Best of the Week
Most Popular
1.North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - Nadeem_Walayat
2.Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - OilPrice_Com
3.Gold and Silver : The Battle for Control - Rambus_Chartology
4.Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - Nadeem_Walayat
5.Deep State Conspiracy or Chaos - James_Quinn
6.The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - Plunger
7.Gold Stocks Coiled Spring - Zeal_LLC
8.Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - John_Mauldin
9.Crude Oil Price Precious Metals Link in August - Nadia_Simmons
10.Gold and Silver Precious Metals Nearing Breakout - Jordan_Roy_Byrne
Last 7 days
Global Financial Crisis 10 Years On: Gold Rises 100% from $650 to $1,300 - 23rd Aug 17
GBP/USD Extends Losses - 23rd Aug 17
Donald Trump Terrorist in Chief, “We Aren’t Nation-Building Again, We Are Killing Terrorists” - 23rd Aug 17
How Planned Fed Rate Increases Impact The National Debt & Deficits - 23rd Aug 17
The 3 Assets to Add to Your Stocks Portfolio in This Rate Tightening Cycle - 23rd Aug 17
Half Price UK Theme Parks Entry 2017 With Cheap Chocolate Packs - 23rd Aug 17
[GIFT] Market Control System! - 23rd Aug 17
4 Reasons European Stocks Will Make a Big Comeback This Year - 22nd Aug 17
3 Lesser-Known Charts Revealing a Massive Stock Market Disconnect - 22nd Aug 17
U.S. Treasury Secretary: "I Assume Fort Knox Gold Is Still There" - 22nd Aug 17
Is the Stock Market Setting itself up for a Spectacular Crash? - 22nd Aug 17
Power Elites Launches Civil War Against Trump - 22nd Aug 17
The Stock Market No Longer Cares About Trump - 21st Aug 17
The Coming Boom Of Productivity Will Get Our Economy Back On Track - 21st Aug 17
Buffett Sees Stock Market Crash Coming? His Cash Speaks Louder Than Words - 21st Aug 17
This Could Be The Biggest Gold Discovery In History - 21st Aug 17
Stock Market Correction in Full Swing - 21st Aug 17
Seeking Confirmations – US Stock Market - 21st Aug 17
The changing demographic of online gamblers - 21st Aug 17
Gold is a coiled spring… the breakout is here, fundamentals are in place, technicals are compelling - 20th Aug 17
A Midsummer Night's Dream: Buy Gold and Silver - 20th Aug 17
Gold Mining Stocks 2017 Fundamentals - 20th Aug 17
EIA Weekly Report and Crude Oil - 19th Aug 17
4 Insights for Adjusting Your Portfolio in a Rate-hike Environment - 19th Aug 17
Gold Direction Indicator - 19th Aug 17
Historical Inevitability and Gold and Silver Ownership - 19th Aug 17
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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

© 2005-2017 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

Catching a Falling Financial Knife