Three Charts Every Trader and Investor Must See

Understanding the stock market and its potential through the use of technical analysis and historical price events has been proven repeatedly to outperform all forms of fundamental trading styles. The following is a story that walks you through my experience, the shift in my mindset and how I came to the conclusion that the three charts I share in this article are critical to your understanding of to make money in today’s market!

When I first learned to trade, I got all caught up with researching companies and finding the ones with the best earnings and future growth. I did that for several years after studying and following many “professional traders” who said it was the best way to trade and invest long term. We lost our shirts during the 2000 bear market by continuing to trade on fundamentals as stocks fell in value week after week. Even the companies that showed quarterly earnings growth fell in value – none of it seemed to make any sense to me, and it was very frustrating.

Losing money when buying the best companies made no logical sense, making me step back from the markets and ask myself, ‘what am I doing wrong here‘. People today are asking themselves the same question given today’s dizzying markets:

· Telsa shares fell from $971 a share down to $347, whopping 63% drop, in only a few weeks and then rebounded again too xx

· Netflix is down 30%, even though people are stuck at home desperately trying to find things to watch)

· Amazon has fallen 26% in the past couple of weeks despite soaring demand for their delivery services

· GDXJ, the gold miners sector that is typically a safe haven during times of volatility, crashed 57% even though gold is usually a safe haven during times of volatility.

So, what was I doing wrong? I started calling and visiting traders who were making money during the bear market to see what they were doing, and 100% of them were doing the same thing – Trading with Technical Analysis. I wasn’t doing anything wrong, per se. I was simply using the wrong tools and analysis for success!

What is Technical Analysis? In short, it’s the study of price, time, and volatility of any asset using price charts and indicators. Traders use technical analysis to find cycles and patterns in the market and trade on the analysis of preferred indicators as opposed to the fundamentals of a company and/or the economy in general.

When you start studying technical traders, you will notice every trader has a particular time frame, a preferred set of indicators, and trading frequency that fits their unique personality and lifestyle. Their brains can see the charts in ways you and I may not see them to predict future price direction over the next few hours, days, weeks, or months ahead. I quickly learned there are infinite ways to trade using technical analysis.

I was very surprised by how much these pro traders allowed me. While standing over their shoulders, I was looking at their charts to try to divine their high-level strategies and learn how they think, analyze, and trade. It was amazing how different each of them traded the market. Some traded currencies; others traded stocks, indexes, options, futures, etc. Most were day traders, swing traders, or a mix of the two. But none of them gave me their secret sauce. That is why I turned 100% of my focus to technical analysis. I was excited at the prospect of being able to profit from both rising and falling prices and no concern for anything other than price action reduced my research time dramatically. It was and is the biggest AH-HA moment of my life and a turning point for my career as a trader.

The year was 2001, when I made the shift to technical analysis. I unsubscribed from everything fundamental based. I canceled my CNBC, stopped listening to news, and stopped reading other people’s reports altogether. My goal was to create my own technical trading strategy that best suited my personality and lifestyle. I would have to discover the securities I was most comfortable trading, the frequency I would trade, and the type and amount of risk I was prepared to take.

I traded options, covered-calls, currencies, stocks, ETFs, and futures. From day trading to position trading (holding several months), I tried it all, hoping something would click for me to pursue at a much deeper level. Day trading, momentum, and swing trading were my sweet spots. Having three of them was a bonus as I know some traders only ever master one in their lifetime if they are lucky. I grew a liking for trading the major indexes like the DJIA, S&P 500, and Nasdaq… great liquidity with big money always at play.

Along my journey, I realized that if I could predict the overall market trend direction for the day or week, then I could day trade small cap stocks in the same direction as the index, knowing 80+% of the stocks follow the general stock market trend. I could generate much larger gains in a very short period of time. As time went on, I became comfortable predicting, trading, and profiting from the indexes, and my new trading strategy began to emerge.

I was fortunate enough to start learning about the markets and trading in college with a $2,000 E-Trade account, and then retiring (kinda) in 2009 at the age of 28. I built my dream home on the water, bought cars and boats, and spent time traveling with my growing family. I love trading and sharing my analysis with others – it is better than I had ever imagined and why I continue to help thousands of traders around the world every day with these video courses Trading System Mastery, and Trading As Your Business.

I contribute 100% of my trading success and lifestyle to the fact that I embraced technical analysis, where my strategy involves nothing more than price movement, position-sizing, and trade risk management techniques. All these allow me to easily reduce exposure, drawdowns, and losses with proper position sizing and protective strategies. If you want quick and simple, read about my journey and core trading tools in my book Technical Trading Mastery – 7 Steps to Win with Logic. My strategy is represented by human psychology and historical trading, as expressed in the three charts below.

Chart 1 – Human Psychology is What Drives Price Action

This chart is my favorite as it explains trader and investor psychology at various market stages. It also includes a simplified market cycle in the upper right corner, letting you know where the maximum financial risk is for investors and the highest opportunity for a trade.

Chart 2 – 2000 Stock Market Top & Bear Market That Followed

The chart may look a little overwhelming, but look at each part and compare it to the market psychology chart above. What happened in 2000 is what I feel is happening this year with the stock market sell-off.

In 2000, all market participants learned of at the same time was that there were no earnings coming from their darling .com stocks. Knowing they were not going to make money for a long time, everyone started selling these terrible stocks, and the market collapsed 40% very quickly.

What is similar between 2000 and 2020? Simple really. COVID-19 virus has halted a huge portion of business activity, travel, purchases, sporting events, etc. Everyone knows earnings are going to be poor, and many companies are going to go bankrupt. It is blatantly clear to everyone this is bad and will be for at least 6-12 months in corporate earnings; therefore, everyone is in a rush to sell their stock shares and are in a panic to unload them before everyone does.

Chart 3 – The 2020 Stock Market Top Looks to Be Unfolding

As you can see, this chart below of this year’s market crash is VERY similar to that of 2000 thus far, it’s based on a similar mindset, which is the fear of losing money, which causes everyone to sell their positions.

I am hopeful that we get a 25-30% rally from these lows before the market starts to fall and continue the new bear market, which I believe we are entering. Only the price will confirm the direction and major trend to follow, and since we follow price action and do not pick tops or bottoms, all we have to do is watch, learn, and trade when price favors new low risk, high reward trade setups.

It does not matter which way the market crashes from here, we will either profit from the next leg down, or will miss/avoid it depending on if we get a tradable setup. Either cause is a win, just one makes money, while the worst case scenario just preserves capital in a cash position, you can’t complain either way if you ask me.

Before you continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!

Concluding Thoughts

In short, is if you lost money during the recent market crash, then you likely have not mastered a technical trading strategy and do not have proper trade management rules in place. All traders must manage risk and trades to be sure you lock in profits and limit losses when prices start pullback or collapse. Without either of these, you will not be able to achieve long term success/gains, and that’s a fact.

While we can all make money during a bull market when stocks are rising, if you cannot retain or grow your account during market downturns, then you may as well be a passive buy and hold investors. You are better at riding the emotional investor rollercoaster without wasting your time and effort as a trader if you are not going to spend the time and money to learn to follow someone to become a successful trader. Without proven trading strategies or someone to follow, you are more likely to underperform a long term passive investor.

I get dozens of emails from people every week trying to trade this wild stock market and use leveraged ETFs, which doing so during these unprecedented market conditions is absolute craziness if you ask me.

These people think that because there are big moves in the market, they should be trading. That big money should be made trading them, which drives me crazy because it could not be further from the truth unless you are a scalp or day trader. To me, in this market condition, it’s about preserving capital, not risking it, in my opinion.

A subscriber to my market video analysis and ETF trading newsletter said it perfectly:

“Always intrigues me how many amateur surfers get to the north shore beaches in Hawaii, take one look at monster waves and conclude it’s way too dangerous. Yet the amateur trader looks at treacherous markets like these and wants to dive right in!!” Richard P.

I have to toot my own horn here a little because subscribers and I had our trading accounts close at a new high watermark for our accounts. We not only exited the equities market as it started to roll over we profited from the sell off in a very controlled way.

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts, visit my ETF swing trading visit my website at The Technical Traders.

Chris Vermeulen
Founder of The Technical Traders 

Gold Rallies as Fear Take Center Stage

Gold has rallied extensively from the lows near $1560 over the past 2 weeks. At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018. Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer term fear that is building in the markets. Many traders are concerned about the global economy with the Coronavirus spreading economic worries throughout Asia, Japan, and Europe. We believe this fear will push precious metals continually higher over the next 24+ months with a real upside target above $2100 eventually.

Right now, skilled traders need to understand that wave after wave of higher price rotation will continue to happen in Gold and Silver. If you missed the $1450 level and missed the $1550 level, this is your time to attempt to find your entry point near $1650 or below that level. Ultimately, real fear has yet to result in a parabolic rally in Gold and Silver – but it is likely going to happen within the next 24+ months.

As skilled traders, our Fibonacci price modeling system is suggesting that any price rotation below $1550 would be an excellent buying opportunity. These levels really depend on where the current rally ends and what happens in the global markets over the next 60+ days.

Less than 7 days ago, we published this research article suggesting that our ADL predictive modeling system was telling us that Gold would rally above $1650 within 15 to 30 days. It is very likely this rally will start a multiple leg upside price advance in precious metals where Silver will finally breach the $20 to $21 level as Gold advances higher.

February 13, 2020: Predictive Modeling Suggests Gold Will Break Above $1650 Within 15 - 30 Days

Once fear really enters the markets, we’ll see huge sector rotation and a massive price reversion event take place. Historically, Gold and Silver will react to this move, but the parabolic price move in precious metals will come 4 to 6+ months after the reversion event in the global markets. So, from a historical standpoint, any entry-level near current price levels is exceptional.

Trust us, you really don’t want to miss this next move in precious metals. Our Fibonacci price modeling system and Adaptive Dynamic Learning modeling system are suggesting price levels above $2400 as an ultimate upside price target for Gold.

Join my Swing Trading ETF Wealth Building Newsletter if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.

Chris Vermeulen
The Technical Traders

Revisiting Black Monday 1987

Back in the day, for those of you that are old enough to remember and have experienced one of the most incredible trader psychology driven stock market decline in recent history. The difference between “Black Monday” and most of the other recent stock market declines is that October 19, 1987, was driven by a true psychological panic, what we consider true price exploration, after an incredible price rally.

It is different than the DOT COM (2001) decline and vastly different than the Credit Market Crisis (2008-09) because both of those events were related to true fundamental and technical evaluations. In both of those instances, prices have been rising for quite some time, but the underlying fundamentals of the economics of the markets collapsed and the markets collapsed with future expectations. Before we get too deep, be sure to opt-in to our free market trend signals newsletter.

Our researchers believe the setup prior to the Black Monday collapse is strangely similar to the current setup across the global markets. In 1982, Ronald Reagan was elected into his second term as the US President. Since his election in 1980, the US stock market has risen over 300% by August 1987.

Reagan, much like President Trump, was elected after a long period of U.S. economic malaise and ushered in an economic boom cycle that really began to accelerate near August 1983 – near the end of his first term. The expansion from the lows of 1982, near 102.20, to the highs of 1987, near 337.90, in the S&P 500 prompted an incredible rally in the US markets for all global investors.

This is very similar to what has happened since 2015/16 in the markets and particularly after the November 2016 elections when the S&P500 bottomed near 1807.5 and has recently set hew highs near 3026.20 – a 67.4% price rally in just over 3 years.

One can simply make the assumption that global investors poured capital in the US markets in 1983 to 1986 as the US markets entered a rally mode just like we suspect global investors have poured capital into the US markets after the 2016 US elections and have continued to seek value, safety, and returns in the US markets since. These incredible price rallies setup a very real potential for “true price exploration” when investors suddenly realize valuations may be out of control.

So, what actually happened on October 19th, 1987 that was different than the last few market collapse events and why is it so similar to what is happening today?

On October 19, 1987, a different set of circumstances took place. This was almost a perfect storm of sorts for the markets. The US markets had risen nearly 44% by August 1987 from the previous yearly close – a huge rally had taken place. Computer trading, which some people suspected may have been a reason for the price decline on October 19, was largely in its infancy.

Floor traders were running the show in New York and Chicago. The London markets closed early the Friday, October 16, because of a weather event that was taking place. The “setup” of these events may have played a roll in the liquidity issues that became evident on Black Monday and pushed the US markets down 22.61% by the end of trading.

The US markets had set up a top near 2,722 in early August 1987 after rising nearly 44% from the 1986 end of year closing price level of 1,895. The SPX rotated lower from this peak to set up a sideways price channel near 315 throughout the end of August and through most of September. On October 5, 1987, the SPX started a downward price move that attempted to test the lower support channel near 312. On October 12, one week later, the SPX broke below this support channel and closed at 298.10 (below the psychological 300 level). The very next weekend was October 17 & 18 – the weekend before Black Monday.

Sunday night, October 18, in the US, the Asian markets opened for trading and a price sell-off began taking place in Hong Kong. Because the London markets has closed early on the 16th due to the storm, by the time they opened the UK markets began tanking almost immediately. Early in the day on Monday, October 19, the FTSE100 had collapsed over 136 points.

Our researchers believe the declines in the US markets in early October 1987 set up a breakdown event that, once support was broken, prompted a collapse event where liquidity issues accelerated the price decline volatility – much like the “flash crash”. Global investors were unprepared for the scale and scope of the price decline event and panicked at the speed of the price collapse.

In fact, at the height of the 1987 crash, systemic problems (mostly solvency and brokerage house operations) continued to threaten a much larger financial market collapse. Within days of Black Monday, it became evident that margin accounts and solvency issues related to operating capital, large scale risks and continued fear that the markets may continue to collapse presented a very real problem for the US and for the world. Have we re-entered another Black Monday type of setup across the global markets?

As new economic data continues to suggest the global markets are economically contracting and stagnating, the US Federal Reserve has started buying assets again while the foreign central banks continue to push negative interest rates while attempting to spark any signs of real economic growth. The US stock market has continued to push higher – almost attempting new all-time highs again just recently. The US stock market is up nearly 68% over the past 3.5 years since Trump was elected and as of Friday, October 18, 2019, the US stock markets fell nearly 0.75% on economic fears.

In Part II of this article, we’ll explore the potential of another Black Monday type of setup that may be playing out before our very eyes right now in the US stock market.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short term swing trading and long-term investment capital. The opportunities are massive/life changing if handled properly.

I urge you visit my ETF Wealth Building Newsletter and if you like what I offer, join me with the 1-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

Join Today to Get a Free 1 ounce Silver Bar with a subscription – Offer Ends This Week!

Chris Vermeulen
The Technical Traders

Is Silver About to Become the Super Hero of Precious Metals?

If you’ve been following our research, you already know how accurately we’ve been nailing the precious metals price moves. We’ve been calling Gold and Silver accurately since early 2018 and continue to focus a good portion of our efforts in studying these incredible setups. Let’s have a little fun and start with two charts from near July 20, 2019, to help our followers understand what we’ve been expecting, but first, be sure to opt-in to our free market research newsletter.

This first Monthly Silver chart highlights what we believed would be the approximate wave structure of the silver price advance going forward. We did not attempt to accurately time these peaks of valleys, we simply used our Fibonacci Price Amplitude Arcs to allow price to tell us where these peaks may form. From those levels, we used our best “guess” to identify the trough bottoms.

You can see a “Started Here” line near the bottom of this chart. This highlights where we created this chart and where the price was when we first posted it in our research (near $16.39). As of today, the price of Silver is near $18.75 and climbing. We’ve drawn in the missing data on this chart and highlighted the endpoint with a “NOW Here!” message. Once the price of silver breaks above that BLUE Fibonacci Price Amplitude Arc, it should rally up to $23 to $25 before finding new resistance.

SILVER WEEKLY CHART

This next Silver Weekly chart was shared with our members near July 25, 2019. Pay very close attention to the arrows we drew on the chart at that time. Guess what the price of Silver actually did after this chart was shared with our readers? Yup, Silver shot up to $19.75 in early September, rotated back to the $17.50 level near the middle of September, and is starting a new rally towards the $23 to $25+ level right now. Does that look familiar to you on this chart (below)?

If this seems amazing to you because we were able to see these moves so accurately into the future and had such a keen insight into the future metals price rotation – don’t be alarmed. Our proprietary research tools are second to none. Our team of researchers have more than 54 years of experience in the markets and have studied almost all types of price theory, technical analysis, and other types of market price, technical, and fundamental analysis techniques. We put our skills to the test every day in order to help our clients find and execute the best trades. If you want to see more of our trading indicators and tools click here.

WHAT NEXT?

What next? Well, the charts above actually show you what’s next. The new charts, below, highlight new charts and new triggers that we believe will drive the current rally in Silver even higher.

Take notice of the HEAVY MAGENTA Fibonacci Price Amplitude Arc. The reason we highlight this MAGENTA level and the GREEN level in heavier line drawn is because these levels tend to become the major price inflection points within the arcs. In other words, these levels are where the price will either stall/reverse or breakout of a trend and possibly explode into a bigger price trend. The current Magenta line has just been crossed and the price is already exploding to the upside. If this continues as we expect, this Weekly Custom Metals Index could rally another 25% higher – which would put Gold well above $1800 per ounce and Silver well above $24 per ounce.

SILVER DAILY CHART

This last Silver Daily chart is our Silver Cycle chart. It shows that we expect Silver to reach levels above $23 to $25 before early November 2019. That means Silver could rally 20~25% from current levels within the next 30+ days to reach our current upside targets. Are you ready?

If you’ve missed any of our past analysis, please take a minute to visit our site to learn how our team of skilled researchers can help you find and execute better trades. This move in the metals markets is going to be an incredible opportunity. We’ve been alerting our members of this opportunity for months. If you are not prepared for this move and/or want to learn how we can help you, please review our trade signal Wealth Building Newsletter today.

Chris Vermeulen
The Technical Traders

NOTICE : Our free research does not constitute a trade recommendation, or solicitation for our readers to take any action regarding this research. It is provided for educational purposes only. Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed. Visit our website (The Technical Traders) to learn how to take advantage of our members-only research and trading signals.

How Close are the Markets from Topping?

Now that most of the U.S. Major Indexes have breached new all time price highs, which we called over 5+ months ago, and many traders are starting to become concerned about how and where the markets may find resistance or begin to top, we are going to try to paint a very clear picture of the upside potential for the markets and why we believe volatility and price rotation may become a very big concern over the next few months. Our objective is to try to help you stay informed of pending market rotation and to alert you that we may be nearing a period within the US markets where increased volatility is very likely.

Longer term, many years into the future, our predictive modeling systems are suggesting this upside price swing is far from over. Our models suggest that price rotation will become a major factor over the next 12 to 15+ months – headed into the U.S. Presidential election cycle of November 2020. Our models are suggesting that the second half of this year could present an incredible opportunity for skilled investors as price volatility/rotation provide bigger price swings. Additionally, our models suggest that early 2020 will provide even more opportunity for skilled traders who are able to understand the true price structure of the markets. Get ready, thing are about to get really interesting and if you are not following our research or a member of our services, you might want to think about joining soon.

We are focusing this research post on the NQ, ES and YM futures charts (Daily). We will include a longer term YM chart near the end to highlight longer-term expectations. Let’s start with the NQ Daily chart.

The NQ Daily chart, below, highlights our ongoing research, shows the 2018 deep price rotational low and the incredible rally to new all time highs recently. The most important aspect of this chart is the “Upside Target Zone” near the $8040 level and the fact that any rally to near these levels would represent an extended upside price rally near the upper range of the YELLOW price channel lines. We believe any immediate price rotation may end near the $7500 level (between the two Fibonacci Target levels near $7400 & $7600) and could represent a pretty big increase in price volatility.

This ES Daily chart highlights the different in capabilities between the NQ and the ES. While the NQ is already pushing into fairly stronger new price highs, the ES is struggling to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between $2,872 and $2,928. It is very likely that the price volatility will increase near these highs as price becomes more active in an attempt to break through this resistance. It is also very likely that a downside price rotation may happen where price attempts to retest the $2,835 level (or lower) before finally pushing into a bigger upside price trend. The Upside Target Zone highs are just below $3,000. Therefore, we believe any move above $2,960 could represent an exhaustion top type of price formation.

This YM chart is set up very similarly to the ES chart. Historical price highs are acting as a very strong price ceiling. While the NQ is already pushing into fairly stronger new price highs, the YM continues to struggle to get above the Sept/Oct 2018 highs and this is because very strong resistance is found between 25,750 and 27,000. Please take notice of the very narrow resistance channel (BOX) on this chart that highlights where we believe true price support/resistance is located. We believe it is likely that a downside price rotation may happen where price attempts to retest the $26,000 level (or lower) before finally pushing into a bigger upside price trend.

As you can tell from our recent posts and this research, we believe price volatility is about to skyrocket higher as price rotates downward. Our predictive modeling systems are suggesting that we are nearing the end of this current upside move where a downward price move will establish a new price base and allow price to, eventually, push much higher – well above current all-time high levels.

We’ve issued research posts regarding Presidential election cycles and how, generally, stock market prices decline 6 to 24 months before any US Presidential election. We believe this pattern will continue this year and we are warning our followers to be prepared at this stage of the game. No, it will not be a massive market crash like 2008-09. It will be a downside price rotation that will present incredible opportunities for skilled traders. If you want more of our specialized insight and analysis, then please visit The Technical Traders to learn how we help our members find success.

Lastly, we’ve included this Weekly YM chart to show you just how volatile the markets are right now. Pay very close attention to the Fibonacci Target Levels that are being drawn on this chart. The downside target levels range from $16,000 to $21,060. The upside target levels range from $30,000 to $32,435. Top to bottom, The Fibonacci price modeling system is suggesting a total volatility range of over $16,000 for the YM Weekly chart and this usually suggests we are about to enter a period of bigger price rotation and much higher price volatility.

Right now, we suggest that you review some of our most recent posts to see how we’ve been calling these market moves, visit The Technical Traders Free Research. It is important for all of our followers to understand the risks of being complacent right now. The markets are about to enter a period of about 24+ months where incredible opportunities will become evident for skilled traders. If you know what is going to happen, you can find opportunities everywhere. If not, you are going to be on the wrong side of some very big moves.

Chris Vermeulen

Waiting for the Russell 2000 to Confirm the Next Big Move

While we have recently suggested the US stock market is poised for further upside price activity with a moderately strong upside price “bias”, our researchers continue to believe the U.S. stock markets will not break out to the upside until the Russell 2000 breaks the current price channel, Bull Flag, formation. Even though the U.S. stock markets open with a gap higher this week, skilled traders must pay attention to how the Mid-Caps and the Russell 2000 are moving throughout this move.

As we continue to advise our clients that the upside pricing cycle in the U.S. stock market is being underestimated, see this research post: we also believe that increased volatility and price rotation will continue to drive larger rotations in price before the final breakout upside move takes place. We want to continue to warn traders that we still don’t have any confirmed upside breakout with price continuing to stay within this price channel in the Russell 2000. Eventually, when and if the price does breakout to the upside, we will have a very clear indication that continued higher prices and a larger upside move is happening. Until then, we need to stay cautious about the types and levels of rotation that continue within the markets.

Recently, volatility has started to increase as can be seen in this VIX chart. If the Russell 2000 is not able to break this trend channel with this current upside price move, then we fully expect continued price rotation in the U.S. stock markets and another increase in the VIX as this rotation takes place. The NQ recently rotated downward by nearly 4% while historical volatility continues to narrow. When volatility diminishes in extended price trends, we’ve learned to expect aggressive price rotation can become more of a concern. We expect the VIX to spike above 16~18 on moderate volatility as we get closer to the cycle inflection date near June/July 2019.

Volatility Index – VIX chart by TradingView

Overall, our researchers believe the upside price bias in the U.S. stock market will continue for another 30+ days as our research and predictions regarding precious metals and the longer term equities price cycles continue to play out. Skilled traders need to be aware that this upside price bias may include larger price rotation and volatility as we get closer to the May/June/July 2019 cycle inflection points. Stay aware of the risks as 4~6%+ price rotations should be expected over the next 30+ days throughout this upside price bias.

Do you want to find a team of dedicated researchers and traders that can help you find and execute better trades in 2019 and beyond? Please visit The Technical Traders to learn how we can help you prepare for the big moves in the global markets and find better opportunities for greater success in the future. Our team of researchers and traders continue to scan the markets for new trades and unique opportunities.

Chris Vermeulen

Simple Day Trades - Gap Windows and Price Spikes

IMPORTANT NOTE: Pre-market trades like these are posted in our morning update and video only. We don’t want to blanket all our longer term traders with day trades. So if you are an active trader be sure you read our morning update and watch the video with your morning coffee.

The morning gap has filled and our spike targets are being reached as well. Keep in mind, these are short term trade setup which will be implemented into our member’s area in the near future that auto update and post for those of you who want to take advantage of early day trades and be done by 11 am most trading sessions. Once we have things implemented there will be a detailed PDF on how trading these along with a video.

For you longer term traders we are also working on having our swing trade charts and signal post and update automatically in the member’s area as well. Each trading strategy, chart, and signals will run in a separate member’s area page and you will be able to follow and trade the strategies that fit your personality and trading style.

This is going to take us 30 - 60+ days to get things fully set up and running and it’s going to add a lot of value and opportunities for you – Subscribe Now!

Chris Vermeulen
Chief Investment Strategist

Silver Starts a Breakout Move Higher

Watch Silver, folks. This quiet shiny metal is starting a move that could be very foretelling of global market concerns and risks. Early on December 26, 2018, Silver broke through recent resistance, to the upside, with a relatively large 2.8%+ upside move. Why is this so important to traders? Because Silver is the “sleeper metal” that is typically the last to react to global economic concerns. Once Silver starts to move to the upside with a renewed bullish trend, we believe this move would indicate that bigger players are starting to accumulate Silver as a safe haven for future economic concerns/crisis events.

This Daily chart of Silver shows the December 26 upside breakout move. We can clearly see the breakout above $15.00 and the historical resistance just below $15.00. This move is extremely important in the context of the total risk play that has recently played out through the past two months. Take a look as how quiet the Silver market has been over the past few months. Take a look at how Silver reacted only moderately to the recent market selloff and Fed statements. There was no real “fear” exhibited in the metals markets or in Silver over the past 60+ days. Yet, today, there is some real fear that is playing out in the price of Silver.

This next Weekly Silver chart helps us to understand the total scope of this move and what we could expect to see as an immediate upside price target. Our Adaptive Fibonacci Price modeling system is suggesting that $16.00 is an immediate upside price target and is showing us the current trend is bullish and that price volatility is increasing. Overall, we could see a move well above $17.00 on an extended run in the metals.

Watch how this “sleeper metal” plays out over the next few weeks and months. This upside breakout is very important to investors for the simple reason that it indicates a renewed level of “fear” is entering the markets and we could be starting a very big upside move in the metals markets again. The last time Silver entered a massive bullish phase it shot up over 400%. If a similar move happens again in the near future, Silver could reach a price level near $60-65 per ounce.

Want to know how to position your investments to take advantage of these types of moves and learn how to capture greater opportunities in the markets? 2019 is setting up to be an incredible year for traders with the skills and insight to find and execute these types of trades. We have already been positioning our members for this move and we believe 2019 will provide incredible opportunities for all skilled traders. Take a minute to visit The Technical Traders to learn how we can help you in 2019 and join our other members in finding greater success.


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Is Gold on the Verge of a Bottom - See for Yourself

The recent downward price swing in Gold has kept Goldbugs frothing at what they believe is a very unusual and unexplained price function in the face of so much uncertainty throughout the globe. With Turkey, Russia, China and many others experiencing massive economic and currency crisis events, Gold has actually been creeping lower as the U.S. Dollar strengthens. It is almost like a “Twilight Zone” episode for Gold Bulls.

The setup for a gold rally has been in place for over a decade. Much like in 2006 through 2008, the current price and volatility of Gold is simply mundane. For the past two years, Gold has rotated between $1190 and $1360 – within a $180 range. Certainly, Gold traders were able to find some profits within this range, but no breakout trends have been established since early 2016 when the price of Gold changed from Bearish to Bullish and a 31% rally took place driving prices $328.80 higher from the lows.

Our team of researchers, at The Technical Traders, believe something very interesting may be taking place in Gold right now – almost like a “Deja Vu” of the past. A double setup appears to have taken place recently and we believe the bottom may have already formed in Gold for now.

In early 2016 through November 2016 where price rallied 31% then retraced nearly 75% to form the second leg higher. This deep retracement of price was indicative of a wide price rotation before another leg higher pushed back up to near the all time highs.

From 2017 until now the Gold chart shows another 75% price retracement from recent highs once again. This second 75% retracement could be a massive bottom formation setting up in Gold and could be a huge “wash out” low price. We believe this unique retracement is indicative of a massive price breakout over the next year or so as the price of gold is forming what Stan Weinstein calls a Stage 1 Accumulation.

Now, let’s zoom in and take a look at the weekly chart and our Adaptive Dynamic Learning model, the predictive analysis suggests that Gold prices should begin to bottom within the next week or two and begin to climb much higher over the next 3 to 10+ weeks.

This pattern consists of 12 unique instances of data and suggests that the future upswing will start rather mild for the first 2 weeks, then begin to accelerate as time progresses. It appears we have a strong potential to see prices above $1400 within the next 5 - 8 weeks or so and you look at the previous chart above, what is the $1400 level? You got it! Resistance, and if price breaks out above $1400 a new bull market would be triggered!

As many of you are aware, Gold is often a move to safety when the global economy begins to show signs of chaos or weakness. We believe the move in the U.S. Dollar will stall and possibly correct as this move takes place. If Gold were to rally while the U.S. Dollar continued to strengthen, you can clearly assume that a flight to safety is taking place and it includes a massive capital migration toward U.S. equities and GOLD. If the rally in gold is seen while the U.S. Dollar weakens or stalls, then we are seeing a move to safety while the currency markets address regional and global currency market issues.

Either way, we expect Gold to begin a new rally higher off of this 75% retracement level to complete the Pennant formation that is currently set up for a Wave 5 upside price expansion. Some of this technical analysis may be over your head as it can be confusing, but you should get the gist of things which is that precious metals should find a bottom and there is the potential that a massive bull market could be on the horizon if price rallies quickly. Be prepared for this move because the Gold shorts will likely be forced to cover their positions within the next few weeks as this move begins to accelerate higher.

Visit The Technical Traders to learn how we can help you find these types of swings in the major markets. We alert our clients well in advance of these swings and deliver daily video content to all of our members before the market opens each day. Our objective is to make you a better trader and to help you find successful setups to create greater success. Visit our website to learn how we can help you become a better trader today.

Chris Vermeulen
Technical Traders Ltd.

Gold And Gold Miners Preparing for Big Move

Just a few days ago we alerted our members and followers to a massive setup in the Palladium market that had not been seen in years. This chart formation provides an incredible opportunity for a trader to take advantage of and profit from the expected price decline. We alerted our members and followers on January 24th of this move.

As of today, Palladium has rotated downward by over 9% from the recent highs and should continue to move lower as this multi-month rotation extends. Even though this initial move lower (-9%) reaches our initial predicted target levels, we still believe support won’t be found till prices reach near the $1000 price level. If that support fails to hold, the price of Palladium could fall to the $900. This total move could be over -20% by the time this downward swing ends.

As an additional bonus, the other metals and Miner ETFs are starting a move in correlation with this massive rotation in Palladium. The aggressive move in Palladium may become a catalyst for the other metals and miners to sell off further.

We warned weeks ago about this cycle top in gold and how it should rotate lower and move to near $1300 before finding support. This move has just started really and would equate to a -3.8~4.2% downward price correction.

The ability to see these moves and act on them provides our members with the ability to take a single trading signal and deploy multiple successful trades from it. We got our member’s long DUST near the very bottom of the market in anticipation of this move in the metals markets. Knowing that this move was set up and that it could be somewhat aggressive, we simply waited for the proper setup and trigger to alert our members.

The overall potential from our DUST trade remains substantial. Currently, we have already locked in +11% for our members and we believe the final move could be much larger.

The reason we are alerting you, today, of the progress of our calls, is that the market conditions are changing, and these types of trade setups are going to happen every month and a lot of money can be made by taking advantage of them each month. Join our Wealth Building Newsletter here at The Technical Traders and let us boost your trading returns with our daily analysis video, market updates, and trade alerts.

We just closed out another winning trade and members locked in a quick 9.1% profit with falling price of natural gas.

Our articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.

JOIN US TODAY AND BECOME A WINNING TECHNICAL TRADER – CLICK HERE

Chris Vermeulen
Founder Technical Traders Ltd.

2018 First Quarter Technical Analysis Price Forecast

As 2017 draws to a close, our analysis shows the first Quarter of 2018 should start off with a solid rally. Our researchers use our proprietary modeling and technical analysis systems to assist our members with detailed market analysis and timing triggers from expected intraday price action to a multi-month outlook.

These tools help us to keep our members informed of market trends, reversals, and big moves. Today, we are going to share some of our predictive modelings with you to show you why we believe the first three months of 2018 should continue higher.

One of our most impressive and predictive modeling systems is the Adaptive Dynamic Learning system. This system allows us to ask the market what will be the highest possible outcome of recent trading activity projected into the future. It accomplishes this by identifying Genetic Price/Pattern markers in the past and recording them into a Genome Map of price activity and probable outcomes.

This way, when we ask it to show us what it thinks will be the highest probable outcome for the future, it looks into this Genome Map, finds the closest relative Genetic Price/Pattern marker and then shows us what this Genome marker predicts as the more likely outcome.

This current Weekly chart of the SPY is showing us that the next few Weeks and Months of price activity should produce a minimum of a $5 – $7 rally. This means that we could see a continued 2~5% rally in US Equities early in 2018.

Additionally, the ES (S&P E-mini futures) is confirming this move in early 2018 with its own predictive analysis. The ADL modeling system is showing us that the ES is likely to move +100 pts from current levels before the end of the first Quarter 2018 equating to a +3.5% move (or higher). We can see from this analysis that a period of congestion or consolidation is expected near the end of January or early February 2018 – which would be a great entry opportunity.

The trends for both of these charts is strongly Bullish and the current ADL price predictions allow investors to understand the opportunities and expectations for the first three months of 2018. Imagine being able to know or understand that a predictive modeling system can assist you in making decisions regarding the next two to three months as well as assist you in planning and protecting your investments? How powerful would that technology be to you?

Our job at Technical Traders Ltd. is to assist our members in finding and executing profitable trades and to assist them in understanding market trends, reversals, and key movers. We offer a variety of analysis types within our service to support any level of a trader from novice to expert, and short term to long term investors.

Our specialized modeling systems allow us to provide one of a kind research and details that are not available anywhere else. Our team of researchers and traders are dedicated to helping us all find great success with our trading.

So, now that you know what to expect from the SPY and ES for the next few months, do you want to know what is going to happen in Gold, Silver, Bonds, FANGs, the US Dollar, Bitcoin, and more?

Join The Technical Traders Right Here to gain this insight and knowledge today.

Chris Vermeulen

Today's Gap Fill and Prediction Complete, What's Next?

Subscribers of our Technical Traders Wealth Building Newsletter were told before the market opened that stocks were set to gap higher and then fill the price gap. Only 12 minutes after the market opened the gap window was filled for a 9.5 pt move in the SP500, which is a quick $475 profit for those trading futures, or $103 profit per 100 shares traded of the SPY ETF.

Yesterdays Gap Fill Forecast

If you want to know what the market are going to do today, this week, and next month be sure to subscribe to our new and improved market trend forecast and trading newsletter....

Visit "The Technical Traders ETF Cycle Trader" Right Here

How Our Multiple Cycle and Vibrational-Frequency Cycles Are Lining Up

A quick look at any of the US majors will show most investors that the markets have recently been pushing upward towards new all time highs. These traditional market instruments can be misleading at times when relating the actual underlying technical and fundamental price activities. Today, we are going to explore some research using our custom index instruments that we use to gauge and relate more of the underlying market price action.

What if we told you to prepare for a potentially massive price swing over the next few months? What if we told you that the US and Global markets are setting up for what could be the “October Surprise of 2017” and very few analysts have identified this trigger yet? Michael Bloomberg recently stated “I cannot for the life of me understand why the market keeps going up”. Want to know why this perception continues and what the underlying factors of market price activity are really telling technicians?

At ATP we provide full time dedicated research and trading signal solution for professional and active traders. Our research team has dedicated thousands or hours into developing a series of specialized modeling systems and analysis tools to assist us in finding successful trading opportunities as well as key market fundamentals. In the recent past, we have accurately predicted multiple VIX Spikes, in some cases to the exact day, and market signals that have proven to be great successes for our clients. Today, we’re going to share with you something that you may choose to believe or not – but within 60 days, we believe you’ll be searching the internet to find this article again knowing ATP (Active Trading Partners) accurately predicted one of the biggest moves of the 21st century. Are you ready?

Let’s start with the SPY. From the visual analysis of the chart, below, it would be difficult for anyone to clearly see the fragility of the US or Global markets. This chart is showing a clearly bullish trend with the perception that continued higher highs should prevail.

Additionally, when we review the QQQ we see a similar picture. Although the volatility is typically greater in the NASDAQ vs. the S&P, the QQQ chart presents a similar picture. Strong upward price activity in addition to historically consistent price advances. What could go wrong with these pictures – right? The markets are stronger than ever and as we’ve all heard “it’s different this time”.

Most readers are probably saying “yea, we’ve heard it before and we know – buy the dips”.

Recently, we shared some research with you regarding longer term time/price cycles (3/7/10 year cycles) and prior to that, we’ve been warning of a Sept 28~29, 2017 VIX Spike that could be massive and a “game changer” in terms of trend. We’ve been warning our members that this setup in price is leading us to be very cautious regarding new trading signals as volatility should continue to wane prior to this VIX Spike and market trends may be muted and short lived. We’ve still made a few calls for our clients, but we’ve tried to be very cautious in terms of timing and objectives.

Right now, the timing could not be any better to share this message with you and to “make it public” that we are making this prediction. A number of factors are lining up that may create a massive price correction in the near future and we want to help you protect your investments and learn to profit from this move and other future moves. So, as you read this article, it really does not matter if you believe our analysis or not – the proof will become evident (or not) within less than 60 days based on our research. One way or another, we will be proven correct or incorrect by the markets.

Over the past 6+ years, capital has circled the globe over and over attempting to find suitable ROI. It is our belief that this capital has rooted into investment vehicles that are capable of producing relatively secure and consistent returns based on the global economy continuing without any type of adverse event. In other words, global capital is rather stable right now in terms of sourcing ROI and capital deployment throughout the globe. It would take a relatively massive event to disrupt this capital process at the moment.

Asia/China are pushing the upper bounds of a rather wide trading channel and price action is setting up like the SPY and QQQ charts, above. A clear upper boundary is evident as well as our custom vibrational/frequency analysis arcs that are warning us of a potential change in price trend. You can see from the Red Arrow we’ve drawn, any attempt to retest the channel lows would equate to an 8% decrease in current prices.

Still, there is more evidence that we are setting up for a potentially massive global price move. The metals markets are the “fear/greed” gauge of the planet (or at least they have been for hundreds of years). When the metals spike higher, fear is entering the markets and investors avoid share price risks. When the metals trail lower, greed is entering the markets and investors chase share price value.

Without going into too much detail, this custom metals chart should tell you all you need to know. Our analysis is that we are nearing the completion of Wave C within an initial Wave 1 (bottom formation) from the lows in Dec 2016. Our prediction is that the completion of Wave #5 will end somewhere above the $56 level on this chart (> 20%+ from current levels). The completion of this Wave #5 will lead to the creation of a quick corrective wave, followed by a larger and more aggressive upward expansion wave that could quickly take out the $75~95 levels. Quite possibly before the end of Q1 2018.

We’ve termed this move the “Rip your face off Metals Rally”. You can see from this metals chart that we have identified multiple cycle and vibrational/frequency cycles that are lining up between now and the end of 2017. It is critical to understand the in order for this move to happen, a great deal of fear needs to reenter the global markets. What would cause that to happen??

Now for the “Hidden Gem”....

We’ve presented some interesting and, we believe, accurate market technical analysis. We’ve also been presenting previous research regarding our VIX Spikes and other analysis that has been accurate and timely. Currently, our next VIX Spike projection is Sept 28~29, 2017. We believe this VIX Spike could be much larger than the last spike highs and could lead to, or correlate with, a disruptive market event. We have ideas of what that event might be like, but we don’t know exactly what will happen at this time or if the event will even become evident in early October 2017. All we do know is the following....

The Head-n-Shoulders pattern we first predicted back in June/July of this year has nearly completed and we have only about 10~14 trading days before the Neck Line will be retested. This is the Hidden Gem. This is our custom US Index that we use to filter out the noise of price activity and to more clearly identify underlying technical and price pattern formations. You saw from the earlier charts that the Head n Shoulders pattern was not clearly visible on the SPY or QQQ charts – but on THIS chart, you can’t miss it.

It is a little tough to see on this small chart but, one can see the correlation of our cycle analysis, the key dates of September 28~29 aligning perfectly with vibration/frequency cycles originating from the start of the “head” formation. We have only about 10~14 trading days before the Neck Line will likely be retested and, should it fail, we could see a massive price move to the downside.

What you should expect over the next 10~14 trading days is simple to understand.

Expect continued price volatility and expanded rotation in the US majors.

• Expect the VIX to stay below 10.00 for only a day or two longer before hinting at a bigger spike move (meaning moving above 10 or 11 as a primer)
• Expect the metals markets to form a potential bottom pattern and begin to inch higher as fear reenters the markets _ Expect certain sectors to show signs of weakness prior to this move (possibly technology, healthcare, bio-tech, financials, lending)
• Expect the US majors to appear to “dip” within a 2~4% range and expect the news cycles to continue the “buy the dip” mantra.

The real key to all of this is what happens AFTER October 1st and for the next 30~60 days after. This event will play out as a massive event or a non event. What we do know is that this event has been setting up for over 5 months and has played out almost exactly as we have predicted. Now, we are 10+ days away from a critical event horizon and we are alerting you well in advance that it is, possibly, going to be a bigger event.

Now, I urge all of you to visit our website to learn more about what we do and how we provide this type of advanced analysis and research for our clients. We also provide clear and timely trading signals to our clients to assist them in finding profitable trading opportunities based on our research. Our team of dedicated analysts and researchers do our best to bring you the best, most accurate and advanced research we can deliver. The fact that we called this Head-n-Shoulders formation back in June/July and called multiple VIX Spike events should be enough evidence to consider this call at least a strong possibility.

If you want to take full advantage of the markets to profit from these moves, then join us today here at the Active Trading Partners and become a member.