Best of the Week
Most Popular
1. Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - Nadeem_Walayat
2.Gold Price Focusing on May Cycle Bottom - Jim_Curry
3.Silver, silver, and silver! There’s More Than Silver, People! - P_Radomski_CFA
4.Is the Malaysian Economy a Potemkin Village - Sam_Chee_Kong
5.Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - Troy_Bombardia
6.A Big Stock Market Shock is About to Start - Martin C
7.A Long Term Gold Very Unpopular View - Rambus_Chartology
8.Stock Market “Sell in May and go away” Study When Stocks Are Down YTD - Troy_Bombardia
9.Global Currency RESET Challenge: Ultimate Twist - Jim_Willie_CB
10.The Coming Silver Supply Crunch Is Worse Than You Know - Jeff Clark
Last 7 days
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18
More on that Gold and Silver Ratio 'Deviant Conundrum' - 13th Jun 18
Silver Shares? Nobody Cares - 13th Jun 18
What Happens to Stocks, Forex, Commodities, and Bonds When the Fed Hikes Rates - 13th Jun 18
Gold and Silver Price Setting Up for A Sleeper Breakout - 13th Jun 18
Tesla Stock Analysis - 12th Jun 18
What Happens Next to Stocks when Russell Goes up 6 Weeks in a Row - 12th Jun 18
Gold vs. Stocks: Ratios Do Not Imply Correlation - 12th Jun 18
Silver’s Not-so-subtle Outperformance - 12th Jun 18
Why You Should Brace Yourself for Big Financial Changes - 11th Jun 18
Inflation to Skyrocket When Fed Reverts to New QE & Interest Rate Cuts - 11th Jun 18
Stock Market Topping Pattern or Just Consolidation? - 11th Jun 18
Study: What Happens Next to Stocks When the Put/Call Ratio is Very Low - 11th Jun 18
G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - 11th Jun 18
SPX Unshackled - 11th Jun 18
When Trump Met Fibonacci And Won - 11th Jun 18
FREE Theme Park Entry with Cadbury's Choc's! Legoland, Alton Towers, Chessington.... - 11th Jun 18
Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - 10th Jun 18
End of the World Stock Market Chart! - 10th Jun 18
All US Homes Are Overvalued - 10th Jun 18
Thorpe Theme Park London Car Park Exit Nightmare - Drivers Beware! - 10th Jun 18
Gold Price Summer Doldrums - 9th Jun 18
How to Prepare for Economic Uncertainty with Gold and Silver - 9th Jun 18
5 "Tells" that the Stock Markets Are About to Reverse - 9th Jun 18
Billionaire Schools Teacher in NAFTA Trade Talks - 9th Jun 18
Land Rover Discovery Sport ECO Mode Real World Driving MPG Fuel Economy - 9th Jun 18
Crude Oil Bullish Weekly Reversal vs. Bearish Monthly Reversal - 8th Jun 18
Fed’s Interest Rate Hike is Short term Bearish for Stocks - 8th Jun 18
The Deviant Conundrum Called Silver - 8th Jun 18
Pleasure Island Theme Park Cleethorpes, Last Day Trip Before it Closed Down - 8th Jun 18
America’s One-sided Domestic Financial War - 8th Jun 18
Debt Consolidation Advice: When and Why to Consolidate - 8th Jun 18
Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - 8th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

10 Years Ago Today a Stocks Bear Market Started

Stock-Markets / Stock Market 2017 Oct 19, 2017 - 11:25 AM GMT

By: Chris_Vermeulen

Stock-Markets

Yes, much has recently been published about the 10-year anniversary of the 2007~08 credit market crash and many people are trying to make comparisons between then and now.  Some of this information is valid and factual.  For example, the amount of debt now is much higher than the debt levels in 2004~08.  This would lead some to consider the scope of any global debt related issues to be much larger and more dangerous than in 2007.  Additionally, the types of levels of debt have begun to froth back into the dangerous and risky derivatives markets, ARMs and MBSs.  Although, we keep hearing, “this time it’s different”.


Last week ActiveTradingPartners.com published a research document that illustrated some of our newest modeling tools.  The consensus analysis was that the bullish trend should continue for a while still, yet it will likely be more moderate in nature.  Price volatility should continue to expand over the next few weeks as price rotation becomes more evident.  There is a potential near October 12th and October 30th for a volatility spike to happen in the markets.  This, most likely, would result in a moderately deep price correction or rollover.  Overall, we remain cautiously bullish for the US majors and continue to be wary of weakness that may creep into the markets.  In other words, we continue to believe the markets will continue to attempt to push higher for a few more weeks at least – yet we are very cautious of any potential weakness or extended volatility because we believe this market could turn on a dime.

There are a number of factors that are starting to affect the markets going forward.  Two of the most critical are uncertainty with regards to geo-politicial events and leadership and the other is the global central banks.  Right now, it appears everyone is living high on the debt cycles that have been perpetuated over the past 8+ years as well as the run in asset valuations (homes, land, equities and others).  This run has created a scenario where many people, many of them the under 40yo millennials, have leveraged themselves quite extensively with student loans, auto loans, home loans, credit card and other revolving debt.  These are, in our opinion, the segment of the consumer market that will be the early warning signs for any new crisis.

Rather than go into detail regarding debt levels and delinquencies that are stacking up all over the globe, we will focus on the most simple concept for investors to identify – the failed top rotation of 2007 and how it will likely relate to current price activity.

The failed top rotation in 2007 formed after an extended run higher and as volatility began to increase dramatically.  We believe a similar type of top formation will likely form in the US markets should any new rotational trend reversal form over the next few weeks/months.  This also falls in line with our “moderate bullish trend – yet cautious” analysis of the current trend.  Take a look at this chart of the NASDAQ in 2007-08 and pay attention to the price rotation that occurred over 4~6 months before the crisis event really began to unfold.

In comparison, take a look at the most recent NQ data for 2017.  The length of the moves on the current chart are extended (span a greater amount of time), yet the moves are very similar.  The double-bottom formation in early 2017 is unique and identifies key support near 5550.  Any similar failed top formation would begin with increased price volatility, resulting in a VIX Spike, as well as the expanded price congestion that is associated with higher volume repositioning in the markets.  Notice that in 2007, the volume suddenly spiked higher near the middle of October as the volatility expanded.  We would expect to see the same thing happen currently if this failed top pattern unfolds again.

As many of you are aware, it is impossible to accurately time and predict major tops/bottoms in the markets.  The best we can hope for is to be aware of potential events before they happen and to be prepared.  That is why we dedicate our research to delivering timely and accurate data to all ActiveTradingPartners.com members as well as delivering accurate trading signals and daily market commentary.  ActiveTradingPartners.com is our premier solution for active traders who want to take advantage of timely and accurate market signals and turning points.  Please take a moment to review our services for active traders.

In closing, we wanted to highlight one of the most concerning setups we can use to illustrate the potential for future volatility and price rotation in the US majors (and possibly global markets).  The Metals markets are a key element in protecting against fear, inflation or deflation as well as major market collapse.  When the metals markets are moving higher, there is typically a measured amount of fear or concern that is entering the markets.  These types of moves can often be signs to investors that volatility or underlying events could be at play as smart money moves into long metals positions.

Our analysis of the Metals markets shows we are setting up for a Wave 5 move higher which we believe could be a very dramatic move.

If you would like to know what ATP is all about and if you like this type of market analysis/research, then visit our web site today to learn how we help active traders understand the markets, actively trade and generate profits.  The markets won’t wait for you to decide when to protect your positions.  Isn’t it time you invested in your future success with www.ActiveTradingPartners.com

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