Are Real Estate ETF’s The Next Big Trade?

A subscriber recently mentioned getting into a real estate ETF so we started going over the data which may suggest the Real Estate sector could become the next big trade over the next 12+ months.  The news that the US Fed may decrease rates in an attempt to front-run global economic weakness and real estate market weakness may result in a waterfall event in local and regional real estate markets.  This type of event could become a fantastic trading opportunity for technical traders. Recently we have been talking about the unit and very different opportunities in other physical assets like precious metals. Each metal is unique for market timing has its own personality. Our gold predictions are an eye-opener, why silver is awesome, and our most recent analysis on platinum is timely. Overall, our research has been focused on one of the hottest markets anywhere in the US, California.  Los Angeles, Ventura County, Orange County, San Diego, and San Francisco make up the entire massive Southern California real estate market.  The California real estate market is a fairly strong indicator for weaker market segments because the number of transactions taking place across the 400+ miles spanning San Francisco to San Diego represent multiple trillions of dollars, vast segments of consumers and types of housing as well as an incredibly diverse economic landscape ranging from coastal regions, farming regions, cities, technology hubs, agriculture and dozens of others (source). Our concern is that a rate decrease by the US Fed may be interpreted as a “move to attempt to abate fear” instead of a “move to support the markets”.  If this decrease in rates does happen and at-risk homeowners fear the Fed is trying to push buttons to adjust the consumer environment toward a “buying bias” and sellers become scared, then the race to sell faster (decreasing prices to attract buyers) may become the norm.  In other words, in an effort to support the markets, the Fed could take actions that remove the floor from the markets as sellers attempt to get the best price possible before buyers become aware of the “race to the bottom” in terms of pricing. At-risk homeowners are under increasing pressures as pricing, income and other expenses seem to have wreaked havoc with what was a traditionally strong real estate market just three years ago.  It appears the Fed has raised rates just enough to start to show the cracks in the dam in Orange County and LA County, California.  The increasing number of blue dots, as well as the continue “price drops” in these areas, are a very clear sign that the “hot market” is now just “mildly warm and cooling fast”.  Prices are past the peak and are already starting to decline fairly rapidly.
Additionally, delinquency levels for commercial and industrial loans are starting to rise dramatically – much like what happened in 2007 – just months before the credit market crash in 2008.  Commercial and Industrial loan delinquencies rose sharply from 1.14 in Q2 2007 to 1.45 in Q1 2008 – eventually peaking at 447 in Q3 2009.  Currently, Delinquency levels are at 1.17 – up from 0.93 for Q4 2018.  If this trend continues past September, we could be looking at a very different real estate economic picture by the end of 2019 or early 2020 (Source).

CONCLUDING THOUGHTS:

Our interpretation of the US housing market is that buyers are becoming more opportunistic as they are watching the markets and watching how sellers are dropping prices in an attempt to attract a sale.  Buyers have not seen this type of activity since early 2007-08 or so when sellers were getting desperate to get out of their homes near the top of the market.  At the same time, watching how sellers attempt to push their home into the hands of buyers creates a shifting dynamic in the Real Estate market.  All the sudden it went from a seller’s market and is now shifting into a buyers market. The rates of delinquencies, consumer confidence, and levels of disposable income all factor into the market’s reactions to price and sales activity.  When buyers believe it is opportunistic to buy, they will move mountains to attempt to acquire a home or an asset.  When buyers believe it is not opportunistic to buy an asset, they will likely decide to wait for a more opportunistic time to make their purchase. In part II of this article, we will share our research that highlights the incredible trade setup related to the Real Estate market and how technical traders can position their portfolios for this move. I can tell you that huge moves are about to start unfolding not only in real estate, but metals, stocks, and currencies. Some of these super cycles are going to last years. Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. I urge you to visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible, get a FREE BAR OF GOLD and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next set of crisis’. Chris Vermeulen www.TheTechnicalTraders.com

Platinum Setting Up For A Big Price Anomaly

Our clients and followers have been following our incredible research and market calls regarding Gold and Silver with intense focus.  We issued a research post in October 2018 that suggested Gold would rocket higher from a base level below $1300 to an initial target near $1450 almost 9 months ago. As of this week, Gold has reached a high of $1442.90 only $7.10 away from our predicted target level.  This has been an absolutely incredible move in Gold and we could not be more pleased with the outcome for our clients, followers, and anyone paying attention to our research posts. Additionally, many of our clients have been asking us to share our predictive modeling research for Platinum, which has been basing near recent lows recently.  We decided to share our research with everyone regarding the information our proprietary predictive modeling tools are suggesting. You can see from my precious metals comparison article which metal has the most upside potential looking going forward. Also, be sure you read my exclusive Platinum prediction which is playing out exactly as expected thus far. Todays Updated Platinum Analysis: This first Platinum chart highlights our Fibonacci price modeling tool and provides some critical information we need to understand about Platinum right now.  The Volatility Zone, created by the range between the Bullish and Bearish Fibonacci Trigger Levels, is very large.  This is a very clear indication that implied volatility in Platinum is currently at levels near 26% of the current price.  To put that into perspective, an impulse move in Platinum could result in a $125 to $250 price breakout or breakdown, depending on price structure, before implied volatility may reduce back to normal levels.  Normal price volatility in Platinum is typically somewhere between 4.6% to 11.5%. The next aspect of our research we want you to focus on is the rotation of the price peaks and troughs, highlighted by MAGENTA arcs we’ve drawn on this chart.  The rotation of price over the past 11+ months has been a very clear “higher price trend channel” where higher highs and higher lows have been forming. This presents a very clear price picture for the current price levels, near the recent price lows ($765), are very likely to attempt a rally back towards levels that will attempt to set up another “new price high” – $925 or higher.  Although, we have to be very cautious of the extended volatility levels and the potential for a price breakdown into the BREAKDOWN ZONE (highlighted on the chart below).  Should price fail to attempt to move higher, then a very clear price breakdown will take, breaking the current trend channel and invalidating our bullish price predictions. Currently, our researchers believe there is a very strong likelihood of an upside price move breaching the $818 level (highlighted by the WHITE LINE near the BLUE Fibonacci projection level) to begin the upside price move.  Once this level is breached, we would have technical confirmation that a key Fibonacci level has been tested, breached and a new upside price trend is beginning to form.  This would partially validate our upside price expectations and allow us to target a long objective near $865. Obviously, technical traders would attempt to look for strategic entries below $805, if they present themselves.  The concept is to take advantage of the lowest risk trade entries the markets provide.  At the same time, there is plenty of room in the middle of this trade for decent profits as well.
This next chart shows our Adaptive Dynamic Learning (ADL) predictive modeling system that maps out price bars, technical data, and comparative price data into a DNA chain for future reference.  In a way, this tool attempts to “infer knowledge” by digging deeper into the price and technical data than we can attempt to do visually – then project the expected price levels well into the future. This ADL chart is presenting two very clear outcomes.  One with much higher prices and another with lower/stagnant pricing levels that tend to weaken over time.  This result is the output of two different, side-by-side, price bars and it shows how the ADL can highlight increased volatility and what we call a “price anomaly” pattern that is setting up. Obviously, the current price is near these lower ADL predicted levels, thus we could assume the lower predicted levels may be more accurate.  Yet, both of the ADL bars predicted that price would move lower (below $840) throughout this time-span.  Where the ADL predictions diverge is THIS WEEK and into the future.  The analysis from April 29 is suggesting that the price of Platinum should be trading near $845 right now and will breakout to much higher levels (above $930) within the next 1 to 3+ weeks.  The analysis from May 6 is suggesting that the price of Platinum will languish near $760 to $800 for the next 5+ weeks while continuing to weaken. This is the setup of a “Price Anomaly”.  Where price is actually “out of alignment” with one key element of the ADL predictive modeling system and setting up an incredible opportunity for skilled traders. We’ve learned that either one of two things will happen…  Either price WILL revert to much higher levels as suggested by the April 29 ADL prediction OR, the price will stall near recent lows as suggested by the May 6 ADL prediction. As a skilled trader, our job is to understand where the opportunity lies within this ADL prediction and attempt to manage the risks.
As we stated earlier in this research post, the combination of the Fibonacci and ADL predictive modeling systems are suggesting a very clear action for traders – attempt to accumulate below $800 with the expectation that price may continue to consolidate near these levels for 3 to 10+ more days.  Eventually, as our ADL predictive modeling system is suggesting, a breakout upside price move is likely to take place where the price will attempt to move dramatically higher – targeting $850 first, then possibly $935 or higher.  This is the “price anomaly reversion” trade that creates the opportunity for skilled traders. The ADL predictive modeling system is great at suggesting where the price will attempt to target in the near future.  When it aligns with the current price, then we have some validation that price is acting normally.  When price moves against the suggestions of the ADL predictive modeling system, then we have a “price anomaly setup” and we typically wait for confirmation of the “trigger” to confirm this reversion will actually take place.  Our trigger is the WHITE LINE on the Fibonacci chart, above.  Once price closes above $818 to $820 on a fairly strong move, then we would have technical confirmation that price is attempting to establish “new price highs” and this should provide enough momentum to push the price anomaly reversion trade into a real opportunity for success. I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next set of crisis’. I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. Chris Vermeulen www.TheTechnicalTraders.com

Silver Will Pause Before Going Higher

Silver will likely find resistance near $15.60 and move slightly lower before another upside price leg takes place.  Both gold and silver have begun incredible price rallies over the past 10+ days and we believe this is just the start of a much bigger price trend. We believe Silver, to be one of the absolute best potential trades and investment. It will likely pause just below $15.75, near the First Resistance level, rotate a bit lower (possibly towards $15.15), then attempt another rally towards the $16.50 level.

Daily Silver Chart Analysis

The $15.60 to $15.75 resistance level can be seen on this chart by our RED highlighted price peaks. Additionally, the upper RESISTANCE ZONE between $16.15 and $16.78 is a big range that has historically been a key price channel. My cycle and trend trading indicators are suggesting this move is far from over, yet we believe this move upward will happen in advancement legs and this first leg is nearing exhaustion.  This is why we are issuing this warning to all investors right now.  We believe a downward price rotation, a stalling price pattern, will set up where a technical trader will be able to acquire silver below $15.25 again very soon.  The next leg higher may start fairly quickly as we don’t expect this rotation to extend out for many weeks.
See Our Previous Silver Breakout Prediction Call on June 7th

Monthly Silver Chart

This Monthly Silver chart with our proprietary Fibonacci price modeling system suggests upside targets of $17.00 (CYAN), $17.65 (GREEN), and $18.50 (DARK RED).  Our RESISTANCE ZONE level on the chart, above, aligns perfectly with these objectives because the price would first have to rally into the RESISTANCE ZONE and break through this level to push to any higher target levels. Therefore, we believe this upside price move won’t run into any solid resistance until reaching above the $16.30 level and possibly as high as the $16.75 to $17.00 level.  At that point, the price of Silver should find real resistance, stall, and set up for the next breakout move higher.
At this point, if you have not been following our research and analysis of the precious metals sector and already positioned your trades for this move, you should get another chance to set up some long trades as this downside price rotation takes place.  Remember, wait for silver to fall close to or below $15.25 before targeting your new trade entry.  This bottom in silver may only last for a few short trading periods, so when it happens, be ready with your orders.

CONCLUDING THOUGHTS:

The next upside leg in Silver should rally for a total of about +6% to +10% targeting the $16.25 to $17.00 price level – the RESISTANCE ZONE.  After that price level is reached and price consolidates to likely form another momentum base, another upside price leg should push the price of Silver towards our Monthly Fibonacci price targets – somewhere towards $18.00 to $18.50 before stalling again. ! I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next set of crisis’. Chris Vermeulen www.TheTechnicalTraders.com

GOLD CONTINUING TO BREAKOUT BUT IS A CORRECTION DUE?

Chris Vermeulen, Founder of The Technical Traders joins me to a close look into gold – what’s driving the move, what the technicals are saying about this fast move higher, and if a correction is due. We also look at the gold stocks, silver, and USD all within the context of gold.

Be Sure to check out my post on gold stopping later this year – HERE

BECOME A TECHNICAL TRADER TODAY AND TRADE WHAT MATTERS – PRICE ACTION! CLICK HERE

Chris Vermeulen

Natural Gas Sets Up Bottom Pattern

In less than two weeks, our prediction that Natural Gas would move lower into our “basing zone”, between $2.00 and $2.20, has come true.  Natural Gas has fallen into our expected basing/bottoming zone and traders should be looking to target low price entries as the extended setup of this base takes place. You can read our original research post regarding our Natural Gas analysis from June 10, 2019: NATURAL GAS MOVES INTO BASING ZONE It is our belief that anytime Natural Gas falls below $2.20, or lower, traders should consider jumping into NG related ETFs or NG future as this bottoming zone will likely push NG back above $2.35~$2.40 fairly quickly.  Historically, any price move to levels closer to $2.00 have been very strong support for Natural Gas and this early basing pattern is setting up for an incredible opportunity for traders. Ideally, we are expecting an upside the month of July to represent continue basing/bottoming in NG where we expect NG prices to rotate between $2.00 and $2.75.  There is a moderate change that NG prices may attempt a move above $2.75 after July 20. We believe August will result in a sideways downward sloping price pattern that may last only through the first 10 to 15+ days of August.  The month of August is typically relatively muted in terms of price trend but includes greater price volatility – bigger price bar ranges. The big breakout move will likely begin to happen in late August or early September.  September, October, and November are all historically strong months for NG.  September is the strongest month historically, October represents about half the upside strength of September and November represents, again, about half the upside strength of October. Overall, this basing/bottoming pattern in NG is something skilled traders do not want to lose focus of.  The opportunity at these sub $2.25 levels is incredible if traders are able to time their entries and plan for the August/September upside price launch.  Looking back at historical price patterns, we could begin an upside price bias (a slower moving upside price trend) in early July.  After NG hammers our a bottom near this $2.00 level and settles near support, the new trend should become evident as an upside price bias before the August/September liftoff. This Daily NG chart shows the RED and CYAN Fibonacci projection levels (near $2.18 and $2.28).  These levels will act as both a floor and ceiling for the future price as the basing pattern continues.  Any breakdown in price below $2.18 would be a great entry level for skilled traders.  There is a potential that price could drift a bit lower, possibly down to near $2.00 over the next few weeks, but we believe the basing/bottoming setup is beginning and support will be found above $2.00.
This Weekly NG chart shows a BLUE rectangle that highlights the support level identified by our proprietary Fibonacci price modeling system.  Right now, this support level is between $2.10 and $2.30.  These Fibonacci downward price projection points on the Weekly chart represent expected levels/targets for downward price SUPPORT to form.  In other words, from the last price peak, price should move lower and target these Fibonacci projected targets where they will likely stall, bottom or attempt to find support – potentially setting up a new price “trough”. We believe the next upside price move will happen between now and July 25th where NG will move from the $2.15 level to somewhere near $2.55 to $2.65.  After that move, we expect the price of NG to stall briefly before beginning another leg higher towards $3.00 or higher.  Our expectations of that last leg are that it may begin near mid-August and really begin to accelerate as we get closer/into September.
Remember, this is a very early set up – we still have 40+ days of expected basing/bottoming before any real upside potential is likely.  Now is the time to trade this as short term 4~8% price objectives taking very skilled trades near the low price levels and targeting quick profits.  As we enter July and move into August, we suggest traders switch from the short-term scalping mode and begin to consider the September, October & November historical price patterns to truly understand the upside potential. Take a look at that huge move in 2018 over those same three months (September, October, November) in the chart above.  That move started from the $2.65 level and ran all the way up to near $5.00.  The same thing could happen again this year with price originating from a $2.00 basing level. I can tell you that huge moves are about to start unfolding not only in the energy sector but in metals, and stock indexes and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand guide and charts. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

CONCLUDING THOUGHTS:

In short, Nat Gas is oversold and showing signs of a bounce. As a technical analysis and trader since 1997 I have been through a few bull/bear market cycles, I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. Take a look at my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own. Chris Vermeulen www.TheTechnicalTraders.com

Next Bull and Bear Markets are Now Set Up

Sharing market analysis and my opinions every day is far from easy and sometimes I feel like a song on repeat. My focus and goal has always been to try to alert fellow traders and investors of what is unfolding now in the financial markets around the globe because it appears we are about to experience another financial life-changing event much like the 2000 stock market top, and the late 2007 bull market top which will play out over the next 24+ months If you lost money during the last bear market then you need a new game plan to take advantage of falling prices and the solution is not just to by gold, silver, and miners. In fact, you could lose a lot buying and holding them over the next year if you are not careful. We all know what the precious metals sector did during the last equities bear market (they crashed 64% with the stock market before starting to rally).

2007 Bull Market Top – SP500 and XAU Gold Miners Index

From a technical analysis standpoint, we are still a long ways away from a confirmed bear market. We do need a see a rather larger drop to break the December low we saw in the SP500 index. But, each month more warning signs pop up to confirm we would be in a full-blown bear market b the end of 2019.

Miners Are Outperforming US Equities – Top Is Near!

Last month I talked about how I have been waiting for gold miners to start outperforming the US stocks market. Once miners start outperforming in a big way (just like we saw in 2007), we know the stock market is topping out and something really bad is about to happen. In the last couple of weeks, the gold miners index is up over 16% while the SP500 is up only 6%, this feels like the start-of-the-end if you know what I mean.
It’s a known fact that stock market prices lead earnings, news, and the economy. Stock prices start to flatten, chop sideways, and sell off typically 3-6 months or more before negative data starts to become daily headline news. I have been predicting a top for form since early 2018 with the book I co-authored called “The Crash of 2019 and 2020 – How You Can Profit” only available to subscribers of the Wealth Building Newsletter.
I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand guide and charts. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

Concluding Thoughts:

In short, the financial markets including commodities move in a wave like pattern and you want to own them and be to long when they are rising, and in cash or sell short (inverse ETF) when they are falling. Everyone is excited about the gold, silver, and miners market here and now, but if everyone already owns them, and is buying more, that’s the signature herd/masses set up that we could see that market pullback hard here at any time. The reality is, we just sold our gold and miners position because we expect a pullback/correction. Just like we played that last move in metals from the Sept bottom we called and exited near the top in mid-March. I got lots of flack for selling because everyone was SCREAMING BULL MARKET FOR METALS/MINERS (just like now) but what followed, yup a multi money correction that allowed us to take the next wave in this market which we just closed the positions. The reality is, we never know which rally will be the TRUE breakout rally, and which selloff ill be the one that starts a new down trend, but we must stick with strict trading rules for long term consistent gains. We can reenter a position at any time with a click of a button and I don’t get worked up if I don’t get in at the exact bottom or out at the exact top because that is just called luck. The key is to get the middle low-risk gains, time and time again.
FUN FACTS FIFTEEN 5% WINNERS = 107% ROI JUST $500 PROFIT PER/MONTH = 30% ROI WITH $25K ANNUALLY POSITION SIZING = TRADING SUCCESS
As a technical analysis and trader since 1997 I have been through a few bull/bear market cycles, I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. I urge you visit my Wealth Building Newsletter and if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own. Chris Vermeulen www.TheTechnicalTraders.com

How To Time Market Tops and Bottoms

On this first full weekend of Summer, we thought we would revisit our June 3, 2019 research post regarding a price pattern we love to trade – the Fibonacci Extension Bounce.  This pattern sets up fairly often and the key to understanding this pattern and where these trades present real opportunity is in understanding the price dynamics behind these extensions.  There are many instances where a Fibonacci price extension level will fail to promote a price bounce or rebound – and the price will just keep trending higher or lower past the extension level. You can read our original research post here that clearly shows the bottom and our price targets. Pay very close attention to the price levels and setups of the charts within that June 3, 2019 post.  These setups are based on what we term a “100% Fibonacci Extension” from a previous trend reversal (peak or valley).  The concept of this trading pattern is that the initial “impulse” price move sets up the first leg of a move.  The retracement price move sets up the entry trigger for the second price leg – the next 100% price leg.  The bottom, in this case, of the second 100% price leg sets up the “end of the move” and the potential for a price rotation in the opposite direction (likely resulting in a 38% to 61%+ retracement move). In both instances of our June 3 calls, Crude Oil and the ES followed-through exactly as we predicted. This first chart of Crude Oil shows how price bottomed near $52 and has recently advanced to levels near $58 after reaching the 100% Fibonacci extension levels.  As this move higher extends to levels near the ORANGE moving average line on this chart and/or beyond the $58 to $59 target level we originally drew on our June 3rd charts, we would consider the upside price move “completed” based on our expectations.  Yes, these types of trend could extend even further beyond our expectations.  But our objective, as skilled traders, is to target and profit from the highest probability objectives – which was the move from $52 to near current price levels. Follow the MAGENTA lines on these charts to see the Fibonacci Extension Pattern Setup.  They are not hard to see on the charts when your eyes are trained to identify them.
This ES Daily chart shows the incredible +230 point rally that took place after our June 3 research post and after the Fibonacci extension pattern completed.  It is really hard to miss the opportunity with a move like this.  Again, follow the MAGENTA lines on this chart to see the Fibonacci Extension pattern setup. At this point on the ES chart, the upside price rally has resulted in a 161% (roughly) upside price advance of the previous Fibonacci Extension pattern (last leg).  This upside price leg range, 161%, suggests the upside price move should be close to ending soon.  There is a possibility that price could advance to levels near 200% of the previous price leg range, but traders would be chasing a 25% further upside advance that may only be a low probability outcome.
Our advice for skilled traders is to pare back existing open long trade positions near these new all-time highs.  The price advance appears to have reached levels that suggest the upside advance may be nearing an end point for the US stock markets.  After such a big upside price leg, we have to be cautious near these new all-time highs that further price rotation may become a concern. Oil, on the other hand, could continue to rally because it has only advanced 61% of the last Fibonacci 100% price leg.  The global concerns regarding Iran and the US, as well as global economic concerns, could push Oil back up to the $60 to $62 level before reaching a peak. Over the past 21+ months, we’ve highlighted some of the best tools and techniques we use to find great trading signals.  This one technique, the Fibonacci 100% Price Expansion Leg, is just one of the tools we use to find trades and targets for our trade alerts for members. The more one understands how price works and how the markets operate as a Symphony of price actions, one can find opportunities for great trades almost all the time.  Skill and experience make the difference when deciding when to trade and what to trade and that’s what we provide. More eye opening charts on currencies and gold here We’ve now shown you two different price setups using Fibonacci price theory and the only thing we have to do is wait for a technical price confirmation before finding our entry trade.  We’ll see how this plays out over the next few days and weeks.  Remember, we are not proposing these as “major price bottoms”. They are “upside pullback trades” (bounces) at this point.  A bullish price pullback in a downtrend.

BECOME A TECHNICAL TRADER TODAY AND  TRADE WHAT MATTERS – PRICE ACTION!  CLICK HERE

Chris Vermeulen

Summer is Breaking Out—and so is Gold – Weekly Wrap-Up

Summer is Breaking Out—and so is Gold - Weekly Wrap-Up (June 21, 2019)
Today marks the summer solstice: the official first day of summer and the longest day of the year. And as gold continues its breakout, it could be a long day indeed for bankers. On this edition of the Wrap-Up, Eric Sprott gives you all the gold and silver news you need, including: • Why top of range targets aren’t as crazy as they might seem • How the breakout will affect the mining shares • Plus: Why the U.S. price will catch up fast “I love going back to the call we had three weeks ago, when I said I’d read an article that I really believed in that suggested gold would have a rally for 5-7 weeks… We’ve had three of them now! This rally started at $1275. We’re at $1400. That gentleman, Chris Vermeulen, and I’ve got to give him credit for being prescient… The first target was $1450, but he actually thought it was going to go to $1650. And I want the listeners to think about that: $1650! What would happen?”   Chris Vermeulen Comments: We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts. I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super cycles are going to last years. These super cycles starting to take place will go into 2020 and beyond which we lay out in our new PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:
1-Year Subscription Gets One 1oz Silver Round FREE (Could be worth hundreds of dollars) 2-Year Subscription Gets TWO 1oz Silver Rounds FREE (Could be worth a lot in the future) SUBSCRIBE TO MY TRADE ALERTS AND  GET YOUR FREE SILVER ROUNDS! Free Shipping! Chris Vermeulen Founder of Technical Traders Ltd.

Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls

The Federal Reserve announced they were leaving rates unchanged on Wednesday, June 19.  The markets were expecting this or a quarter percent price decrease.  Initially, the markets reacted to the news by moving to the downside recently. The markets immediately reversed the upside rather dramatically showing that investors believed that that may move into an easy stance within a few months. The big movers after the bad news which we expected were in gold, silver, miners and the US dollar.  Subscribers locked in another 17.4% winning trade on this fed news while the US dollar rotated lower on Tuesday, June 18 prompting a further downside move after the bad news. It is very likely that the US dollar will move lower an attempt to retest support near 96.50.  A weakening US dollar will help to support the US stock market and precious metals prices.  Additionally, a weaker US dollar will help support trade, economic growth, employment, and GDP output.
We believe the US stock market is nearing upper resistance.  We still believe the US stock market will eventually attempt to move about the psychological levels of 3000 for the S&P, 30,000 for the Dow and 340 SPY.  This move to new all-time highs will likely result in a ”scouting party” type of price pattern where price attempts to identify new resistance, slightly above the psychological levels, then reverses back below these levels to retest support. Our continued belief that a large pennant/flag formation is unfolding has not changed. As technical analysts, we need to wait for the new price peak form before we can identify where the upper channel of the pennant/flag formation is trending. We would urge traders to be conscious that any outside move in the stock markets as a very limited upside potential from current levels. The SPY is trading at 293 and we believe upper resistance will be found slightly above 300. Thus, we really have about a $7 or $8 move to the upside from current levels – only about 3% to 4% more room to the upside.
The transportation index paints a very clear picture of price channels, support and resistance, and expected price rotation going forward. The current price channels indicate a high target area near 5250.  This upward channel range is still only 3% or 4% higher from current levels. After this peak level is reached the market should reverse downward attempting to retest support. We believe we are very close to a market top at this point and believe that the US stock market may attempt to move above the major psychological levels – as indicated above. There are a few items which could change our outlook currently. A.  Positive news regarding trade issues with China B.  Renewing or new central bank easing policies C.  Any type of dramatic positive economic news D.  China attempting to resolve banking issues by taking the problems and addressing them with capital/gold reserves. Ideally, there are quite a few opportunities for the stock market rally far beyond the psychological levels. Yet with only about 14 months to go before the US presidential elections and no indication that any of our four critical components for renewed price advance are anywhere close to being accomplished, we hold to the belief that the markets will complete the Pennant/Flag formation as we have originally been stating.
We urge traders to pay attention to precious metals and the US and foreign stock markets as we enter this critical phase of the market. We believe the US stock market will continue to rotate within the channels clearly on the transportation index chart.  We believe any excessive fear will become evident in the bond markets and precious metals well before the US stock market rotates lower. In our opinion, this is not the time to buy into technology or the US stock market expecting a massive breakout to the upside. We are urging our clients to be very cautious over the next 30 to 60 days and to trade with short profit targets in mind. There are a lot of moving components throughout the global economy and we are urging our members to be very aware of the larger patterns that are setting up. Our super cycle research has given us a very clear picture as to what to expect over the next 16 months or longer. We have a good pulse on the major markets and can profit during times when most others can’t which is why you should join my Wealth Trading Newsletter for index, metals, and energy trade alerts. Visit our website to learn how you can see what this research is telling us. I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:
1oz Silver Round FREE 1-Year Subscription TWO 1oz Silver Rounds FREE 2-Year Subscription SUBSCRIBE TO MY TRADE ALERTS AND  GET YOUR FREE SILVER ROUNDS! Free Shipping! Chris Vermeulen