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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
View Chris Vermeulen's Instablogs on:
  • The Market Leaders Are Being Distributed!

    I just posted a timely article talking about how the market leaders (groups/sectors) which lead the stock market higher have been met with strong selling. All of March we saw some distribution selling but the past few weeks it is clear that the big guys are unloading massive amounts of shares to the general public as they no longer want to hold this growth and momentum stocks. QQQ, IWM, SPY, DIA, IBB

    This is of great concern to me and anyone long stocks in their portfolio need to read my article about this.

    Read Report Now: http://www.gold-eagle.com/article/bull-market-leaders-are-now-leading-way-lower

    Chris Vermeulen

    P.S. Need help timing the market and trading? Join my ETF Trading Newsletter

    Apr 04 1:20 PM | Link | Comment!
  • SP500 ETF Trading Strategies & Plan Of Attack For This Week

    Index ETF Trading Strategies: Stocks have kick started this week with a 0.85% pop in price but the big question is if the market can hold up. Last week stocks repeatedly gap higher and sold off with strong volume telling us that institutions are slowing phasing out of stocks (distribution selling) unloading shares into strength and passing them onto the a average investor to be left holding bag.

    I want to show you a couple charts which show the price action, volume and money flow of the SP500 so you have a visual of what I am talking about.

    30 Minute Intraday SP500 Chart - ETF Trading Strategies

    In the chart below you can see the price gaps followed by selling. Why is this important? It is important because during a down trend the market makers and big money plays who have the money and tools to manipulate the markets will allow the market drift higher or they will run price up in overnight or premarket trading when volume is light. Once the 9:30am ET opening bell rings volume and liquidity spike which allows the big money player to sell remaining long positions and or add to short positions they have.

    If you look at the blue on balance volume line at the bottom of the chart you can clearly see that more contracts are being sold than bought which is typically an early warning sign that the market is about to fall farther. SPY, SSO, SPXU, SH

    (click to enlarge)

    Automated Trading System - 30 Minute ES Futures Chart

    Below is a marked up screen shot of my automated trading system which I use for timing both futures and ETF trading strategies. The color coded bars tell you the market trend along with the strength of buyers and sellers.

    When you couple market cycles, trends, volume/money flow, along with chart patterns we can forecast and trade markets with a high degree of accuracy in terms of market direction and timing. Ross Clark & I talk about cycle analysis, market stages etc… which you can listen to live here: http://talkdigitalnetwork.com/2014/03/this-week-in-money-129/

    (click to enlarge)

    My Index ETF Trading Strategies Conclusion:

    Just to be clear on the current market trend and my overall outlook let me explain a little more. Overall, the broad stock market remains in an uptrend. Thursday and Friday of last week we started getting orange bars on the chart telling us that cycles, volume, and momentum are now neutral. It's 50/50 on which way the market will go from here, so until the market internals (cycles, volume, breadth) push the odds in our favor enough for a short sell trade or a new long entry we will not add new positions to our portfolio.

    It is important to understand that nearly 75% of stocks/investments move with the broad market. So we don't want to add more long positions when the odds are not in favor of higher prices. Trading in general is not hard to do, but creating, following, executing properly money and position management is. If you have trouble with following or creating an ETF trading strategy you can have my ETF trading system for rising, falling and sideways markets traded automatically in your trading account.

    Learn more here about my Automated Trading Systems

    Chris Vermeulen
    TheGoldAndOilGuy.com

    AlgoTrades.net

    Mar 31 4:47 PM | Link | Comment!
  • 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
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