Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18
Which UK Best Theme Park - Alton Towers vs Thorpe Park vs Lego Land vs Chessington World - 12th Aug 18
USD is Rising. What this Means for Currencies and Stocks - 12th Aug 18
Hardest US Housing Market Places to Live - Look Out Middle Class - 12th Aug 18
America’s Suburbs Are Making a Comeback - 12th Aug 18
Stock Market US Presidential Cycle, Seasonal Analysis and Economy - Video - 12th Aug 18
Yield Curve Inversion and the Stock Market - Video - 11th Aug 18
Land Rover Discovery Sport 1st Dealer Oil Change Service - What to Expect - 11th Aug 18
How to Setup Webinars and Use Them to Overcome the Barriers in E-Learning - 11th Aug 18
Big US Stocks’ Q2’18 Fundamentals - 11th Aug 18
Dow Stock Market Trend Forecast 2018 - 10th Aug 18
SPX Testing Its First Support Level - 10th Aug 18
Dreaming of a "Comfortable Retirement" on a Public Pension? - 10th Aug 18
The Forrest Gump of All Future Democrat Election Losses - 10th Aug 18
More Uncertainty as Stocks Got Closer to January Record High - 10th Aug 18
Gold and Silver Kill Zone - 9th Aug 18
Even More Cracks in the Gold Dam - 9th Aug 18
Ignore the Stock Market “midterm election year”, Which is “supposed” to be Weak - 9th Aug 18
Stock Market Trend and Volatility Analysis - Video - 9th Aug 18
Tips on Maximizing Small Serviced Offices Space - 9th Aug 18
VIX’s Collapse is Bullish for VIX and the Stock Market - 9th Aug 18
Vestles Platform Offers Several Key Trading Tools - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 2 - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 1 - 8th Aug 18
Stock Market US Presidential Cycle and Seasonal Analysis - 8th Aug 18
Is the Stock Market Correction Over? - 7th Aug 18
Yield Curve Inversion and the Stock Market - 7th Aug 18
Stock Market Elliott Wave Analysis and Forecast - Video - 7th Aug 18
Trade War! Win the Economic Hostilities Against the Chinese - 7th Aug 18
Technical Analyst Sees Silver as 'Oversold' - 7th Aug 18
Alex Jones Banned! Will Unapproved Opinions Be Censored Off the Internet? - 7th Aug 18
Gold and Silver Stocks On the Verge of the Next Major Decline - 7th Aug 18
First Time Buyers Need to ‘boost the affordability’ of Their Move Alone  - 7th Aug 18
Long Term Care Homes as an Investment are Heating Up! - 7th Aug 18
The Exponential Inflationary Stocks Bull Market - Video - 6th Aug 18
Land Rover Discovery Sport Oil Change Service Dash Warning Message - 6th Aug 18
Restructuring of Western Economic Power - 6th Aug 18
Stock Market Trend and Volatility Analysis - 6th Aug 18
Stock Market and Economy False Narratives That are Just Wrong - 6th Aug 18
VPN – Is It Worth It? - 6th Aug 18
All You Need to Know About Umbrella Companies - 6th Aug 18
Why China Lost the Trade War Before it Even Began - SSEC Stocks Index - Video - 5th Aug 18
Dow Stock Market Elliott Wave Analysis - 5th Aug 18
Iran's Rial Currency Is In A Death Spiral, Again - 5th Aug 18
IMF Produces Another Bogus Venezuela Inflation Forecast - 5th Aug 18
Gold & Silver Precious Metals Monthly Charts - 5th Aug 18
Time to Position for a Decade-Long Bull Market in Natural Resources - 5th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

The New Stocks Bull Market of 2017!

Stock-Markets / Stocks Bull Market May 31, 2017 - 04:48 AM GMT

By: Chris_Vermeulen

Stock-Markets

I cannot stress strongly enough the importance of understanding where the markets are currently technically located, with regards to different time frames and which help to guide all my trading and investing decisions.

The longer that the SPX is inside a ‘consolidation pattern’ and going sideways, the bigger the ‘Break Out’. There is a very strong bullish posture on all time frames within the markets. A unique ‘Sentiment Indicator’ has now been reset from being overbought to oversold, therefore, there is huge potential to the upside. Momentum has been reset!  In my market article review, from last February 28th, 2017, I discussed that the “Stealth ‘Bull Market’ In Stocks Is Still In Progress!”.


Additionally, I also wrote about how “Elliott’s theory is based on the Dow theory in that stock prices move in waves. Because of the “fractal” nature of markets, I have broken them down so that you can trade a daily complete wave count”.

The below chart was originally posted in April of 2017 with the potential price paths for the SPX to reach the next price target of 2500. The overall forecast points to higher prices this summer with the potential of a major top forming in late July or August.

Courtesy of  TMTF website.

A close above 2424, of the SPX, would trigger a NEW ENTRY POINT, as well as indicating the continuation to the SPX 2500 level. The next potential target is 2430.

 

Have The Markets Changed?

The “FAANGS” describe five major stocks in the index: Facebook, Apple, Amazon, Netflix, and Google. The “FAANGS” could create a huge ‘Melt Up’ in our current stock market environment! The “FAANGS” and other large technology stocks will send the SPX much higher.

The U.S.-listed ETFs had inflows of $7.8 billion during the week ending Thursday, May 25th, 2017.  The year-to-date inflows are $188.6 billion.

These five stocks (FAANGS) represent 9.25% of the SPX index. They also represent 31.45% of the NDX – 100.

Stocks Have a Long Way To Go!

The Bank of Japan (BOJ) and the European Central Bank (ECB) are sending the SPX to even newer highs. Easy money policies, and provide cash to invest into the markets, while adding more liquidity.

Therefore, we are in a “risk on” environment.  This is fueling the ‘market bubble’ and will continue for some time yet.  The markets have been resilient as traders “buy the dips”!

Analysts at Morgan Stanley believe that “profit expansion within the S&P 500 is growing at its best rate in nearly six years. Specifically, ratio of companies raising internal earnings estimates versus those lowering future earnings expectations is reaching its highest level since 2012”.

Michael J. Wilson, Morgan Stanley Equity Strategist, wrote in a client note, “The momentum of earnings revisions breadth like that seen recently is often synonymous with higher equity prices over a 12-month horizon.”

Intermarket Analysis:

Global Central Banks have injected a record $1 trillion in 2017… they will be required to continue to inject more as the year progresses.

The current focus is on the fundamental key drivers that move the market. The current drivers are Trumponomics, the FED rate hikes, Quantitative Easing and ZIRP.

‘Correlation’ is when you look at one market and it can forecast another markets’ behavior.  For example, if the USD turns higher, it is likely that commodity prices will soon begin to fall. If commodities do not drop right away, they have diverged from their natural relationship and we can expect them to start to fall soon.

Correlations offer useful information for traders.  Linear correlation analysis presupposes the effects which are linear in nature in a one-to-one causal relationship. The correlation of any two markets can range between +1.0 (the price behavior of the two markets is the same) and -1.0 (the price behavior of the two markets is exactly the opposite of one another).

The historical correlation between GLD and the U.S. dollar has been -0.59.

IS GOLD DUE FOR A BREAKOUT?

Gold is the ultimate hedge for setbacks in the Trump agenda.  If the administration fails to get its’ agenda enacted, gold prices will likely move higher.

Gold is the most (negatively) sensitive precious metal to react to changes in the Federal Funds Futures.

The FED cannot raise rates, aggressively, without harming the U.S. economy: U.S. debt levels remain ‘astronomically high’. There has been no deleveraging since the Great Financial Crisis of 2007/ 2008.

Total U.S. debt remains above 250% of GDP.  This explains, better than any other factor, why the Federal Funds target rate is still below 1%.

 

GLD broke through an important resistance level and remains above all key moving averages. GLD out-performed other safe havens last week.

A close above GLD 120.60 would indicate a great swing trade to GLD 122 and then GLD 126.  This would also reflect the continuation of the bearish move on the U.S. dollar to the 94 and 95 levels.

 

In Conclusion:

Tune in every morning for my video analysis and market forecasts at TheGoldAndOilGuy.com to now where the main ‘asset classes’ are headed tomorrow, this week, and next month.

Short-term aggressive traders may want to look at our premium newsletter ATP where we alert our clients to weekly opportunities and attempt to keep our members aware of new trade setups using our proprietary Momentum Reversal Method trading system.

TRADES IN MAY:

ERY 4.75%, in 2 Days

SLV 3.2%, in 6 Days

MOBL 15%, in 7 Days

FOLD 9.5% in 40 Days

 

If you want to take FULL Advantage of All Our insight and expertise tune in every morning for BOTH our daily market forecasts video and our Stock & ETF Trade Alerts services now!

This week will be most interesting in the markets. It is vital that you understand what the markets are telling you. Attempting to trade stocks, bonds, commodities, and the currency markets, without intermarket awareness, can be very costly.

Chris Vermeulen
www.TheGoldAndOilGuy.com – Daily Market Forecast Video & ETFs
www.ActiveTradingPartners.com – Stock & 3x ETFs

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 7 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules