Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19
Phase 1 of Stock Market Correction - 11th Mar 19
Long Awaited Stock Market Pullback has Finally Arrived - 11th Mar 19
US Presidential Cycle and the Stock Market - Video - 11th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - 11th Mar 19
Chinese Economic Data Shakes the Global Stock Markets - 11th Mar 19
The Fed Is Playing a Dangerous Game - 11th Mar 19
The Stock Market Has Called the Fed’s Bluff, What’s Next? - 11th Mar 19
Turkey Holiday Bazaar Extreme Jewelry Price Haggling - Fethiye Market - 11th Mar 19
Are You Ready for the Next Big Move in Gold? - 10th Mar 19
Taylor Wimpey Reports £811m in Profits boosted by Help-to-Buy - 10th Mar 19
SPX Big US Stocks Fundamentals - 10th Mar 19
Yield Curve Inversion and the Stock Market 2019 - Video - 9th Mar 19
Various Stock Market Indicators are Plunging. Run for the Hills! - 9th Mar 19
Unsecured Debt hits £15,400 per UK Household - 9th Mar 19
QE4EVER Stock Market 2019 - 8th Mar 19
The Real New Deal - 8th Mar 19
How High Cost Credit Affects Financially Unstable Families - 8th Mar 19
Gold and Silver Precious Metals Pot Pourri - 8th Mar 19
Stock Market Downward Reversal? Stocks Still Relatively Close to Their Recent Highs - 8th Mar 19
Gold and the Political Theater: Is The Tail Wagging the Dog? - 8th Mar 19
Is Recession Near? - 8th Mar 19
Consumer Behavior: What you need to know to read your Audience - 8th Mar 19
The Exponential Stocks Bull Market - 7th Mar 19
Millennial Home Buyers Not as Active as Boomers Were in US Property Market - 7th Mar 19
KIND Elevates Nut Butter Category with a Wholesome Recipe - 7th Mar 19
Brexit Does Not Stop Bitcoin’s Growth in the UK - 7th Mar 19
How Private Sector Debt Bubble Could Trigger the Next Financial Crisis - 7th Mar 19
What Commodities and Transportation Stocks Telling Us - Part2 - 7th Mar 19
What Comes After a Trillion in Student Debt? - 7th Mar 19
Dear Stocks Bull Market: Happy 10 Year Anniversary! - 7th Mar 19
The Importance of Financial Planning for Companies - 7th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Micron / China Holding Stock Markets Back

Stock-Markets / Stock Markets 2018 Jul 06, 2018 - 12:47 PM GMT

By: Chris_Vermeulen

Stock-Markets

Just before the July 4th holiday, the US equity markets were about to rally above a defined wedge formation that has been defining price range for the past 7+ days.  As the markets opened on July 3rd, prices had already started to rally and appeared to be ready to rocket higher by a decent amount.  Yet, by early morning, news that China had banned Micron chip sales in a patent case caused the markets to reverse quite steadily.  This news, as it relates to US chip manufacturers and a major part of the NASDAQ, creates a temporary speed bump in the perceived rally that we have been expecting for weeks.

The Technology sector makes up a very large component of the US major indexes.  Other than the DOW, technology firms are spread across nearly every sector of the US major indexes and this case may have some reach to it.  As the trade tariffs and trade issues continue to ramp up, these types of explosive news items can drive the markets up or down as the news hits.  We consider these external factors that push the market one way or another while the core market dynamics may want to drive prices in another direction.


Recently we showed a number of research posts indicating our proprietary predictive price modeling systems cycles and price projections that show the core market bias should be to the upside.  We believe these news events cause a price pause and an opportunity to take advantage of lower price rotation which moves against the core market dynamics.

This holiday week is certain to see news event drive price rotation as the volume is thin and many people are vacationing or out of town.  This means people will not be active in the markets as much and news events can push price in directions and trends that may not normally be as present in price.

This 240-minute chart of the ES shows the pennant/flag formation that we mentioned a few days ago.  We believe the support level near 2700 is key to the upside breakout that is likely to happen.  This pennant formation has already formed a completed 5 waves and should be pushing higher – although the news from China regarding Micron seemed to create a late price decline.  As long as that 2700 level holds, we believe the upside price move is the eventual play in this market.

This Weekly ES chart shows a longer-term perspective of the price rotation.  One can easily see the recent upside price rally from near 2550 to 2800.  The current downside price rotation, from 2800 to near 2700, appears to be aligning with our Tesla Vibrational price cycles and our time/price cycles in the form of a bottom cycle formation near July 15 with an upside price potential rally that could extend 4~7+ weeks.  Notice the GREEN vibrational range near the current price and notice the next outer RED range.  As we break the GREEN vibrational range, our Tesla theory suggests that price will attempt to move in the easiest direction towards the next vibrational range – the RED level.  This would suggest that price may attempt to rally well above 2800 within a trend that could last many months.

The NQ has reacted quite differently than the ES.  This 240 minute NQ chart shows the deeper price rotation recently as well as the pennant formation that has constrained price.  Additionally, one can clearly see the upside breakout of this pennant formation recently and the return of price to near-term support (near 7030). This return to support on the China news could indicate a renewed test of support before an upside move.  Although we don’t expect the NQ to rally as much as the ES and YM charts, we do still expect to see some upside price moves in the NQ over time.  7200 to 7300 would be our immediate upside targets.

This NQ weekly chart shows just how clean the upside move has been after the February price collapse.  While many people were initiating short positions thinking the markets were going to fall further, the rush of capital into the NASDAQ continued to drive capital valuations and appreciation.  Now, with Q2 earning right around the corner, we believe the NQ will rally a bit on earning news, yet fail to really push much beyond the 7400 level.  We believe the real earnings values will be in small caps, blue chips and the DOW and S&P.  We don’t believe we will see blowout earnings numbers from most of tech this time.

A move to near 7400 would be a renewed push to new NQ highs.  This would be a very positive move in the markets and would put incredible pressures on the shorts – creating a short squeeze.  Far too many people fail to understand that a large amount of foreign capital is trying to avoid devaluation and price depreciation.  Investors don’t like to sit on long-term holdings when a currency is devaluing excessively and stock prices (in that currency base) are devaluing as well.  It is like a double-whammy of loss for investors that can easily move that capital into something without these risks.  Therefore, as long as the emerging markets and foreign markets continue to experience some levels of price contraction, we believe the strong US Dollar and strong US Equity markets will be the “market of choice”.  This means a continued “melt up” as global traders rush to find an investment that can avoid the risks of local exchanges/equities.

Please don’t get caught off-guard with regards to this price rotation and what it means to the markets.  A massive price expansion pattern is setting up in the US markets that may drive prices much higher all the way through 2019 and possibly further.  We believe many of the major analysts have missed this pattern and we have positioned our loyal members to take advantage of this move in the future.

Visit www.TheTechnicalTraders.com to learn how we can help you stay ahead of this market and stay on the right side of price trends.  You owe it to yourself to learn how we can deliver superior research and trading signals to help you find profits and better manage your trades.

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.

BECOME A TECHNICAL TRADER

AND RECEIVE DAILY ANALYSIS & TRADE ALERTS!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

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

© 2005-2019 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