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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
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  • The Die Is Cast

    Since the October rally ended, the SPX formed what looked like an "extended distribution phase" in the form of a rounding top. This is even more apparent on the Dow Jones Composite Index. Early June, it dropped below its 100-DMA, it slightly breached its December low, but rallied. A second attempt was made to break through which also failed. The rallies found resistance at the 100 MA and last week, a third attempt at breaking the bottom trend line also failed … or did it?

    With Greece's default the Dow Jones index is completing its rounding top/descending triangle pattern by finally making a new low. A Monday morning opening gap to the downside could be the perfect way to end this formation. If so, this could be the beginning of the correction which has long been expected.

    Current Position of the Market

    SPX: Long-term trend - Bull Market

    Intermediate trend - Waiting for confirmation that the ending diagonal is complete.

    Short trend - Neutral

    Greece's decision to hold a referendum on July 5 and not to accept the final offer made by its creditors resulted in a Greek debt default and is currently unsettling to markets. Should that be the case, SPX should follow suit by extending last week's decline.

    This could be the end of the 7-year cycle we talked about, closing its grip on the market by applying pressure which is increasing gradually every week.

    USA markets will be closed on July 3. It will therefore be a shortened holiday week of trading. My current concern now is whether or not World equity markets will resume a 10% correction down or more. This period of a cycle that we work with has a very high historical correlation to 10% or greater reversals in the DJIA. The question is whether that decline has already started.

    We defer to our models for the confirmation of this move and any other future moves.

    Gold fell to a low of 1167.10 on Friday, June 26. . This may be important because Silver fell to a low of 15.45 on Friday, June 26, well below its low of the past three months.

    Something big may be in the works. It is ironic that the Greek debt default, the lack of a conclusion of the USA/Iran negotiations and The Supreme Court's decision to uphold Obamacare subsidies of The Affordable Care Act are ALL historical events occurring at the same point in time is not a random act.

    This decision upholding the IRS rule giving all Americans access to premium tax credits, millions of Americans can breathe easier today knowing that there is access to health care.

    I believe that The Supreme Court validated President Obama's massive power grab, allowing him to tax, borrow, and spend $700 billion that no Congress ever authorized. This establishes a precedent that could let any president modify, amend, or suspend any enacted law at his or her whim. President Obama has already creative secret deals that Americans are not yet aware of. I fear that these unchecked political power in the Executive branch will be misused again and again by the President.

    At this time, we are currently experiencing a new "socio-politically-economic" revolution. The passing of this Affordable Care Act (aka Obamacare will continue to bankrupt the county and many of the people in it. It is only affordable for some in terms of lower premiums. The other side of the coin is that deductibles are so high that many still cannot afford health care under this Act. For them, it is anything but affordable.

    The yield on the benchmark 10 year note closed last week at 2.26%. This week's close was 23 bps higher at 2.49%. The 30 year bond yield closed the week at it 2015 high of 3.25%. Current financial market conditions with low levels of interest rates have resulted in negative yields for some Treasury securities trading in the secondary market. Negative yields for Treasury securities most often reflect technical factors in the Treasury markets related to cash and repurchase agreements markets and are at times unrelated to the time value of money.

    We had a confirmed signal to exit the ETF "TLT" on June 3, 2015 at 118.39. Today, its current prices 115.23, I am expecting this price to go lower.

    Learn What Is Happening and Profit: Global Financial Reset Alerts

    Chris Vermeulen

    Jun 30 11:57 AM | Link | Comment!
  • Time To Move Capital Into Next Bull Market – Part I

    If you remember the dot com bubble as clearly as I do and are a technical analyst then you will recall the month which the NASDAQ broke down and confirmed a new bear market has started. The date was November of 2000.

    You may be wondering why I bring this up. What do tech stocks have to do with commodities?

    Good question because they have nothing in common. But the key here is that when a bull market ends in one asset class that money is shifted into another. That money moved into commodities and resource stocks and in a big way.

    Precious metals and miners exploded, surging an average of 1000% return (10 times ROI) over the next six years, topping out in 2008. In fact, these resource stocks bottom the exact month which the NASDAQ confirmed it was in a bear market on Nov 2000.

    Compare Dot-Com Bubble & Burst to Precious Metals Stocks

    Over the next couple of weeks, I will be sharing some of my top stock picks in the metals sector (gold, silver, nickel, and copper). If you missed the 2001 and 2008 metals bull market then you best pay attention and be sure you don't miss what is about to happen.

    (click to enlarge)

    Compare Bull Market in Stocks with the Energy Sector

    The financial markets and asset classes move in cycles, and there are times when specific sectors outperform others. Resources stocks specifically the energy sector is about to enter its strongest phase within the US equities bull market which started in early 2009.

    Oil stocks have a lot of positive things in their favor in my opinion, though many will disagree. But it's all in how you look at the data and your investment horizon.

    During the previous market tops which are the same for NASDAQ, DOW, S&P 500, energy stocks have outperformed most sectors. Why? In short, we will always need energy, many of the companies pay dividends and when money starts to roll out of equities the underlying commodities typically hold their value for an extended period of time.

    These past stock market tops generated 36%-40% returns during a time when most traders and investors were losing their shirts, or should I say lost 50% of their life savings… Which train would you rather be on?

    (click to enlarge)

    Now take a quick look at the price of crude oil

    Oil has formed what is called a (double bottom, or "W" formation and also appears to be completing a cup & handle pattern). Whatever you want to call it, they are all very bullish patterns, meaning a much higher price for oil is expected.

    In short, higher oil prices, means more profits for energy companies, it's that simple.

    (click to enlarge)

    An Oil Junior Resource Stock

    There are times during market cycles when I like to own shares of some junior companies. When a major shift looks imminent within a market or sector just like we saw in 2000 and again in 2008 I like to hold shares in companies which have the potential to rally several hundred percent.

    A couple of weeks ago I talked about a speculative oil stock Cardiff Energy Corp. which I own shares. The story behind this stock is real and the horizontal well which they will start drilling mid-June 2015 has the potential to generate 5-7 times of a vertical well. Below is the chart with my short term targets.

    The low priced crude oil is wreaking havoc with oil companies and share prices. The best plays are those who have the lowest cost of production per barrel and I heard this well could produce profits even if oil was trading at $25 per barrel and sold at WTI pricing with no discount.

    The energy behind this share price is very impressive and shows that investors are confident in the horizontal well. If they strike oil who knows where the share price could rally to.

    (click to enlarge)

    Rockstone Report: http://rockstone-research.com/images/PDF/Cardiff1en.pdf

    Side note: I met with Jack Bal the President, CFO, and Direction of Cardiff Energy Corp. in Toronto recently to learn more about the company and projects. Cardiff is currently doing a private placement to raise capital and if I'm correct investors can get shares at 25% discount from the current market value. And from what I understand they have room for a few more small investors. If this is of interested to you give Jack Bal a call directly at Cardiff Energy 1-604-306-5285, and you can mention this report if you want.

    Next Bull Market Conclusion:

    In short, every good investment will eventually become a bad one and vice versa. Knowing when to shift our capital from one sector to another is vital for steady long-term growth of our portfolio.

    Over the next couple weeks through this multi-part series I will be sharing some very lucrative stock picks which I am investing in and the second one will likely be a nickel resource company that looks poised to rocket higher.

    Join My Free Email Alerts Newsletter: www.GoldAndOilGuy.com

    Chris Vermeulen

    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.

    Jun 25 9:30 AM | Link | Comment!
  • Sweet Spot For Gold Stock Investors

    There is no question that precious metals along with gold and silver mining stocks are clearly out of favor with investors. Most of these stocks are 50, 70, even 85% since the 2011 top. It has been a painful ride to the bottom for those who invest with the buy, hold and hope strategy.

    The good news is that I see light at the end of the tunnel, meaning gold, silver and miners are showing serious signs of bottoming. While the fundamentals have been bullish on metals for years which is a positive, we also know that fundamentals don't really play into immediate price action of any specific asset when it comes to trying to time a market.

    But the level of M&A (mergers and acquisitions in sector) along with technical analysis are now showing signs that intelligent gold and silver investors are accumulating specific companies and exploration properties at rock bottom prices in anticipation of the next bull market in silver and the price of gold.

    At this stage of the game the shotgun approach for owning mining stocks will not work well. If you want the best bang for your buck you need to get specific companies which have true potential of making money.

    The Sweet Spots:

    Savvy investors have been flocking to two types of mining stocks recently accumulating positions in anticipation of some big events.

    These two business opportunity types are:
    1. Exploration companies with proven properties containing a sizable amount of valuable resources.

    2. Mines starting production.

    What do both of these types of stocks have in common that make them attractive?

    They both are one event away from generating big value to its shareholders. This proven resource rich properties will either be acquired by a larger firm. This type of event can provide returns of up to 10x ROI on the share price in a blink of an eye in some cases.

    Or these resource rich exploration stocks decide to go into production for themselves and provide potentially even more value long term for its shareholders much like what CMC Metals Corp. (TSX.V: CMB) (OTC:CMCXF) is doing.

    I'm not going to reinvent the wheel here in talking about what CMC Metals Corp. does and the stage that it's at.

    Read this exciting report by: RockStone - Click Here

    cmb

    See My Live Analysis of Chart: https://stockcharts.com/public/1992897/tenpp/2

    Concluding Thoughts:

    It has been years since I have been excited about precious metals and mining stocks. Subscribers of my trading newsletter know we have avoided owning gold and silver stocks since late 2011.

    While I still believe metals and miners will struggle as a sector. It is clear that there are some amazing opportunities available for those who know what to look for, and have the guts to step forward when most investors are stepping back.

    The markets go in cycles also known as of expansion and contraction in price and sentiment. Assets classes which are most out of favor eventually become the next market darling. But before that can happen the asset class/sector must be completely out of favor and hated by most… which gold miners are.

    Recently I met with the president of the company in Toronto to learn more about its financials, management and project. I now personally own share of CMC Metals Corp. with an average price of 6 cents and I plan to hold these shares for a long time until I think the next gold bull market is almost over.

    Get My Next Sweet Spot Silver Miner Stock Pick: www.GoldAndOilGuy.com

    Chris Vermeulen

    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 CMC Metals Corp. In addition, the author owns shares of CMC Metals 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.

    Jun 25 9:28 AM | Link | Comment!
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