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Chris Vermeulen's  Instablog

Chris Vermeulen
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Chris Vermeulen the founder of AlgoTrades.net Algorithmic Trading Systems. This automated investing system is designed for individual investors and traders. He is also the editor of the TheGoldAndOilGuy newsletter which is designed for gold market traders providing quality ETF Trade Alerts,... More
My company:
AlgoTrades Algorithmic Trading Systems
My blog:
TheGoldAndOilGuy - Gold Market Traders
My book:
Technical Trading Mastery - 7 Steps To Win With Logic
View Chris Vermeulen's Instablogs on:
  • Investors Are About To Having A COW!

    The past year month has been flowing into risk on assets like US equities. And when money is flowing into one investment class there is typically an outflow in others. Commodities in general have been beaten up bad but there is some money to be made here using the livestock COW ETF.

    I is amazing how almost all us equity sectors have rallied as big as they have with many still making new sector highs. The only true weak areas in the market look to be commodities specifically precious metals, oil, natural gas, grains, sugar and livestock.

    When the US equities market starts to sell off and volatility rises money should start to flow into some of these underperforming areas. At the moment COW is the only one that looks ready for a bear market rally currently.

    Precious metals miners are another area I am looking to trade but I have not seen any signs why anyone should enter yet.

    The chart below shows my analysis and forecast going forward. Those who prefer trading spot gold via FOREX/CDF/Spread Betting and aren't a U.S. resident like me can use a company like AVAFX. The nice thing about trading this way is that you can trade 24/7, you get a lot of leverage, and it's commission-free trading.
    (click to enlarge)

    To Have A Cow Or Not? That Is The Question!

    The COW ETF could be a choppy ride for a while, but the upward momentum looks to have started as of today.

    I am currently long COW with my peak target set around the $29 level.
    Follow all my trades in real time at www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Mar 02 4:34 PM | Link | Comment!
  • Money Will Rotate Into These Dead Investments

    Seasoned investors understand that investments which are rocketing to new highs and all over the news will eventually fall out of favor and become a the poor performer, unwanted by market participants.

    So it only makes sense that the underperforming investments will some day come back to life and provide opportunity once again. I covered this unique stage analysis in great detail in another report linked below.

    If you want to see my forecast and charts I did on June 26th, 2013 pointing to the key investment levels for precious metals and miners which by the way have been dead READ HERE.

    Current Stock Market & Commodity Investment Analysis

    Two of the weakest investments have been commodities and precious metals since 2011. The Canadian stock market is heavily weighted with these resource stocks and is the reason for its under performance when compared to the SP500.

    The time will come when commodities bottom and this will send the Canadian stock market back to the 2014 highs or better.

    Take a look at the chart below. You will see the SP500 (NYSEARCA:SPY), gold miner index (GDX, GDXJ, NUGT, SIL, GLD), Canadian market, and the commodity index. What you notice see is that the US stock market has been the hot investment of choice, while commodities and precious metals have been falling for years.

    No one is excited about investing in commodities or precious metals, and it makes sense. Anyone holding these investments has had a terrible couple of years and lost most of their capital. The last thing they want to do is buy more.

    The good news is that this mind set eventually creates huge opportunities for the savvy, patient, investor like you and I. The hardest part is waiting for the psychology of investors to be completely out of favor, and only then can an investment bottom. This often takes years, and it has been for resources.

    (click to enlarge)

    The 2007-2008 Resource Double Top and Drop & Gold Forecast

    Bull market tops take months 6-12 months to form before price truly rolls over and starts a bear market. Most traders and investor try to pick tops but because this process is so painfully long, most get shaken out or give up well before the top has completed it's topping phase.

    What I am interested in is the Canadian index and resource type plays. The US stock market looks and feels as though it's trying to form a topping phase but it is at best 6-12 months away from being a confirmed bear market.

    Until then, I feel the US stock market will struggle and the focus should be put on investments that come to life during this stage of the stock market and economic life cycle.

    (click to enlarge)

    The Dead Always Come Back To Life for One More Rally

    In short, I feel resources and the Canadian stock market will become strong areas of the market going forward several months. There are a few ways to play this, and timing will be crucial. My gold forecast I gave to subscribers today for short term trading looks like it could be a 25% mover.

    You can follow my coattails as I trade at www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Feb 25 10:21 PM | Link | Comment!
  • 2015 Stock Market Forecast And Your Trading Plan

    US Stock Market On The Verge Of Exciting Times

    The S&P 500 stock market has been under strong rotation since mid-2014. Rotation in the stock market is when the trend changes direction from an uptrend to a downtrend or vice versa. But the really exciting part is that after strong rotations in the market similar to what we are experiencing now, the stock market always makes massive moves to profit from shortly after. SPY, DIA, IWM, QQQ

    (click to enlarge)

    Depending how the price moves during market rotations individual traders, CTAs, hendgefunds and even algorithmic trading systems can generate large profits. But price action must be favorable to meet every ones risk/reward rules.

    Unfortunately during the second half of 2014 the stock market rotation moved in a way that did not generate many trades. But no trades are better than losing trades so it's not the end of the world, and the good news is there will always be more trades.

    But what I want to show you here is how the current price action of the stock market we are experiencing is identical to what we saw in 2010 and again in 2011. Also keep in mind that if equities are going to have a another big move it will generate other opportunities in precious metals, energy sector, and commodities. ETF's are what I use to take advantage of these large moves with my ETF trading newsletter.

    Algorithmic Trading System

    2015 is going to be a BIG year for traders
    and algorithmic trading systems!

    These consolidations (pauses) in the stock market have led to substantial rallies in the stock market of 30+% gains over a six-month period and its looks like it will happen again.

    My algorithmic trading system has struggled during the strong rotation of recent but so have most CTA's and other money managers. There is not doubt that it has been hard to profit with these swings in the market because of how they formed.

    When this phase of the market completes and a new trend emerges traders and algorithmic trading systems will excel and be highly active again just like they were in the first half of 2014.

    Watch the video to learn more…

    Visit Chris Vermeulen's Websites to Learn more:
    www.AlgoTrades.net
    www.GoldAndOilGuy.com
    Feb 18 5:47 PM | Link | Comment!
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