Calm Before The Storm

With very strong US jobs data hitting the news wires this morning and an incredible upside price swing overnight because of expectations and hope of a US/China trade deal in the works, we were not surprised by the downside rotation in the US stock market this morning.  As we’ve been warning for the past 3+ months, we expect the US stock markets to trade very narrowly headed into the US mid-term elections and begin a breakout upside price move sometime between November 8 and November 12.

The news events, recently, and the relatively strong earnings data suggest the US stock market and economy should continue an upward bias throughout most of the end of 2018 and into early 2019.  If President Trump were to secure a favorable trade deal with China, we expect the US stock market could surge 4~8% over a few days/weeks on that news alone.  Our opinion is that few traders want to hold any positions over the weekend headed into a potentially tumultuous election cycle next week.

This Daily ES chart illustrates where we believe the price will stay before the US elections (The YELLOW arrows/box drawn on the chart).  This range is roughly from 2690 to 2750 on the ES.  We’ve also drawn two thin blue vertical lines that represent Nov 8 and Nov 12 – the dates which we expect the markets to establish a true price bottom and begin an upward price rally from.  Additionally, we are displaying what we call “True Fibonacci Levels” on this chart in reference to key price target levels.  We believe the initial upside price target will focus on the 2816 price level in the ES, then potentially push higher to the 2942 range.  These True Fibonacci Levels are derived from our modeling systems calculations of Fibonacci Number Sequence relationships.

Additionally, the October 12th date aligns with Fibonacci Time/Price cycles as a key inflection point in price.  Therefore, we strongly believe skilled traders should begin taking strategic positions in select markets/stocks prior to this point as we believe the price could move in a very dramatic and aggressive form after November 12th.

Please take a minute to visit our website to learn how we can help you stay ahead of these market moves.  Visit www.TheTechnicalTraders.com and see just how easy and inexpensive it is to have a team of dedicated professionals working to help you become a better trader and deliver proprietary research, daily videos and more.

If you’ve been following our research, you already know how accurately we’ve called these past market moves.  Pay attention to how the rest of this year plays out and see how accurate our predictions really are.  We’ve called the moves in Oil, Gold, Technology, China/Asia, the US stock market and many more weeks or months before these moves happened.  Isn’t it time you invested in your future success too?

Chris Vermeulen

Gold Sets Up For A November 2018 Rally To Near $1300

Today’s upside price move in gold, already up over $18 (+1.5%), sets up a real potential for a move to near $1300 before the end of November.  We have been advising our followers that a strong potential for an upside move in the precious metals markets was likely and that a potential move to above $1300 was in the works prior to the end of 2018.

Global economic concerns and the fact that global central banks are accumulating physical gold are putting pricing pressures on Gold and many of the other precious metals.  This is a sleeper trade in many ways, the US equity markets and the US Dollar are much stronger than many expected.  A true capital shift is taking place throughout the globe at the moment and many foreign nations and central banks are hedging risk by accumulating physical gold.  When the price of Gold does really start to move higher, it could be an explosive move to the upside – just like what happened back in 2005~2008 and 2009~2012.

Our predictive modeling systems are suggesting Gold could rally to above $1500 /oz in 2019 and we believe the current price levels are a gift for traders.  Sub $1300 price levels may be the lowest prices we see for quite a while – don’t miss this opportunity to position your portfolio for this next move.

Take a few minutes to read our most recent research posts about Gold, Oil, the Global Markets and the US Stock Market by visiting www.TheTechnicalTraders.com/FreeResearch/.  Learn how we can help you find, execute and plan for greater trading success with our videos, books, proprietary research, and trading signals.  Don’t be surprised to see the US stock market rally as Gold and Precious Metals rally as well.  The current global economic environment is vastly different than what most traders are used to experiencing – which makes it even more opportunistic for skilled investors/traders.  Learn how we can help you find greater success, visit www.TheTechnicalTraders.com.

Chris Vermeulen