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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
View Chris Vermeulen's Instablogs on:
  • Invest In Countries That Are Starting A Bull Market - Look At These Ones!

    Research proves that undervalued equity markets achieve higher future returns over longer term investment horizons.

    Studies show that investing in markets which have just been through a bear market and their valuations are low is one of the best ways to grow your investment capital.

    In 2012 Ireland was one of the countries with lowest PE ratio and a couple years later and 100% rise in the EIRL (Ireland ETF), it is now the second most overvalued country.

    Every year there are several markets that are bottoming and starting a new bull market. The key is finding them and being prepared to lock up some of your investment capital in these longer term investments.

    On Wednesday I recorded my call with Kerry Lutz of the Financial Survivor Network. We talked about a couple new bull markets that were starting and the one which I like the most.

    Listen To Call:Click Here

    I believe the best way to be successful as an investor is to actively manage your portfolio. And when I say actively manage it, I mean, you should be rotating your money out of underperforming stocks, sectors, commodities, and index positions and moving that money to fresh investments which more room to rise.

    In a week or so I will be doing a detailed report on how many positions a portfolio of various sizes should be holding. You will be surprised with what this report is going to tell you.

    In short, the less the trades you make and the fewer positions you hold in your portfolio can make a dramatic impact on your portfolio volatility, time commitment, stress levels and performance.

    Diversification between a small selection of investments and strategies is vital. This is not rocket science, anyone can do it and I will show you how.

    Anyway, let's get back to undervalued markets…

    You have to invest in markets and sectors that have just gone through a bear market. By doing so you can look forward to years of upside growth.

    Cheapest Markets, and Most Expensive MarketsAutomated Investing System

    This table shows the valuations of world markets with the most recent data available.

    Looking from an evaluation stand point and long term investing Russia, China and Greece are the most undervalued. And if we take an average PE ratio of the majority of counties of 20, then we can calculate a rough percent return each country should provide in the coming years.

    Keep in mind, these markets can still be volatile and if you are a short term trader its best not to trade based off fundamentals and valuation. Hedge fund robots and my automated investing system do not and most US stock market participants do not either.

    Charts of Undervalued Country ETF's

    These charts just show a simple snap shot and their first upside target before they run into some long term resistance.

    Automatic Investing Strategy

    Automated Investing Strategy

    (click to enlarge)

    Long Term County Specific Investing Conclusion:

    In short, this report is simple and uses a logical strategy. Again, it is critical to have a diversified portfolio with completely unrelated investments (different countries) and also to use different investment strategies and time frames to balance portfolio volatility.

    I believe you should have long term holdings and short term holding using both long and short positions. Short positions allow you to profit from a falling market, and some of the biggest and fastest money can be made with this strategy and is a vital strategy within my automated investing system.

    Learn About My Investing Strategy Here: www.AlgoTrades.net

    Chris Vermeulen
    CEO & Founder

    AlgoTrades.net

    Jun 23 8:55 AM | Link | Comment!
  • WTI Crude Oil On The Move $112 Next Stop

    The energy sector has surged during the last two months which can be seen by looking at the XLE Energy Select Sector Fund. If crude oil continues to climb to the $112 level, XLE will likely continue to rally for another few days or possibly week as energy stocks are considered a leveraged way to play energy price movements.

    Another way to look at this info is through the USO United States Oil Fund. This tracks much closer to the price of oil. The only issue is that many ETFs that "try to track" an underlying commodity is in how the funds are built. They own multiple contracts further into the future which does not exactly provide us with the short term news/event driven price movements in the current front month contract as they should.

    What does this mumbo jumbo mean? Well, it means funds like USO and the highly respected UNG, and VIX ETFs… (just joking about the highly respected part), fail to track the underlying commodity or index very well when it comes to short term price movements. This means, you can nail the timing of a trade, and the commodity or index will move in your favor, yet your fund loses money, or goes nowhere…

    Let's Focus on the Technicals Now…

    WTI crude oil has formed a bullish ascending triangle pattern from March to May of this year. The breakout to the upside is bullish and should be traded that way until the chart says otherwise. This breakout and first pullback must hold, or I will consider it a failed breakout. So if price dips and closes 2 days below the breakout level, it will be a major negative for oil in my opinion.

    The range of the ascending triangle provides us with a measured move to the upside which is $112. Typically the first pullback after a breakout can be bought. The first short term target to scalp some gains would be $109, and at that point moving your stop to breakeven is a wise decision. Trading is all about managing capital and risk, if you don't, then the market will take advantage of your lack in discipline.

    Looking further back on the chart, you can see the double bottom formation also known as a "W" formation. Once the high of the "W" formation is broken the trend should be considered neural or up.

    Also note that the RSI (relative strength) has been trending higher for some time now. This means money is rotating into this commodity. This is in line with my interview this week with Kerry Lutz and my recent article talking about the next bull market in commodities and the TSX (Toronto Stock Exchange).

    (click to enlarge)

    WTI Crude Oil Trading Conclusion:

    In short, oil has some extra risk around it. The recent move has been partly fueled by news overseas. So at any time oil could get a lift or take a hit by news that hits the wires. I tent to trade news related events with much less capital than I normally do because of this risk.

    Happy Trading!

    WANT MORE TRADE IDEAS?
    GET THEM HERE: WWW.THEGOLDANDOILGUY.COM

    Chris Vermeulen
    CEO & Founder
    AlgoTrades.net
    TheGoldAndOilGuy.com

    Tags: USO, XLE, XLU, ernery, crude oil
    Jun 20 10:48 AM | Link | Comment!
  • Commodities Are Building Bases And About To Rally – Steel Market

    The energy sector has surged during the last two months which can be seen by looking at the XLE Energy Select Sector Fund. If crude oil continues to climb to the $112 level, XLE will likely continue to rally for another few days or possibly week as energy stocks are considered a leveraged way to play energy price movements.

    Another way to look at this info is through the USO United States Oil Fund. This tracks much closer to the price of oil. The only issue is that many ETFs that "try to track" an underlying commodity is in how the funds are built. They own multiple contracts further into the future which does not exactly provide us with the short term news/event driven price movements in the current front month contract as they should.

    What does this mumbo jumbo mean? Well, it means funds like USO and the highly respected UNG, and VIX ETFs… (just joking about the highly respected part), fail to track the underlying commodity or index very well when it comes to short term price movements. This means, you can nail the timing of a trade, and the commodity or index will move in your favor, yet your fund loses money, or goes nowhere…

    Let's Focus on the Technicals Now…

    WTI crude oil has formed a bullish ascending triangle pattern from March to May of this year. The breakout to the upside is bullish and should be traded that way until the chart says otherwise. This breakout and first pullback must hold, or I will consider it a failed breakout. So if price dips and closes 2 days below the breakout level, it will be a major negative for oil in my opinion.

    The range of the ascending triangle provides us with a measured move to the upside which is $112. Typically the first pullback after a breakout can be bought. The first short term target to scalp some gains would be $109, and at that point moving your stop to breakeven is a wise decision. Trading is all about managing capital and risk, if you don't, then the market will take advantage of your lack in discipline.

    Looking further back on the chart, you can see the double bottom formation also known as a "W" formation. Once the high of the "W" formation is broken the trend should be considered neural or up.

    Also note that the RSI (relative strength) has been trending higher for some time now. This means money is rotating into this commodity. This is in line with my interview this week with Kerry Lutz and my recent article talking about the next bull market in commodities and the TSX (Toronto Stock Exchange).

    (click to enlarge)

    WTI Crude Oil Trading Conclusion:

    In short, oil has some extra risk around it. The recent move has been partly fueled by news overseas. So at any time oil could get a lift or take a hit by news that hits the wires. I tent to trade news related events with much less capital than I normally do because of this risk.

    Happy Trading!

    WANT MORE TRADE IDEAS?
    GET THEM HERE: WWW.THEGOLDANDOILGUY.COM

    Chris Vermeulen
    CEO & Founder
    AlgoTrades.net

    TheGoldAndOilGuy.com

    Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in USO over the next 72 hours.

    Tags: USO, UNG, VXX, energy, crude oil, wti
    Jun 19 8:28 AM | Link | Comment!
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