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Chris Vermeulen



Articles by Chris Vermeulen

Gold Completes Another Washout Rotation – Here We Go

6 days ago

One of the most telling patterns in Gold over the past 6+ months has been the “washout low” price rotation pattern after establishing a momentum price base.  It seems as though every time Gold completes one of the moderate-low price rotations, as we call it a “washout low rotation”, it sets up for a new momentum rally to a new momentum price base.
We believe July and August 2020 could prompt a series of these types of rotations as Gold attempts a move above $2100 or higher.  Allow us to explain our thinking as we explore this price pattern a bit further.
The first thing we need to realize is that Gold is nearing the $1900 level as it continues to push higher.  This is a very significant level for Gold because it would be very close to breaking the 2011 all-time high level near $1917.90.

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US Stock Market Enters Parabolic Price Move-Part II

10 days ago

In the first part of this research article, we briefly discussed the recent price and global economic events related to the 2018 to 2020 US stock market volatility and the COVID-19 virus event.  The premise of this research post was to highlight the current upside parabolic price trend that initiated shortly after the 2015~16 US election cycle event.  It is almost impossible to look at the NAS100 chart, below, and not see the dramatic upside price advance that took place after the November 2016 US elections.
It is almost as if the US stock markets had been primed by Federal Reserve intervention over the previous 5+ years and someone let the monster out of the cage.  The deregulation, changes to tax structures and general perception of market opportunity changed almost immediately after the

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Gold & Silver Begin The Move To New All-Time Highs

11 days ago

We warned about this move many months ago and just 6 days ago we issued a research post suggesting Gold had cleared major resistance and would start a rally mode to push above $2000 – possibly above $2100.  Well, guess what happened right after we made that statement? Yup – Gold started to rally higher and is currently trading near $1790 – about to break $1800 for the first time in 2020.
You can read some of our most recent Gold articles below:
June 3, 2020: Gold & Silver “Washout” – Get Ready For A Big Move Higher
June 18, 2020: Gold Has Finally Cleared Major Resistance – Time For Liftoff
June 20, 2020: All That Glitters When The World Jitters Is Probably Gold
HOW WILL GOLD REACT IN THIS PARABOLIC RALLY?
What we really want you to focus on is the fact that Gold is rallying to levels above

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All That Glitters When the World Jitters is Probably Gold

13 days ago

The economic pressures and concerns within the global markets have not abated just because the US Fed has ramped up the printing presses. Inversely, the stock market price levels may be elevated based on a false expectation of a quick recovery and of future expectations that may be very unrealistic.
In terms of technical analysis, Gold has set up a very interesting sideways basing pattern after recently breaking above a major resistance channel near $1720.  Our research team believes the recent base in Gold, near $1720 to $1740 is setting up just like the 2005 to 2007 peak in the US stock markets – just before the Credit Crisis hit in 2008.  We believe the similarities of the current and past events, in price and in technical/fundamental data, are strangely similar.
An underlying

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Gold Has Finally Cleared Major Resistance – Time for Liftoff

17 days ago

Our research team authored an article on April 24, 2020, suggesting Gold would have to clear a major resistance channel/arc before any further attempt at a rally would take place.  You can read that article here.
At that time, we expected this resistance channel to contain gold Prices for a short 10 to 14+days before a bigger upside price move was going to begin.  You can see from our original charts that we believed the resistance channel would be broken fairly quickly.  Yet, Gold has continued to trail moderately lower as the US stock market has continued to rally and the US Fed has stepped up their support and is buying up all sorts of debt and assets.
ORIGINAL APRIL 24 DAILY GOLD CHART

CURRENT DAILY GOLD CHART
Comparing the original chart to the current Daily Gold chart, below, you

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Fibonacci Price Modeling Massive Resistance Range In US Markets

18 days ago

The big selloff in the US markets last week (-1600 pts in the Dow Jones) on the comments from the US Fed aligns with previous Fibonacci Price Trigger levels throughout the early portion of 2020 to create a massive Support/Resistance range in the markets according to our research team.  It is very likely that the big selloff bar from last week will also establish a minor Support/Resistance range within the price range of that big selloff bar.
One of the key technical components of our Fibonacci Price Modeling system is that it acts as a trend following system, projects key target and reversal levels, and also highlights key trigger levels as price rotates up and down in different time frames.  The benefit we derive from this modeling system is that we can interpret the data into various

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Revisiting Our ADL Predictions for S&P 500

20 days ago

Our research team authored an article suggesting that our Adaptive Dynamic Learning Predictive Modeling system indicated the US major markets were 12% to 15% overvalued on May 23, 2020.  This was just before the last “euphoric” phase of the recent rally took began the week after our prediction.  From the date of May 23, 2020, to the recent peak in the markets, the SPY rallied another 9.72% above the price levels when we made the ADL prediction.  This suggests that the major markets rallied to levels near 21% to 24% overvalued near the recent peak.
Please take a moment to review our original ADL article here: https://www.thetechnicaltraders.com/predictive-modeling-suggests-us-markets-12-over-valued/
In keeping with our research team’s conclusions, the downside price move that initiated on

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Staying Cautious & Staying Prepared With You Trading Account

25 days ago

Over the past 30+ days, our researchers have been warning our friends and followers to stay cautious and to consider the risks within this market trend.  Certainly, we’ve received some emails and contact from some people suggesting we should become more active, but we’ve also received many emails from members that feel we’ve kept them safely removed from the volatility and risks associated with this wild price rotation during these uncertain times.  Additionally, we’ve been able to grow their accounts at the same time.
One of the reasons we’ve been able to accomplish this is because our research team identified a major supercycle event that was likely near August 2019 and continued to warn our members of this potential event well ahead of the projected event date.  We also issued a Black

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Surprise Jobs Number and What It Means For Your Positions

27 days ago

The Huge Non-Farm Payroll number released on Friday, June 5th, shocked the market.  A massive 2.5 million jobs were created in May 2020.  If you were paying attention to the data, you’ll also understand that 1.87 million new jobless claims just last week.  In fact, over the month of May 2020, a total of 12.58 million jobless claims were filed.  Taken into consideration, the new jobs created in May represent less than 20% of the total job losses over the same span of time.
Our researchers believe the jobs number is representative of a phased reopening of many US states and correlates directly with the extended opportunity for further re-engagement of the US economy over time.  The current social unrest taking place throughout the US will likely result in a new spike in COVID-19 cases as

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Gold & Silver “Washout” – Get Ready For A Big Move Higher

June 3, 2020

Gold and Silver moved lower early on June 2nd and 3rd.  Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals.  This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.
With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc.  We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels.  The GREEN Fibonacci Price Amplitude Arc will very likely be breached over the next 5 to 10 trading days and the price of Gold should rally well above $1850 in the

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US Stock Market Sets Up Technical Patterns – Pay Attention

June 3, 2020

The recent “melt-up” in the US stock market after a moderate downside price move in early May 2020 has set up a number of technical patterns that traders need to pay attention to.  This melt-up trend may continue for a bit longer, but price levels and actions are beginning to set up very clear patterns that warn of potential weakness in the future.
First, no matter how we attempt to spin the data, the US economy is very likely to fall into a moderate recession after the COVID-19 virus event has created a world-wide economic event and the recent riots and protests all across the US continue to disrupt and destroy property, businesses, and other assets.
It is almost like a one-two-three series of punches leading to a TKO.  We have the virus event, the stay-at-home orders, and now the riots

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Comparing Bitcoin to Other Sectors – Risk vs. Value

May 31, 2020

Quite a few traders have been discussing the recent rally of Bitcoin to recently breach the $10,000 level on May 7, 2020.  This psychological price level is a major milestone for Bitcoin – even though the price has fallen into an extended Flag/Pennant formation since reaching the recent peak.  Many traders and speculators are expecting Bitcoin to rally alongside the precious metals sector as there appears to be a strong belief that Bitcoin aligns with precious metals well.  Our researchers attempted to put this assumption into a simple test and this is what we found.
Bitcoin appears to be similarly volatile in comparison to precious metals, although the overall trending of Bitcoin has been moderately lower since the peak levels in February 2020 whereas the Gold/Silver sectors have seen

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Metals Nearing Critical Momentum For New Parabolic Rally

May 29, 2020

While the US stock market has rallied over the past 5+ weeks, Gold has stalled near $1730 to $1740.  We issued a research post suggesting the GREEN Fibonacci Price Amplitude Arc was acting as major resistance and once that level is breached, we expect a big upside move in Gold.  Currently, Gold has reached just above the Green Price Amplitude Arc and this week may be a critical moment for both Gold and Silver in terms of a momentum base.
Gold has continued to move high in a series of waves – moving higher, then stalling/basing, then attempting another move higher.  This recent base near $1740, after the deeper price rotation in February/March, confirms our 2018/2019 predictive modeling research suggesting that $1750 would be a key level in the near future.  Part of that research suggested

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M2 Velocity Collapses-Bottom In Capital Velocity Setting Up?

May 28, 2020

M2 Velocity is the measurement of capital circulating within the economy.  The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth.  When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.
The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market collapse.  It appears to our researchers that these extended periods of zero interest rates deflate the capability of money circulating

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Is A Blow-Off Top Setting Up

May 27, 2020

Our research team has become increasingly concerned that the US Fed support for the markets has pushed price levels well above true valuation levels and that a risk of a downside price move is still rather high.  Recently, we published a research article highlighting our Adaptive Dynamic Learning (ADL) predictive modeling system results showing the US stock market was 12% to 15% overvalued based on our ADL results.  Today, Tuesday, May 26, the markets opened much higher which extends that true valuation gap.
We understand that everyone expects the markets to go back to where they were before the COVID-19 virus event happened – and that is likely going to happen over time.  Our research team believes the disruption of the global economy over the past 70+ days will result in a very difficult

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Ray Dalio Suggests USA Is Entering A Period Of Decline And New World Order

May 26, 2020

We find it interesting how researchers attempt to compare history, sometimes ancient history, to the applicable functions of today’s world and to attempt to translate the decline of empires in the past to what is happening in today’s world.  Ray Dalio appears to be suggesting the rise of the Chinese economy and economic capabilities is going to threaten to unseat the US as a world super-power.
Within Ray Dalio’s article, he suggests the following which seems to sum up his cycle theory:
“In brief, after the creation of a new set of rules establishes the new world order, there is typically a peaceful and prosperous period. As people get used to this they increasingly bet on the prosperity continuing, and they increasingly borrow money to do that, which eventually leads to a bubble.As the

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Silver Begins To Accelerate Higher Faster Than Gold

May 15, 2020

Precious metals have been on our radar for many months and, if you’ve been paying attention, you probably already know our research suggests Gold and Silver are one of the best investments you can make right now.  Recently, we shared this article suggesting Gold would need to rally above our proprietary Fibonacci Price Amplitude Arc (GREEN Arc) level near $1745 before it would attempt a bigger upside price move.  Additionally, just a few days ago we published this article suggesting Silver would begin to rally even faster than gold.
Today, both Gold and Silver are making bigger upside price moves with Silver up over 3% while Gold is up 1.3%.  We believe this nearly 250% faster Silver advance may be the start of what we have been predicting for many months – an incredible parabolic upside

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NASDAQ Sets Up A Massive Head-n-Shoulders

May 12, 2020

Our research team has identified a potential trade setup in QID that correlates to our ongoing analysis of the US stock market and our Advanced Fibonacci Price Amplitude Arcs.  We believe a major price inflection point is setting up in the US stock market within the next 48 hours that may prompt a price trend reversal in the NASDAQ and other major US stock market indexes.  This pattern correlates to a much longer-term Head-n-Shoulders pattern that is also setting up in the SPY.
Our belief is that technical traders should wait for confirmation of this setup before entering any new trades, yet we believe we will have confirmation of this setup within 3 to 5 trading days – given the urgency of the setup with our Fibonacci Price Amplitude Arcs.  We believe a right-shoulder could be forming as

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Junior Gold Miners Ready To Run

May 8, 2020

Both Gold and Silver Futures have been struggling to rally above recent high levels since the start of the global stock market collapse related to the COVID-19 virus event.  Yet, the Junior Gold Miners appear to be telling us the Precious Metals market is boiling hot.
Gold, the bell-weather safe-haven asset, initially collapsed when the US stock market started the massive selloff in late February 2020, then recovered to higher price levels near $1785 recently.  Since reaching these levels, Gold has stalled into a sideways price flag near major resistance.
Silver, on the other hand, is trading near $15.60 and has yet to really recover to anywhere near the levels it had achieved in early January 2020 (near $18.60).
Well, GDXJ, the Junior Gold Miners ETF, is suggesting a very strong price

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Technical Analysis Points To Key Reversal Of Global Markets

May 6, 2020

Recently, we received a number of email messages and comments regarding our recent Bitcoin article and how we attempted to explain the market trend/technical analysis.  It appears we were not making our interpretation very clear for our friends and followers.  This article should help to clear up our interpretation of the major market trends and our advanced technical analysis tools and utilities.
As purely technical traders, there are certain things we want to make clear.  First, we do pay attention to what is happening to the fundamentals and global economic data when it posts.  We’ve authored many previous articles stating our belief that “capital is like a living/breathing entity which attempts to survive (generate ROI with little risk) in various global market environments”.  In order

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Natural Gas Breaks $2.00 On Upside Rally and Next Target

May 5, 2020

Overnight, Natural Gas broke above the $2.00 price level as we expected.  On April 6, 2020, we published our research that Natural Gas was setting up a bottom pattern and that our seasonal analysis suggested April and May should prompt a price rally in Natural Gas pushing price levels above $2.40. 
The current rally has broken above a price resistance level near $2.00 and the rally up to $2.40 may happen faster than we expect.  Currently, our Daily Fibonacci price modeling system is suggesting the $2.35 area is the first area of resistance.  Beyond that, the next level of resistance would be near $2.90.  Beyond that incredible upside target, the Fibonacci Weekly data is projecting an upper target near $3.60.
We are not suggesting that Natural Gas could rally 90% over the next few weeks,

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Fed Cut Equities Stimulus 86% This Week and Stocks Are Falling

May 1, 2020

What happens to the global markets when the US Fed begins to weaken stimulus activity and when the global markets must begin to function on their own?  Are the global markets capable of sustaining current price levels without the Fed supporting them?
A recent news article suggests the US Fed has drastically slashed stimulus activity over the past 5+ days.  From a peak level of nearly $600 Billion a week to current levels near $83 Billion per week – a -86% decrease.  How will this reflect in the market’s ability to sustain current price levels in the face of disastrous Q2 expectations? Yup, markets are falling fast and hard going into the weekend as expected!
Before closing this page, be sure to opt-in to our free market trend signals, so you don’t miss our next special report!

Buffet

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US Stock Market Enters Twilight Zone

April 30, 2020

The US stock market has rallied substantially since the bottom on March 23, 2020.  Our Adaptive Fibonacci Price Modeling system is showing us just how fragile the US stock market and certain sectors of the markets really are right now.  What’s going to happen next and how should you prepare for the next big move?  Let us try to explain our beliefs.
First, the US stock market bottom just as the US Senate and Fed announced major stimulus packages designed to support the collapsing markets.  Everything done prior to the March 23 date was “fodder” as the risk to the global markets was far greater than anything the US Fed or global central banks could muster.  On March 23, the US Fed initiated an unlimited asset purchase program to support the failing markets.  This changed the perspective of

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Q1 GDP Data Masking The True Global Economic Future?

April 29, 2020

As Q1 GDP data is released on Wednesday, April 29, which will reflect the first three months of 2020 in terms of total economic output, we believe the number will skew the current true global economic conditions to a large degree.  The pandemic shutdowns started in the US on March 15th – nearly 2 weeks before the end of Q1:2020.  Thus, we had a fairly normal Q1 in terms of economic activity, production, and consumer engagement. Everything changed after March 15th, 2020.
Skilled traders need to watch the current economic data and “week over week” data that is presented.  Skilled traders also need to pay attention to the news items that are being pushed out to the public.  Larger and larger corporations and sectors are moving towards bankruptcy or screaming for a bailout. Airlines, Hotels,

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Fibonacci Price Amplitude Arcs Predict Big Gold Breakout

April 25, 2020

Precious metals have become the focus of many researchers and traders recently.  Bank of America recently raised its target to $3000 for gold (source: https://www.bloomberg.com).  In December 2019, we published a research article suggesting precious metals were setting up a long-term pattern that should result in a big breakout to the upside for gold. Every trader must understand the consequences and market dynamics that may take place if Gold rallies above $2500 over the next few months.
An upside price breakout in precious metals that has been predicted by our researcher and dozens of other analysts suggests broad market concern related to future economic growth and global debt.  There is no other way to interpret the recent upside price move in Gold.  Back in 2015, Gold was trading near

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Gold on the Cusp of Reaching $2,100

April 23, 2020

???Chris Vermeulen, CEO & Founder of Technical Traders Ltd., joins Tom Bodrovics at Palisade Radio to discuss the markets and Chris says, “This is the time to really be paying attention to the markets… It could be a bloodbath.”
Chris is seeing uncertainty that could bring equities lower as money is flowing into safe havens. The charts are showing that markets are approaching a major inflection point, which could go either way. Both gold and silver should rise rapidly once they get past resistance.
Time Stamp References:0:45 – Equities and safe havens.2:00 – Market weakness – bear rally?4:45 – Charts show a coming inflection point.9:20 – Charts testing support on gold.10:20 – Silvers chart is still ugly.12:15 – What happened in oil?20:00 – Equities may top and rollover.
Talking Points From

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Gilead Drug May Cure COVID-19 But Won’t Save the Markets

April 17, 2020

Big news out today on CNBC about Gilead drug cured all 125 people from serious COVID-19 conditions within 5 days, This is amazing to hear, stocks are popping today up 3-5% which is to be expected for this type of news but the damage to the financial markets has already been done.
But early data recently published suggests the Banking and Finance sector may continue to get crushed under a massive weight of real losses and exposure to risk in the Derivatives Markets.  As with the 2008-09 Credit Crisis, Derivatives losses extended compound risk factors by 10x to 20x or more for in some instances.  We believe the banking and finance sector may be setting up for a massive implosion if global derivatives implode as leveraged accounts collapse.
Two very interesting news articles that may assist

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If Investors Crunched Data Like This Their Expectations Would Change Dramatically

April 16, 2020

New economic data being released as earnings start to hit may alter how investors perceive the recent price recovery in the US and global markets.  Many institutional analysts began suggesting “the bottom is in” and recently began to issue stronger forward guidance.  The new data suggests we are seeing an economic contraction that, in some cases, maybe 2x or 3x the contraction that took place in the 2008-09 Credit Crisis.
The US stock markets reacted to this news and earnings data by collapsing over -2% in early trading.  Gold and Silver are both lower as we write this article which would indicate weakness across the broader market.  We continue to believe a deeper price low will set up in the near future with the US and global stock prices attempting to retest recent price lows – possibly

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Two Leading Indicators for Crude Oil Point To Higher Prices

April 6, 2020

On Friday morning I created these charts on the price of crude oil, the energy sector stocks (XLU), and also the Canadian Dollar, which I think paint a clear picture of what to expect for the price of crude this coming week.
I always like to look at the leading indicators of the asset which I am interested in trading. For those trading the price of crude oil you should be watching what the energy stocks are doing or the sector as a whole. I use XLE ETF for this. I also will show you the Canadian dollar and what it is going later in this post.
Energy stocks are a way for traders to leverage the move in oil so the smart/big money tends to move into these stocks before the underlying commodity (oil) will start to change direction.
Price of Crude Oil – Daily Chart
Oil has been trading sideways

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Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up!

April 4, 2020

April 4, 2020

For years, many Gold Bugs (investors who’ve been advocating buying Gold and Silver at low prices as a hedge against future global economic risks) were shunned as conspiracy theorists and nuts. How could these people believe Gold and Silver were solid investments when the Global equities markets were rallying 5% a year consistently – what could go wrong?
Over the past two weeks, I have personally received multiple phone calls and emails from friends and associates asking how these people can suddenly ”buy physical metals”. In one case, this individual was purchasing Airline and Food Services stocks in late February thinking this move would be short-lived and telling me how the airlines would recover quickly after this is all over.  Now, that person wants to know my secret

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