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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
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  • Why Gold Is Falling & A Gold Forecast You May Not Like

    The bitter truth about what may happen to gold is not all that exciting and likely don't want to know, but you need to understand what is unfolding as we speak…

    Long story short, the prices of bonds look as though they are about to rally once again. Mounting fears of a stock market correction has money flowing into bonds which in turn will drive interest yields lower yet gain. But the BIG PICTURE of what he FED said the other week about how they plan to raise rates in 2015 and cut QE down to $55 billion per month hurts the long term outlook for gold.

    This news may not sound that important, it actually is and undermines the price of miners, silver and gold in a big way.

    Find out why gold is falling and the threat that could trigger a much larger meltdown in the long run with my gold forecast video. (GLD, GDX, GDXJ, SLV)

    Watch Gold Forecast Video: youtu.be/ApKx3LtC7-0

    Mar 28 12:12 PM | Link | 2 Comments
  • A Golden Rocket – Best Of The Breed

    Gold and gold stocks have be stabilizing for months and have been quietly rising. Many gold stocks are up 30% even 50% in the past three months. The $HUI AMEX Gold Bugs Index is up over 30% from the lows.

    If you think you have missed most of the move already you are wrong. The truth is most of the biggest rallies in stocks take place after a basing pattern with 30 -50% or more has formed. This is signaling massive accumulation in gold stocks and its happening right now by the institutions.

    So in this exclusive report I want to share one golden rocket stock pick which I feel has huge upside potential "IF" the precious metals market and miners can breakout of this stage 1 pattern it has formed.

    One thing that excites me is about precious metals and gold stocks is the fact that we have heard nothing about gold, silver or mining stocks in the media for months… almost like the big institutions have told the media to avoid putting the spot light on it until they accumulate all they can in terms of physical bullion and stock shares.

    This is the same for a few other sectors I have been watching build massive stage 1 bases in over the past few months and will be investing and actively trading them also once they break out of the basing stage.

    Gold Stock Trading & Investing Success Formula

    1. KISS - Keep It Simple Stupid! - Non one likes or follows complicated trading strategies

    2. Understand and know how to identify the four market stages - Read My Book: Click Here

    3. Know why and how stages must be traded for timing your entry, profit taking and exits.

    4. Scan the market for the top performing sectors and focus on stocks/ETFs within those sectors.

    5. Review all stocks and funds to meet setup criteria and trade only the best looking charts primed to start a new bull market (low overhead resistance nearby, strong relative strength, strong volume on breakout, 30 week SMA moving up etc..) Get this done for you: Click Here

    6. Sit back, watch and monitor position for possible change in the stage, to adjust stops and identify profit taking levels.

    Golden Rock Stock Pick

    The chart below is top quality gold stock which has all the characteristics of a big winner. Just to be clear, I normally do not mention individual stocks within public reports. I am not compensated in any way to post this report. This is nothing more than my technical outlook on a stock and not investment advice.

    (click to enlarge)

    Golden Rocket Conclusion:

    While it still me be a little early for precious metals to bottom, it looks as though the stage (pardon the pun) has been set for a precious metals bull market to start. As they say, there is always a bull market somewhere… the key is finding it and taking the proper action.

    If you want simple, hassle free trading and investing join my newsletter today.

    Chris Vermeulen - www.TheGoldAndOilGuy.com

    Tags: ANV, GDX, GDXJ
    Mar 13 1:07 PM | Link | Comment!
  • How Much Will A 15% Hair Cut Cost Your ETF Portfolio?

    Over the past few weeks I have been watching the DOW and Transportation index closely because it looks and feels like the Dow Theory may play out this year and the stock market could take a 15% haircut.

    But what if you skipped on the haircut and opted for a 40% refund? What? Keep reading to find out how.

    Keeping this post short and sweet, I think the US stock market is setting up for a sharp selloff. And it will look a lot like the July 2011 correction. If my calculations are correct this will happen in the next 3-9 weeks and we will see a 15% drop from our current levels. Only time will tell, but I have a way to hedge against this with very little downside risk to youETF portfolio.

    The Dow Theory Live Example for ETF Portfolio

    The daily chart of the SP500 index below shows our current trend analysis with green bars signaling an uptrend, orange being neutral, and red signaling bearish price action. Currently the bars are green and we can expect prices to have an upward bias.

    The Dow Theory could be in play. When both the Transports (IYT) and the Dow Jones Industrial Average (DIA) cannot make higher highs and start making lower lows, according to the Dow Theory the broad stock market is topping.

    We are watching the market closely because they have both made lower highs and lows. This rally could stall in the next couple weeks and if so we expect a 15% correction.

    (click to enlarge)

    Take a look at the 2011 Stock Market Crash

    (click to enlarge)

    The chart above shows how fearful traders have a delayed reaction to moving money from stocks to a mix of risk-off assets.

    The choppy market condition during August and September clearly helped in frustrating investors and created more uncertainty. This helped prices of this ETF portfolio fund rally long after the initial selloff took place. This is something I feel will take place again in the near future and subscribers of my ETF newsletter will benefit from this move.

    Because we have a Dow Theory setup, our risk levels are clearly defined as to when to exit the trade if it does not play out in our favor. But with the potential to make 40% and the downside risk only being 4%, it's the perfect setup for a large portion of our ETF portfolio. And just so you know this is not a precious metals trade as we are already long that sector and up 10% in that position already.

    Get My Daily Video Forecasts & ETF Trades Today - Get Off The Fence Make Your ETF Portfolio Perform

    Chris Vermeulen

    www.TheGoldAndOilGuy.com

    Mar 05 2:49 PM | Link | Comment!
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