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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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  • Gold, Silver & SP500 Trading Charts & Video

    May 16, 2010
    Last week was amazing for both gold and index traders as gold surged higher and the SP500 tested a key resistance then fell 4% in our favor. The past couple weeks with the mini market crash and Euro issues making the market extra volatile both gold and the broad market (SP500) index has been wild.

    The added volatility makes trading more difficult because price patterns become less predictable and price movements are much larger increasing risk for traders.

    Below are the charts & videos of what to look for in the coming days…

    GLD – Gold ETF Trading
    Gold continues to trend higher at an accelerated rate. Friday we saw gold pullback and test a key support level then bounced to close in the middle of the days trading range. As you can see the trend line support has become very steep and once the trend line support is broken I figure there will be a sharp drop to digest the recent rally.

    Gold Trading Newsletter

    SLV – Silver ETF Trading
    Silver popped and tested a key resistance level from a previous high as expected. It also tested the top of its trend channel providing even more resistance. This week will be interesting as we wait to see if precious metals have a small pullback or continue to rally.

    Silver ETF Trading Newsletter

    SPY – SP500 Index ETF Trading Chart
    This chart clearly shows what I think is about to unfold by looking at the past market drop. Because of the mini market crash triggering everyone’s stops already I figure we have made the low and the dip we are seeing now will drift down a few more percentage points then bottom out.

    SPY ETF Trading Newsletter

    ES M0 – SP500 Mini Futures Trading Setup – Pre-Drop
    Below is a chart of the SP500 which we shorted or bought the SDS bear etf trading fund last week looking to profit from a falling stock market. As you can see from the chart we saw the es mini contract drift into a key pivot point on light volume. What this means is that a large group of sellers will be waiting at that price, and because volume is light we know there are not many buyers at this price level. Simple supply/demand comes into play with more sellers causing the price to stop rising and eventually force the price lower which is what we were anticipating.

    The green arrows show key support levels on the 60 minute chart where 1/3 of a position should be taken of the table to lock in gains which also reduces overall risk on the trade. Once we cash in the first 1/3 of the position we move our protective stop the breakeven which is the entry point for the remaining portion of our position. This turns the trading into a winner no matter what happens allowing us to enjoy the ride…

    ES Mini Trading Service

    ES M0 – SP500 Mini Futures Trading Setup – Current Price
    Here is the same chart 24 hours later showing both of our profit targets triggered pocketing 2/3rds of our position for a very nice gain. Depending on the type of trading vehicle you traded there was potential to make up to 150% return in less than 24 hours.

    We currently hold 1/3 of the position left with a loose stop allowing the trade to mature incase the down trend continues for several days or weeks. If not and the price rallies then our stop will get triggered for small profit on the balance of the position. Either way we win.

    ES Mini Index Trading Service

    Pre & Post Market Correction Video: http://www.thegoldandoilguy.com/articles/sp500-market-correction-trading-videos/

    Stock Market ETF and Futures Trading Conclusion:
    In short, the market is trading on increased volatility making it difficult to find low risk setups. At the moment we are long gold and short the SP500 with both position deep in the money. All we can do now is manage our positions to make sure we maximize our profits.

    If you would like to Get My Trading Signals be sure to check out my services at: www.TheTechnicalTraders.com

    Chris Vermeulen



    Disclosure: I am currently short the ES Mini Futures Contract.
    May 16 11:05 AM | Link | Comment!
  • Commodity & Index ETF Trading Strategy

    May 9, 2010
    As we all know, last weeks stock market blip/mini crash was very emotional for those of you watching or trading it live. A lot of money changed hands last week and you either lost a bundle or made a bundle…

    I did send out some charts and a video on Thursday night about the market crash/recovery if you have not seen it. It’s called “Stock Market Micro Intraday Crash Shows Us Where The Safe Havens Are”.

    Below are my ETF charts for the commodities and index I actively follow and trade.

    GLD – Gold Bullion ETF – Daily Chart
    GLD is a great ETF to trade as it generates 10-20 quality low risk setups each year for subscribers. The chart clearly shows the large rally in late 2009 and the correction as it formed patterns moving from a down trend – base – and back to an uptrend.

    ETF Trading Strategy

    $USD – US Dollar Index – Monthly Chart
    This weekly chart I think shows some serious potential for gold and silver prices. The US Dollar is now trading at a key resistance level which I think it will have a tough time moving higher. The dollar has been moving up for several months and looks ready for a pullback or at least a pause. If the dollar starts to roll over in the next few months then we should see gold and silver move substantially higher.

    ETF Trading Strategy

    SLV – Silver Bullion ETF – Daily Chart
    Silver like gold bounced off a key support level last week as investors started to buy silver as a safe haven. Gold moved up sharply on the day of the intraday market crash while silver traded sideways for a day before joining the party. The following day investors starting buying up silver because it was lagging its big sister “yellow Gold”.

    ETF Trading Strategy

    USO – Oil Fund – Daily Chart
    Several weeks back I posted this chart showing how volume was drying up as oil tested resistance on declining volume. This indicated to us that once/if the price started to roll over it would trigger a sharp sell off as short term traders who bought in anticipation of a breakout to the up side sold out of their positions once support was broken. This is what caused the heavy volume and sharp price drop.

    ETF Trading Strategy

    SPY – SP500 INDEX Trading ETF – Daily Chart
    It’s tougher now to read the index charts as last weeks heavy volume market crash could be seen in two very different ways…

    One - We are starting a correction and had a jump start with the human error of selling billions of dollars worth of investments instead of millions prematurely pushing pulling the market down to a level where I think it should/will test again before moving up.

    OR

    Two – This extremely heavy sell off is just the start of what is to come…

    Since the government owns the largest banks and the banks are unloading/selling massive amounts of shares calling it an error how do we know it’s not a scam for them to completely short the market in anticipation for a collapse which would make them unheard of amounts of money as the market drops… It is tough to trust anyone sitting up there in those power positions after everything they have been caught for already…

    I personally think we could see lower prices in the coming month then the market will bottom and we will see new highs for 2010.

    ETF Trading Strategy

    Weekend Commodity & Index ETF Trading Strategy Conclusion:
    Stepping back and looking at the above charts it looks as thought we could see stocks and commodities digest the recent moves. In short, gold and silver have rallied strong and now trading near resistance. Oil dropped last week and is now trading near a key support level. I feel it the market will trade sideways and stabilize before for a while as the SP500 had that crazy drop last week and now the market is in shock. I figured it would see 3-4 weeks to reach those prices yet it happened in 1 day so now the market could do very little for 3-4 weeks…

    The US dollar is something we will be watching more closely because it’s trading at key resistance level. In the past it has taken a month or two for a rally to roll over and head back down. This could play out very nicely if the dollar tops and the rest of the market trends sideways to digest the recent moves. Once the dollar starts to fall it will provide fuel for the next rally in both stocks and commodities.

    If you would like to receive my ETF Trading Strategy and Trading Signals Please check out my website: www.TheTechnicalTraders.com

    Chris Vermeulen



    Disclosure: I currently do not own these ETF's
    Tags: GLD, SLV, USO, SPY, USD
    May 09 10:09 PM | Link | Comment!
  • Another Batch of Trading Setups for the SP500 Are Here

    May 2nd, 2010
    The past few weeks I have been talking about the SP500 forming a top similar to the January top we saw earlier this year. Well the charts below show exactly what I have been waiting for to unfold and I think the time has come for the market to take a healthy breather before continuing this strong bull market which could last another 12 -24 months before really topping out.

    SPY – SP500 ETF Trading Chart

    I am showing the SPY etf because that’s a fund most people know and trade, but this analysis is the same for trading futures like the ES M0 Mini SP500 contract.

    You can see the similar price action which formed in January and what has happened recently. I feel we are about to see a correction which would last several weeks which is very exciting for us traders.

    SPY ES Daily Trading

    SPY April Top – SP500 ETF Trading 60 Minute Chart

    This chart shows the past few weeks of price action with the market becoming more volatile with waves of selling and buying. This indicates exhaustion and generally leads to a market correction or at least some sideways movement to digest the recent rally before continuing higher.

    SPY January Top – SP500 ETF Trading 60 Minute Chart

    Take a look at this chart of January….
    Very similar price and volume action.

    SPY January Sell Off – SP500 ETF Trading 60 Minute Chart

    This chart shows the sell off last January and the setups I had when the market reached extremes generating trades with the underlying down trend.

    SP500 Day Trading & Swing Trading Opportunities:

    I hope these charts help you to see how I read the market and what I am looking for in trade setups. While its easy to see these setups in hindsight it requires a lot of research and experience in-order to time these plays in real-time when emotions are flying high and with BNN, Bloomberg, CNBC and other newsletters all saying different things…

    Some words from fellow traders:
    “I just wanted to let you know how much I’ve learned from you already. Understanding that you don’t always have to be in the market because another Low Risk Setup is just around the corner tops my list. Keep up the good work.” Matt Brennan, CA, USA

    “Hey, Chris!
    I really like the way you think and I’m already learning some useful stuff. I tend to be too aggressive, that’s another reason I picked you – I think you have just the medicine I need to learn to be a bit more cautious and to manage risk better. My biggest weakness is jumping the gun. Pretty typical, I guess. Already I can see I will learn to improve from following your lead.” George Faison, VA, USA

    If you would like stock market training, how to find low risk setups with great potential along with my trading signals then check out my websites below:

    Gold and SP500 ETF Swing Trading Signals: www.TheGoldAndOilGuy.com
    Intraday, Swing Trades and Trading Strategy: www.FuturesTradingSignals.com
    Trade Explosive Stocks: www.ActiveTradingPartners.com

    Chris Vermeulen



    Disclosure: I currently do not own the SP500
    May 02 12:10 PM | Link | Comment!
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