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.

Natural Gas Breaks $2.00 On Upside Rally and Next Target

Overnight, Natural Gas broke above the $2.00 price level as we expected.  On April 6, 2020, we published our research that Natural Gas was setting up a bottom pattern and that our seasonal analysis suggested April and May should prompt a price rally in Natural Gas pushing price levels above $2.40.

The current rally has broken above a price resistance level near $2.00 and the rally up to $2.40 may happen faster than we expect.  Currently, our Daily Fibonacci price modeling system is suggesting the $2.35 area is the first area of resistance.  Beyond that, the next level of resistance would be near $2.90.  Beyond that incredible upside target, the Fibonacci Weekly data is projecting an upper target near $3.60.

We are not suggesting that Natural Gas could rally 90% over the next few weeks, but we are alerting you that a move to $2.40 seems highly likely after our incredible bottom call on April 6, 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!

DAILY NATURAL GAS CHART

This Daily Natural Gas chart highlights the rounded bottom setup that prompted us to make the bottom warning.  Skilled traders will see an inverted Head-n-Shoulders pattern where the head consists of a double-bottom pattern near the end of March and into early April.  The opportunity to buy into Natural Gas below $1.70 presented a very clear opportunity with little risk.

WEEKLY NATURAL GAS CHART

This Weekly Natural Gas chart highlights the Fibonacci Price Modeling system’s projected upside targets.  The first target, near $2.40, is an easy target for a first profit level.  The next upside target level for-profits should be near the RED LINE, near $2.55.  Beyond that, if Natural Gas continues to rally, the next area for skilled traders to pull profits would be the $2.95 level.  Any move higher beyond that level would be a gift with a target level near $3.60.

CONCLUDING THOUGHTS:

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.

How to Know Where S&P 500, Gold, and Bonds are Headed Next

I’ve been trading since 1997 and I’ve lived through numerous market events.  The one thing I teach my members is that risk is always a big part of trading and that’s why I structure all of my research and trading signals around “finding profits while reducing overall risks”.  Sure, there are fast profits to be made in these wild market swings, but those types of trades are extremely risky for most people – and I don’t know of anyone that wants to risk 50 or 60% of their assets on a few wild trades.

I’m offering you the chance to learn to profit, as I do with my own money, from market trends that I hand-pick for my own trading.  These are not wild, crazy trades – these are simple, effective, and slower types of trades that consistently build wealth.  I issue about 4 to 8+ trades a month for my members and adjust trade allocation based on my proprietary allocation algo – the objective is to gain profits while managing overall risks.

You don’t have to spend days or weeks trying to learn my system.  You don’t have to try to learn to make these decisions on your own or follow the markets 24/7 – I do that for you.  All you have to do is follow my research and trading signals and start benefiting from my research and trades.  My new mobile app makes it simple – download the app, sign in and everything is delivered to your phone, tablet, or desktop.

I offer membership services for active traders, long-term investors, and wealth/asset managers.  Each of these services is driven by my own experience and my proprietary trading systems and modeling systems.  I have a small team of dedicated researchers and developers that do nothing but research and find trading signals for my members.  Our objective is to help you protect and grow your wealth.

Please take a moment to visit www.TheTechnicalTraders.com to learn more.  I can’t say it any better than this…  I want to help you create success while helping you protect and preserve your wealth – it’s that simple.

Chris Vermeulen
Chief Market Strategist
Technical Traders Ltd.

BitCoin Retests Resistance Near 9370 – What Next?

If you pay attention to the trends taking place on the Weekly Bitcoin chart, you’ll notice that it has reacted to the global market Covid-19 trends almost exclusively since the beginning of 2020.  After the end of 2019, the US stock market rallied on Q4: 2019 data and so did Bitcoin.  The US Stock market peaked near February 20 and began a deeper selloff on February 25 – Bitcoin followed this pattern as well.  When the US Fed initiated the stimulus on March 23, Bitcoin prices had already started to bottom in anticipation of the Fed stimulus and really began to rally after the Fed began intervening.

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!

BITCOIN VS S&P 500 DAILY CHART COMPARISON

This is a bit unusual for Bitcoin, which in the past didn’t correlate to the US stock market trends all that well.  What changed?  We believe the sudden correlation of Bitcoin to the US Stock Market trends are related to investor psychology and the perceived efforts of the Central Banks in supporting the global economy.

We find it interesting that a decentralized cryptocurrency, which is supposed to be independent of global central banks and governments, suddenly aligns almost perfectly with the US stock market in correlation with the US Federal Reserve.  It is almost as if Bitcoin prices are much more aligned with the global economy and global central banks as this crisis event unfolds.  This suggests the true value of Bitcoin is not as an alternate, decentralized currency.  The true value of Bitcoin is a hyper-speculative alternate store of value – unrelated to any real asset or oversight process.

WHAT’S NEXT FOR BITCOIN – WEEKLY CHART

If our research is correct, the current downside price channel (Resistance) originating from the June 2019 highs will prompt a massive breakdown in price over the next 5+ weeks – possibly longer.  There are two key factors that lead us to this conclusion.  First, the correlation to the US stock market, which we believe will continue to move lower until an ultimate bottom is reached near July or August 2020.  Second, the massive Fibonacci Price Amplitude Arc inflection point (the GREEN ARC) which will be reached in less than seven days.

If Bitcoin continues to mirror the US stock market price action and this inflection point does what we believe, then a massive breakdown in price may start to trend sometime between May 8 and May 14.

DAILY BITCOIN CHART

This Daily Bitcoin Chart shows you what we believe to be the most likely outcome going forward.  A bit of upward price rotation to potentially retest the resistance level, then a moderate selloff, followed by a brief sideways trend before an even deeper selloff begins.  This may be a map of what the US stock market may do over the exact same span of time.

CONCLUDING THOUGHTS:

Our researchers believe the ultimate bottom will set up near the end of Q3: 2020.  We believe general weakness will push the US stock market price towards an ultimate low/bottom near July or August 2020.  After that bottom completes, Q4: 2020 may see a moderate upside price trend as the Santa Rally mode kicks in.  If Bitcoin mirrors this move, then it may attempt to move below the $3850 level and ultimately attempt to find a bottom below $3000.

Our researchers believe Bitcoin has recently aligned with the US stock market and the global central banks.  If this is the case, then the “alternate decentralized currency” aspect of cryptos becomes a useless component of the market.  If Bitcoin mirrors the SPY going forward, then it is just an expensive, highly volatile alternate measure of the US stock market and global central bank activities.

Watch for the price breakdown near May 10th or so.

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.