TREASURY YIELDS RALLY MAY TRIGGER A CRAZY IVAN EVENT – PART II
In the first part of this research series, published yesterday, we explored the rising Yields and how my team and I expect markets to react to the new level of fear that may begin to enter the global credit markets. Rising Yields suggest investors believe the future risks to the global economy don’t support lower Yield rates. The talk that investors expect a super-heated global economy may have some truth to it, but we feel the rise in Yields is related more to global credit risks than any type of super-heated global economy.
Today we will explore the potential for a Crazy Ivan event in the global markets. This would be represented as a price revaluation event, causing the global markets to suddenly attempt to revalue price levels based on new levels of fear and more data….Read the Entire Article (click here)
TREASURY YIELDS RALLY MAY TRIGGER A CRAZY IVAN EVENT (AGAIN) IN THE MARKET
Since shortly after the US November elections, my research team and I have been clear about our research and our belief that the bullish rally in the markets would continue to drive the strongest sectors higher and higher. In December 2020, we shared an article suggesting our proprietary Fibonacci Price Amplitude Arcs and GANN theory indicated a major price peak could set up in early April 2021. On February 3, 2021, we also published an early warning that Treasure Yields were set up to prompt a big topping pattern sometime over the next 6+ months . We followed that up with a February 21, 2021 article suggesting future Gold and Silver price trends may be tied to the moves in Treasury Yields and the resulting stock market trends.
Now that the Treasury Yields have completed what we suggested would be required to start a “revaluation event” in the stock market, we believe that a “Crazy Ivan” event may soon setup in the global markets. Many months back (August 28, 2019), we published an article about precious metals were about to pull a Crazy Ivan price event (https://www.thetechnicaltraders.com/precious-metals-crazy-ivan-followup/). This prediction came true in 2020 and 2021. Now, we are suggesting the global markets may pull a new type of Crazy Ivan event – a price revaluation event prompted by the rise in Treasury Yields…Read the Entire Article (click here)
LEARN HOW TO FIND AND USE THE RIGHT OPTION STRATEGY FOR THIS MARKET
I have been talking about trading options for many months now and I am excited to let you all know THE TIME HAS COME!
Neil Szczepanski joined the Technical Traders team recently and has been working tirelessly to bring our new service, Options Trading Signals (OTS), to you all. Neil and I went back and forth many times to try to identify how we could provide the MOST VALUE to our followers and I think what we have in mind is awesome, but we will evolve as we get feedback from members.
We thought about what the market has been doing over the past twelve months, and what we see for the next 12+ months. The conclusion was obvious to both of us – we see a lot of volatility and uncertainty going forward as the ramifications of a COVID-stunted economy start becoming clearer. Neil explained that the only way an options trader will survive is by having many strategies at their disposal and using the right trading strategy at the right time. He is genuinely nervous about what will happen to all the new option traders who have jumped into the market in the past year….Read the Entire Article (click here)
SILVER – PRIMED & READY FOR EXPLOSIVE UPSIDE
Tom Bodrovics of Palisades Gold Radio welcomes Chris, founder of Technical Traders, back to the show. today, Chris provides an overview of the equity markets and warns of a possible multi-month consolidation period. A lot of profit-taking is occurring, and some of those profits appear to be rotating into utilities and energy along with key economic growth companies. The media often pushes the public into a given sector near the end of a bull run. This often results in losses for the small guys as they enter at the worst time. Much of the news cycle seems to drive stocks to pop and drop.
Chris is bullish on silver, and the considerable public accumulation of physical should send the price of silver much higher. However, he has concerns about a potential pullback. Any such pullback would be an excellent entry point for investors. Silver as a commodity acts differently from stocks, and Chris believes that we could experience a short squeeze in the coming months. If we see a good move higher, that would probably be an excellent time to reduce one’s physical position and buy back later. He outlines some specific price targets and timeframes for silver...Read the Entire Article (click here)
CANNABIS, ALTERNATIVE AGRA, MUSHROOMS, AND CRYPTOS – EVERYTHING ALT IS HOT – PART I
The recent rally in Marijuana and Alternative Pharma/Agriculture stocks has been impressive, to say the least. One thing we have to remember about this sector is that it rallied to highs in 2018 and 2019, then fell out of favor for many months. The anticipation of this new sector emerging within the US, and across many areas of the globe, prompted quite a bit of excitement after 2016 when many US states voted to legalize Marijuana. Even before this date, the alternative medicine and consumer product use related to Marijuana has been heavily speculated on by investors/traders.
If we were to consider the out-of-favor phase of this sector over the past 15+ months, after the rally/hype phase which took place in 2017 and early 2018, we’ve seen many cannabis stocks collapse 70% to 85% or more recently. This downward price trend likely set up a number of incredible opportunities based on expanded marketplace opportunities, enterprise valuations, and longer-term consumer/pharmaceutical use applications for CBD and other chemical extracts. Additionally, we need to also consider what would happen if a consolidation phase were to take place in this industry – how would cannabis leaders play a role in acquiring smaller, yet important, firms with innovative technology/solutions….Read the Entire Article (click here)
CANNABIS, ALTERNATIVE AGRA, MUSHROOMS, AND CRYPTOS – EVERYTHING ALT IS HOT – PART II
In the first part of this research article, we explored the Cannabis/Marijuana sector decline (2018 to 2020) and the recent rally/recovery phase as a potential opportunity for traders. Additionally, we reviewed some US Marijuana marketplace data, growth expectations, and other data. The conclusion we came up with after our brief review of this data was that the Cannabis, Marijuana, and Alternative Agriculture sector has been greatly undervalued at or near recent low price levels – many of these stock were trading at levels -75% to -95% below 2017~18 highs.
Our conclusion is that IF this sector continues to grow and enters into a major consolidation phase (where the various specialty firms are acquired by larger industry sector firms – much like what has happened in the Alcoholic-beverage sector), then the Marijuana/Alternative Agriculture sector may become one of the hottest sector plays over the next 3 to 5+ years.
Our researchers believe the recent rally in this sector, prompted by many retail traders (Reddit and others) as well as the recent blow-off top/pullback may be a target for future growth in this sector. Overall, the recent price rally has only started to recover from the 2018 peak to the recent low price range. If our research is correct, and the Cannabis/Alternative Agriculture sector continues to stay in focus with investors, as well as begin to engage in a broad consolidation phase, the recent pullback in price levels may represent an incredible opportunity for future profits. Let’s take a look at some charts….Read the Entire Article (click here)
THREE MORE REASONS WE LOVE TO TRADE OPTIONS!
Hi everyone, it’s me Neil Szczepanski again and I’m back to finish off telling you why I love to trade options! If you missed the first half of this article entitled “5 Reasons Why People Prefer To Trade Options Over Stocks” then click on the title to revisit it. In this second and final installment, I will walk through how adjustments and risk management of options can help give you better control of your trades and profits. I hope everyone enjoys the information and I look forward to helping everyone win with options trading!
Everyone has heard a story about someone who mischaracterized or misunderstood their options trade, then having their account blow up when the underlying stock goes the wrong way. This happened recently with a Robinhood trader who woke up one morning to see his account at -$730,165. In this tragic event the kid took his life because he thought he had lost $730,165 and couldn’t reach his brokerage to understand his account. We learned later that the negative balance did not represent uncollateralized indebtedness at all, but rather his temporary balance until the stocks underlying his assigned options actually settled into his account. In short it was a delay in processing of the options contracts in his account, and not the actual trade that went awry. This is why it is very important that in this game of trading you get the proper training so you understand your risk. The risk is real…Read the Entire Article (click here)
VOLATILITY SPIKE SHOCKS MARKETS – RESETS TREND SYSTEMS
The recent volatility spike in the VIX prompted a very quick downturn in price levels across all US major Indexes over the past few trading days This sharp decline, although only lasting four trading days, prompted many systems to warn of a potentially much deeper price correction. As of the close of trading on Friday, January 29, 2021, it looked like a deep correction in price was setting up. Our proprietary BAN Trader Pro system also generated a “trend reset” trigger on Friday. This means our systems expected a change in trend, suggesting a bearish price trend was setting up, based on this spike in volatility and what appeared to be a moderately deep price trend.
The reality is that this downside trend move took place while a number of other factors were playing out. First, the Reddit group was targeting certain sectors/symbols in addition to the fact that the markets had already rallied a substantial amount since the November 2 election. This spike in the VIX index shocked a number of people and suggested a change in price trend..Read the Entire Article (click here)
THE BEST 60 MINUTES YOU WILL EVER SPEND AS A TRADER
For the past 20+ years, I’ve helped people from all walks of life build huge trading accounts and retire wealthy—students, retired school teachers… doctors… pilots, lawyers, entrepreneurs, etc…
I was fortunate enough to semi-retire from being involved in the financial markets and industry when I was only 27.
My method and the way I approach the market is different. Instead of using hype and excitement to try and teach traders, I focus on making trading as Boring as humanly possible.
You see, a Boring Trading Strategy means the results are predictable, consistent, low stress, and not time-consuming. This means you can experience life VS working hard chasing money.
To me, the goal of making money from the market is to have a great lifestyle. Spending time with family, friends and taking those bucket-list adventure trips we all want to do…Read the Entire Article (click here)
TREASURY YIELDS SUGGEST A TOP WITHIN THE NEXT 6 MONTHS
Historically, whenever the Treasury Yields fall below zero, then recover back above zero, the US/Global markets reach some peak in price levels within 3 to 8+ months. My research team and I believe the actions of the global markets may be setting up for a future peak in price levels sometime in next 6 months. We believe this will start when the Treasury Yields cross above the “Breakdown Threshold”.
In 1998, a very brief drop below zero in yields prompted a minor pullback in the markets before the bigger top setup in 2000. This pullback in price aligned with what we are calling the “Breakdown Threshold” level on Yields near 1.20. After the Yields crossed this Threshold, briefly, in 1999, they fell back below this level and the US stock market continued to rally toward an ultimate peak in 2000…Read the Entire Article (click here)
METALS RALLY EARLY IN 2021
If you follow our research, you already know my research team and I have authored multiple articles related to how Metals and Miners are poised for a big rally in 2021 and beyond. But do you understand what this means for other market sectors and assets? Are you ready for one of the most dynamic investing environments we’ve seen since 1945 or earlier? Gold and Miners are showing very clear signs that the Depreciation cycle phase our researchers identified recently is strongly in place.
Gold and Miners are showing very clear signs that the Depreciation cycle phase our researchers identified recently is strongly in place. Both Gold and the Mining sector have been rallying since early 2016. This rally initiated in the midst of an Appreciation cycle phase (between late 2010 and the end of 2019). The rotation between Appreciation and Depreciation cycle phases directly correlates with the underlying strength of the US Dollar, precious metals, and other market sector trends. At this point, the new Depreciation cycle phase means the global markets will transition away from Appreciation phase trends and into new defensive/sector rotation trends...Read the Entire Article (click here)
2021 MAY BE A GOOD YEAR FOR THE CANNABIS/MARIJUANA SECTOR
Great progress in terms of legalization was made for the Cannabis/Marijuana sector in 2020 that will. The 2020 elections resulted in a number of US states engaging in new Cannabis friendly policies and laws being approved by voters. This suggests a new rally in the Cannabis sector may be setting up in 2021 and beyond for traders. Our BAN – Best Asset Now – trading strategy is always looking out for the next sector to make a trade, and the Cannabis sector is certainly one we are keeping our eyes on! Make sure you sign up for my FREE webinar to find and trade the Best Assets Now just like me.
My research and I team believe the recent longer-term bottom in the MJ ETF, the Alternative Harvest ETF, suggests a broad bottom is setting up in the Cannabis/Marijuana sector. If this bottom in the Cannabis sector continues to profit support for the entire sector, then we may see price appreciation across many individual Cannabis stocks over the next 12+ months. Additionally, this price appreciation may prompt quite a bit of consolidation across the entire Cannabis/Marijuana sector.
The global use and demand for CBD & THC related products may continue to expand as medical and personal use expands across the US and into other nations. We are still near the infancy of understanding the true medicinal benefits of this all-natural product. A new upward price trend in this sector may prompt a global expansion/consolidation event where the Cannabis/Marijuana industry attempts to restructure into true global power companies...Read the Entire Article (click here)
BITCOIN COLLAPSES ALMOST 20% AT THE START 2021
After an incredible upside price rally that took place throughout the end of 2020, the recent 20% decline in Bitcoin prices, seemingly overnight on January 4th, may have come as a shock to many Bitcoin traders. The deep low price was reached in early trading overnight on very heavy volume – reaching levels near $27,734. Compared to the high price level reached just 27 hours earlier, near $34,800, this strong price decline represents a 20% sell off (over -$7040).
If this is the start of a broader downtrend for Bitcoin, we’ll have to watch the MAGENTA trend level on this Daily Bitcoin chart below for an indication the upward support channel is breached. This may be a deep pullback in a stronger uptrend still. But the heavy volume and very deep decline suggest the upside parabolic price trend may have “popped” and Bitcoin may be setting up for a bigger change in trend in early 2021.
Overall, very clear support from the RED trend level on this chart would suggest that support near $21,000 may become the next target level. Traders can see the breakdown of the RSI indicator as well as the clear support channel represented by the MAGENTA trend level on this chart. We believe the MAGENTA trend level is a critical level if this upside price trend is going to continue...Read the Entire Article (click here)
WHAT TO EXPECT IN 2021 – PART I
Last year, I published a ‘What To Expect In 2020’ article that everyone seemed to enjoy. We published this article to help investors and traders prepare for what we believed was going to be an incredibly volatile 2020. Last year our conclusions was:
“Be prepared for a surprising spike in volatility in early 2020 with a moderately strong potential for an early 2020 downside price rotation which prompts a new price trend and possibly an early test of support (near 280 on the SPY chart). 2020 is going to be a fantastic year for skilled traders – get ready for some incredible price action. “
Our proprietary Adaptive Dynamic Learning (ADL) price modeling system has been calling big and unusual market price trends many months in advance over the past 3+ years. Some of the biggest trends the ADL predicted very accurately was the 2017~2018 rally in Gold and the 2019 collapse in Crude Oil.
Often, the ADL predictive modeling system predicts things that are so accurate, even 5+ months in advance, that it is difficult to believe. For example, with Crude Oil trading near $50, the ADL modeling system predicted that Oil prices would fall to levels near or below $22 in April/May 2020, then recover to levels above $51 within 60+ days thereafter. Remember, these predictions were made in July 2019 about price activity and targets for March through May 2020 – nearly 8+ months in advance. Click to see our original ADL predictions for Crude Oil...Read the Entire Article (click here)
BITCOIN RALLIES ABOVE $20K – TARGETING $23K OR HIGHER
In an incredible display of support, Bitcoin rallied above $20k early in the morning on December 16. This upside breakout move coincided with a very strong Fibonacci Price Amplitude resistance arc originating from the low price level near March 20th. The implications of this upside breakout suggest Bitcoin may continue to rally higher targeting levels just above the $23k level ($23,150).
Cryptos are experiencing a price rally that is similar to what happened in 2016 and 2017. The enthusiasm for these decentralized alternate assets continues to climb as traditional hedge assets, like Gold, Silver, and others, have stalled recently. What we find interesting is the correlation between Bitcoin price advances and Precious Metal price cycles.
Our latest research article suggests the long-term US stock market cycle has transitioned into a Depreciation phase – where US stock market price levels are likely to trade in extremely volatile, possibly sideways/downside, trends over the next 5+ years. If our research is correct, global investors will search for assets that buck this trend in an attempt to seek out greater Alpha….Read the Entire Article (click here)
LONG TERM GOLD/US DOLLAR CYCLES SHOW BIG TRENDS FOR METALS – PART II
In the first part of our US$ and Gold research, we highlighted the US Dollar vs. Gold trends and how we believe precious metals have recently bottomed while the US Dollar may be starting a broad decline. We are highlighting this because many of our friends and followers have asked us to put some research out related to the US Dollar decline. Back in November, we published an article that highlighted the Appreciation/Depreciation phases of the market. This past research article – How To Spot The End Of An Excess Phase – Part II – is an excellent review item for today’s Part II conclusion to our current article.
Our Weekly Custom Metals Index chart, below, highlights the major bottom in precious metals in late 2015 as well as the continued upside price rally that is taking place in precious metals. If our research is correct, the bottom that formed in 2015 was a “half cycle bottom” – where the major cycle dates span from 2010 to 2019 or so. This half-cycle bottom suggests risk factors related to the global market and massive credit expansion after the 2008-09 credit crisis may have sparked an early appreciation phase in precious metals – launching precious metals higher nearly 3 to 4 years before the traditional cycle phases would normally end/reverse….Read the Entire Article (click here)
CHRIS TALKS ABOUT PLATINUM WITH KERRY LUTZ FROM FSN
Markets are in for a very wild ride as Covid continues to be front and center and the stock market is still holding up in spite of the threat. There is an attempt at the Santa Rally, we will see if it succeeds. Nonetheless, renewed investor interest will keep things moving to the upside and markets will close higher for the year (well into January) since investors seem to be looking beyond Covid. More stimulus is certainly coming and the markets can’t get enough of it. At some point though there will be a pretty sharp correction. But until then, individual industries are rocketing higher, like Electric Vehicles where big money is flowing into. How long will the Feds print money for and drive the Dollar down? Listen to the podcast to learn more…Read the Entire Article (click here)
COPPER & BONDS TELEGRAPHED THE 2020 COVID COLLAPSE
A very interesting setup in both Copper and Bonds seemed to have telegraphed the collapse in the US stock market in early 2020. T-Bonds, which had been consolidating into a downward price channel prior to the COVID outbreak, suddenly broke through the downward price channel and started to accelerate higher. Copper, which is a fairly common commodity for building, infrastructure, and other uses, had been moving higher above a clear upward price channel, then suddenly broke lower in early 2020. Both Bond and Copper seemed to break these price channels nearly 20+ days before the US stock markets initiated their price decline on February 24, 2020.
My research team and I believe this setup is not inconsequential for technical traders. The breakdown in Copper represents a core “demand” failure, while the breakout in Bonds suggests risks are elevating. This is something we should continue to watch for in the future as Copper and Bond prices typically move before the US stock market begins to react…Read the Entire Article (click here)
CUSTOM INDEX CHARTS SHOW CLEAR BULLISH TRENDING
My research team and I have created Custom Index charts that highlight the continued upside/bullish trend that is taking place in the US stock markets. We continued to stay moderately cautious in late October and early November because of the extensive price rotation at that time and because of the US election event. The dramatic rally in the US markets that started before the US elections prompted our research team to pause and evaluate how must risk was being ignored by the upside price rally. Initially, we discounted the rally as a speculative move in the market – likely to end badly and quickly.
Now, after our Custom Index charts have established moderate momentum signals and what appears to be a very solid global market influx of capital into various US market sectors, we believe this rally may still have some legs behind it…Read the Entire Article (click here)
HOW TO SPOT THE END OF AN EXCESS PHASE – PART II
In Part I of this research article, my research team and I highlighted the five unique components of an Excess Phase peak and breakdown process. We are sharing this data with you because we believe the US stock market has already meandered 2.5 years past the end of a US Stock Market Appreciation phase and is well into an Excess Phase Peaking process. This becomes very important for traders because risks are much higher in these late Excess Phase stages because volatility is usually 4x to 6x higher than previous phases. Additionally, psychologically, many traders want the rally to continue and deeply believe the end of this phase is “just a pullback in a bigger trend”. This can be very dangerous as traders sometimes continue to buy into deeper price corrections – leveraging their accounts to the hilt thinking “they are going to make a killing when the rally resumes”.
Excess Phases and Blow-Off Peaks/Bottoms can become very addictive for certain people – especially those that have gotten into the trend before the Excess Phase began. These people are often “die-hard” believers that the trend will never stop rallying and can sometimes leverage themselves into very dangerous positions. ..Read the Entire Article (click here)
HOW TO SPOT THE END OF AN EXCESS PHASE – PART I
If you have been following my team’s research posts recently, we have highlighted some interesting new research related to Appreciation/Depreciation phases in the US stock market and how that relates to Gold. Today we will explore another method of identifying the different phases of market trends that appears to show very clear Appreciation/Depreciation phases and extended end-phase blow-off tops and bottoms.
My research team and I believe the current rally in the US stock markets represents an end-phase blow-off top after a 9.5-year Appreciation phase that began in mid-2009. We believe it is very important for traders to understand these larger Appreciation/Depreciation cycles and how the Blow-Off end phases often create extreme volatility and price rotation.
Below, we are using a custom EURUSD/JPYUSD index divided by GOLD as the base Candlestick chart and have applied the real Gold price levels on the chart for visual reference. Near the bottom of the chart, we are showing the RSI indicator, the TSICCI indicator, and the RSI + MFI Indicator that helps to highlight the broad market trends and cycle phases. We want you to pay attention to the GREEN and RED arrows we’ve drawn on this chart showing the Appreciation/Depreciation phases of Gold and the broader US stock markets in EUR/JPY currency form. This method of charting these phases takes a bit of patience and understanding. We are looking for correlations to US stock market trends in relation to precious metals and we must consider the end-phase process…Read the Entire Article (click here)
FINANCIAL SECTOR ETF SHOWS UNIQUE ISLAND SETUP – WHAT NEXT?
One would think the Financial Sector would be doing quite well related to the booming housing market and a decline in overall consumer debt and delinquency levels. Historically, the XLF chart shows that $32 is very close to the 2007 peak levels before the collapse that started in late 2007. Currently, the February 2020 highs represent a similar price peak level (near $32), and the current upside price trend has stalled near $27.50, which is a very strong resistance level.
This Monthly XLF chart below shows over 12 years of historical price data to allow our readers to understand the current market volatility and the current Double Top formation near $32. We’ve also added some trend lines to help you understand the current price channel (CYAN) and the expanding wedge formation (YELLOW) that has setup recently. The historical price channel (CYAN) shows the XLF is trading near the middle of this channel. The expanding wedge setup shows a moderately deep downside price capacity if the financial sector falls into a new bearish price trend…Read the Entire Article (click here)
NQ HAS STALLED ABOVE A 1.382 FIBONACCI EXPANSION RANGE THREE TIMES
The NASDAQ E-Mini Futures (NQ) has rallied and stalled above 12,055, a 138.2% Fibonacci expansion of the December 2018 low range to the February 2019 (Pre-COVID-19) highs three times over the past 4 months. We believe this resistance level, near 12,055, on the NQ is acting as a major price ceiling and may continue to prompt continued downside resistance as price attempts to break through this level.
The weekly NASDAQ E-Mini Futures chart, below, highlights the original price range and the current Fibonacci price expansion from the March 2020 COVID-19 lows. We believe the sideways consolidation setting up on this NQ chart near the 1.382% Fibonacci expansion range suggests moderate price resistance exists near 12,055. We also believe the three failed attempts to rally above this level represents a strong possibility of a major price peak setting up in the NQ unless recent high price levels are breached by a strong breakout/rally.
Whenever price failed to rally above resistance, as we are seeing on this chart, this support level becomes an even strong resistance level overall. You will also likely notice the CYAN support channel near recent lows. This level suggests a support channel is rising to create a FLAG formation – resulting in an APEX (breakout/breakdown) potential near the end of 2020…Read the Entire Article (click here)
ADAPTING DYNAMIC LEARNING SHOWS POSSIBLE UPSIDE PRICE RALLY IN GOLD & SILVER
Our advanced Adaptive Dynamic Learning (ADL) modeling system is showing some interesting future trends for both Gold and Silver. The rally in precious metals has really just started if our ADL system is accurately predicting future price trends.
Over the past two years, we’ve highlighted a number of ADL research posts that have proven to be incredibly insightful regarding future market price trends. The ADL predictive modeling system is unique in that it maps out price and technical indicator DNA markers and attempts to correlate future price characteristics into highly probable outcomes. The result is a clear picture of what the ADL system believes is the most likely outcome based on the selected price bar.
We attempt to use the ADL system to identify highly populated ADL DNA price bar markers and very infrequently populated ADL DNA price bar markers. We believe the highly populated ADL entries are ones that happen with some degree of regularity and are likely to prompt similar future price outcomes. We believe the infrequently populated ADL DNA entries are anomalies in price that may present unusually accurate price bar outcomes. Therefore, when an ADL entry shows seven (7) or more correlative matches, we consider that moderately highly populated. When an ADL entry shows less than three (3) correlative matches, we consider that infrequently populated…Read the Entire Article (click here)
SPY/SPX ISLAND SETUPS WARN OF A POTENTIAL REVERSAL IN THIS UPTREND
My researchers and I want to highlight a Weekly chart pattern that is warning of a potential Top/Reversal in the SPY & SPX. Although the current trend is Bullish and the markets are looking forward to the new year, new policies, and probably new stimulus which normally prompts some type of upward price rally in the markets, we see an “Island Setup” that has continued to form after all the positive COVID-19 vaccine news.
An Island Setup in price is when price moves or Gaps away from a typical price range or boundaries, then stalls. This type of setup is similar in structure to a Doji Star setup in an “Evening Star” formation. Similarly, the Doji Star pattern also warns of a possible trend reversal. Our researchers believe any continued failure to rally at this stage points to a very real downside price reversal setting up in the SPY/SPX. Let’s take a look at some Weekly charts.
The SPY Weekly chart below highlights the Island Price formation as well as the technical divergence in the RSI indicator (below the price chart). What interests our researchers is the clear Island price setup outside the CYAN consolidation/FLAG formation. Either the SPY is going to continue to rally much higher at this point or it is going to fail in this Island formation and fall back to the $320 level. The more price fails to rally at this stage, the more likely the downside price expectation becomes…Read the Entire Article (click here)
DOW JONES E-MINI FUTURES TAG 30K TWICE – SETTING UP A DOUBLE TOP
Sometimes the markets telegraph a key level or future target level in pre-market or post-market trading. Other times these telegraphed price targets happen during regular trading hours. Recently, the Dow Jones E-Mini Futures Contracts (YM) generated two unique high price levels near $30,000 over the span of about 6 trading days.
My research team and I believe this “telegraphed high price target level” is a warning of major resistance for traders. These types of broad market patterns are not very common on charts. They happen sometimes, but very rarely like this example on the YM chart below. This Double Top (Tweezers) pattern may be warning that the $30,000 level on the YM could become a major market peak/turning point. Additionally, the post election rally reached this $30,000 level on the day Pfizer announced the vaccine data, then sold off quite consistently throughout the regular trading session…Read the Entire Article (click here)
FOUR STOCKS TO OWN BEFORE THE US ELECTIONS – A FOLLOW UP
On October 24, my research team and I highlighted four stock symbols we thought would do really well after the US elections. Today, we’re going to follow up on these calls/predictions and see how these four stocks are doing.
The first stock symbol we suggested had a good opportunity to rally in the weeks and months after the US election was American Airlines (NASDAQ: AAL). We believed a new stimulus package would help to boost Airline price levels and sustainability. With the current post-election chaos, we still believe the US congress will focus on attempting to pass a stimulus package supporting consumers and essential services (like airlines). It seems very likely that AAL will rally to levels above $15.00 over the next few weeks and months with our targets near $17.25 & $20.65. Currently, AAL is just 8.5% below our trigger level (executing a “washout-low” price rotation)….Read the Entire Article (click here)
Are Junior Silver Miners Setup For A Big Rally?
Last week, we published a research article on Silver Junior Miners that garnered quite a bit of attention. We received quite a few positive comments and questions from our friends and followers. This time, we wanted to dig a little deeper into the cycles and price setups that are currently setup in the Silver and Junior Silver Miners ETFs. It may seem odd to some readers, but we believe the uncertainty related to the US election and US policy over the next 6+ months could present a very real opportunity for skilled technical traders.
First, if you missed the previous analysis and trade idea in the Silver Junior Miners article from November 2, please follow this link to review our earlier research which has some important points you should know.
That research article from November 2 suggested a Pennant/Flag formation on the longer-term Monthly chart would prompt a large upside price move once a potential “washout low” pattern setup. The election day trend in Gold and Silver prompted Silver Miners to move a bit lower – which is what we suggested would happen in the November 2 article. Now, we’re going to highlight two incredible longer-term setups in Silver Miners that may result in almost immediate profits over the next 4+ months…Read the Entire Article (click here)
WILL THE SP500 PENNANT FORMATION LEAD TO A RALLY OR ARE WE HEADED FOR A DOUBLE DIP?
Chris joins The Korelin Economics Report to discuss broad market trends to expect after the election is settled. We are already seeing money flow into markets broadly today as investors hope to have the election uncertainty behind them. We discuss several different scenarios including the SP500 pennant pattern with a potential 34% rally and the relationship between gold miners and the broad markets. Please listen to hear more of our targets and technical analysis..Read the Entire Article (click here)
SPY CHANNELING LOWER AHEAD OF NOVEMBER 3 – WATCH FOR THIS SUPPORT LEVEL TODAY
From a simple technical standpoint, we’ve seen a number of recent breakdowns in the SPY related to Fibonacci Price Theory and Price Gap Theory. One of the most critical components of the recent 60+ days price activity in the SPY is the failed new high on October 12. This failed attempt to rally above the previous high price level, near 358.82, suggests a broader market price decline has setup (a downtrend).
After the failed new high peak on October 12, a series of new downside price gaps can be seen in the SPY chart below as price accelerated downward. These unfilled price gaps represent price acceleration to the downside and will eventually exhaust – creating a new momentum base/bottom….Read the Entire Article (click here)
Four Stocks To Consider Buying Before The US Elections
Our research team put together this list of stocks to help you understand how to attempt to target strategic gains between now and 30 to 60 days after the elections. If you have not been paying attention to what is happening in the markets right now, be sure to read to the end of this report.
If you have not already prepared for the election event, and the pending chaos that is likely to happen after the elections, you better start doing something to protect your portfolio right now. Leaving your portfolio exposed in the moderate to high risk sectors in your IRA or 401k could result in some wicked risks to your total capital if you are not cautious...Read the Entire Article (click here)
LATEST GOLD, SILVER AND PLATINUM ANALYSIS
Join host Mark Yaxley on ‘Inside The Vault’ as he interviews Chris Vermeulen, Chief Market Strategist for The Technical Traders. Chris walks through the charts and provides his analysis of gold, silver, and platinum, which are all showing positive trend lines. Chris also forecasts potential highs and lows for the next phase of the precious metals bull market. Click below to watch the interview...Read the Entire Article (click here)
STOCKS ARE STRONG BUT BE AWARE OF THIS CONTINUING PATTERN
The last 6+ trading days before the US elections could result in a confirmation of last month’s SPY Dark Cloud Cover pattern or a potential Harami pattern setup. What does this mean for traders and investors?
The Dark Cloud Cover pattern is a very ominous potential Top/Sell trigger in Japanese Candlestick terms. It is a fairly common pattern, like the Engulfing Bearish pattern, that manifests near major peaks in price. The one thing that really stuck out with the current Dark Cloud Cover pattern on the Monthly SPY chart was the size of the pattern. The current Dark Cloud Cover pattern on the Monthly SPY chart spans 39.56 points (nearly an 11% price range). Comparatively, this pattern is very large compared to the more recent price peak ranges.
Over the past 30+ days, we’ve published multiple research articles related to the core technical elements of the SPY chart and the Dark Cloud Cover pattern that set up in September. Pay very close attention to the Fibonacci Price Amplitude Arcs that also show key resistance playing out near the recent peaks. Finally, don’t forget to read our Grey Swan Alert in October’s issue of TradersWorld…Read the Entire Article (click here)
THIS WEEK IN MONEY
The markets remain in a bullish trend in the short-term, however, the trend is relying almost exclusively on a few select sectors and is not sustainable from a long-term perspective. The bond markets are suffering from low interest rates and it will be seen if bonds remain the safe-haven asset for investors during a market down-turn. Gold, silver, and the miners look to have a great year in 2021. Listen to Chris starting at 12:00 to hear his views on the US and CDN dollars, copper, and bitcoin with Jim Goddard on ‘This Week in Money’…Read the Entire Article (click here)
DOJI CLUSTERS SHOW CLEAR SUPPORT RANGES ON THE S&P500
Clusters of Doji shaped candles have, for centuries, illustrated very clear levels of support/resistance in price action. Whenever multiple Doji candles appear in a cluster-like formation, traders should pay attention to these levels as future support/resistance ranges for price action. In the case of the S&P500 E-Mini Futures Daily Chart, we can clearly see three separate support zones – the highest one being right where price closed on Friday (near 3475).
As the US elections near, we do expect increased volatility to become a factor in the US markets. Currently, our predictive modeling systems are suggesting a Bullish trend bias is in place in the markets. Therefore, we expect the bias of the trend to continue to push higher. Yet, these Doji Cluster support levels become very clear downside targets if increased volatility prompts any broad market rotation over the next few days/weeks. These three levels are :
We are suggesting that IF any deeper market rotation takes place, support near these Doji Cluster levels would likely act as a major price floor – prompting some price support and a potential for a quick upside price reversal near these levels. If the lowest level, near 3200, is breached by deeper price rotation, then a new price correction phase may setup…Read the Entire Article (click here)
CRUDE OIL STALLS IN RESISTANCE ZONE
In this report, I discuss the recent price action in crude oil and how economic conditions and the pennant flag chart pattern is indicating a big price move is about to take place over the next few weeks. While some of you may want a clear, bold prediction as to whether a breakout or breakdown may happen, as technical traders, our job is to predict different possible setups and identify the criteria that will tell us when to enter the trade upon confirmation. Read below to learn more.
Crude Oil has continued to retest the $41.75 to $42.00 resistance level over the past 30+ days. My research team believes this represents a very clear indication that further failure to advance above this level will prompt a moderate price decline – likely breaking below the $36.00 ppb price level.
We believe the completed Pennant/Flag Apex, highlighted in Light Green on the Crude Oil Futures chart below, represents a technical pattern suggesting a new price trend is pending. The recent sideways price action, highlighted by the Gold Rectangle on this chart, shows the range of price recently that is currently presenting a very clear support level (near $36) and a very clear resistance level (near $42)...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
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