Small-Cap Stocks (Russell 2k) Is Headed For A Double Dip?

Our research team believes the Russell 2000 is leading the way in terms of technical analysis and future expectations.  While the NASDAQ has rallied as a result of US Fed stimulus and foreign investor activity, the Russell 2000 has set up a very clear price resistance level near $131~132 that presents very real potential for a double-dip downward price trend in the near future.

MONTHLY IWM ETF CHART

The resistance level near $131~132 suggests the IWM may rotate downward, creating a right-shoulder, and likely attempt to move down to the $96 previous lows.  If this resistance area can’t be breached by further upside price activity, then the price will likely attempt to rotate lower and rests multiple levels as price collapses back below $100 again.  The lack of upward price activity in the Russell 2000, and other market sectors, suggests the rally is isolated to the NASDAQ and certain other symbols – not broad-based.

DAILY IWM ETF CHART

This Daily IWM chart highlights the multiple levels of support below the current price levels.  Each of these may act as some form of a soft floor in price as price attempts to move lower.  Again, the lack of price to attempt to rally above the RED Resistance level on this chart suggests the Russell 2000 may have found a top and may begin to “rollover” as momentum diminishes.

If stocks are set to fall something else should start to rally. Check out my trade idea on silver!

Before you continue, be sure to opt-in to our free-market trend signals
before leaving this page, so you don’t miss our next special report & signal!

CONCLUDING THOUGHTS

Technical Traders watch for these types of patterns because they provide an A or B type of scenario for profits.  Either, A, upper Resistance will be broken and the IWM will really past $140 and attempt a further upside price rally..  or, B, this resistance level will hold price below $140 and present a very real downside price opportunity where price may attempt to fall well below $110.

Our concern is that the initial downside price move in the markets, as a result of the COVID-19 virus event and global shutdown event, was followed by a Fed-induced “relief rally” that may be ending.  Most of the time, these big impulse moves result in a “relief recovery” before further trending takes place.  We believe the relief recovery is nearly over and the global markets may be setting up for a much bigger trending move.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

NASDAQ Sets Up A Massive Head-n-Shoulders

Our research team has identified a potential trade setup in QID that correlates to our ongoing analysis of the US stock market and our Advanced Fibonacci Price Amplitude Arcs.  We believe a major price inflection point is setting up in the US stock market within the next 48 hours that may prompt a price trend reversal in the NASDAQ and other major US stock market indexes.  This pattern correlates to a much longer-term Head-n-Shoulders pattern that is also setting up in the SPY.

Our belief is that technical traders should wait for confirmation of this setup before entering any new trades, yet we believe we will have confirmation of this setup within 3 to 5 trading days – given the urgency of the setup with our Fibonacci Price Amplitude Arcs.  We believe a right-shoulder could be forming as the US stock markets push a bit higher in early trading this week. We believe the Fibonacci Price Acr’s are suggesting a major inflection point is preparing to disrupt price trends.

Just to be clear, this is a prediction, and as technical traders, we wait for confirmation before trading. This is the #1 issue with most traders. They jump the gun and buy into a trade idea before the price chart has confirmed and they lose a lot of money. Follow price, don’ try to lead it.

If our analysis is correct, we may see a fairly strong trend reversal over the next 5+ trading days as this pattern/setup complete and confirm.

Before you continue, be sure to opt-in to our free-market trend signals
before leaving this page, so you don’t miss our next special report & signal!

DAILY QID (INVERSE NASDAQ ETF) CHART

This Daily QID chart highlights the major RED Fibonacci Price Amplitude Arc that is setting up as well as the more narrow MAGENTA Arc.  Both of these arcs are aligning very close to one another.  Additionally, the RSI suggests any trend reversal to the upside could prompt a moderately large upside price trend.

NAS100 DAILY CHART

This NAS100 Daily chart highlights the right-shoulder of a longer-term price pattern that we believe may be ending soon.  If our analysis is correct, the right-side of the Head-n-Shoulders pattern may set up near the PURPLE Arc on this chart (or soon after) – prompting a broad downside price trend in the US stock market.

LONGER-TERM WEEKLY SPY CHART

This longer-term Weekly SPY chart shows the Head-n-Shoulder setup that is forming in the SPY.  Although the right side of the shoulder is rather short and volatile, we believe this setup may be a fairly strong potential pattern warning of a stronger downside price trend that may initiate soon.  Obviously, 240 (previous lows) would be an easy objective in the SPY if this happens.

CONCLUDING THOUGHTS

Current price levels suggest a resistance level has been reached.  If this resistance level persists in containing price and creates a Head-n-Shoulders pattern, there is a very strong likelihood that a broader downside price move may present real opportunities for profits.  Skilled traders should prepare for this potential and watch for confirmation of this pattern/setup.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

The Big Move In Silver May Be Right Now

For many years now, metals traders and enthusiasts have been patiently waiting for the move in Silver that we feel its eventually going to happen.

There is almost a ritual process in the metals market that takes place when a crisis happens.  We’ve written about this in a past article and we’ve highlighted how we believe Silver is one of the absolute best opportunities if/once it breaks out.  It goes something like this…

A.  Silver is often an overlooked “little cousin” to other precious metals like Gold and Platinum.  Many traders would rather trade/acquire Gold vs. Silver.

B.  When a crisis begins to happen, both Gold and Silver tend to collapse an initially as the shock to the markets translates into sales of precious metals to improve cash/margin requirements.

C.  As the crisis continues to unfold, Gold will typically begin a sustained upside price move over many months where Silver may move very little to the upside.  This creates a massive peak in the Gold to Silver ratio.

D.  Then, suddenly Silver starts to rally upward faster than Gold and the Gold to Silver ratio begins to collapse.  Gold continues to move higher throughout this process, but Silver is already rallying much stronger than Gold.

This is the breakout move in Silver that we believe may be happening right now and may continue for many months or years into the future.  Allow us to explain this setup in more detail.

Before you continue, be sure to opt-in to our free-market trend signals
before leaving this page, so you don’t miss our next special report & signal!

SILVER DAILY CHART

First, we believe an extended FLAG formation in Silver has recently completed and we believe this price wedge type of pattern will prompt a renewed upside price trend in Silver prices over the longer-term given a number of factors that many skilled traders have failed to appreciate.  Technically, a price advance from current levels to levels above $21 will prompt a big shift in thinking for Silver traders.  These new highs will suggest Silver has finally broken above the previous $20 price highs and could be skyrocketing higher as it did in 2010~12.

SILVER WEEKLY CHART

This Weekly Silver chart shows exactly why we believe this Flag Breakout could prompt a major upside price rally in both Gold and Silver.  The downside price rotation that took place after the February 2020 global COVID-19 virus event prompted a vast rethinking of value and risk.  While Gold found support fairly early, suggesting skilled traders were moving away from risk and into safe-havens, Silver has stalled below $16.50 recently.  We believe this ”second-class” status for Silver is about to end in a very big way.  Follow along.

GOLD TO SILVER RATIO WEEKLY CHART

The Flag formation setup on the Daily and Weekly Silver charts is almost like the Starting Line of an incredible upward price event.  The COVID-19 price collapse did what it was supposed to do, deflate expectations related to future market valuations and shift investor consideration of Metals for a short period of time.  As risks accelerated and equity trades were put at risk, metals sold off as traders liquidated metals positions to cover risk exposure in Equities or another market.  Now that the risk event has taken place and metals are transitioning back towards a safe-haven solution again, a new process begins – the upside advance in Gold and Silver which takes the Gold To Silver Ratio back down below 65~75.

Looking back at the 2008~09 Credit Crisis and the current COVID-19 crisis event, we can see Gold is already trading at levels which are very high compared to the peak levels in 2011 (almost 4 years after the 2008 Credit Crisis).  We can also see that the Gold: Silver Ratio has reached the 120 level on this chart – which is incredibly nearly 41% higher than the peak levels in 2008.  Comparatively, the Gold:Silver Ratio collapsed 60% from 2008 to 2011 while Gold skyrocketed from $720 to $1870 (259%).  A similar move from current Gold price levels would suggest Gold could rally well above $4,500 over the next 2+ years.

Now, how does this relate to Silver?  In 2008, Silver was trading near $9.75 just before the peak in the Gold:Silver Ratio was reached.  By 2011, Silver had reached levels above $48.25 – an incredible 495% price increase.  This suggests Silver could rally from current levels, near $15.75 to levels above $78 (or higher) if our analysis is correct.  What are we expecting to happen next?

If our research is correct, we will see an upside price move in Silver to levels above $21 to $23 over the next three to five+ weeks.  At the same time, Gold will likely rally to levels near $1999~$2100.  This simultaneous price rally in both Gold and Silver should prompt the Gold:Silver ratio to stay rather elevated.  But the next move in Silver, above $25~$30, should push the Gold:Silver Ratio below 100 from current high levels – which would collapse the RSI level showing us the longer-term price rally in Gold and Silver has confirmed.

Every time the Gold:Silver Ratio collapses substantially, more than 35 to 40 RSI points after the Gold:Silver Ratio reached new high levels, this indicates a price rally in Gold and Silver is beginning.  You can see how often this setup qualifies and confirms over the past 30+ years on the chart below.  We’ve highlighted the uptrends in Silver in GREEN.

LONG-TERM HISTORICAL GOLD TO SILVER RATIO WEEKLY CHART

CONCLUDING THOUGHTS:

We believe the current FLAG formation breakout in Silver is the beginning of a much larger upside price trend that is just beginning.  Over the next few weeks and months, we believe Silver will begin an upside price advance that could last 12 to 24+ months and present an incredible opportunity for technical traders who follow price action.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

US Major Indexes Rally Into Q2 Ignoring Global Economic Conditions

Many months ago, our research team suggested any future collapse in the global markets would likely prompt a global capital shift in how capital identifies and is deployed for ROI.  We’ve continued to suggest that the more mature, global economies will become beneficiaries of any massive global collapse event and that capital will actively seek out security and safety while attempt to attain moderate returns.  We suggest reading this past research post on global central banks moves to keep the party rolling.

In 2019, we predicted a major Super-Cycle event would take place on or near August 19, 2019.  We believed this event would prompt a major downside price rotation that would prompt a shift in how capital is deployed throughout the world’s financial markets.  At that time, and still, we believe a long-term price cycle event is taking place which will prompt a deeper price bottom event that will likely complete near August or September 2020.  This raises an interesting setup related to Technical Analysis for skilled traders…

If our analysis is correct, the Q2 and Q3 global economic data will be very distressing and likely prompt a continued downside price contraction in stock price levels and valuations.  The disruption to the global economy has likely shaved 5% to 15% (or more) off total global GDP output for this year.  Still, the US Fed and global central banks have poured more and more capital into the markets attempting to front-run this contraction in the global markets.  We believe this “reprieve” in selling is likely temporary right now.  The broader, longer-term, price cycle we’ve identified it still taking place and will likely prompt a deeper price bottom in the global markets before the end of 2020.

Before you continue, be sure to opt-in to our free market trend signals
before closing this page, so you don’t miss our next special report & signal!

The one aspect of recent buying that we find rather interesting is that the NASDAQ (NQ) is really the only US market sector that is outperforming all the other sectors.  This suggests that the US and global investors are piling into technology, biotech, and other NASDAQ symbols expecting these segments of the US economy to outperform the others.  This is one component of the “capital shift” we have been warning investors about.

When the crisis event begins to unfold, capital (cash) will seek out and identify various opportunities as global markets and regional market segments shift from overvalued to undervalued – from risk to opportunity.  We believe this is happening right now in the NASDAQ (NQ) and we believe the opportunity investors have piled into recently may turn into renewed risk in the near future as Q2 and Q3 economic data pushes reality into the markets.

DAILY COMPARISON CHART SHOWS THE ES, YM, AND NQ

This Daily Comparison Chart shows the ES, YM, and NQ in Log scale and highlights the collapse event for all three major indexes (almost in unison) as well as the incredible upside price rally in the NQ (RED) compared to the ES and YM.  It is fairly easy to see how the NQ (RED Line) rallied over the past 30+ days much more efficiently than the ES and YM levels.  As skilled traders were seeking opportunity, they identified the NQ as the best opportunity to deploy their capital.

Yet, if our analysis is correct and a deeper price low will be necessary to complete the broader price cycle setup that is taking place, this also means the recent opportunity in the NQ may turn into excessive risk if the markets suddenly turn downward – targeting our predicted deeper price bottom.

WEEKLY COMPARISON CHART SHOWS THE ES, YM, AND NQ

This Weekly Comparison Chart shows the same three US major indexes and highlights previous price high levels which acted as resistance in the past.  Both the ES and YM are currently trading below these resistance levels.  The NQ is trading well above the resistance level (red).  This continues to suggest that skilled traders have piled into the NQ rally expecting it to continue to outperform the S&P and Dow Jones in the future.

WEEKLY CUSTOM US INDEX CHART

This Weekly Custom US Index chart helps to paint a very clear picture of the price trend and support/resistance levels that are active within the markets.  In this chart, you’ll see many aspects of advanced technical analysis that helps us to determine where and when certain types of price action may take place.  One of our tools is the Fibonacci Price Amplitude Arc technique – which attempts to deploy the Fibonacci price theory based on a price trend frequency/amplitude basis.  This means each major and minor price trend (up or down) generates its own frequency/amplitude levels which project out in the past/future as key trigger levels for future price setups (tops/bottoms/rotations).  We’ve also drawn a Std. Deviation Pitchfork across the 2018 top and bottom to highlight 1.0 and 2.0 Std. Deviation ranges related to current price peaks and bottoms.

As you can probably see from the chart, the deep lows in 2020 touched a broad Fibonacci Price Amplitude Arc registering a 2.618 expansion (highlighted in BLACK).  Price has, subsequently, rallied back to the 1.0 StdDev lower price range on the Pitchfork.  Additionally, there is a very important resistance price Arc that is setting up from the December 2018 price lows (highlighted in CYAN).  Lastly, another major price resistance Arc originating from the 2016 lows aligns very closely with current price levels (highlighted in YELLOW).

Our researchers have identified a price inflection date trigger somewhere between May 8th and May 12th which we believe will prompt the start of a new trend or trend reversal trigger.  We believe this inflection point suggests a bigger move will initiate near or shortly after this inflection point date.  These types of inflection points typically result in larger volatility and/or broad price trend moves as they represent price breaking through resistance, support, or some major barrier in price.  The energy it takes to break through these barriers translates into increased volatility and bigger price moves typically.

Chart Courtesy of www.TradingView.com

Currently, because of the technical setups we see that are about to trigger, we are very cautious in terms of taking unwanted risks in the markets related to trades.  These inflection points could prompt a very big upside or downside price move within the next 5+ days and even though we believe the markets will attempt to move lower in a process that completes the deeper downside bottom formation, a “washout high” price rotation may occur as price reaches and breaches this inflection point.

In our view, it is better to wait for the market to confirm trends once this inflection point is processed to determine where the next opportunity for any new trade will present itself.  As we’ve tried to highlight within this article, even though the NQ appears to be rallying back to near all-time highs, the major markets have set up a completely different set of technical analysis outcomes that suggest Q2 and Q3 weakness will likely prompt a deeper bottom pattern in the future.

The one thing we are certain of is that capital has already entered the “capital shift” process we have been suggesting over the past 24+ months.  Capital will continue to roll into and out of various US and global market segments seeking safety, returns, and opportunity while attempting to avoid risks.  We feel the US markets are very close to another topping event based on our research and believe waiting for clarity right now is the best decision skilled traders can make.  One way or another, the market will tell us what to expect after breaking past this inflection point.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

A Technical Look at the Markets with Analyst Moe Ansari & Chris Vermeulen

Moe and I had a great call today as we both get into some details on the markets. Moe is a 40-year veteran of the markets and we see the markets in a similar way. We talk about how to trade, have a listen and our conversation starts at the 23minute mark if you want to fast track things.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

Junior Gold Miners Ready To Run

Both Gold and Silver Futures have been struggling to rally above recent high levels since the start of the global stock market collapse related to the COVID-19 virus event.  Yet, the Junior Gold Miners appear to be telling us the Precious Metals market is boiling hot.

Gold, the bell-weather safe-haven asset, initially collapsed when the US stock market started the massive selloff in late February 2020, then recovered to higher price levels near $1785 recently.  Since reaching these levels, Gold has stalled into a sideways price flag near major resistance.

Silver, on the other hand, is trading near $15.60 and has yet to really recover to anywhere near the levels it had achieved in early January 2020 (near $18.60).

Well, GDXJ, the Junior Gold Miners ETF, is suggesting a very strong price rally is taking place that may push both Gold and Silver substantially higher.  Key resistance exists near $46.50.  Once broken we believe a very strong price rally will take place pushing GDXJ price levels to $51 or $52.  After that, a brief downside rotation will potentially retest the $47 to $48 levels before an even bigger upside rally takes place.  What is even more important is that we believe this big breakout move could start as early as next week, May 12th or after.

Before you continue, be sure to opt-in to our free market trend signals
before closing this page, so you don’t miss our next special report & signal!

GDXJ DAILY CHART

This GDXJ Weekly chart highlights the same price pattern and shows why we believe the upside price breakout could be a massive new trend.  The Deep price low setup because of the COVID-19 virus event creates a very big price range for any future price advancements.  That $24 price range, if applied to price levels before the breakdown event near $41, may suggest GDXJ could rally to levels above $65 over the next few weeks or months.

GDXJ WEEKLY CHART

CONCLUDING THOUGHTS:

We believe the upside rally in both Gold and Silver recently is a very good indication that the sideways price channel that has plagued precious metals recently may be ending.  If precious metals prices begin to rally, then GDXJ will break the upper $46.50 resistance level and begin a new upside price rally clearing the resistance setup before the virus event began.

Get ready, this could be a very big move higher for Junior Miners and it could align with our May 8th through May 12th global market inflection point prediction.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.

How to Build Chart Apartment for Support, Resistance, & Targets

Here is a quick and dirty little trading educational clip I thought may help some of you. I show you how I find support and resistance levels by building a chart-apartment. You will also see how I pick my first two key price targets which I believe is one of the most critical aspects to make money consistently.

BUILD A CHART APARTMENT

HOW TO DRAW FIBONACCI EXTENSIONS PROPERLY

Hope you enjoyed the clips, let me know what you want me to cover or talk about next!

As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is an incredible year for traders and investors.  Don’t miss all the incredible trends and trade setups.

Subscribers of my Active ETF Swing Trading Newsletter had our trading accounts close at a new high watermark. We not only exited the equities market as it started to roll over in February, but we profited from the sell-off in a very controlled way with TLT bonds for a 20% gain. This week we closed out SPY ETF trade taking advantage of this bounce and entered a new trade with our account is at another all-time high value.

Ride my coattails as I navigate these financial markets and build wealth while others watch most of their retirement funds drop 35-65% during the rest of this financial crisis going into late 2020 and early 2021.

Just think of this for a minute. While most of us have active trading accounts, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during the next bear market, you could lose 25-50% or more of your net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how and one of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position.

If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Passive Long-Term ETF Investing Signals which we issued a new signal for subscribers.

Chris Vermeulen
Chief Market Strategies
Founder of Technical Traders Ltd.

Craig Hemke from TFMetalsReport.com and Chris Talk Metals & Markets

These are crazy times and if you’re attempting to make some fiat via trading, you need all the help you can get. To that end, it was great to get acquainted today with Craig Hemke of TF Metals Report.

If you’re not familiar with Craig’s work and his service, you can find all that you need to know by visiting his website:  TFMetalsReport.com

Over the course of this call, Craig and I discuss:

  • Methods and strategies for identifying trading opportunities
  • The discipline applied in finding a trade, sticking with it or taking profits
  • The current “Best Asset Now” and why

But there’s a whole lot in between, too, so please take time to give this podcast a thorough listen. You’re certain to learn something new.

Many thanks to Craig for sharing his valuable time today.

As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is an incredible year for traders and investors.  Don’t miss all the incredible trends and trade setups.

Subscribers of my Active ETF Swing Trading Newsletter had our trading accounts close at a new high watermark. We not only exited the equities market as it started to roll over in February, but we profited from the sell-off in a very controlled way with TLT bonds for a 20% gain. This week we closed out SPY ETF trade taking advantage of this bounce and entered a new trade with our account is at another all-time high value.

Ride my coattails as I navigate these financial markets and build wealth while others watch most of their retirement funds drop 35-65% during the rest of this financial crisis going into late 2020 and early 2021.

Just think of this for a minute. While most of us have active trading accounts, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during the next bear market, you could lose 25-50% or more of your net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how and one of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position.

If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Passive Long-Term ETF Investing Signals which we issued a new signal for subscribers.

Chris Vermeulen
Chief Market Strategies
Founder of Technical Traders Ltd.

When It Comes To Precious Metals Markets, What’s In A Bull Market And What’s Not

Cory Fleck from the Korelin Economics Report and Chris Vermeulen talked and provided some thoughts on the precious metals markets. The stocks are continuing to lead the sector and GDX is adding to the breakout. But not all precious metals sectors and stocks are in bull markets right now. We outline what’s still lagging. Also some comments on a Natural Gas trade at the end.

Overall, this has been an excellent trade.  We got our members into this trade fairly early and are already pulling profits and trailing stops.  It certainly helps to have the modeling systems and seasonal analysis tools we use to find these setups for our members – but you can do it too.  All it takes is a bit of skill and understanding of how certain markets operate within seasonal trends and setups.  Otherwise, if you don’t have the time to research every chart we can do it all for you and just send you the trades we are taking.

As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is an incredible year for traders and investors.  Don’t miss all the incredible trends and trade setups.

Subscribers of my Active ETF Swing Trading Newsletter had our trading accounts close at a new high watermark. We not only exited the equities market as it started to roll over in February, but we profited from the sell-off in a very controlled way with TLT bonds for a 20% gain. This week we closed out SPY ETF trade taking advantage of this bounce and entered a new trade with our account is at another all-time high value.

Ride my coattails as I navigate these financial markets and build wealth while others watch most of their retirement funds drop 35-65% during the rest of this financial crisis going into late 2020 and early 2021.

Just think of this for a minute. While most of us have active trading accounts, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during the next bear market, you could lose 25-50% or more of your net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how and one of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position.

If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Passive Long-Term ETF Investing Signals which we issued a new signal for subscribers.

Chris Vermeulen
Chief Market Strategies
Founder of Technical Traders Ltd.

Technical Analysis Points To Key Reversal Of Global Markets

Recently, we received a number of email messages and comments regarding our recent Bitcoin article and how we attempted to explain the market trend/technical analysis.  It appears we were not making our interpretation very clear for our friends and followers.  This article should help to clear up our interpretation of the major market trends and our advanced technical analysis tools and utilities.

As purely technical traders, there are certain things we want to make clear.  First, we do pay attention to what is happening to the fundamentals and global economic data when it posts.  We’ve authored many previous articles stating our belief that “capital is like a living/breathing entity which attempts to survive (generate ROI with little risk) in various global market environments”.  In order for us, as technical traders, to identify real opportunities for superior trades, we must be aware of what is happening in the “environment” that surrounds us.

A perfect example is a recent collapse in oil.  We continue to read articles of how thousands of traders believed super-low oil prices were a GIFT and these traders piled into long trades expecting oil to rebound higher.  This happens when technical traders fail to understand the environment in which the instrument is trading within.  At this time, the supply side for oil vastly outweighs the demand-side – so the environment is skewed towards much weaker price activity.  The chance that any moderate price recovery would take place is minimal until the supply glut is diminished.

One of the easiest ways to think of a truly technical trader is that we don’t care if the price goes up or down, we just care that our technical triggers and indicators present clear opportunities that are superior to more traditional methods of trading.

To accomplish this, we believe we must understand the environment in which we are trading and the technical conditions that are present within the charts.  Technically, the price may be going up within a defined bearish/downtrend. This does not mean the upside price move is a technically valid “trade trigger”.  The opposite may be true for a move down in a bullish trending market.  Without proper confirmation of the overall technical bias, environment, and shorter-term technical triggers – one might as well throw a dart at a wall and hope for the best.

In our view, we issue many published research reports for our friends and followers to read and review every week.  We show both bullish and bearish potential outcomes and depending on which way the market breaks we will execute trades in that direction. What we do not do, is trade based on forecasts/predictions. Instead, we follow the price.

Our interpretation of the technical triggers, economic data, forward expectations, and other setups are designed to help you learn how we conduct our research and to help you find opportunities in the markets.  Our members receive this same research and more – they receive our hand-selected trade triggers.  These are the best technical setups/trade triggers known as BAN Trades (Best Asset Now) so we can find that provide superior opportunities for skilled traders.

Before you continue, be sure to opt-in to our free market trend signals
before closing this page, so you don’t miss our next special report & signal!

This chart, below, shows our historical results for the past 2.5 years.  You’ll notice that we do sometimes take losses – yes.  You’ll also notice the consistency of the profits – yes.  We hope you’ll also notice that we work very hard to make sure our member’s success is the first priority in everything we do.

2020 has been a slow year for overall portfolio gains simply because of the market crash and extreme volatility. My #1 goal is to trade when risk is manageable, and the market is predictable. Don’t get me wrong, we have made money on the SPY, over 20% in TLT, 9.5% in GDXJ, and yesterday we locked in 11% on natural gas, so we are trading. But position sizes are small in comparison to our overall portfolio value so we don’t get oversized portfolio growth. When indexes, sectors, and commodities are moving 10-90% a day, it’s a time when position sizing becomes curial for survival.

You will not notice the market crash this year had no impact on our account because we did one of the best trades during the unexpected and unpredictable crash, we moved to 100% cash. Our results are based on a $20K account and over the past 2.5 years we are averaging 33% ROI with very little drawdowns.

Now, back to technical analysis…

Our research team believes the markets have set up a massive downside price advance (creating a much deeper low that confirms Fibonacci price theory and aligns with our Fibonacci Price Amplitude Arcs), which sets up a very unique technical pattern.  Until the price is capable of establishing a series of new higher-high points through consecutive upside price advances AND until the Weekly and Monthly charts confirm a new high price breakout – technically speaking, we’re still in a bearish price trend.

WEEKLY S&P 500 (SPY) CHART

This Weekly SPY chart, below, shows you three key technical factors that tell us there is a greater risk of a breakdown in price than any upside price trend continuation…

A.  The recent low/bottom price level broke below the December 2018 low price level (new lower low).

B.  The GREEN ARC price level is a massive 1.618 Fibonacci Price Amplitude Arc that suggests massive resistance exists at this level.  Price moving above this level then falling back below it suggests a “scouting pattern” type of event took place and FAILED.

C.  Recent price activity has rallied from recent lows too, again, reconfirm the GREEN ARC resistance level.  We believe this Fibonacci Price Amplitude Arc will present a major price ceiling as Q2 and Q3 economic data pushes forward – driving the price lower over time and eventually targeting the RED support level near $208 in July or August.

You may remember that we’ve been suggesting a bottom will not complete until sometime after July or August 2020 in previous research posts.  Now you know where we derive these projections and expectations, we use technical analysis and our advanced predictive modeling tools to “see into the future”.  Believe it or not, we’ve already mapped out SPY price activity 10+ years into the future.

WEEKLY TRANSPORTATION INDEX (TRAN) CHART

This TRAN Weekly chart also helps to confirm our technical analysis research.  We are deploying the same types of technical analysis tools on all of these charts to show you how our research team attempts to identify trends and opportunities.  You can see the heavy LIGHT RED Fibonacci Price Amplitude Arc near the peak in February 2020.  This Arc represents a massive price resistance channel.  You may also notice the thinner ORANGE Fibonacci Price Amplitude Arc that touches recent lows?  This arc acts as Support in its current form.

Our proprietary Adaptive Fibonacci Price Modeling System is drawing a CYAN projected target level from recent lows where the heavy CYAN line is displayed on this chart.  Additionally, a previous BLUE target level is also displayed on this chart which originated from the recent PEAK in February 2020.  Now, pay attention to where the TRAN price has found recent resistance and stalled…  RIGHT AT THOSE LEVELS.

We believe the failure of the SPY and TRAN to move above the ARCs and Fibonacci price targets suggests a critical upward price trend failure.  A failure of this nature will prompt a new downside price move in the near future as price must always attempt to establish new price highs or new price lows based on the Fibonacci Price Theory (technical analysis).

MONTHLY DOW JONES INDUSTRIAL (INDU)

This last chart, the Monthly INDU, is probably the most impressive one so far.  Clear Fibonacci Price Amplitude Arcs suggest massive resistance near the February 2020 peak levels.  A very clear downward price channel originating from the February 2018 lows and transitioning across the December 2018 lows and into current lows.  An Adaptive Fibonacci Price Modeling System target price (CYAN) near 8108 (very near current price levels) and a very clear technical price pattern (Dojis) suggesting a potential top or price reversal is setting up.  Lastly, the recent deep low price stalled very near to the historical YELLOW DASHED price channel that spans the 2000 and 2007 price peaks.

Pulling all of this technical analysis together with simple Fibonacci Price Theory suggests that until the markets can prove to us that price is capable of establishing we upside price structures, the recent deep new price low (near 18,265) suggests future price action may collapse even further and attempt to establish a new, deeper, “new price low” before the real bottoms set up in the markets.  On this INDU chart, it suggests that a “deeper price low” may result in a move well below the YELLOW DASHED price channel from 2000/07 and attempt to move to the RED Fibonacci Price Target level near 14,000.

CONCLUDING THOUGHTS:

Obviously, we are still very bearish in terms of the current overall market trend.  No technical analysis technique has shown us that the intermediate and longer-term trends have changed direction to Bullish.  Yes, our Daily systems did identify a bullish trigger within this bearish trend on the SPY which we executed successfully for our members.  There is an opportunity to take a bullish trade within a bearish price trend when technical analysis confirms the trigger and it is executed properly.

If you are using our free public research for your own trading decision-making and/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.  We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.

If you want to improve your accuracy and opportunities for success, then we urge you to visit www.TheTechnicalTraders.com to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).  If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.  Our goal is to help you find and create success – not to confuse you.

Our researchers will generate free research on just about any topic that interests them.  As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.  What you do with it is up to you.  Visit www.TheTechnicalTraders.com/FreeResearch/ to review all of our detailed free research posts.

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.  Remember, we’ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.  If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.  The only way you’ll know which trades to take or not is to become a member.

Chris Vermeulen
Chief Market Strategist
Founder of Technical Traders Ltd.