MARKETS ARE AT CRITICAL 50-DAY SMA
Chris joins Moe Ansari on Market Wrap with Moe to discuss the markets (starting at Minute 24:00). Moe and Chris suggest the markets are in a very strange place – the technicals and fundamentals seem totally disconnected. The technical trend for the market remains upward, although we are likely in bubble territory, caused by Fed intervention and Robinhooders. Bubbles can go on for years, so even though prices are high the trend remains your friend. Stay alert – be cautious – and always revisit your trading strategy when markets are changing rapidly…Read the Entire Article (click here)
GLOBAL MARKETS BREAK HARD TO THE DOWNSIDE – WATCH SUPPORT LEVELS
- New reports of widespread financial corruption likely triggered the current sell-off.
- Watch out for market support levels to see if this is a short-term correction or the start of a downtrend.
- Support for the DOW is just above 26,000.
- Support for the SP500 is around 3,100.
US and global markets were already under pressure over the past few weeks related to COVID-19 issues and global economic expectations. The technology sector had driven valuations to levels not seen since the DOT COM bubble near the end of August and many of the US Indexes has reached or breached all-time highs again. My research team and I warned followers to “stay cautious” throughout much of the price rally as our proprietary price modeling systems suggests the rally was isolated and not organic. The US Fed has spewed capital into the markets and speculative traders piled into the “excess phase” of the market to drive price levels higher. Take a moment to review these recent research posts to learn more:..Read the Entire Article (click here)
PLATINUM AND PALLADIUM SET TO SURGE AS GOLD BREAKS HIGHER
- Gold will target the $2,250 level before stalling and attempting another upside price rally targeting $2,500 or higher.
- Silver will target the $33 price level when the current upside move builds enough momentum, then target $38 or higher.
- Our next upside price target for platinum is $1,410, representing a +52.4% upside price target.
- Palladium bottom in March 2020 was near $1,357. We expect a new upside price target for Palladium near $3,663 once it has broken out past current resistance levels.
If you have been following my research for a while, you are already aware of past research posts suggesting Gold and Silver will advance in multiple upside price legs over the next 90+ days. Gold will target the $2,250 level before stalling and attempting another upside price rally targeting $2,500 or higher. Silver will target the $33 price level when the current upside move builds enough momentum, then target $38 or higher…Read the Entire Article (click here)
CHRIS TALKS GOLD, OIL, AND THE US DOLLAR WITH JIM GODDARD
Chris joins Jim Goddard from the Goddard Report to talk about the upside potential for gold miners. Traders and investors seem bored with stocks so other sectors are picking up. Chris reviews sectors that are coming to life, like real estate and biotech, as well as those in a bearish pattern like crude, the energy sector as a whole. and bitcoin….Read the Entire Article (click here)
IT’S GO TIME FOR GOLD! NEXT STOP $2,250
- Gold Pennant/Flag formation is now complete and setting up new momentum base near $1,925.
- Our Adaptive Fibonacci Models suggest support will prompt new Gold rally to $2,250.
- The rally in Gold will continue to extend higher over the next 4+ weeks.
- The US Dollar may move lower and/or the US stock market may break recent support to prompt this new rally in Gold.
If you are a follower of my research, then you know I follow gold and silver closely. I believe Gold has completed a Pennant/Flag formation and has completed the Pennant Apex. Further, a new momentum base has setup near $1,925~1,930, near the upper range of our Adaptive Fibonacci Price Modeling System’s support range. My team and I believe the current upside price move after the Pennant Apex may be the start of a momentum base rally targeting the $2,250 level or higher…Read the Entire Article (click here)
MAKE OR BREAK – BIG TRENDS AHEAD
- Although our modeling systems have recently switched into Bullish Trending mode, we are still very cautious of a Bull Trap pattern.
- Bearish technical divergences between price and RSI with an election 50+ days away indicates market weakness and money rotating out of FAANG stocks. FAANGs are at make or break levels – it’s time to act not react.
- 11% to 22% price rotation ranges are in play – are you ready?
My research team recently highlighted the current market trend setup over the past few weeks as cautiously bullish while watching for a potential Bull-Trap setup. We have been warning our followers of the risks associated with a Presidential election year event as well as the continued disconnect between the market rally and the real-world economy. These next few days and weeks will make or break the markets so we encourage you to pay attention to this article…Read the Entire Article (click here)
SPECIAL ALERT: MASSIVE DUAL HEAD-AND-SHOULDERS SETUP
- Dual Head-and-Shoulders patterns warn of a potentially big downside move and new highs may be a trap for bulls
- Valuation levels suggest the broader US stock market is lagging
- Precious metals continue to warn of risks
- The market “melt-up” may be nearing an end
My research team is issuing a Special Alert Warning after the NASDAQ and SPY reached new all-time highs. Our research team identified a massive Head-and-Shoulders pattern (highlighted in BLUE) that originated in 2014, set up a “head” in 2018, and is now forming a “right shoulder” spanning 2019 and 2020. Additionally, a minor Head-and-Shoulders pattern is setting up on the right side of the chart below (highlighted in MAGENTA) that peaks in early February 2020 – just before the COVID-19 price collapse. Will this dual Head-and-Shoulders pattern prompt a massive downside price move over the next few weeks and months, or will the US stock market continue to rally higher – breaking the resistance level the shorter-term “head” (near $174) and keep going?…Read the Entire Article (click here)
SPY EXPECTATIONS FOR THE REST OF SEPTEMBER
- Over the past 28 years, the SPY has gained an average of 3.45% in 15 of those years; it has fallen by 6.42% in the other 13 years.
- The critical support level for SPY is 332.85. If the SPY finds support at this level then you can expect continued, moderate price increases.
- Prepare for a moderate increase in volatility for the rest of September – watch the VIX.
My research team and I have been pouring over the charts in an effort to attempt to identify any support or weakness related to the increase in volatility over the past 7+ trading days. The VIX is currently at 29.71 after reaching a high of 38.28. We believe the increased price volatility is here to stay – at least through the end of 2020. This means skilled technical traders should prepare for some potentially large and aggressive price swings over the next few weeks and months….Read the Entire Article (click here)
TIME TO FOCUS ON OIL BREAKING DOWN AND GOLD’S REVERSAL
In the podcast with Cory Fleck from the Korelin Economics Report, Chris kicks off today with a focus on key moves in oil and gold. Oil has finally broken below the $40 level which opens up the door to much lower prices. For gold, was Tuesday a key reversal in the correction or just the yellow metal staying within its current range?...Read the Entire Article (click here)
ARE FANGS GOING TO BREAKDOWN SOON?
- FANG Index may begin to peak/top as RSI Divergence pattern sets up.
- Dow Theory trend divergence confirmation suggests the end of the “Excess Rally” is near.
- The VIX moving higher suggests greater concerns of increased volatility.
- Dow Jones Utility Index moving lower on increased volume may be the key in a multiple-pattern set up that will confirm larger market trends.
For some context into today’s research article, please review our recent Dow Theory Trending article from last week. We believe the divergent trend between the Dow Jones Industrial Average, the Dow Jones Transport Index, and the Dow Jones Utilities are keys to understanding the current market setup. Today, the Utilities are moving lower with moderately increased volume while the $INDU and $TRAN are both moving higher. We strongly believe we are very near to a peak in the US stock markets based on Dow Theory and the divergent trends between these three indexes...Read the Entire Article (click here)
GOLD IS FLAGGING OUT – BREAKOUT RALLY TARGETING $1,950 OR HIGHER IS NEXT
- Gold Found Support Near $1,945- Right Where We Expected
- Gold Setting Up A Pennant/Flag And Is Nearing The Apex
- Another Measured Move Is Setting Up – Targeting $2250 Or Higher
- Silver Should Rally To $36 Or Higher When Gold Breaks
Nearly every Precious Metals/Gold enthusiast that follows our work has been emailing or messaging us asking about the next rally phase for Gold. Thank you for all of your messages and supportive comments. If you have not been following along, please review our recent research on gold and silver price moves, the rally in platinum, and detailed 2020/2021 price forecasts for gold and silver.
After watching the VIX start to move higher last week while the S&P and Dow Jones pushed to new all-time highs, our research team has been actively studying the Pennant/Flag formation in Gold that has been setting up. Our “Measured Move” article suggests support near $1,945 will act as a launchpad for an upward price advance to levels near $2,150 or higher. As the momentum of this upside price move continues to build, as we’ve recently seen with the last upside price leg, we believe the $2,200~$2,250 could be the next real upside price target for Gold…Read the Entire Article (click here)
IS THE BULL TRAP COMPLETE? ARE WE FLAGGING OUT INTO A CORRECTION?
- Speculative traders and “reality event” distractions have pushed the US markets into a perfect “Bull Trap”.
- Our Custom Charts highlighting the Smart Cash, US Stock Market, and Valuation indexes are clearly signaling warnings of a pending correction.
- A failure of price near current highs would complete the “Bull Trap” pattern and potentially send prices 11% to 15% lower in short order.
- Stay very cautious with your investments throughout the end of 2020 and beyond.
Some of you may be old enough to remember when Desert Storm started in January 1991. The news of this war took the US and the world by storm – almost literally. It was televised and it changed the way people lived their lives at that time. People were almost glued to the TV watching the videos and satellite feeds. It turned into the ultimate reality TV series – must see TV.
The US markets reacted to this foreign engagement. At first, the markets rallied for about 7+ weeks in early 1991, then they started to consolidate below resistance. For many people and businesses, this new reality event presented very real challenges for revenues and growth. Many businesses were forced to close because of the sudden shift in consumer activity and concerns. The reason I’m bringing this up right now is because I believe we are experiencing a new type of “reality event” (actually events) that has transitioned to become a driving force in the markets, namely COVID and the protests/riots in many cities across the US….Read the Entire Article (click here)
EXPANDING WEDGE MAY PROMPT BIG PRICE CORRECTION – COULD A BIG TOP BE SETTING UP RIGHT NOW?
- The Monthly S&P500 E-Mini Futures chart is revealing an Expanding Wedge pattern that has been setting up since Jan/Feb 2018.
- The VIX has set up a base and begun to move moderately higher over the past 7+ days – above the 20.00 point level and above the GAP created by the initial COVID-19 selloff.
- Our Custom Volatility Index chart warns of a “bull trap” set up, and we may see an 11% to 15% (or more) sell-off in the US and global markets if the Custom Volatility Index collapses below 10 over the next few weeks.
- Are These Technical Setups Warning That A Market Top Is Forming?
I want to bring this large expanding wedge pattern to your attention as my research team and I watch the markets continue to push to new all-time highs. This is a follow on to our research from our Special Alert report warning of Head-and-Shoulder patterns in some of our custom charts. We know it may sound a bit alarming to be the one to bring up a potentially devastating Bearish technical pattern at this time, but as technical traders, we must stay aware of risks even if they may not materialize. Trading is a process where we take measured risks in an attempt to generate profits over time. Risk becomes a very big issue if it is not properly managed – just as trading becomes very difficult if one doesn’t learn to take profits in good trades…Read the Entire Article (click here)
DOW JONES UTILITIES BREAKING TREND
- Dow Theory suggests indices must confirm each other and volume must confirm the trend.
- The new downward trend in the Dow Utilities Index suggests indices are starting to break apart in terms of trending in unison.
- Volume recently has been trailing lower, which suggests the momentum behind these new all-time highs is weakening.
- If the Utilities Index continues to move lower and we see increased volume in the selling trend, we will consider the Dow Theory Trend component “broken” and expect a major peak/top soon after.
We know some of you are Dow Theory enthusiasts and followers. We follow the Transportation Index as a leading indicator for potential major market trends almost exclusively because of what we have learned from Dow Theory. If you are unfamiliar with Dow Theory, we suggest visiting Investopedia’s summary of this technical theory for a quick refresher. You can also learn more about the primary indicator in Dow Theory here. The two most important aspects of Dow Theory that we are researching today are two components:..Read the Entire Article (click here)
LOOK FOR PLATINUM TO RALLY – FOLLOWING GOLD
- Platinum may be setting up in a technical pattern that is similar to the end of 2001/early 2002.
- Platinum could rally more than 300%, somewhere near $3,450 or higher.
- This might push Gold above $7,500 an ounce and may push silver somewhere north of $125 per ounce.
- Rally hinges on platinum breaking out above $1,050.50.
Platinum may be setting up in a technical pattern that is similar to the end of 2001/early 2002. At that time, Gold had already begun to rally above $340 and Platinum had rallied to levels above $600. Then, while Gold continued to rally, Platinum contracted to price levels near $400 on diminishing volume. Once that contraction was complete, Platinum began and upside price move with stronger volume levels which lasted almost seven years – reaching a peak above $2,300. Could the same setup be happening right now?..Read the Entire Article (click here)
AS THE S&P HITS ALL-TIME HIGHS – ARE INVESTORS BEING TOO COMPLACENT?
Chris talks with Cory from the Korelin Economics Report about the US markets’ recent break to all-time highs. Chris explores the volume, breadth, and money flows to determine where the markets could go from here. The markets seem to have fallen into a new norm where 1+% market movements are expected. Volumes and volatility are low right now, which favors higher prices, so when the markets turn we expect a violent turn….Read the Entire Article (click here)
PRECIOUS METALS CYCLES DEMAND ATTENTION
- With Gold trading above $2,000 for the first time and Silver trading near $27.50, you need to understand the risks in the markets that precious metals are warning of.
- If Gold breaks above $2,400, then there is a very real concern that the global markets could be close to some type of decline/collapse event.
- We believe the upside potential in precious metals could drive a very wide sideways market rotation, similar to what happened between 1999 and 2011, over the next 3+ years that may catch many off-guard.
Over the past few weeks and months, my research team and I have been actively publishing this research to help you better understand what is really happening in the markets right now. With Gold trading above $2,000 for the first time and Silver trading near $27.50, skilled traders need to understand the risks in the markets that precious metals are warning of. Think of it like this, as long as Gold continues to trade near or above $1900, the risk levels in the global markets are at extreme levels for traders and investors. If Gold breaks above $2,400, then there is a very real concern that the global markets could be close to some type of decline/collapse event….Read the Entire Article (click here)
PRESIDENT TRUMP SIGNS ADDITIONAL COVID RELIEF – WHAT TO EXPECT FROM THE MARKETS
Up until the end of the last week, Republicans and Democrats were locked in heated negotiations regarding the size and scope of pending COVID-19 relief efforts. Our researchers had little hope that any negotiations would be successful given the two sides were so far away from one another in terms of wants and wishes.
On Saturday, August 8, 2020, President Trump signed a new Executive Order (and memorandums) to provide additional relief from the coronavirus that continues to spread in the US and around the world. These measures provide for as much as $400 in enhanced unemployment payments, and also offer Americans with temporary payroll tax relief, student loan deferments, and assistance to homeowners and renters…Read the Entire Article (click here)
MORE ON GOLD AND SILVER – THE REALITIES OF $5,000 GOLD
Adam Feather interviews Chris Vermeulen, on ‘Finance in Five’ where they explore what the rest of the economy will look like with $5,000 gold and the importance of owning some bullion (and not just precious metal ETFs). They also explore how to protect yourself in a market crash/correction, the fate of the US$, and China’s new digital currency…Read the Entire Article (click here)
MELT-UP CONTINUES WHILE METALS WARN OF RISKS
What a week for Metals and the markets, folks. The Transportation Index is up nearly 4% for the week. The Dow Jones Industrial Average is up over 3% for the week. Silver is up over 14% and reached a peak near $30 (over 23%). Gold is up over 2.5% and trading above $2025 right now – with a peak price level near $2090. If you were not paying attention this week, there were some really big moves taking place.
Overall, our research team believes the current “melt-up” price action is likely to continue as global investors continue to believe the US Fed will do everything possible to save the collapsing world economy. We are nearing a critical juncture in price, as you can see from this YM Weekly chart below. A series of lower highs has set up since the peak in February 2020 which suggests some new price weakness may lie just ahead – but until we see a substantial downside price move triggering a new bearish trend (a closing price below $26,000), then we must assume the melt-up will likely continue….Read the Entire Article (click here)
Silver: Black Swans, Shortages, Shorts, and Price Targets. Chris Vermeulen – Aug. 4, 2020
Extensive half-hour discussion exclusively about Silver: Watch the Entire Video (click here)
PRECIOUS METALS WARN OF INCREASED VOLATILITY AHEAD
Our trading team witnessed a big drop in Platinum and Palladium prices early this morning while Gold and Silver continued to push moderately higher. We began to question this move and investigate any historical relevance to previous patterns. Our research team pointed out that both Platinum and Palladium rolled lower just 3 to 4 days before the breakdown in the US stock markets on February 24, 2020, while Gold and Silver were reaching recent price peaks. Could the patterns in precious metals be a warning of another potential volatility spike and price decline in the near future?…Read the Entire Article (click here)
$100 SILVER ON ITS WAY
Chris Vermeulen and Kerry Lutz talk Gold and Silver in today’s video podcast of Financial Survival Network. Listen to Chris and Kerry talk about Gold, Silver, Bitcoin, and Oil. Silver is on its way to $100 once it passes resistance at $44...Read the Entire Article (click here)
THE FEAR TRADES ARE HERE!
Cory Fleck and I kick off today with a focus on precious metals. Gold and Silver have been extremely volatile but remain in an uptrend, with most other safe-haven assets such as Bonds, Utilities and Consumer Staples. The outperformance of safe havens against the US markets is key...Read the Entire Article (click here)
TECHNICAL PATTERNS, FUTURE EXPECTATIONS AND MORE – PART I
We get a lot of questions from individuals every week. Our research posts contain a lot of varied examples of Technical Analysis, Economic Data Points, Advanced Price Theory, and other more obscure analysis techniques. Yet, sometimes our readers want to know more – how do we read the tea leaves to try to adopt a consensus approach to trading, investing, and hedging the global markets at times like these?
The easiest answer is that we are a team of technical researchers and analysts. Every day we are watching our proprietary modeling systems, various market symbols, and technical/price setups that occur throughout the globe. Because we specialize in US stocks, ETFs, and Futures, our concern is how the US market will react to these impulses. Having said that, we explore ideas about how capital will flow from one asset class to another over time as various rotations in the global market take place…Read the Entire Article (click here)
TECHNICALS SUPPORT GOLD’S RISE, US$2,000 IS NEXT RESISTANCE
The gold price has been on a tear for the last week or so, rising from around US$1,800 per ounce to above US$1,970.
The yellow metal’s swift increase has taken it through the crucial US$1,900 level and past its previous all-time high of around US$1,920, set in 2011.
But is gold’s ascent sustainable from a technical standpoint? According to Chris Vermeulen, chief market strategist at TheTechnicalTraders.com, the answer is “yes,” and there are more gains in store for the precious metal…Read the Entire Article (click here)
The gold standard sooner or later will return with the force and inevitability of natural law, for it is the money of freedom and honesty.” — Hans Sennholz
Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood. For these few gold has been the asset of last resort.” — Antony C. Sutton
“Borrowers will default. Markets will collapse. Gold (the ultimate form of safe money) will skyrocket.” — Michael Belkin
“I like gold because it is a stabilizer; it is an insurance policy.” – Kevin O’Leary