How To Consistently Profit from the Financial Market

Trading Basics – A Must Read For ALL TRADERS
In order to keep trading as simple and profitable as possible, you must have the proper trading tools in place and understand how to use everything before you actually start trading with real money. There are numerous brokers and trading platforms available and I am only mentioning the ones I like and use myself as they work extremely well for me.

Not every broker will have what you are looking for so follow my guidelines below. Also, not every trading platform will do what you need. So again, read through this info even if you believe you are already setup properly.

What I Trade – Investment Vehicles
While there are thousands of different investment vehicles using ETF’s, stocks, options, and futures contracts, I focus on a small selection which consistently generate high probability trades with exceptional risk/reward levels.

I focus primarily on Gold and the SP500 using their related investment vehicles (ETF’s, Futures contracts and CFD’s). My trading strategy works well with all of these vehicles allowing you to trade the vehicle you are most comfortable with. As you gain experience, though, you also have the flexibility of experimenting with the more aggressive vehicles such as futures and CFDs. For instance, if you are an ETF trader then you simply use my buy and sell signals with the ETFs I follow. If you are currently a futures or CFD trader, or want to begin trading these vehicles, then you simply use the trading information for those buy and sell signals. I have created this service to allow the majority of traders to benefit without sacrificing profits or risk.

If you have a job which requires your time during normal trading hours, futures and CFD’s will allow you to get involved with trades outside of regular trading hours. For instance, if there was a buy signal during the day and you missed it, later on that day or during the night the price could move back into a our trading price range. At that point, you could enter the trade if you were using Futures or CFDs. This second opportunity happens more often than not.

In addition to gold and the SP500, I sometimes cover silver, oil and other commodities and indexes when a low risk setup presents itself. I will also cover some sector ETFs when something looks to be setting up for a sizeable move. Trading different sectors allows us to play off the sector rotation as institutions move money from one group of stocks to another with the changing economy.

Hot commodities and sectors can be identified simply by scanning through the charts during market weakness. I look for sectors which have been basing (consolidating/moving sideways) for several weeks and holding their value while the rest of the broad market is correcting or selling down. These sectors which hold up during market weakness often outperform the rest of the market once the broad market correction has finished.

Stocks in hot sectors can definitely provide some explosive returns which is what we can do also. I like the ETFs because they carry a basket of stocks, some good, some not so good, but overall you benefit from the strength or weakness of that sector. With ETFs, it is possible to take increased position sizes without unduly increasing your risk levels. This allows us to optimize our risk / reward levels without subjecting our capital to the larger price swings that are possible with individual stocks.

How To Use My Trading Signals:
Trading is easy as I provide entry, protective stop, profit targets and exit prices for the ETF’s and futures investment vehicles.

ETF traders do have some restriction regarding when they can buy and sell. Depending on the type of broker you use, ETFs are tradable between 8am – 7pm ET. In order trade the extended hours of 8am – 7pm, a direct access broker is required. If you are not sure why type of broker you have, give them a call and see if you can trade pre/post market hours with ETFs. If you would like more info please read the section on Choosing a Broker.

Time Required to Successfully Trade with this Service
Trading can be a very time consuming job but it does not have to be. I have created a trading strategy and designed this service so that it saves you hours of daily research. Important key market information is condensed into a short daily video and intraday updates keep you in the loop with changing market prices and markets dynamics.

While you can spend the entire day in the chat room, it is not required by any means. All alerts, videos and updates are posted in the member’s area and sent to you via email to ensure you don’t miss any thing. Each week you will also get a chat room wrap-up. This is a PDF file where I take all the important chat room questions and answers and put them in one file. So, you get a concise summary of the best info delivered directly to you – ensuring you never miss key trading tips and education discussed in the chat room.

This service provides 4-10 trades per month. Most of the time I can see a possible trade setup hours and some times a couple days in advance. Therefore, you will know when to be looking for an alert from the service. As long as you have access to your emails through a computer or smart phone you can trade all the signals. Just place your order online or call your broker. You can take advantage of all the trades from just the information in the emails. But if you want to learn a lot about trading, you should view the morning videos and join me in the chat room each day between 9-11am ET.

Is Trading Experience Required?
No trading experience is required to use this service. If you are completely new, then you will have a very steep learning curve and will need to do some research on-line in order to get caught up with basic trading terminology and to learn how to place orders with your broker.

The good news about not knowing much about trading is that you will not have any bad habits. So learning how to trade properly right from the get go will save you years of frustration and lost money. Educational videos will be provided on how to read charts, find trading signals, how to manage the trade and your money etc…. these videos will teach you everything you need to know. Then you just need to gain some experience trading and that’s what this service does for you. It provides the experience, trades and education all wrapped into one.

Choosing the Right Broker:
Selecting the right broker may seem like a difficult task but if you know what you are looking for, you can easily cut through the clutter of mini franchise brokers lacking quick customer service and poor execution prices. You will also be able to avoid brokers who will not allow you to grow as a trader as you move from ETF’s  Stocks  Options  Futures.

You must be sure the broker you select is a Direct Access Broker. Direct access means you can place your order on ECN’s (Electronic Communication Networks) and you will actually see your order live on the level 2 screen just like a market maker. In short, it makes you a market maker meaning you have full control of your trading and are competing head to head with the market, no middleman, no delayed orders and order execution at the best possible price. This also allows you to trade outside of regular market hours so you can take advantage of pre-market and after hours trading with eligible stocks, ETF’s and futures.

As a trader you will evolve over time so it is very important to keep your doors open for trading other investment instruments. If you are currently trading just stocks or ETF’s, in a few months or years you may want to start trading options, futures or currencies. So select a broker which has these available to ensure capability for your future growth. No one likes to change brokers as it’s a major pain in the butt and time consuming.

I have traded with several brokers in the past and found one broker that truly is great. I use www.InteractiveBrokers.com which not only has excellent customer service (which is a MUST for trading) but they are also a Direct Access Broker, have lighting fast executions, low trading commissions, and allow you to trade EVERYTHING from one account (stocks, ETF’s, options, futures, currencies and warrants). And to make things better, almost every trading platform can integrate Interactive Brokers into their system. This integration enables trading directly through a higher end trading platform like www.eSignal.com.

Interactive Brokers is available in many countries so virtually everyone can use them. There are some exceptions as I don’t think people in Spain can use them but all you have to do is give them a call to find out.

Also, I am an introducing broker for InteractiveBrokers as I help them get new clients. If you open an account with them you can enter my Referral Code: 57135 when signing up with them if you like and it would be greatly appreciated.

CFD Trading
For those of you who are not a US resident, you should be able to trade CFD’s (Contract Of Difference). This is like trading futures so you will be able to trade currencies, commodities, and major stock indexes 24/7. You can now trade some individual stocks with CFD’s using 50x leverage which is exciting. The nice thing with CFD’s is that you can trade 24/7 and you get 50 – 200 times leverage making a $500 – $2500 account VERY POWERFULL. I use http://www.avafx.com/lp/?tag=GoldNOil_En_lp as my CFD broker and they have been made me some great money trading with their platform and I haven’t had any issues getting paid out. I am also an Introducing Broker for them helping to get them clients as well. The link above is my Referral tracking link. Learn about CFD’s on their website.

Choosing a Trading Platform:
I have evaluated several trading platforms over the years as there are lots of great ones out there. There is one trading platform which I really like and believe you should use also. The eSignal platform can do everything and more when it comes to charting, trading, creating and implementing automated trading strategies, and back testing.

I subscribe to the data feeds for quotes and charting on eSignal so I can trade US & Canadian Stocks/ETFs, also the feeds for trading the ES mini (SP500 Futures Contract), GC (100oz Gold), YG (33.3oz Gold) and YI (1000oz Silver).

Myself, I use eSignal and I love it. Its simple to use, looks awesome, allows me to trade directly from the charts as it communicates with my Interactive Brokers trading account and provides all the other capabilities I need and then some.

One of the nice things about using eSignal is that if you choose to use them, I can send you my eSignal Page File so your platform will automatically setup with all the charts and settings I use. This is a great bonus because then we are trading and seeing things on the same page (pardon the pun).

If eSignal is of interest to you just give Jeff Werthman a call as he can help you choose the proper software setup, data fees and also give you the Second Month of eSignal FREE if you tell them I (Chris Vermeulen from TheGoldAndOilGuy.com) referred you.

eSignal Contact for Free Month & Setup
Jeff Werthman
jwerthman@mail.esignal.com
1-800-322-9170

Your Trading Computer and Internet Setup
Computers are very affordable today and seem to come with all the bells and whistles. But you must be careful what you buy. I highly recommend getting a top of the line computer.

The benefits of getting a powerful high end computer is that you can run multiple programs without worrying about your charts lagging or computer freezing. Also your computer will last several years before you need to sell it and get a new one to keep up with newer more powerful programs.

If you are in the market for a new desktop or laptop here are a few things it must have and be able to do.
1. It should have a quad-core processor as eSignal and other trading programs run much smoother with this.
2. You should have 4mb of ram minimum
3. Be sure your tower has a dual video display output or more.
4. Your laptop should have two video outputs for you to run two monitors if you travel.
5. Be sure to run Windows XP or Windows 7 because they are the most stable operating system and all trading platforms work properly on them.
6. I recommend LCD flat screen monitors as they require low energy, are easy on the eyes and you can take them with you to use with your laptop if you have a second home or want to trade while traveling.
7. Battery backup and surge protector – get a large one which can handle your computer, monitors, internet modem and wireless. You should have 10-30 minutes of battery backup time for when the power goes out so you can close out your trades and shut down your computer properly.
8. Internet connections, I use cable because it’s fast and when the power goes out cable internet still works. It’s amazing how my entire town can lose power yet I can continue trading or surfing the web because I am setup for power failures. They don’t happen often but a $150 battery back has paid for its self many times over… and who knows if the power surges would have fried my computers if I did not have the surge protectors….

If you are thinking of getting a new computer you should look at the ones provided at http://www.TradingComputers.com/. If you have seen any pictures of me on my websites then you have seen my computer setup with 6 monitors. My system was purchased from this company. I also have their high end laptop which is extremely powerful and can do everything my big tower computer can do. These computers are designed to trade and will blow the competition out of the water.

I have worked out a deal with them and if you mention my name (Chris Vermeulen) in the “special Instructions” area when ordering online or mention my name when placing an order over the phone they will give you Free Shipping so you will save $50-150.

By: Chris Vermeulen – www.FuturesTradingSinals.com

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The Gold Bull Market and the SP 500 Index

May 17th 2010
Back in the third week of April I predicted here on Kitco.com a topping in the broader market indices. The theory was the VIX levels were extremely and historically too low concomitant with extremely high historical readings in investor bullish sentiment gauges. After thirteen Fibonacci months of a bull cycle rally, it was likely an A B C correction to the downside would begin. In further follows ups on TheMarketTrendForecast.com service I run on April 20th, I again outlined concerns with falling volumes on small cap stocks and too many “stories” being run up too far ahead of the economics.

At this point in the Bull market, it is common to have the crowd of investors move from a bias towards viewing all news as positive, to a negative slant on all news. Nothing has changed dramatically on the problems the world had before with Debt and currencies, but the reaction to those events turns negative. This works off the overly optimistic Elliott Wave patterns of the crowd, turning into a typical Zig Zag correction that lasts several months. There will be trading opportunities between that Mid-April topping forecast and my forecast for a bottom around mid-September. However, as recommended in April, Index investors and mutual fund investors should have been moving to the sidelines. I am looking for the SP 500 Index to drop to the 920-970 areas by mid-September before the next leg of the Bull market takes off. Now, the one caveat to that forecast is actually a lot more bullish. If the SP 500 can hold the 1100-1110 areas and pivot up strongly, we could move on to new highs. I put the likelihood of that around 20%, so be on guard. A counter-trend rally up in the next few weeks is highly probable, but the evidence continues to suggest working our way down into the 900’s in the SP 500 before the Bull resumes in earnest. We are selectively buying Gold and Biotech stocks in the Active Trading Partners service as well.

Gold has continued higher confirming my April 20th forecast on The Market Trend Forecast of a move from 1125 to 1235 in Gold. The Elliott Wave patterns remain extremely bullish for Gold to continue a 13 Fibonacci year cycle up into 2014. Gold has formed a very bullish pattern intermediately for a move to $1470-$1550 at the next major pivot top. In the interim, I expect continued consolidation in and around my $1,235 US levels before the next pivot high at $1300-$1,325 US. Fiat currencies are burning matches as foreign governments and other entities continue to attempt to put out a fire by printing more paper and covering the same fire with it. Until the analysts on CNBC stop questioning the validity of Gold and start questioning the validity of Fiat Paper, the bull will rage onwards with most of the pundits watching the caboose from the back of the tracks.

SP 500 Forecast from the Mid-May TMTF forecast service updates:
TheMarketTrendForecast

Gold Forecast is for $1570 over 6-9 months with pivot at $1300:

Stock Market Forecasting

Be sure to checkout my market forecating service at www.TheMarketTrendForecast.com

David Banister

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Gold, Silver & SP500 Trading Charts & Video

May 16, 2010
Last week was amazing for both gold and index traders as gold surged higher and the SP500 tested a key resistance then fell 4% in our favor. The past couple weeks with the mini market crash and Euro issues making the market extra volatile both gold and the broad market (SP500) index has been wild.

The added volatility makes trading more difficult because price patterns become less predictable and price movements are much larger increasing risk for traders.

Below are the charts & videos of what to look for in the coming days…

GLD – Gold ETF Trading
Gold continues to trend higher at an accelerated rate. Friday we saw gold pullback and test a key support level then bounced to close in the middle of the days trading range. As you can see the trend line support has become very steep and once the trend line support is broken I figure there will be a sharp drop to digest the recent rally.

Gold Trading Newsletter

SLV – Silver ETF Trading
Silver popped and tested a key resistance level from a previous high as expected. It also tested the top of its trend channel providing even more resistance. This week will be interesting as we wait to see if precious metals have a small pullback or continue to rally.

Silver ETF Trading Newsletter

SPY – SP500 Index ETF Trading Chart
This chart clearly shows what I think is about to unfold by looking at the past market drop. Because of the mini market crash triggering everyone’s stops already I figure we have made the low and the dip we are seeing now will drift down a few more percentage points then bottom out.

SPY ETF Trading Newsletter

ES M0 – SP500 Mini Futures Trading Setup – Pre-Drop
Below is a chart of the SP500 which we shorted or bought the SDS bear etf trading fund last week looking to profit from a falling stock market. As you can see from the chart we saw the es mini contract drift into a key pivot point on light volume. What this means is that a large group of sellers will be waiting at that price, and because volume is light we know there are not many buyers at this price level. Simple supply/demand comes into play with more sellers causing the price to stop rising and eventually force the price lower which is what we were anticipating.

The green arrows show key support levels on the 60 minute chart where 1/3 of a position should be taken of the table to lock in gains which also reduces overall risk on the trade. Once we cash in the first 1/3 of the position we move our protective stop the breakeven which is the entry point for the remaining portion of our position. This turns the trading into a winner no matter what happens allowing us to enjoy the ride…

ES Mini Trading Service

ES M0 – SP500 Mini Futures Trading Setup – Current Price
Here is the same chart 24 hours later showing both of our profit targets triggered pocketing 2/3rds of our position for a very nice gain. Depending on the type of trading vehicle you traded there was potential to make up to 150% return in less than 24 hours.

We currently hold 1/3 of the position left with a loose stop allowing the trade to mature incase the down trend continues for several days or weeks. If not and the price rallies then our stop will get triggered for small profit on the balance of the position. Either way we win.

ES Mini Index Trading Service

Pre & Post Market Correction Video: http://www.thegoldandoilguy.com/sp500-market-correction-trading-videos/

Stock Market ETF and Futures Trading Conclusion:
In short, the market is trading on increased volatility making it difficult to find low risk setups. At the moment we are long gold and short the SP500 with both position deep in the money. All we can do now is manage our positions to make sure we maximize our profits.

If you would like to Get My Trading Signals be sure to check out my services at: www.TheTechnicalTraders.com

Chris Vermeulen

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Are Precious Metals and Indexes Going Parabolic?

It’s been an exciting couple weeks in the market with gold now making new all time highs as money floods into this shiny safe haven. It has everyone all worked up wanting to take part or they are riding the rally up already. But the big question is when should some money be taken off the table to lock in gains and lower your overall risk during these crazy times?

Below are a few charts showing you how I see things at this time.

GLD – Gold Exchange Traded Fund
The price of GLD and gold appear to be going parabolic (straight up). The tough part about this type of price action is that large moves can happen in a very short period of time. But on the flip side, when the price reverses we tend to see prices fall just as fast if not faster. Trading this type of price action carries a very high level of risk. Those chasing it up buying at these overbought market conditions is a double edge knife.

ETF Trading Newsletter

SLV – Silver Exchange Traded Fund
Silver is trading similar to gold but the key difference here is that silver has not broken to a new high as of yet. The high was set in 2008 just over $20 per ounce. But from looking at the chart I think metals are ready for a breather.

Silver ETF Trading Newsletter

HUI Index – Gold Stocks
Gold stocks have yet to breakout along with silver as they both are nearing key resistance levels. With gold stocks and silver trading near resistance I figure we will see pause in the coming days as traders digest the recent strong moves up taking some money off the table incase prices get stuck under these resistance level.

Gold Stock Trading Newsletter

SPY – SP500 Broad Market Exchange Traded Fund
The broad market appears to be forming a possible short setup on the daily chart as the price continues to drift higher with declining volume. Also indexes are testing key resistance levels and the 10 period moving average. The next few days should be interesting…

SPY ETF Trading Newsletter

Mid-Week Precious Metals and Index Exchange Traded Fund Report:
In short, it looks like precious metals and the broad market could take a breather in the coming days. I’m not sure how large of a correction we will see but I do not think it will be all that big.

Gold and silver should have a quick dip with buyers stepping back in on weakness. The SP500/broad market is a little more tough to call as last weeks market crash messed things up washing out all the stops in one day instead of weeks… but we could easily see a 5% drop in the market still.

Anyways I hope this analysis helps everyone…

Check out my trading services at: www.TheTechnicalTraders.com

Chris Vermeulen

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Commodity & Index ETF Trading Strategy

May 9, 2010
As we all know, last weeks stock market blip/mini crash was very emotional for those of you watching or trading it live. A lot of money changed hands last week and you either lost a bundle or made a bundle…

I did send out some charts and a video on Thursday night about the market crash/recovery if you have not seen it. It’s called “Stock Market Micro Intraday Crash Shows Us Where The Safe Havens Are”.

Below are my ETF charts for the commodities and index I actively follow and trade.

GLD – Gold Bullion ETF – Daily Chart
GLD is a great ETF to trade as it generates 10-20 quality low risk setups each year for subscribers. The chart clearly shows the large rally in late 2009 and the correction as it formed patterns moving from a down trend – base – and back to an uptrend.

ETF Trading Strategy

$USD – US Dollar Index – Monthly Chart
This weekly chart I think shows some serious potential for gold and silver prices. The US Dollar is now trading at a key resistance level which I think it will have a tough time moving higher. The dollar has been moving up for several months and looks ready for a pullback or at least a pause. If the dollar starts to roll over in the next few months then we should see gold and silver move substantially higher.

ETF Trading Strategy

SLV – Silver Bullion ETF – Daily Chart
Silver like gold bounced off a key support level last week as investors started to buy silver as a safe haven. Gold moved up sharply on the day of the intraday market crash while silver traded sideways for a day before joining the party. The following day investors starting buying up silver because it was lagging its big sister “yellow Gold”.

ETF Trading Strategy

USO – Oil Fund – Daily Chart
Several weeks back I posted this chart showing how volume was drying up as oil tested resistance on declining volume. This indicated to us that once/if the price started to roll over it would trigger a sharp sell off as short term traders who bought in anticipation of a breakout to the up side sold out of their positions once support was broken. This is what caused the heavy volume and sharp price drop.

ETF Trading Strategy

SPY – SP500 INDEX Trading ETF – Daily Chart
It’s tougher now to read the index charts as last weeks heavy volume market crash could be seen in two very different ways…

One – We are starting a correction and had a jump start with the human error of selling billions of dollars worth of investments instead of millions prematurely pushing pulling the market down to a level where I think it should/will test again before moving up.

OR

Two – This extremely heavy sell off is just the start of what is to come…

Since the government owns the largest banks and the banks are unloading/selling massive amounts of shares calling it an error how do we know it’s not a scam for them to completely short the market in anticipation for a collapse which would make them unheard of amounts of money as the market drops… It is tough to trust anyone sitting up there in those power positions after everything they have been caught for already…

I personally think we could see lower prices in the coming month then the market will bottom and we will see new highs for 2010.

ETF Trading Strategy

Weekend Commodity & Index ETF Trading Strategy Conclusion:
Stepping back and looking at the above charts it looks as thought we could see stocks and commodities digest the recent moves. In short, gold and silver have rallied strong and now trading near resistance. Oil dropped last week and is now trading near a key support level. I feel it the market will trade sideways and stabilize before for a while as the SP500 had that crazy drop last week and now the market is in shock. I figured it would see 3-4 weeks to reach those prices yet it happened in 1 day so now the market could do very little for 3-4 weeks…

The US dollar is something we will be watching more closely because it’s trading at key resistance level. In the past it has taken a month or two for a rally to roll over and head back down. This could play out very nicely if the dollar tops and the rest of the market trends sideways to digest the recent moves. Once the dollar starts to fall it will provide fuel for the next rally in both stocks and commodities.

If you would like to receive my ETF Trading Strategy and Trading Signals Please check out my website: www.TheTechnicalTraders.com

Chris Vermeulen

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Stock Market Micro Intraday Crash Shows Us Where The Safe Havens Are

WOW…. Now that was an exciting day in the market!!
This day will be talked about for years to come and the individual who hit the wrong button (“B” for billion instead of “M” for million) to sell billions instead of millions will have a tough time finding another job… Maybe this person can do commercials for Microsoft Windows showing how one simple key stroke can crash a system… lol

On a more serious note, a member in the chat room had a good point… Who would create a program that can not only bankrupt the company in one key stroke but also crash the entire broad market in 10 minutes losing millions of investor’s hard earned money??

I will keep this short with my Cole Notes Version on a few opinions of mine.

Banks – Good for taking your money and crashing the markets

All we have heard about in the past year is bank this, and bank that…. They take our money, bet on crazy investments, lose it, then get free money from the Feds to replace that lost money and they keep it for them selves….

Well today the market crashed because of a bank which should not be a surprise after everything else they have messed up. But to add more to the fire I had a lot of subscribers and followers today tell me they tried to trade with their brokers and they could not get orders to be executed. When I asked these individuals who they are using I got the same response… They were trading through a bank… This really makes my upset as I hate watching the bad guys (banks) keep winning/taking everyone’s money…..

Stock Market Circuit Breakers Failed

I find it amazing how the financial system has circuit breakers to protect investors from a market crash yet today they did not get triggered…

Rule is (and dumb one in my opinion) is that a circuit breaker (halts trading on the stock market for a set period of time) can only be triggered before 2:30pm ET. Funny thing is that the crash happened 7 minutes after 2:30. Manipulation???

2-3 Week Market Correction, Corrected in One Day

A pullback in the broad market which normally would have taken a few weeks at the most happened in one afternoon which is amazing really. Don’t get me wrong, I thought what happen today was very interesting, profitable and a lot of fun. But a move this drastic does throw a wrench into everyone technical analysis and it will be a few days before we get enough price action to start piecing this market back together for what looks most likely to unfold in the coming days and weeks.

Gold & US Dollar Rally Together

The past 2 weeks we have seen gold and the dollar move up together. This is very strong for gold. Even if we see the dollar roll over and head south that would help boost the price of gold… The short term charts for gold are looking tired be sure to watch the video below.

Market Video on Today’s Price Action and what’s Next

Click Here: http://www.thegoldandoilguy.com/articles/may-6th-stock-market-crash/

End of week Trading Conclusion:

This week was a crazy one with gold and the dollar moving higher together and the stock market crashing over 9% in one day…

It will take a few days for all this extreme price action to smooth out as we try and grasp if this is a bottom or the beginning of a major meltdown.

If you would like to receive my Trading Analysis and Signals please checkout my website: www.TheTechnicalTraders.com

Chris Vermeulen

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The Moment of Truth Video for Gold, Silver, Oil & SP500

May 5th 2010
It has been an exciting couple weeks with the stock market slowly forming its top before breaking down this week. I have been warning everyone keep tightening your protective stops and to keep new positions small because once prices start to sell off they will most likely drop like a rock.

This week we have seen all the markets around the world breakdown and this indicates that there could be some large waves of selling in the near future. Traders and investors are very bullish on both stocks and commodities and financial market is designed to hurt the largest group of investors possible. So with over 53% of trader’s bullish and only 18% bearish (same readings as the Jan high) it makes for a perfect blood bath in the market catching the majority off guard left holding the shares.

Here is a chart of the SP500 ETF – SPY Daily Chart

You can see from simple analysis these repeated patterns in price and volume.

Video – Gold, Silver, Oil and SP500 Technical Analysis

I have put together a short video covering charts of gold, silver, oil and the broad market pointing out what we must watch for in the coming days or weeks.

Visit this link if you cannot see a video here: http://www.thegoldandoilguy.com/silver-oil-sp500-gold-newsletter-video/

Mid-Week Trading Conclusion:
The broad market is now in the middle of a trend reversal and during times like these we can see wild price swings in stocks and commodities making trading much more difficult. But a few more sessions and we should see things smooth out and provide some great shorting opportunities before the market starts to head back up to make new 2010 highs.

If you would like to receive Gold Newsletter of ETF Trading Signals please visit my website at: www.TheGoldAndOilGuy.com

Chris Vermeulen

I would also like to let you in on a totally free offer ever for investors. Let me introduce you to The Market Toolbox.

My friends at Investing Systems offer a great piece of software called The Market Toolbox and it is a “desktop finance portal”. They have including more information, tools and resources than I have ever seen in a single piece of software.

Download The Desktop Financial Portal

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Another Batch of Trading Setups for the SP500 Are Here

May 2nd, 2010
The past few weeks I have been talking about the SP500 forming a top similar to the January top we saw earlier this year. Well the charts below show exactly what I have been waiting for to unfold and I think the time has come for the market to take a healthy breather before continuing this strong bull market which could last another 12 -24 months before really topping out.

SPY – SP500 ETF Trading Chart

I am showing the SPY etf because that’s a fund most people know and trade, but this analysis is the same for trading futures like the ES M0 Mini SP500 contract.

You can see the similar price action which formed in January and what has happened recently. I feel we are about to see a correction which would last several weeks which is very exciting for us traders.

SPY ES Daily Trading

SPY April Top – SP500 ETF Trading 60 Minute Chart

This chart shows the past few weeks of price action with the market becoming more volatile with waves of selling and buying. This indicates exhaustion and generally leads to a market correction or at least some sideways movement to digest the recent rally before continuing higher.

SPY January Top – SP500 ETF Trading 60 Minute Chart

Take a look at this chart of January….
Very similar price and volume action.

SPY January Sell Off – SP500 ETF Trading 60 Minute Chart

This chart shows the sell off last January and the setups I had when the market reached extremes generating trades with the underlying down trend.

SP500 Day Trading & Swing Trading Opportunities:

I hope these charts help you to see how I read the market and what I am looking for in trade setups. While its easy to see these setups in hindsight it requires a lot of research and experience in-order to time these plays in real-time when emotions are flying high and with BNN, Bloomberg, CNBC and other newsletters all saying different things…

Some words from fellow traders:
“I just wanted to let you know how much I’ve learned from you already. Understanding that you don’t always have to be in the market because another Low Risk Setup is just around the corner tops my list. Keep up the good work.” Matt Brennan, CA, USA

“Hey, Chris!
I really like the way you think and I’m already learning some useful stuff. I tend to be too aggressive, that’s another reason I picked you – I think you have just the medicine I need to learn to be a bit more cautious and to manage risk better. My biggest weakness is jumping the gun. Pretty typical, I guess. Already I can see I will learn to improve from following your lead.” George Faison, VA, USA

If you would like stock market training, how to find low risk setups with great potential along with my trading signals then check out my websites below:

Gold and SP500 ETF Swing Trading Signals: www.TheGoldAndOilGuy.com
 Intraday, Swing Trades and Trading Strategy: www.FuturesTradingSignals.com
Trade Explosive Stocks: www.ActiveTradingPartners.com

Chris Vermeulen

Disclaimer: I currently do not own gold and SP500 ETFs or Futures contracts.

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Gold & SP500 Day Trading Gone Wild & What’s Next?

May 2, 2010
The past couple weeks we have seen sellers control the price of gold. This can be seen on the charts by the light volume drifts up then heavy volume sell selling sending this metal sharply lower. This type of price action provides some excellent intraday shorting opportunities.

On the other hand the SP500 has been doing quite the opposite providing some very profitable intraday buying opportunities for those who have the time to trade during the day.

Below I show a couple of low risk intraday trading opportunities which lasted a couple days providing massive gains, tiny down side risk and immediate price action. But what I think is about to happen in the next week or so will turn the tables with gold providing great buying opportunities and the SP500 with some great shorting opportunities, opposite to what is happening now.

Two Shorting Opportunities in Gold Making 210% Return in 3 Days

The fist two weeks of April gold had formed an excellent mini head & shoulders topping pattern. This is a pattern which I find very profitable when trading the intraday charts.

The first chart is of the 2 hour intraday gold chart spanning 25 days. On this chart gold had formed a mini head & shoulders topping pattern which day traders were able to take advantage of with very little risk.

Once the first wave of selling was finished and gold reached our price target of $1134, we exited our position and waited for another intraday setup. It was only a couple days later when gold has setup for another opportunity to short which an even more potential than the first trade as it had the possibility of dropping to the $1115 level. This would have provided a $40 move in gold washing the market of weak positions setting itself up for another big rally.

Our first price target was reached at $1147.7 where we took some profits and moved our stop to break-even (our entry price) for the balance of our position. Doing this guarantees the trades will be a winner no matter what happens. As you can see on the chart depending what investment type you trade you would have earned 2.6% – 210% return on your investment.

Gold Short Intraday Trading

Gold’s Surprise Rally – Spain Was A Pain

Last week Spain was downgraded causing large selling pressure on the Euro as everyone sold the Euro and moved their money into a safer investment like the US Dollar and Gold. This sent both dramatically higher at the same time. The chart below shows the same 2 hour chart of gold but is zoomed out so you can see farther back and also the most recent rally in gold.

The red arrow on gold shows where gold was most likely to go in the coming days, but instead it rocketed higher on the Euro-land news hitting the wires. Most of the price advance happened within the first 4 hours and since then the price has drifted sideways and grinded its way a little higher.

Gold Surprise Rally

SP500 Buying Opportunity Makes 135% Gain in 3 Days

During the day on Wednesday I had low risk entry point for day traders on the SP500. The setup is simple really. Tuesday’s panic selling sent the market tumbling in a very short period of time putting the market in an oversold condition. A condition like this provides excellent low risk/instant price movement type of setup.

Take a look at the volume on the chart… Volume on the ES Mini SP Futures contract was not very heavy during the sell offs. But the days following shows strong buying volume indicating big money was buying up stocks at these discounted prices. This is great to see.

ES Mini Trading Strategy

60 Minute SP500 Trading Chart

As you can see from the chart below Tuesday’s heavy volume sell off was an almost straight drop. That type of move generally provides a trad-able bounce or drift higher within a few days which tests the level were prices started to drop originally (the breakdown level).

The price of the SP500 drifted up into resistance with declining volume meaning traders are not willing to pay the higher price for the index. This is a sign of weakness and worked out perfectly with our price target of $1205-1206 at which point we took money off the table and moved our stop up to lock in some solid gains if the market did in fact reverse back down after reaching the key resistance level.

SP500 Day Trading Strategy

Gold & SP500 Trading Conclusion:

Some very exciting times lie ahead as I feel gold and the SP500 are changing short term trend directions. Gold which was down the past month is now headed higher as we are looking for low volume pullbacks to take long positions.

And the SP500 looks ready to take a swan dive to correct/digest some of the monster rally it has put in since the February low. With any luck we will get a nice shorting opportunity to catch some of the move down and then we should be setup for another large rally.

In short, we are looking for gold to dip to enter long and the SP500 to breakdown this week then form a low volume bounce/drift into a resistance level which we will try to short once the bounce loses its upward momentum. I feel we will have a bunch of day trades in the near future along with some great swing trades at the key turning points.

Get My Gold and SP500 ETF Swing Trading Signals: www.TheGoldAndOilGuy.com
My Intraday, Swing Trades and Trading Strategy: www.FuturesTradingSignals.com
You can also Trade Explosive Stocks with me at: www.ActiveTradingPartners.com

Chris Vermeulen

Disclaimer: I currently do not own gold and SP500 ETFs or Futures contracts.

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Spain is in Pain – US Dollar & Gold Are Safe Havens

April 28th, 2010

It’s been an interesting week with Spain being downgraded as Europe debt crisis widens. This has investors looking at the US dollar in a new light thinking that maybe it’s not that bad of an investment after all. This sent the US Dollar higher along with the price of gold so far this week.

The past 7 days we have seen both the US Dollar and Gold rise together which is not something that happens often. With financial crisis’s popping up around the world I think the US dollar and gold will continue to strengthen (with corrections along the way). I think it will take another 12-24 months before another wave if issues arise in the financial markets and until then we just continue to focus mainly on buying the dips and corrections with the occasional short play in the larger corrections.

USD, Gold And SP500 – Daily Performance Chart
Gold Dollar SPX ETF Trading

SP500 – Daily Chart

On April 14th we saw an extreme level of selling which sent the broad market sharply lower. This sell off was followed by value buyers pushing the prices back up to new 2010 highs.

Well this week we have seen the same extreme selling volume and the question we all want to know is will there be buyers this time around?
ES Mini & SPY ETF Trading

ETF & Futures Trading Conclusion:

Gold is in a bull market but it was setup for another round of selling but this Spain issue has been a pain. If we had another downward word move on gold to the $1115 – 1120 area it would have washed out the majority of gold bulls resetting it’s self up for a big rally.

The Europe debt crisis has thrown a twist into the picture helping boost the price of gold. Gold could still head lower washing out the weak positions but the picture is fuzzy. Silver did not react much to this news as it’s not really seen as the safe haven gold or the US Dollar are.

As for stock picks and the broad market, it looks and feels like we are about to start a correction. But this week we saw fear in the market again with the VIX and selling volume surging higher to levels which have triggered temporary bottoms in the past. The problem I see here is that some key price levels have been taken out, so the odds are pointing to lower prices in the near future. But Tuesdays panic selling has pushed the market into an oversold condition so we should see a drift upwards for 1-4 days before sellers get active again as they want to sell and short the market at premium prices.

In short, precious metals are not giving any clear price action to take advantage of yet, and the SP500 looks like it’s on its last legs before heading lower for a meaningful correction which should provide a short setup and then a nice long setup once it bottoms out.

If you would like to receive my ETF & Futures Trading Signals check out my website: www.TheTechnicalTraders.com

Chris Vermeulen