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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
  • Dollar Tell Us Stocks Are Likely To Pullback – Simple Analysis 0 comments
    Nov 25, 2012 4:48 PM | about stocks: SPY, UUP, SSO, SDS, TNA, TZA, IWM

    The stock market is at a very critical pivot point which I feel will generate opportunities in December and for the first quarter of 2013.

    Trading with the trend is not always an easy task. It is human nature to predict and jump to conclusions and usually it's better to trade with the trend no matter what your emotions are telling you. The current trend is down and I stick with that until we are proven wrong.

    If you carefully analyze the charts below you will understand where we are trading in the market and what the risks are at this point. The question is are in the middle of a trend reversal back up, or is this just a bounce within a down trend? Either way, any pullback this week should be aggressively managed to lock in gains and tighten stops because it could go either way and you do not want to be on the wrong side of the table.

    The chart below shows the US dollar index 4 hour chart (UUP ETF). It looks as though we should start to see a bounce this week and that should put pressure on stocks and commodities.

    The SP500 (SPY etf) below that shows my analysis and key price levels. I took a short position on the SPY Friday afternoon as I feel a pullback is imminent. That being said, all I need is one big down day and I will be pulling money off the table to lock in gains and tighten my stop.

    If a detailed educational lesson on stock market cycles read my mini course here: http://www.thegoldandoilguy.com/downloads/COAAROTB.pdf

    (click to enlarge)

    My trading charts make reading the market simple, quick and precise so if you want this type of analysis and trade ideas delivered to your inbox every day including my Pre-Market video analysis then join my newsletter here: www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Disclosure: I am long SDS.

    Themes: currency, dollar, stock market, sp500 Stocks: SPY, UUP, SSO, SDS, TNA, TZA, IWM
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