REVISITING OUR OCTOBER 23 FOUR STOCKS TO OWN ARTICLE – PART I
Just before the US Elections, we authored an article related to four stocks/sectors that we thought would do well immediately after the November 2, 2020 elections. The article highlighted how sector rotation in almost any market trend can assist traders in finding solid trading triggers. We picked four stocks from various sectors for this example:
When you review my Yahoo! Finance article from October 23 and the November 6 follow up article related to these stock picks, you will quickly see that all of these stocks exhibited similar types of technical patterns. They were all bottoming in an extended rounded bottom formation and had all started to near a Pennant/Flag Apex in price. Additionally, many of them, with the exception of SILJ, had set up a very clear RSI technical divergence pattern over the course of setting up the extended bottom in price.
My research team and I selected these stocks because of key expectations related to the post-election mentality of investors related to various sectors. First, the cannabis sector had a number of new US states approve cannabis legislation – providing for an expected increase in business activity for the entire cannabis sector. Second, no matter who won the election, another round of stimulus was likely to be approved resulting in increased economic opportunity for companies like GE and AAL. The Travel and Leisure sector still had its risks as a surge in COVID cases could greatly disrupt future travel expectations. Junior Silver Miners was our “hedge trade”. If none of these other stocks started to rally, then Silver Miners would likely move 15% to 20%+ higher over time...Read the Entire Article (click here)
THE BAN HOTLIST TRADE SETUPS SHOW INCREDIBLE SUCCESS AT THE START OF 2021, LEARN HOW YOU CAN TOO!
Even though our BAN Trader Pro strategy and systems have just been released to members, the early price rotation in 2021 has shown how powerful it can be in the first week. Early 2021 BAN Hotlist triggers, used as discretionary trading signals for members, have caught some incredible early success recently.
The BAN Trader Pro system allocates trading capital into four high momentum ETFs with each new leg up in the stock market that meets the BAN trigger setup. This allows BAN Trader Pro members to capitalize on the strongest sectors presenting the highest BAN momentum ranking. We are able to target stronger trends with reduced draw-downs and risks by focusing on the best assets to own (BAN: Best Asset Now) and trading only the best assets when proper alignment between the market and these momentum sector BAN setups occur.
One of the best-added values for our BAN Trader Pro members is the BAN Hotlist. This is a daily list of the BAN sector setups which also includes new BAN triggers that fall somewhere below the top ten BAN ranking sectors. This allows our BAN Trader Pro members to make additional trades, as they like, or use the information from the BAN Hotlist to compliment their own strategies. as a discretionary trade. These explosive trade setups coupled with our detailed position management guidelines packs a powerful punch for the growth of any account using them…Read the Entire Article (click here)
PRICE AMPLITUDE ARCS/GANN SUGGEST A MAJOR PEAK IN EARLY APRIL 2021 – PART I
W.D. Gann mastered price trends (angles/slope) and time in relation to predicting future price trends and peaks/troughs. Over the years, my team and I have done some research related to W.D. Gann’s theories and have come to a simple understanding of some of these concepts. In this article, we will review his primary theory that past price trends may help to predict future price peaks using angles/slopes and time factors.
After the bottom in 2009 at the peak of the Credit Crisis, a new upward price trend set up a very clear price slope by tracking the lows from 2009 through 2010. We’ve drawn a CYAN colored line across those lows on the Monthly SPY chart (below). As we follow this trend through the 2011 to 2020 price activity, you can see this trendline was breached in late 2011 – where this upward sloping trendline became a resistance level going forward. In 2015, price briefly touched this CYAN trendline, and just recently, in 2020, price again touched and breached this trendline…Read the Entire Article (click here)
BITCOIN RALLIES ABOVE $28,300 – IS THIS THE PEAK?
We hope you enjoyed the brief holiday break… it seems Bitcoin has been busy while the markets have been resting! Bitcoin enthusiasts are adamant that the price rally has just started a parabolic move higher. From a technical standpoint, this current rally certainly appears to have gone parabolic. As any trader already understands, what goes up may eventually come crashing downward.
My research team and I believe failure at the current highs would represent a clear technical divergence pattern between price and the RSI indicator. Additionally, the current rally that started on December 20 consists of a $10,850 rally phase. The previous rally that took place from October 20 to December 2 consisted of a $9,200 rally phase. We believe this current rally phase from December 11 could be a Wave 5 rally (almost equal to the Wave 3 rally range). If our researchers are correct, this final rally phase could come crashing downward after reaching these peak levels above $28,000.
This 4 Hour Bitcoin chart highlights the incredible price rally that has taken place over the past 16+ days – a rally of over $10,000. It also highlights two very clear price rally phases – creating an A-B-C price wave pattern…Read the Entire Article (click here)
WHAT TO EXPECT IN 2021 PART II – GOLD, SILVER, AND SPY
This second part of our special “What To Expect In 2021” article highlights our proprietary Adaptive Dynamic Learning (ADL) price modeling system and is specifically authored to help you understand where trends, price rotations, and risks may set up throughout 2021. In the first part of this article, we covered the ES, NQ, and INDU symbols – highlighting how each one of these US major indexes showed a moderately deep price correction would setup in Q2 or Q3 of 2021. The INDU showed the deepest correction event with a specific “ADL Price Anomaly” setup. This second part of the series will cover Gold, Silver, and the SPY.
We will start out focusing on the Gold Futures Weekly Chart. Overall, the ADL Predictive Modeling system is suggesting a moderate melt-up in Gold prices – targeting the $2200 to $2400 level throughout the first 6+ months of the year. We don’t see the ADL system making any bold predictions about Gold prices reaching levels above $2500 in 2021. This is likely because we don’t see any real risk factors lasting longer than 3 to 4 months on the other ADL charts…Read the Entire Article (click here)
LONG TERM GOLD/US DOLLAR CYCLES SHOW BIG TRENDS FOR METALS – PART I
Over the past few months, my research team and I have published a number of articles suggesting a broader market depreciation cycle has set up in the US/global markets that may propel precious metals much higher over the next 5+ years. If you have missed these, then check out Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I and Part II, as well as my recent Kitco News interview with David Lin.
Today, we are going to explore the possibility of a continued US Dollar decline, targeting levels just above 80. Gold has continued to contract just above a key Fibonacci Price Amplitude Arc, which may further prompt a big rally in precious metals in the coming months. Let’s take a look at some charts…
The Monthly US Dollar Index vs. Gold Weekly chart, below, presents the US Dollar Index (in LIGHT BLUE) and Gold (in GOLD) and shows a key Fibonacci Price Amplitude Arc anchored at the 2011 bottom in the US Dollar Index. This is a key date because it was also near the peak in the Gold price rally after the 2008-09 Credit Crisis event…Read the Entire Article (click here)
CUSTOM INDEX CHARTS SUGGEST US STOCK MARKET READY FOR A PAUSE
Weeks after the Election Rally initiated a moderately strong upside breakout rally, our Custom Index charts suggest the US stock market may be ready for a brief pause in trending before any new trends continue. Global traders and investors jumped into the US stock market just days before the US elections expecting something big to take place. The rally that initiated just days before the US election pushed our Custom Index charts well into the upper range of the 2016 to 2018 upward sloping price channel. This suggests the US stock markets have ended the downward price reversion and are now attempting to extend into the upward price channel – attempting to resume the upward trending that started after the 2016 elections.
The Weekly Smart Cash Index, below, highlights the impressive rally recently and the upward sloping price channel that is back in play for price. The highlighted range of the upward sloping price channel is actually the lower half of the std deviation range of the 2016 to 2018 price channel. So, as of right now, the Smart Cash Index price level has yet to really breach the middle of this channel and is still only within the lower half of the channel. Still, the support near the lower boundary of this level has been retested two or three times over the past six months and held. This suggests the lower channel level (the lower heavy BLUE line) is now acting as moderate price support…Read the Entire Article (click here)
FEBRUARY 2020 COVID BREAKDOWN GAP ACTING AS SUPPORT FOR RALLY
The difference in the price setup of the initial February COVID-19 downside price gap on the INDU (Dow Jones Industrial Average) vs. the SPY (SPDR S&P500 ETF) clearly shows how this previous gap in price is acting as a critical support level for the current price rally. When the downside price gap first started, near February 25th, 2020, technical traders immediately identified this “impulse gap” as an important price structure to watch in the future. As the US stock markets recovered in late August/September, price levels began to attempt to “fill the gap” on the INDU chart. On the SPY chart in August/September, prices filled the gap then rallied to new highs – initiating a new upside price rally attempt.
My team and I believe these gap levels on the INDU and SPY currently represent a critical horizontal support level for both the INDU and the SPY. This gap range is now acting like a “hard floor” in price that should be watched by all traders. We will examine these setups on the charts below…Read the Entire Article (click here)
GOLD WAVE FORECAST – IS GOLD GOING TO $3750 OR HIGHER?
Watching Gold fall to recent lows over the past few weeks has been heartbreaking for Goldbugs. We know the real value of Precious Metals has continued to be under-appreciated over the past 24+ months – even though Gold has rallied from $1165 to over $2085 (an incredible 79%). The recent 15% decline in Gold has shaken some investors away from the longer-term opportunities, so we wanted to share our research and highlight some simple Elliot Wave structures with you.
My research team and I believe the recent downward price trend in Gold is an ideal setup for an Intermediate Wave 4 pullback of a broader Wave 3 advance. In other words, we believe Gold is in the midst of a broad advance cycle that may eventually push price levels to $5000 and above. But, we’ll focus on right now and what we believe is setting up from a Technical Analysis perspective.
The first thing to remember about Elliot Wave Analysis is that we must consider the broad market trends, the intermediate market trends, and the short term wave formations. With almost all types of Technical Analysis, we focus on different time perspectives of price trends and setups to help us better determine opportunities and outcomes…Read the Entire Article (click here)
BITCOIN’S NEXT STOP: $14,000 OR $37,200
After the incredible rally in Cryptos recently and my team’s recent research articles about how to spot a “Blow-Off Peak”, the recent downturn in Bitcoin prices has raised a valid question – is this the start of a new “Blow-Off Top” for Bitcoin? In our recent 2-part research article on Blow-Off Tops, we suggested there are five phases to a Blow-Off top setup. The first is an incredible rally attempt – usually somewhat similar to a parabolic price advance. We can certainly say that Bitcoin has seen a huge price advance from near $4000 in early March to over $19,000 recently (+$15,000). Is this it? Is this a major price peak or will it continue higher?
When taken in the context of what has transpired over the past 12+ months with COVID-19 and various global lock-downs, it does make sense that many more displaced workers across the globe may have become actively involved in Cryptos and alternate assets. It also makes sense that a rush into the recent upside trending in Bitcoin, starting near early October 2020, may have prompted a rush for Crypto traders/investors. Everyone loves it when their investments rally 80% or more in less than 60 days.
Yet the question remains – will Bitcoin go higher or is this the intermediate-term peak in price? Historically, the recent highs are similar to the highs set in December 2017: $19,666 in December 2017 vs. $19,490 in November 2020. Technically, this is a Double-Top setup…Read the Entire Article (click here)
SILVER TO $32 QUICKLY, THEN TO $39
From trading down to a $21 Monday morning to surging 10% higher by Tuesday afternoon, it looks like the bottom is in. Chris Vermeulen joins the Silver Doctors for a robust discussion on the current market technicals for silver. The charts are signaling a silver price run to $32 quickly, and then to $39 but what are other sectors such as Platinum, the Dollar and Oil saying? Watch the video to learn more…Read the Entire Article (click here)
PLATINUM BEGINS A NEW RALLY – GOLD & SILVER WILL FOLLOW
My researcher team and I have highlighted a number of recent articles about Gold and Silver and how we believed the longer-term price activity and technical analysis supported a broad market advance in Precious Metals over the next 5+ years. If not, check out Part I and Part II of our recent Gold and Silver research and price predictions.
Today, we are seeing further evidence that metals are on the move – in Platinum. Platinum has been trading below $1000 for quite a while and this is roughly HALF the price level of Gold. Typically, Platinum rallies before Gold rallies in a traditional trending phase. Platinum rallies because it is used in industrial and other fields – thus it rallies in an advanced market rally phase. Gold begins to rally when a certain level of fear enters the markets or the markets enter a depreciation phase.
Currently, we are watching Platinum rally above $1000 for the first time since August 2020 and it appears new all-time highs in Platinum are on the horizon. This suggests Gold and Silver will follow this upward trend in another rally phase and attempt to set new all-time highs as well...Read the Entire Article (click here)
GOLD’S MOMENTOUS RALLY FROM 2000 COMPARED TO SPY & QQQ – PART II
In Part I of this research article I highlighted the incredible rally in Gold related to a 2020 Anchor point and how that rally in Gold compared to the QQQ and SPY. In this second Part I am going to highlight the price appreciation in the QQQ and SPY in comparison to Gold since 2009. It is important to understand how the equities/stocks have rallied in comparison to Gold because the ratio of valuation levels in equities/stocks compared to Gold appears to show when price disparities become outrageous and begin to revert.
Part I of our research showed the 2000 anchor point ratios, where we saw that Gold appreciated faster than the QQQ and the SPY over the span of the past 20 years. You’ll also see that the QQQ and SPY have appreciated very quickly over the past 5+ years in an attempt to close the gap. This represents a shift in how traders view opportunities in different asset classes….Read the Entire Article (click here)
VOLATILE TIMES GOOD FOR GOLD AND SILVER – WEEKLY WRAP UP ON SPROTT MONEY
With the U.S. election in the rearview mirror and a Covid vaccine on the horizon, it’s time to look ahead to 2021. Host Craig Hemke sits down with Chris Vermeulen of the Technical Traders this week to break down all the gold and silver news you need to get through the volatile times ahead. In this edition of the Weekly Wrap Up, you’ll hear:
- The macro picture for precious metals in 2021.
- What’s going on with COMEX gold?
- Plus: The best play in silver right now. …Read the Entire Article (click here)
GOLD’S MOMENTOUS RALLY FROM 2000 COMPARED TO SPY & QQQ – PART I
My research team and I went off on a wild tangent trying to identify how the markets could react to the recent spike in price activity on Monday, November 9, 2020. This is the day that Pfizer announced a 90% effective rate with its new COVID-19 vaccine, causing the US stock market to skyrocket higher before the opening bell in New York. As with most pop-and-drops, this incredible upside spike trailed lower for the remainder of the trading day. My research team was curious if this type of setup presented any real future outcome or trends. To this end, we focused on the QQQ and the SPY in relationship to Gold.
Gold has been and continues to be a store of value for many around the world. At some times in history, Gold becomes undervalued in comparison to other assets (like stocks, real estate, and other tangible assets). At other times, Gold becomes more highly valued in comparison to other assets. This cycle has taken place throughout hundreds of years of history, and is rooted in the changing perceptions of market participants regarding “what/where is true value in the markets”...Read the Entire Article (click here)
SILVER JUNIOR MINERS REACH FLAG APEX JUST BEFORE US ELECTIONS
Heading into what will likely become one of the biggest events in American political history on November 3, the US stock markets are holding up quite well on Monday, November 2. My team and I have published a number of articles recently suggesting we believe wild price swings and increased volatility is to be expected before and after the US elections. We have even suggested a couple of stock trades that we believe should do fairly well 60+ days after the elections are complete. Right now, we want to bring your attention to the Silver Junior Miners ETF (SILJ).
The current Pennant/Flag formation that is setting up in SILJ on the following Monthly chart has peaked our attention. Diminishing volume and moderately strong support above the $12 price level suggest key resistance near $15.05 will likely be retested as metals and miners continue to attract safe-haven capital after the elections. The Apex of the Pennant/Flag formation appears to be nearly complete – a breakout or breakdown move is pending. We believe the uncertainty of the elections will prompt a possible breakout (upside) price trend in the near future.
When we apply a Fibonacci price extension (100% measured move) to the rally from the COVID-19 lows to the recent highs and extend that range from the September 2020 lows, we can identify a $20.35 and $25.32 upside price target for any potential breakout move..Read the Entire Article (click here)
GOLD AND SILVER SUPERCYCLES EXPLORED
Chris Vermeulen of The Technical Traders joins International Stacker to share his latest short term technical analysis on the charts of silver, gold, and his perspective on the larger precious metals supercycle that will take Gold to $7200 and Silver $100+. While we are currently in an “everything bubble”, precious metals and commodities are still in the early innings of a years-long bull market with less than 2% of the world’s investment portfolio in these shiny assets. Watch the interview to learn more..Read the Entire Article (click here)
MARKET BREAKDOWN MAY EXTEND DEEPER IF SUPPORT IS BROKEN
The breakdown in the markets last week may have caught some traders off guard and resulted in a few stressful days. As much as we want to tell you the selling is over, my researchers and I believe the selling may continue for a bit longer as the election and uncertainty related to COVID-19, global economics and post election stimulus and US government issues continue to plague future growth expectations.
We’re presenting these custom index charts today to help you understand where key support levels are in the broader market and to help you understand what to expect if this selling continues. Over the past few weeks, we’ve published a number of research articles that provide important background and context to this article, including our research on the SPY Dark Cloud Cover pattern, NASDAQ E-minis Futures support levels, and what we see in store for prices of Gold and Silver.
One of the tools we use, in conjunction with our proprietary indicators, price modeling, and trading systems is our Custom Index charts. These charts help us to gauge and understand market price activity as well as to help quantify the scale and scope of recent trends. For example, we use these charts (and others) to better understand where, when, and how the underlying facets of the markets are shifting. Often times, this allows us to see how the mechanics of the markets are working before the outcome really starts to become evident…Read the Entire Article (click here)
FRIDAY’S FALLING MARKETS SUGGEST TREND ACCELERATION AS GAPS GET FILLED
My research team and I have identified a series of Gaps and Gap Fills that may become very telling for the markets over the next 30 to 60+ days. We have highlighted some Gaps in previous markets over the past 12+ months in some of our other research articles, but we believe the current Gap setups in the SPY, Dow Jones, and Transportation Index suggests extreme volatility should be expected from the markets over the next 60+ days.
First, let’s discuss what creates a gap in price and why it is important for Technical Analysis. A Gap in price occurs when some major price event takes place between bars – causing a complete price void to take place (a Gap) in price. Typically, this type of price activity is common as volatility expands and/or as price becomes very illiquid in trading. Generally, Gaps do not occur often in trading as liquidity and price exploration normally provide enough depth to allow price to operate without Gaps.
Large bar Gaps are something we need to pay very close attention to as Technical Traders. These types of price Gaps happen because of extreme fear or greed with heavy volume while trading. They are completely different than low volume, low volatility price gaps that are a result of very illiquid market price activity...Read the Entire Article (click here)
TITANS OF INDUSTRY INTERVIEW
Chris joins the Wealth Research Group to discuss hot sectors and those that are lagging. A case can be made for the price of Gold stalling if a huge stimulus package comes forth as a rally in the stock market usually results in money moving out of Gold and to Stocks. However, a large stimulus package may also put pressure on the Dollar from a longer-term perspective, making Gold a more attractive asset. This could result in a situation where both Gold and Equities climb, similar to what we saw with Bonds climbing with Equities in January and February...Read the Entire Article (click here)
GOLD AND SILVER UPSWING POTENTIAL
Chris joins Jim Goddard on HoweStreet.com to talk about Gold, Silver, and the technology sector. Precious metals are still technically in a short-term downtrend until the consolidation finishes, but they have great potential for the future. Natural gas is in a multi-year low but seems to be building a launchpad getting ready to take off. Utilities are working their way into a ‘hot sector’, and Bitcoin has completed a measured move and is now hitting resistance…Read the Entire Article (click here)
A WALL OF WORRY PROVIDES A GREAT BUYING OPPORTUNITY FOR NFLX AND SNAP
For a bull trend to perpetuate it occasionally needs to climb a wall of worry. Bearish investors are always on the lookout for a theme that will provide them with an opportunity to short a stock or sector. If prices rise, investors who shorted-shares will need to cover, perpetuating the bull-trend rally. This concept has recently played out when it comes to large-tech and communication stocks which have seen their stock prices temporarily decline as regulatory scrutiny has become the next wall of worry.
CONGRESS IS ALWAYS LOOKING TO FLEX IN MUSCLES
Congress always needs a whipping boy. Social media outlets continue to be the target of congressional frustration and more recently have been drawing the ire of several oversight committees. Most recently, Facebook and Google have been accused of engaging in anti-competitive, monopoly-style tactics. The House of Representations antitrust panel found during a 16-month investigation that these two companies relied on dubious, harmful tactics to achieve their dominance in web search and social networking. The Department of Justice announced on October 20, that it will file an antitrust lawsuit against Google..Read the Entire Article (click here)
GOLD AND SILVER READY FOR ANOTHER RALLY ATTEMPT
After nearly three weeks of sideways/downward price action in Gold and Silver, our researchers believe both metals have already set up another breakout/rally attempt after breaching downward resistance (shown as the downward sloping CYAN line). This could be another huge opportunity for precious metals traders as the next move higher should prompt a rally above recent highs. That means a target price level in Gold above $2100 and a target price level in Silver above $30.50.
ARE METALS POISED TO RALLY TO NEW HIGHS SOON?
The deep price retracements recently in both Gold and Silver have come from news events. First, the EU Banking Report that destroyed the market on September 21. Then, just recently, the news that President Trump contracted COVID-19. The resilience in both Gold and Silver near these recent lows suggests demand for metals is still skyrocketing – otherwise, we believe much deeper price lows would have been reached.
If our previous research is correct, this current basing/bottoming pattern could be the beginning of an explosive upside “appreciation” phase in precious metals…Read the Entire Article (click here)
FINANCIAL SURVIVAL NETWORK INTERVIEW ABOUT ENERGY, GOLD, AND THE DOLLAR
- After a 30-year rally in the bond market, interest rates can’t go much higher given the lack of trust resulting in marginal returns.
- The lack of demand coupled with too much supply in the oil market has oil companies losing money at these prices. Energy stocks have been underperforming which will likely continue until demand picks up or supply is significantly curtailed.
- Any stock market weakness or strength in the US dollar will likely lead to $1,810 Gold and $21 Silver...Read the Entire Article (click here)
CHRIS JOINS BOOM BUST PANEL TO DISCUSS IMPACT OF POWELL AND TRUMP COMMENTS ON ECONOMIC STIMULUS
Chris Vermeulen joins Boom Bust to discuss Jerome Powell’s latest comments on the Federal Reserve delivering more bailouts to the US economy and the latest roadblock in stimulus negotiations between Trump and Congress. Is this just a temporary set back or will it have long-term consequences leading up to this extremely volatile election? The panel discussion with Chris begins at minute 13:15 – watch the interview to learn more...Read the Entire Article (click here)
COVID-19 HAS PUSHED VARIOUS SECTORS INTO POSITIVE RECOVERY TRENDS
The Technology and Healthcare sector were two of the strongest sectors for growth and price appreciation in the US before the COVID-19 virus collapsed the US and global economy. After the COVID-19 bottom setup in March 2020, these two sectors continued to lead other sectors in price appreciation and bullish trending.
The trend is your friend – when it confirms with technical analysis. As such, we must be able to identify when trends are initiating, establish momentum, and are likely to continue. My team and I accomplish this with our Best Asset Now (BAN) technology – an adaptive indicator/tool that maps out trends, strength, confirmation, and momentum. When we combine the BAN technology with our other proprietary trading tools, we can clearly identify the best opportunities for trends/trades and confirm trade entry and exit points.
No matter how great your technology or technical systems are, volatility and price range play a big role in protecting assets and allocating trade capital into entry triggers. Over the past 14+ months, volatility has continued to increase to levels that are now averaging nearly 300% above traditional volatility levels (or more at times). Throughout most of 2019, the VIX stayed below 15 – showing very mild volatility. Currently, the VIX is hovering near 30 with spikes above 35 to 40. Traders need to understand that higher volatility presents higher degrees of risk with every trade taken…..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