are going to love our daily trading analysis. On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is exactly what is happening now right on queue. In fact, we closed out our SDS position on Thursday for a quick 3.9% profit and our other new trade started Thursday is up 18% already.

Second, my birthday is only three days away and I think it's time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 4 left as they are going fast so be sure to upgrade your membership to a longer term subscription or if you are new, join one of these two plans, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE 

(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE 

(Could be worth a lot in the future)

I only have 4 more silver rounds I’m giving away ​​​​​​​so upgrade or join now before it's too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!
Chris Vermeulen

How Chinese Trade Issues Will Drive Market Trends

It is becoming evident that the US/Chinese trade issues are going to become a point of contention for the markets going forward. We’ve been review as much news as possible in an attempt to build a consensus for the future of the U.S. markets and global markets. As of last week, it appears any potential trade deal with China has reset back to square one. The news we are reading suggests that China wants to reset their commitments with the US, remove all tariffs and wants the US to commit to buying certain levels of Chinese goods in the future. Additionally, China has yet to commit to stopping the IP/Technology theft from U.S. companies – which is a very big contention for the US.

This suggests the past 6+ months of trade talks have completely broken down and that this trade issue will likely become a market driver over the next 12+ months. The global markets had anticipated a deal to be reached by the end of March 2019. At that time, Trump announced that he was extending talks with China without installing any new tariffs. The intent was to show commitment with China to reach a deal at that time – quickly.

It appears that China had different plans – the intention to delay and ignore U.S. requests. It is very likely that China has worked to secure some type of “plan B” type of scenario over the past 6+ months and they may feel they are negotiating from a position of power at this time. Our assumption is that both the U.S. and China feel their interests are best served by holding their cards close to their chests while pushing the other side to breakdown through prolonged negotiations.

Our observations are that an economic shift is continuing to take place throughout the globe that may see these US/China trade issues become the forefront issue over the next 12 to 24 months – possibly lasting well past the November 2020 US Presidential election cycle. It seems obvious that China is digging in for a prolonged negotiation process while attempting to hold off another round of tariffs from the US. Additionally, China is dealing with an internal process of trying to shift away from “shadow banking” to eliminate the risks associated with unreported corporate and private debt issues.

The limited, yet still valid, resources we have from within China are suggesting that layoffs are very common right now and that companies are not hiring as they were just a few months ago. One of our friends/sources suggested the company he worked for has been laying off employees for over 30 days now and he just found out he was laid off last week. He works in the financial field.

We believe the long term complications resulting from a prolonged U.S./China trade war may create a foundational shift within the global markets over the next 16 to 24+ months headed into the November 2020 U.S. Elections. We’ve already authored articles about how the prior 24 months headed into major U.S. elections tend to be filled with price rotation while an initial downside price move is common within about 16+ months of a major US election event. This year may turn out to prompt an even bigger price rotation.

U.S. Stock Market volatility just spiked to levels well above 20 – levels not seen since October/November 2018, when the markets fell nearly 20% before the end of 2018. The potential for increased price volatility over the next 12+ months seems rather high with all of the foreign positioning and expectations that are milling around. It seems like the next 16+ months could be filled with incredibly high volatility, price rotation and opportunity for skilled traders.

Our primary concern is that the continued trade war between the U.S. and China spills over into other global markets as a constricted price range based trading environment. Most of the rest of the world is still trying to spark some increased levels of economic growth after the 2008-09 market crisis. The current market environment does not settle well for investor confidence, growth, and future success. The combination of a highly contested U.S. Presidential election, US/China trade issues, a struggling general foreign market, currency fluctuations attempting to mitigate capital risks and other issues, it seems the global stock markets are poised for a very big increase in volatility and price rotation over the next 2 years or so.

Our first focus is on the Hang Seng Index. This Weekly chart shows just how dramatic the current price rotation has been over the past few weeks and how a defined price channel could be setting up in the HSI to prompt a much larger downside objective. Should continue trade issues persist and should China, through the course of negotiating with the U.S., expose any element of risk perceived by the rest of the world, the potential for further price contraction is very real. China is walking a very fine line right now as Trump is pushing issues (trade issues and IP/Technology issues) to the forefront of the trade negotiations. In our opinion, the very last thing China wants is their dirty laundry, shady deals and political leadership strewn across the global news cycles over the next 24+ months.

The DAX Weekly Index is showing a similar price pattern. A very clear upper price trend channel which translates into a very clear downside price objective is price continues lower. Although the DAX is not related directly to the US/China trade negotiations, the global markets are far more interconnected now than ever before. Any rotation lower in China will likely result in a moderate price decrease in many of the major global market indexes.

As we’ve suggested within our earlier research posts, U.S. election cycles tend to prompt massive price rotations when the election cycles are intense. In our next post PART II of this report, we talk about what happened in the past election cycles reviewing the monthly charts and weekly SP500 index charts which are very telling in what could be about to happen next for the stock market from an investors standpoint.

For active swing traders, you are going to love our daily trading analysis. On May 1st we talked about the old saying goes, “Sell in May and Go Away!” and that is exactly what is happening now right on queue. In fact, we closed out our SDS position on Thursday for a quick 3.9% profit and our other new trade started Thursday is up 18% already.

Second, my birthday is only three days away and I think it's time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.

Right now I am going to give away and shipping out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. I only have 7 left as they are going fast so be sure to upgrade your membership to a longer term subscription or if you are new, join one of these two plans, and you will receive:

One Year Subscription Gets One 1oz Silver Round FREE (Could be worth hundreds of dollars)

Two Year Subscription Gets TWO 1oz Silver Rounds FREE (Could be worth a lot in the future)

I only have 13 more silver rounds I’m giving away ​​​​​​​so upgrade or join now before it's too late!

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!

Happy May Everyone!

Chris Vermeulen
Stay tuned for PART II next!

U.S. Stock Markets Could Rally Beyond Expectations

Late Sunday afternoon, President Trump surprised the global markets with the announcement of increased trade tariffs with China relating to the ongoing trade negotiations and delayed trade talks between the two global superpowers. The global markets reacted immediately upon the open Sunday night (Asian open). The VIX short position puts quite a bit of professional traders at risk of big losses today while those of us that were prepared for an increase in volatility and price rotation is poised for some incredible opportunities.

The U.S. stock market is set up for a price move that will likely make many people very wealthy while frustrating many others over the next few months. We’ve recently posted many articles regarding the 2020 U.S. Presidential election cycle and the fear cycle that comes from these major political events. In November 2016, we remember watching Gold rally $60 early in the election night, then fall $100 as news began reporting the surprise winner. There is so much capital, and future capital expectations that ride on these election cycles – it can actually drive the markets in one direction or another.

Get Our Free Market Research Right Here

Right now, we have two things we want to alert you to regarding our proprietary Fibonacci price modeling utility. First, the current trend is Bullish and the chance of a downside price move is still valid. Remember, one of the primary price rules within Fibonacci price theory is that price must ALWAYS attempt to seek out new highs and new lows – at all times. This means that once price establishes new price highs, any failure to continue establishing new price highs, through standard price rotation, will result in its price attempting to establish new price lows.

So, as we continue with our expectations, remember that any failure of price to continue the push higher means it WILL rotate lower and attempt to establish new price lows.

Taking a look at this IWM Monthly chart shows a very clear price rotation near the end of 2018 and that the current price has yet to rally above the October 2018 highs. In this instance, we have a FAILURE to establish new price highs within the current price move. We also have a new price low established in December 2018. This high and low sets up the range of $173.99 and $125.80. Fibonacci price theory tells us that PRICE WILL attempt to establish a new price high or new price low from within this range. Therefore, the price WILL either continue to rally higher and break the $173.99 level or price WILL reverse lower, without reaching the $173.99 level and target the $125.80 level.

Our modeling system is currently telling us that price and trend is bullish and that the current price level has clearly rallied above the Fibonacci price trigger levels near $143.50. Should price rotate lower and breach these Fibonacci price trigger levels, then we would expect the price to move much lower. Right now, we don’t expect that to happen based on a strong U.S. economy, employment and earnings.

This Monthly SPX chart shows a similar setup – yet the main difference is that the current HIGH PRICES are clearly above the October 2018 previous highs. Thus, in this instance the SPX has reached “new price highs” as a component of Fibonacci price theory and, because of this fact, must continue to strive for new price highs or risk failing and rotating lower to establish new price lows.

In fact, the past three trading sessions are proprietary SP500 index trading system issued two quick winning trades for members. The two trades pulled 2.5% and 2% out of the market in less than 24 hours from the entry prices. This momentum and trend trading system are going to be a new trading weapon for us to follow and trade the markets once we implement this into the member’s area for viewing the charts and signals at any time.

Take a look at last weeks trade and today’s trade which both hit T1 (Target 1).

Take a look at the chart below then consider what that last statement really means. It suggests that we have already reached into new price high territory. Fibonacci theory suggests that “once new price highs are established, the trend MUST continue to attempt to establish new higher price highs – OR FAIL and attempt to establish a new price low. Well, a failure at this level could mean a price move all the way back towards recent lows near December 2018 – near $2346.58. Therefore, it is critical that we see other markets, like the IWM, continue to push higher in an attempt to support this broader upside price move for all the U.S. major stocks.

The most important factor going forward is to be prepared to think and react very quickly to price rotations, news, and the election cycle process. Take a look at how volatile the market has become over the past 12 months and consider the fact that we could continue to see this type of volatility in the markets for the next 15+ months – at least through the election cycle process.

Remember also that the US economy is operating on very strong fundamentals, employment, and outputs. Disruption of future expectations could lead to a massive displacement of capital in the global markets. Watch crude oil, gold, silver and other commodities for any signs of weakness. And pay attention to the levels we are suggesting in this research post. If the SPX falls below $2600 – be prepared. If the IWM falls below $142 – be prepared. Price is always seeking out new price highs and new price lows. If it can’t get one side, it will attempt to get the other.

The global market “Shake out” that we wrote about weeks ago is just starting. Our expectations are that an increase in price volatility, as well as a minor price rotation, will take place in the U.S. markets before a continued upside price bias will drive prices higher again. There are two main drivers that will become leaders of any bigger rotation in the global markets – Metals and Commodities. If we begin to see a collapse in commodity prices, pretty much across the board, while metals breakout into a rally, then we are setting up for a bigger downside price move. Until that happens, continue to expect an upside price bias to continue in the U.S. stock market.

Secondly, should a massive currency revaluation event take place, where global currencies weaken as the U.S. Dollar stays strong, then we could be setting up for a “slow unraveling” of foreign debt markets and foreign equity markets. This would be almost like a “slow bleed out” as a currency devaluation event prompt incredible pricing pressures on local foreign governments to support their economies. These devaluation events, if they happen, could prompt a hyper inflation type of event that could disrupt weaker nations to such a degree that they could weaken world leading economies that have exposure to these foreign nations – Think China/Russia.

Our advice continues to be to look for opportunities as the volatility increases and continue to expect an upside price bias in the U.S. stock market – at least until we have any strong evidence that price trend has changed. Don’t buy into the doom-sayers just yet. In our opinion, this U.S. upside price move is not over yet.

If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.

Chris Vermeulen @ The Technical Traders

How Close are the Markets from Topping?

Now that most of the U.S. Major Indexes have breached new all time price highs, which we called over 5+ months ago, and many traders are starting to become concerned about how and where the markets may find resistance or begin to top, we are going to try to paint a very clear picture of the upside potential for the markets and why we believe volatility and price rotation may become a very big concern over the next few months. Our objective is to try to help you stay informed of pending market rotation and to alert you that we may be nearing a period within the US markets where increased volatility is very likely.

Longer term, many years into the future, our predictive modeling systems are suggesting this upside price swing is far from over. Our models suggest that price rotation will become a major factor over the next 12 to 15+ months – headed into the U.S. Presidential election cycle of November 2020. Our models are suggesting that the second half of this year could present an incredible opportunity for skilled investors as price volatility/rotation provide bigger price swings. Additionally, our models suggest that early 2020 will provide even more opportunity for skilled traders who are able to understand the true price structure of the markets. Get ready, thing are about to get really interesting and if you are not following our research or a member of our services, you might want to think about joining soon.

We are focusing this research post on the NQ, ES and YM futures charts (Daily). We will include a longer term YM chart near the end to highlight longer-term expectations. Let’s start with the NQ Daily chart.

The NQ Daily chart, below, highlights our ongoing research, shows the 2018 deep price rotational low and the incredible rally to new all time highs recently. The most important aspect of this chart is the “Upside Target Zone” near the $8040 level and the fact that any rally to near these levels would represent an extended upside price rally near the upper range of the YELLOW price channel lines. We believe any immediate price rotation may end near the $7500 level (between the two Fibonacci Target levels near $7400 & $7600) and could represent a pretty big increase in price volatility.

This ES Daily chart highlights the different in capabilities between the NQ and the ES. While the NQ is already pushing into fairly stronger new price highs, the ES is struggling to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between $2,872 and $2,928. It is very likely that the price volatility will increase near these highs as price becomes more active in an attempt to break through this resistance. It is also very likely that a downside price rotation may happen where price attempts to retest the $2,835 level (or lower) before finally pushing into a bigger upside price trend. The Upside Target Zone highs are just below $3,000. Therefore, we believe any move above $2,960 could represent an exhaustion top type of price formation.

This YM chart is set up very similarly to the ES chart. Historical price highs are acting as a very strong price ceiling. While the NQ is already pushing into fairly stronger new price highs, the YM continues to struggle to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between 25,750 and 27,000. Please take notice of the very narrow resistance channel (BOX) on this chart that highlights where we believe true price support/resistance is located. We believe it is likely that a downside price rotation may happen where price attempts to retest the $26,000 level (or lower) before finally pushing into a bigger upside price trend.

As you can tell from our recent posts and this research, we believe price volatility is about to skyrocket higher as price rotates downward. Our predictive modeling systems are suggesting that we are nearing the end of this current upside move where a downward price move will establish a new price base and allow price to, eventually, push much higher – well above current all-time high levels.

We’ve issued research posts regarding Presidential election cycles and how, generally, stock market prices decline 6 to 24 months before any US Presidential election. We believe this pattern will continue this year and we are warning our followers to be prepared at this stage of the game. No, it will not be a massive market crash like 2008-09. It will be a downside price rotation that will present incredible opportunities for skilled traders. If you want more of our specialized insight and analysis, then please visit The Technical Traders to learn how we help our members find success.

Lastly, we’ve included this Weekly YM chart to show you just how volatile the markets are right now. Pay very close attention to the Fibonacci Target Levels that are being drawn on this chart. The downside target levels range from $16,000 to $21,060. The upside target levels range from $30,000 to $32,435. Top to bottom, The Fibonacci price modeling system is suggesting a total volatility range of over $16,000 for the YM Weekly chart and this usually suggests we are about to enter a period of bigger price rotation and much higher price volatility.

Right now, we suggest that you review some of our most recent posts to see how we’ve been calling these market moves, visit The Technical Traders Free Research. It is important for all of our followers to understand the risks of being complacent right now. The markets are about to enter a period of about 24+ months where incredible opportunities will become evident for skilled traders. If you know what is going to happen, you can find opportunities everywhere. If not, you are going to be on the wrong side of some very big moves.

Chris Vermeulen

Prepare for Unknown Price Action as New Highs are Reached

The ES and NQ are very close to breaking out to new all time highs this week and possibly over the next few weeks. The NQ is very close to these new high levels already. Traders must not take this move for granted as increased volatility and a very real chance for a price correction become even greater once we break into “new high territory”.

This upside move has taken almost 5 months to climb back from the December 2018 lows. It has been a very dramatic rally to say the least. We’ve seen dozens of professional analysts suggest the markets would rotate lower all the way up this rally. It seems as though everyone wanted to be right that the market top in October 2018 was going to be the start of something big. We were one of the few analysts that called the market accurately. Our September 17, 2018 analysis called for almost every leg of this price swing over the past 7+ months. We stuck by our research while others were skeptical and doubting our research. We stuck to it because we believe in our work and modeling tools.

Now, our modeling tools are suggesting we could be setting up for a pretty big increase in volatility over the next 2~3 months with the potential for bigger price rotation into May/June 2019. As we are reading our modeling system results, the key elements are that price will achieve new all-time highs, the price will increase in volatility and Gold should begin an upside price move over the next 2~5+ weeks. The move in Gold suggests one of two things may happen, or both. The US Dollar may weaken or the US stock market may correct a bit based on some economic event or outside foreign economic event.

Either way, the move in Gold suggests that increased volatility is almost a sure thing over the next 60 to 90 days. The only reason Gold would rise is if there is some increased fear factor throughout the planet in regards to the protection of assets and fear of some unknown event. Therefore, if our analysis is correct and Gold does rise as we have indicated, then something is about to create a big increase in volatility.

The key to all of this is that the ES and NQ will move into NEW HIGH territory before this volatility increase begins to become apparent.

This ES Weekly chart shows just how close the ES (S&P500 Futures) are too new all-time highs. The ES needs to climb another 41 points (+1.41%) before it touches the previous all-time high levels. That is really only one of two good upside days. Once it breaks the 2947 level, then the 3000 psychological level becomes a very real target.

This NQ Weekly chart shows that the NQ is really just inches away from breaking to new all-time highs. The NQ only needs to rally 24.50 points (+0.31%) before the 7731 level is breached. We believe this move will happen very early this week and we could see the NQ push all the way above the 8000 level in short order. Our Fibonacci price modeling system is suggesting 9130 and 9625 levels may become the ultimate highs – but it is still very early to tell at this stage of our research.

Back in July and August 2018, we started warning that the end of 2018 and all of 2019 were going to be very good years for skilled traders. We’ve seen a nearly 3800+ point price swing in the NQ and a +1200 point price swing in the ES. Let’s face it, folks, these are very big moves and if you had been capable of trading these moves efficiently, this is the type of price rotation that makes millionaires out of average traders.

Get ready, because the rest of 2019 and almost all of 2020 are going to be just as exciting to trade so be sure to get our trade signals. We’ll see you on the other side of “new all-time highs” for the U.S. Stock market here soon.

Get our Free Daily Newsletter Right Here

Chris Vermeulen

Watch the Financial Sector for the Next Topping Pattern

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 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 The Technical Traders 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