Our Adaptive Dynamic Learning (ADL) predictive modeling system is predicting that Crude Oil will break recent support levels near $55 and move very quickly down to levels near $50 to $51 before August 2nd, 2019. The move to near the $50 price level is likely to be a 100% measured Fibonacci price extension related to the initial downside move from $61 to $55 earlier in July 2019.
After this new downside move completes, we expect Crude Oil will form a short-term price base just above $50 that may last many days or weeks. Our earlier analysis of Oil called this move and we outline our future oil expectations. For more information about this call, please review the following research posts.
This Daily Crude Oil chart highlights the next downside price move that we are expecting will take place over the next 4 to 7 days. After the $50 to $51 lows are reached, Oil should base near these levels and begin a moderate upside move back to levels above $54. This move aligns perfectly with our earlier analysis and research and strongly suggests that oil will target a sub-$40 price level in the near future.
What does this mean for investors and traders? It means that our ADL predictive modeling system is accurately calling these moves in oil and that the sub $40 price expectations could reflect a decrease in global economic expectations over the next 6+ months. For oil to continue to fall to levels below $40, demand would have to wane or supply would have to increase globally – or both. Additionally, it would likely indicate that global expectation for the future demand for oil would be far lower than previously expected. A commodity price collapse, like this, could be an early warning sign that the global economy is slowing much faster than many expect or it could be a sign that the fundamentals in the oil market are shifting as the economy is slowing.
Either way, it appears we are headed for sub $40 price levels in oil later this year.
Archive for year: 2019
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It is time to explore the details of our Gold vs. Silver ratio research and to start to understand the potential for profits within this move in precious metals. The first part of our research article highlighted the Gold vs. Silver ratio and why we believe the “reversion process” that is taking place in price could be an incredible opportunity for traders.
Historically, when the Gold vs. Silver ratio reaches an extreme level, and precious metals begin to rally, a reversion within the ratio takes place, which represents a revaluation process for silver prices compared to gold prices. This typically means that the prices of Silver will accelerate to the upside as the price of gold moves higher – resulting in a decrease in the ratio level.
This reversion process related to precious metals pricing is an opportunity for traders to take advantage of an increased pricing advantage to generate profits.
For every drop of 5.0 points in the gold/silver ratio, the price of Silver should increase by 6.5% to 7.5% to the price of Gold.
This research is based on our belief that Gold and Silver will continue to rally and potentially enter a parabolic upside price advance soon. If this takes place and precious metals begin to skyrocket higher, the ratio level will react in a hyperactive “reversion process” where Silver may move higher at a rate that is substantially faster than Gold. This is the process that we are exploring and our researchers are attempting to shed some insight into this event.
I believe a reversion process has already begun to take place within the precious metals market. We believe this reversion process is about to explode as a dramatic revaluation event unfolds over the next 12+ months. This process will become more evident to traders as the price of Gold continues to rally towards the $1750+ level and as the price of Silver explodes higher in larger and larger advances.
Gold/Silver/US Dollar ratio chart
This Gold/Silver/US Dollar ratio chart is the basis of our analysis for the reversion process event and the associated revaluation event. Our previous analysis suggests Gold will attempt a move to levels above $1650 to $1700 on the next breakout move higher. This next upside price move will expose the price reversion event for all traders to witness and we have mapped out the expected Silver price advantage for all traders going forward.Gold/Silver Ratio – Silver Price vs Ratio Level
We put together this reference table to assist all traders in understanding just how important this move could be to them. This reference table shows the current Gold/Silver price levels (in GREY) as the ratio levels change from 88 to lower levels. If the price of Gold were to stay at the same $1426 level while Silver rallied to prompt an 82 or 77 ratio level, the price of silver would move from the current price of $16.19 to $17.39 or $18.52 in order to reflect this decreased ratio level. That represents a 7.5% to 14.3% price increase. Yet if the price of Gold advances to $1650 or $1750 while the ratio level drops to the 82 or 77 ratio level (because Silver advances fast than Gold), then the price of Silver would move from the current price of $16.19 to $20.12 to $22.73. That move represents a 24.2% to 40.3% price increase in Silver when Gold increased only 15.7% to 22.7%.What If Silver Advances Quicker Than Gold?
If Silver advances even faster than our “what if” scenario, above, and Gold continues to advance as we expect, the increased price reversion process taking place in Silver as a process of this revaluation event could result in a 70% to 110% fast price advance in Silver than the price advance that takes place in Gold. We believe the next upside price leg in Silver will target $19.50 to $22.75. This target range supports the highlighted area on our Ratio table (below). In other words, we believe the ratio level will attempt to quickly move toward the 70 to 77 level as Gold prices rally over the next few months. This would push silver up into the $22.50 to $25 price level very quickly.What If Gold Rallies Faster Than Silver?
If Gold were to rally above $1950 on an extended upside price advance before August or September, we believe the reversion process would become extremely hyperactive in nature and the price of Silver could push well above $29~34 per ounce – may be even higher. This declining ratio level acts as a turbo-boost for the price of Silver as Gold continues to advance. The recent rotation to the downside suggests the ratio relationship between Gold and Silver has already stated a reversion process – the only question is “where will it end?”. Our researchers believe it will stop where it stops and we believe the 65 level on the Ratio chart is just the initial target for this first upside leg. Imagine where Silver could go if the ratio level fell to levels below 40 and gold rallied to $2500 or more? Ok, stop imagining and take a look at this second extended ratio table. Pay attention to the fact that Silver could rally more than 300% if Gold moves up above $1750 and the Gold/Silver ratio drops below the 55 level. If Gold were to continue to rally and the Gold/Silver ratio continued to fall, Silver could rally well above $50 over the long run.Silver Price Range As Gold/Silver Ratio Move To the Average
We’ve attempted to graph the ranges of the expected move in Silver into segments based on the Gold/Silver ratio to assist traders in understanding just how powerful this setup really is. Imagine what it would take for Gold to move up to levels above $1750 (which is our expected target for the next leg higher) and for Silver to rally into the 55 to 65 ratio level. If that happens, the expected target price for Silver would be somewhere between $30 and $40 – more than 100% higher than the current price of Silver. If you think $50 is unimaginable or unrealistic, we’ve just shown you why it is possible these levels could be reached before the end of 2019 or in 2020. If you have not grasped the reality of what is likely to unfold over the next 6 to 12+ months in the global markets and that precious metals are the setup of the decade, then pay attention to the fact that gold and silver are poised for moves ranging from 40% to 240% over the next 12+ months depending on the scale and scope of this move. Our current objectives for the ratio levels are still 55 to 65 within this next move higher where Gold will target $1750. Beyond that level, we’ll have to update you as the price continues to explore new highs.CONCLUDING THOUGHTS:
In short, don’t miss the trade of the decade. These opportunities for skilled technical traders over the next 16+ months is incredible. Huge price swings, incredible trends, big rotations and we could see nearly 300%+ profits to be had if you know what to trade and when. These types of opportunities are perfect for skilled technical traders like us and we want to help you prepare for and trade these opportunities. This bear market for stocks and the new bull market for metals has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free. I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. FREE GOLD & SILVER WITH MEMBERSHIPS Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
Almost a decade ago, the global financial crisis of 2008-09 exposed billions of people to the risks within the global financial/banking sector. With all this money flowing around the globe and with banks able to facilitate greater and more diverse risk/derivatives investments, the central banks and insurance companies are left with an incredible “black hole” of exposed risk that is almost impossible to quantify. When we add the shadow/gray market banking risks into this equation and begin to understand the complexity of commodity-backed or Purchase Order backed financing that has become commonplace throughout the planet, we have to ask ourselves one question – “what would it take for these risks to become another crisis?”
Deutsche Bank Massive Exposure Could Cripple Europe
A recent article we found on ZeroHedge highlights the risk exposure from Deutsche Bank and how that derivatives/banking risk could spill over into another global financial market crisis again. The ZeroHedge article stated that Deutsche Bank has $49 trillion dollars in derivatives exposure, making it the single greatest danger to Europe and global financial institutions imaginable at this time. This additional article from TheStreet, from May 2016, highlights the continued risks associated with the global financial system and the level of derivatives risk that is inherent in the system. Here is a quote from that article that attempts to rationalize debt exposure… ”Let’s take the latest data in Deutsche Bank’s annual report for 2015. It shows that the bank’s total, notional exposure to derivatives transactions is 41.9 trillion euros ($46.8 trillion). While that’s more than 35% lower than its 2013 exposure, it still looks huge. However, after offsetting the positive and negative exposures against each other, the net exposure is a much more manageable 18.2 billion euros ($20.3 billion).” The data that we’ve been able to find regarding US exposure to the global derivatives market is rather limited in scope. The Federal Reserve Bank of St. Louis provides some data, but we believe this data fails to include shadow/gray banking risks. Traders must be aware of the fact that the global economy has been running on ether after the 2009 market collapse. Global central banks have poured capital into the markets and foreign economies have consumed vast amounts of easy-money capital to run up huge debt levels while creating massive shadow/gray level financial systems. In our opinion, the current global banking situation is far more fragile now than it was 10 years ago. The US is in a far better position to handle risks and exposure to risks than it was in 2008-09 and the real issue before us is the level of unknown risks that are a complete black hole in the foreign markets.Ray Dalio Says Gold Is the Best Asset During Global Financial Reset And Eric Sprott Likes Gold Also.
A recent article by Ray Dalio, he stated gold is the asset in which we should all be accumulating as it will be a top performer globally when things start to fall apart. On May 31st Eric Sprott talked about my gold forecast in detail. Since then I have accumulated more gold and silver from Eric Sprott’s company https://www.SprottMoney.com/ and you should too.Federal Reserve Bank Data Is A Warning Sign
Ok, now take a look at these graphs from the Federal Reserve Bank of St. Louis to see the data that is currently being reported. Net US Acquisitions of non-derivatives assets have been relatively tame over the past 6+ years. We can see from this chart the continued acquisition of assets from 2002 through 2007-08 – just before the credit crisis event. Then, we can see how dramatically the assets were dumped between 2007 and 2009. We’re not seeing that type of setup or event play out currently in the US. This next chart highlights the US financial derivatives net position and we can see the peak in 2008-09 and the dramatic deleveraging that has taken place over the past 8+ years. This chart shows the US financial derivatives levels are less than 25% of the levels from the start of 2008. ($31B vs $125B). This last chart highlights the fact that US investors and institutions have been deleveraging from derivatives recently – as shown by the net negative transactions data on this chart. This suggests that investors are worried about the future and have been attempting to remove risk from their investments since the peak in early 2018. Notice similar net transaction declines in 2014-15 and 2009-10. We believe the dips in these assets are related to US Quantitative Easing actions and investor concerns regarding the elimination of easy money policies. We will take a look at when and how these correlations to risk aversion and QE actually take place in Part II. In the second part of this article, we’ll explore how the US economy, US Fed and global banking sector could be complicating this derivative risk exposure and how traders need to prepare for this event – if it takes place as we suspect. If you want to see 5 other crucial warning signs about the US markets and global economic downturn just take a look at this short video and charts. In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here. I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here. On June 26th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis. More recently on July 16th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts. On June 17th I showed my chart of the transportation index forming a double top formation. It’s known that the transportation index leads the broad stock market and if the transports are breaking down then we must expect the bear market is close. I then went on to talk about the precious metals breakout with silver and silver miners leading the way. Gold miners broke out as well while gold continued to hold its bullish formation. See Transportation index double top.CONCLUDING THOUGHTS:
In short, you should be starting to get a feel of where stocks are headed along with precious metals for the next 8-24 months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter. This bear market has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and made fortunes from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.FREE GOLD OR SILVER WITH MEMBERSHIP!
Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
To view this article please follow this link: Silver-Phoenix500.com
I have been going over the past data to attempt to identify future price targets and to help traders understand the true potential for the current precious metals price rally. We’ve been sharing our data and research with you for many months are pleased to continue to share our predictive modeling system’s outputs and data. Today, we wanted to play a bit of “what if” with the data in an attempt to relate just how explosive this move in precious metals may be over the next 6 to 12+ months.
Given our belief that precious metals prices will hold last weeks breakout to the upside and that Gold will rally in a parabolic price mode, we have attempted to identify how Silver would react given the price advance of Gold and the historic price ratio between Gold vs. Silver.
A number of pricing dynamics are taking place throughout the global stock markets and the historical measures of price relationship in advancing and declining markets could help us better understand the potential upside for Silver as the price of Gold continues to rally. Here we go with our “what if” results.
Gold Fibonacci Price Amplitude – Weekly Chart
You may remember when we were calling for Gold to rally from $1200 to just above $1300 earlier this year? We warned that once this move completed, a pause and pullback back below $1300 would set up a “Momentum Base” near April 21 that would become the launchpad for a much bigger move to the upside. Now that we’ve seen this setup complete almost exactly as we predicted months in advance, we are waiting for the price to breach the Fibonacci Price Amplitude Arc that is currently acting as resistance for Gold (see the chart below). Once this level is broken, we believe Gold will rally to levels near or above $1560 and attempt to set up another “Momentum Base” somewhere between $1560 and $1640. This price level represents a key price zone where multiple price inflection points align and where a larger Fibonacci Price Amplitude Arc exists. It is very likely that price will run into resistance near this zone – although it may become very brief price resistance. Let’s assume that Gold could target various upside price levels in the near future and that Gold may attempt to reach levels just below $2000 before the end of this year (2019). We’ve broken our research into price segments that will help us understand and breakdown Gold price advancement levels for future reference. We’ve selected : $1650, 1750, 1850 & 1950 price levels for our research. The Gold/Silver ratio chart, below, highlights the incredible rotation we’ve recently witnessed as Silver exploded higher last week. Gold followed this move higher roughly 24 hours later. The ratio between the price of Gold vs. Silver was at historical highs near 93 just a few days ago. Currently, it is at 88.1 – after Silver rallied to help close the price gap between the two metals. As you can also see from this chart, historical normal price levels are much closer to the 45 to 65 range. What happens when this Gold/Silver ratio value becomes extended is that Gold holds more value than Silver. Silver is a precious metal that is often overlooked because Gold is the primary focus of metals traders. Yet, when a panic hits the global stock markets and Gold begins to move dramatically higher, Silver becomes an incredible opportunity as traders pile into Silver expecting it to close the price ratio gap quickly. How big is this price disparity between Silver and Gold? How much more will Silver potentially rally if Gold hits certain key upside price targets? You should take a look at my article talking about the best metal to own for 2019 and beyond here. I compare gold, silver, platinum, and palladium. Let’s find out and explore some really incredible opportunities.CONCLUDING THOUGHTS:
Using special reference points, the current ratio level, and our expected ratio level, we can determine that for every drop of 5.0 points in the ratio level, the price of Silver should increase by 6.5% to 7.5% to the price of Gold. Therefore, if Gold trades higher to $1500 and the ratio drops from 88 to 83, Silver should be trading at a level of $18.29. We determined this ratio relationship process by identifying “anchor points” within the historic ratio chart, mapping out price levels that occur at these levels in advancing and declining metals markets, then mapping the corresponding ratio relationships so we could attempt to make these types of predictions.Just wait to and see our PART II the shows what silver should do just reach a normal price ratio in tomorrows article!
I love to take on these types of challenges and to play “what if”. The idea that we may find some unknown or unseen opportunity for traders and investors is very exciting. We’ll share more of our research in Part II of this article and we’ll show you exactly what we expect to happen in the metals markets as the ratio continues to “revert”. In short, the opportunities for skilled technical traders over the next 16+ months is incredible. Huge price swings, incredible trends, big rotations and we could see nearly 300%+ profits to be had if you know what to trade and when. These types of opportunities are perfect for skilled technical traders like us and we want to help you prepare for and trade these opportunities. This bear market for stocks and the new bull market for metals has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free. I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. I’M GIVING AWAY – FREE GOLD & SILVER WITH MEMBERSHIPS Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
Our incredible ADL predictive modeling system predicted a moderate price anomaly on July 10th, 2019 in Crude Oil. We wrote about this oil set up on July 10th. Within this article, we suggested that Crude Oil would rotate to levels near $47~$48 rather quickly, then find some moderate support in December and January where support is likely to be found near $45 to $50. After that, the price of Oil should weaken dramatically where price could fall to levels below $30 ppb on extreme price weakness.
We are writing to you today to suggest that Oil prices may attempt to find very brief support near $55.25 as this level represents a key price trigger level which acts as support/resistance. After such a big downside move for the week, it is our opinion that Oil will briefly hold near this $55.25 level as oil tries to hold support for a couple of days.
We believe the selling may abate or weaken slightly early next week as earnings continue to hit the news cycle and future expectations are adjusted based on this data. Quite a bit of data will be released next week with the worlds biggest firms releasing Q2 data and Q3 expectations. We believe this news/data will result in a brief pause in the decline of oil prices and allow traders to set up for the next move lower.
This Daily Crude Oil Chart highlights the downside price action this week as oil collapsed from the $60 upside target called from our early June oil video forecast. The chart below also highlights our Fibonacci price modeling tool that is currently suggesting support will be found just above $51 ppb – which is aligned with the previous price bottom in early June 2019. Mild resistance is also found near $56.70 (the BLUE projected price level). This level will likely act as a “congestion range” as price rotates and attempts another downside leg.
This Weekly Crude Oil chart highlights the bigger picture for oil. The recent breakdown in price has just crossed the Bearish Fibonacci trigger level (RED LINE near $55.20) and this breach suggests the downside price move may just be starting. Ultimate downside targets near $40 to $44 are where we believe the price will find support over the next 30 to 60+ days. Beyond these levels, the price may continue much lower and eventually breach the sub $30 level in Q1 or Q2 of 2020, which would likely be a strong cause of the pending bear market.
Concluding Thoughts:
Any deep downside price move like this in Crude Oil would suggest that economic weakness and supply/demand issues are the root causes of a Crude Oil price collapse. If the downside move continues as we are suggesting, many foreign nations will come under extreme economic pressures and currency levels/support could become threatened as the foundation for many oil-based economies will begin to crumble. This could create an extreme debt/credit issue for many nations throughout the planet and could push the US Dollar well above $100. The implications for extended trends and trades is incredible when you consider the scope of the economic shift that will take place if Crude Oil does begin trading below $30 in early 2020. $30-$40 crude oil could spark or further deeping the pending bear market which has been a long time coming. Almost all the signs are showing that it’s about to start so get ready. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter. As a technical analyst since 1997 having lost a fortune and made fortunes from bull and bear markets I have a good understanding of how to best attack the market during its various stages. The opportunities starting to present themselves will be life-changing if handled properly. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.FREE GOLD or SILVER WITH MEMBERSHIP!
So kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
Recently I have been trying to show all the different angles to look at and analyze the US stock market and the precious metals sector. At the end of this report, I will share with you several other crucial angles and charts you must see for our self. There are several very intriguing things unfolding right now which are interconnected in ways you may not have known.
Gold Years and Seasonality
Let’s start off with the price of gold and what it typically does each month during the presidential election year, which is this year 2019. The graph below shows the average price movement during the elections since 1971 and I think the chart speaks for its self. What I get from this, is that investors become uncertain with the future and accumulate gold. This years election I feel is much like a Midterm election. With recent past presidents, they have been in for two terms so this election, in my opinion, is much like a Midterm election if Trump stays in power. This next chart is the seasonality of gold. Meaning which direction gold trades during each month on average every year. This second chart along with the election chart above both show gold tends to pull back the second half of July, so don’t be alarmed if it happens.Dow Jones Election Years
The US stock market in general, but in this case, I’m using the Dow Jones industrial average you can see where stock prices should move during the rest of this year as we go into the November election.Dow Jones Decade Cycle
As you may or may not know, I have a thing with cycles when it comes to trading. Yes, it seems a little far fetched and can be perceived as Voodoo to some people but statistics don’t lie and I have made an incredible living from the financial markets incorporating cycles in all my trades from long term investing right down to my 30-minute trading charts. The website SeasonalCharts.com shares this really interesting information and chart about the decade cycle and I want to share it with you here: “The stock market appears to follow a 10-year cycle. During the first half of the decade, equity prices on average do not increase, however in the second half they clearly do. In addition, U.S. equities have demonstrated very good performance in years ending with the number 5 (e.g. 1995 or 2005). Their average profit amounted to 30 %. That equals 40% of the average profit for the entire decade! The decade-cycle chart of the Dow Jones shows the average 10-year trend of the index over the last more than 100 years.” As you can see from those four graphs the odds are pointing towards a market top in the US stock market based on statistics and long-term cycles. And for gold to become the investment of choice and rally the second half of this year. Below are several other eye-opening charts about gold and US equities. You should take a quick look at each because what I’m sharing in this post and links below is more than enough to know where the markets are headed next. No need to look anywhere else and I think you will agree after you review each section. My analysis is logical, proven, and easy to understand the big picture trends no matter if you are a total newbie to the trading and the financial markets.Top 5 Important Gold And Stock Market Analysis Posts
In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here. I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here. On June 26th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis. More recently on July 16th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts. On June 17th I showed my chart of the transportation index forming a double top formation. It’s known that the transportation index leads the broad stock market and if the transports are breaking down then we must expect the bear market is close. I then went on to talk about the precious metals breakout with silver and silver miners leading the way. Gold miners broke out as well while gold continued to hold its bullish formation. See Transportation index double top.Concluding Thoughts:
In short, this years election I feel is much like a Midterm election in terms of what stocks and gold should do. With recent past presidents, they have been in for two terms so this election, in my opinion, is much like a Midterm election if Trump stays in power. you should now have a firm grasp of where stocks are headed along with precious metals for the next few months and beyond. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter. This bear market has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and made fortunes from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.FREE GOLD or SILVER WITH MEMBERSHIP!
So kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
Our researchers identified this critical Double-Top pattern in the Transportation Index after a very strong price rally on Friday, July 12. Double-Top patterns are very important in terms of Fibonacci price structure because they reflect a complete price rejection at a certain price level. In this case, the TRAN Double Top level is $10,655 and our research team believes weakness at this level will push a downward price swing which should attempt to break through the $10,250 level and possibly attempt to move much lower.
The Transportation Index reflects future expectations for shipping of goods and raw materials across the US and, of course, is somewhat related to global economic activity. If the Transportation Index falls in price, then future expectations are for weaker economic activity. If it rises, then investors expect the economy to continue to strengthen.
This Double-Top formation in the TRAN could set up to become a very ominous warning sign for traders and investors.
Recent news about the contraction of China’s economy and the fact that Q2 earnings are about to hit the US markets and global markets could become a key factor in the future for volatility and price. We believe the markets are already setting up a topping pattern after breaching key psychological levels last week.
MINERS ARE OUTPERFORMING US EQUITIES – TOP IS NEAR!
Last month I talked about how I have been waiting for gold miners to start outperforming the US stocks market. Once miners start outperforming in a big way (just like we saw in 2007), we know the stock market is topping out and something really bad is about to happen. In the last couple of weeks, the gold miners index is up over 20% while the SP500 is up only 4%, this feels like the start-of-the-end if you know what I mean. Gold miners and silver broke out today in a big way which could very well be the start of an epic rally for the precious metals sector as we heading into the end of the year. Looks at the SP500 index in the chart below which is of the 2007 bull market top. Currently, the SP500 has formed a very similar pattern in 2019 and with the precious metals rocketing higher I think it almost lights out for the US equities. See my updated chart showing where gold miners and the stock market is today within this cycle: https://www.thetechnicaltraders.com/next-bull-and-bear-markets-are-now-set-up/TRANSPORTS, INDUSTRIALS, and SMALL-CAP STOCKS Confirm Market Is Topping
Based on the 2008 weekly chart below the US stock market could be literally 2-6 weeks away from collapsing. What makes this even scarier is that the market liquidity is the worst its been in my 23 years of trading. This means when the selling starts we will likely see some sort of flash crash as we saw in 2008, 2015, and 2018. Price drops so quickly that by the time you figure out what you want to do and get your money properly positioned most of the move is already finished. See 2008 and 2019 Comparison Charts here.CONCLUDING THOUGHTS:
Pay attention to our research because we feel the market could breakdown on weakness later this week or early next week. Our predictive modeling systems are suggesting an August 19th, 2019 breakdown date and we are only about 25 trading days away from that date. In short, the bear market has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Stay Tuned for My Cycle Analysis Article Next! Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free. I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally also and some of these supercycles are going to last years. We go into great detail with this simple one of a kind and a real eye-opening financial market research booklet full of timely charts. As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly. FREE GOLD or SILVER WITH MEMBERSHIP! So kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! Chris Vermeulen – www.TheTechnicalTraders.com
Everyone knows something bad is brewing not just in the USA but globally within the financial systems. Most countries are bankrupt, and almost all currencies have been losing value for the past year. Everyone is playing the game of musical chairs and getting creative with how they borrow, lend, create, and steal money in hopes the world does not catch on to just how corrupt and bad things really are.
It’s just a matter of time before we see another financial market meltdown and what I show you here today gives you an idea of just how close we could be to a market collapse.
The financial markets rarely repeat the same type of crisis, but most crisis’ cause the stock market to sell off and crash in the same way. Human nature and emotions do not change, and because traders and investors drive the price action of stocks we are able to profit from bear markets.
In fact, bear markets can be life-changing in a good way for those who know how to trade these market conditions. Because stocks fall 3-7 times faster than they rise, you can generate the same amount of returns someone who invested at the beginning of a 10-year bull market and sold at the top, but you can do this in 8-12 months because of how quickly prices fall.