The recent rotation in the US stock market and US major indexes have set up a very interesting pattern in the Metals and VIX charts. Our researchers believe precious metals, Gold and Silver, are setting up a new momentum base/bottom and are beginning an early stage bullish price rally that may surprise many traders. If you have not been following our research, please take a minute to read these past research posts :
September 24, 2019: IS SILVER ABOUT TO BECOME THE SUPER-HERO OF PRECIOUS METALS?
September 19, 2019: PRECIOUS METALS SETTING UP ANOTHER MOMENTUM BASE/BOTTOM
Our researchers believe the bottom in Metals has already set up on October 1, 2019. This setup aligns with our earlier analysis that a new bullish price leg is setting up that will propel Gold to levels above $1600 before the end of November – possibly resulting in a rally that attempts to breach the $1700 price level.
Daily Gold Chart
Of course, for Gold to rally in this manner, some type of extended fear must enter the global markets. We believe this fear could become known to traders within 3 to 10+ days based on our understanding of the schedules and calendars available within the news cycle. The US/China trade talks appear to be breaking down again. News that one of India’s largest banks is in the process of collapsing hit last weekend. And news that the US political parties are about to ramp up nearly all levels of activity ahead of the 2020 US Presidential election cycle is sure to throw the markets a few curve-balls.
As skilled technical traders, there are
times when we must understand how the news cycles and external events can have
dramatic impact on prices and trends in the financial markets. These are times when we must protect our
assets by deploying very skilled trades, proper position sizing and become even
more skilled at understanding the global stock market dynamics.
Daily Silver Chart
Silver, or as we have termed it “The Super-HERO of Metals”, will likely move much higher, even faster than Gold. If our research is correct, the next upside price leg in Metals will see Silver rally to levels well above $20, then stall briefly, then begin a move to levels above $26 (or higher). The Gold to Silver ratio will likely fall to levels near 65 throughout this move. That would mean that Silver would appreciate about 11% to 15% faster than Gold will appreciate over the next 60 to 90+ days.
VIX – Daily Volatility Index Chart
And finally, the VIX. At this point, our research team believes a broader downside price rotation has already begun to set up in the US stock market (with Technology and “unicorn” sectors at severe risk) which may prompt a move in prices to retest the December 2018 lows. This is why we believe the VIX is very likely to begin an upside price move over the next 30 to 60+ days and attempt to break above the 26 to 27 level as the US stock market reacts to increased fear and uncertainty. This is, obviously, also why we believe Gold and Silver will begin to move dramatically higher very quickly.
September 17, 2019: VIX TO BEGIN A NEW UPTREND AND WHAT IT MEANS
Concluding Thoughts:
Our researchers are attempting to follow all the news and price activity we can handle over the past 4+ weeks or longer. At this point, it seems all the global markets are unstable in terms of price trends, extended volatility, and uncertainty. We believe our expectations within the metals markets, us stock market and the VIX predictions are relatively saved expectations given the research we’ve completed.
It would be wise for skilled traders to
prepare for a moderate to deep price correction at this point. Price has failed to move higher above
historic all-time high price levels and has begun to move lower. Unless some extremely positive news, event or
outcome is reached within the next 90+ days, it is very likely that price will
continue to rotate within established ranges attempting to identify true support
levels. This ride could become very
volatile – very quickly.
As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.
Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.
I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. My simple technical trading strategy using ETFs will allow you to follow the markets closely and trade with it so you never get caught on the wrong side of the market with big losses.
Chris Vermeulen
www.TheTechnicalTraders.com
NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research. It is provided for educational purposes only. Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed. Visit our web site to learn how to take advantage of our members-only research and trading signals.
