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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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  • Copper ETFs And Copper Stocks About To Move Big

    With 2012 now behind us it's time to start looking for some new long term investments which have big potential gains in the new year. Copper is one metal that has caught my eye.

    The long term monthly chart of the copper ETF JJC shows a potential cup and handle pattern accompanied with bullish volume characteristics. Last year copper traded sideways in a narrowing range. This type of price action tends to bore traders and investors forcing them to look elsewhere for new to trades. The saying is "If the market doesn't shake you out, it will wait you out"

    You can see on the monthly chart that the interest in this commodity diminished. You can tell because of the sideways movement and declining volume. I like to focus on investments which are out of favor but are showing signs of another big trend starting. getting on the train before it leaves the station can make for a fun ride. I do post some of my trading ideas with my charts updating live each day here: https://stockcharts.com/public/1992897

    Take a look at the charts, analysis and my best copper stock setup below:

    JJC - Copper Total Return ETN Profile

    Description: The index includes the contract in the Dow Jones-UBS Commodity Index Total Return that relates to a single commodity, copper (currently the Copper High Grade futures contract traded on the COMEX).

    (click to enlarge)

    Copper Miner Stocks ETF COPX - Weekly Chart

    The COPX ETF holds a basket of copper mining stocks which is showing signs of a new trend starting. Take a look at the top holdings stocks and fund breakdown to get a feel for the exposure it provides.

    COPX Top Ten Holdings

    1. Inmet Mining Corporation (OTC:IEMMF): 6.62%
    2. KGHM Polska Miedz SA (KGH): 5.24%
    3. Xstrata PLC (XTA): 5.04%
    4. Grupo Mexico, S.A.B. de C.V. (GMEXICO B): 4.89%
    5. Jiangxi Copper Company Limited H Shares (00358): 4.83%
    6. HudBay Minerals, Inc. (NYSE:HBM): 4.82%
    7. Antofagasta PLC (ANTO): 4.78%
    8. Southern Copper Corporation (NYSE:SCCO): 4.75%
    9. Lundin Mining Corp (LUNMF): 4.55%
    10. Kazakhmys PLC (NYSEMKT:KAZ): 4.55%

    (click to enlarge)

    (click to enlarge)

    Best Copper Stock Setup - LUNMF

    After reviewing the main holdings in this fund I noticed one stock that looks ready to start a new bull market. OTCPK:LUNMF Lundin Mining. shares look to be building a Stage 1 base and could break out and start to rally any week. Keep in mind 3/4 stocks move with the broad market so we do want the major indexes to find a bottom or at least trade sideways if we want copper stocks to start their run.

    (click to enlarge)

    Copper Futures, ETF and Stock Trading Conclusion:

    Copper has lost its shine over the past 12 months but could start to make headline news in the near future. I like both COPX and LUNMF if we see further strength. If you would like to get more of these trading and investing ideas and alerts be sure to join my newsletter at: http://www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Disclaimer:
    I currently do not own a position in these investment but plan on buying them in the near future. This material should not be considered investment advice. Chris Vermeulen is not a registered investment advisor. Under no circumstances should any content from this website, article, video, seminar or email from Chris Vermeulen (TheGoldAndOilGuy.com) be used or interpreted as a recommendation to buy or sell any type of security or commodity contract. This material is not a solicitation for a trading approach to financial markets. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This information is for educational purposes only.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:LUNMF over the next 72 hours.

    Dec 31 10:37 AM | Link | Comment!
  • 2013 Forecast – Tis The Season To Drink & Own Coffee

    Coffee prices have fallen more than 50% since 2010 which can be seen through the coffee exchange traded fund symbol: JO. This investment seeks to replicate the returns that are potentially available through an unleveraged investment in coffee futures contracts as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.

    Weekly, Hourly and Seasonal chart of JO Coffee Exchange Traded Fund

    The top weekly chart shows my price targets for 2013 while the lower hourly chart shows strong on balance volume meaning big money is slowly building a long position in coffee. The small white chart is the seasonal chart of coffee futures showing prices historically rise from Jan - March, then a correction followed by another rally in to May.

    Coffee prices are still in a down trend but it looks as though the end is near and if played properly it could provide up to 100% return on your capital in 2013.

    (click to enlarge)

    Coffee Futures Monthly Long Term Chart

    This chart gives you a bird's eye view on where coffee prices are trading in the big picture scheme of things.

    (click to enlarge)

    JO Coffee ETF VS. SBUX Starbucks Share Price:

    Lower coffee bean prices JO ETF has helped lift share prices of coffee companies like Starbucks: SBUX, Coffee Holdings Co.: JVA, Coffee Roasters Inc.: GMCR, and PEET's Coffee: PEET. But cheap coffee may not be around that much longer and the lower earnings for coffee brewers may be closer than most may think.

    Follow my Live Trading Charts Here Free: https://stockcharts.com/public/1992897

    (click to enlarge)

    2013 Caffeine Conclusion:

    In short, I have been watching coffee prices for a bottoming pattern for months and I now feel it is getting really close to a bottom and it could be a great trade and investment in the new year. As for companies like Starbucks it will likely not have much of an affect on the bottom line until the second half of the year though it is something to keep an eye on during earning seasons.

    If you want my trading and investing ideas each week along with trade alerts for ideas like this then join my newsletter today: http://www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Dec 31 10:33 AM | Link | 1 Comment
  • Getting Coal In Your Stocking May Be Exactly What You Want

    We all want new and exciting electronic gizmos and gadgets for the holiday season. Unfortunately they have the tendency to lose almost all their value within weeks because of newer versions etc… but what if you just got a lump of dirty old coal in your stocking, how would you feel?

    The only individuals who would appreciate a dirty gift like that would be those forward looking investors who see major opportunities before they become the next big movers and headline news.

    Knowing how to spot Stage 1 patterns is one of the most important bits of information you need to know as an investor. This one pattern is how I found RIMM which now up 100% in the past 30 days, ANR up 30% in two weeks, FSLR up 20% in 20 days and the list goes one. My main focus is on ETFs because of lower risk they provide but very powerful when applied to individual stocks.

    Coal and coal stocks have been out of favor for almost two years now. But these unwanted and hated shares may soon be owned by the masses, or at least by traders and investors. A few weeks ago to I talked about the four stages all investments go through and which patters you must be able to spot in order to make huge money investing while having very limited downside risk.

    You can read about them here where I used Apple and Research In Motion shares as my example: http://www.thegoldandoilguy.com/articles/collapse-of-apple-rise-of-the-blackberries-stock-market-cycle/

    In summary, Trade with the BIG BOARD and only focusing on buying stocks, ETFs etc… as they are coming out of a Stage 1 Accumulation Basing Pattern. This puts the odds greatly in your favor for not only winning the majority of your trades but to generate above average returns.

    The BIG BOARD - NYSE - Weekly Major Stock Market Trend

    The New York Stock Exchange is the big board. This chart formed a reversal candle last week which points to lower prices. Its likely we see a 1-2 week dip before buyers step back in. Until then individual stocks should pause or form mini bull flags until the sellers are finished and buyers step back into risk on assets (equities).

    (click to enlarge)

    Coal Sector ETF Showing Stage 1 Basing Pattern

    Coal stocks have been bouncing bottom for some time and if you did not review the Stages Report using the link above then do so now so you know what to expect in detail.

    KOL coal exchange traded fund is a basket of coal companies and is starting to show signs of a new bull market. A breakout and close above $26.00 should trigger strong buying with the potential of a 21% gain before it hits my first price target. This could go way past that but one target at a time folks.

    Naturally I would like to see a bull flag or pause in KOL over the next couple weeks, then look to get long using the pivot low of that pause/bull flag as my protective stop. I'm not jumping in here as the broad market looks ready to correct and ¾ stocks follow the big board which will pull KOL down.

    (click to enlarge)

    ANR - My Top Coal Stock Pick

    I pointed out ANR at $7.50 at the beginning of December to followers as it was the best looking coal stock I could find. The two key indicators "Price" and "Volume" were clearly pointing to higher prices and the potential gain even if it was just played up to the Stage 1 Resistance Level still netted a 30% move. Crazy part is that there is the potential for a 100% rally to my first price target. Follow my free ideas here live: https://stockcharts.com/public/1992897

    (click to enlarge)

    You want Gizmos or Coal in You're Stocking???

    In short, I really like the coal sector for the first quarter of 2013. I'm not too worried about the fiscal cliff as it's not the end of the world and the US along with most other countries are all bankrupt together in my opinion. New rules and ideas will be implemented and life and business will continue… I am not to worried.

    I am expecting stocks to continue sideways or higher into May at which time a serious correction could take place. But not to worry as we take things one week at time and will be adjusting my outlook accordingly.

    Get My Trade Ideas & Alerts Delivered To Your Inbox: www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Dec 15 4:18 PM | Link | Comment!
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