Tuesday, June 29, 2010

New Video: Is Amazon Losing It?

In today's short video we look at Amazon, not the river, but the stock. Yesterday (6/28/10) we spotted some market action that we wanted to bring to your attention. Unfortunately, we could not release this video any sooner because of scheduling.

Amazon is in a whole lot of trouble in my opinion. Not only are our "Trade Triangles" negative, but also an important technical element for Amazon was breached. This one element is one of the simplest, yet most powerful technical tools you can use in trading.

We think you'll enjoy this very simple approach as it has worked consistently over the years. As always our videos are free to watch and there are no registration requirements.


Watch Is Amazon Losing It?



Share

New Video: Does This One Chart Line Spell Doom for the Markets?

Make no mistake about it, last week was a very important week for the stock market. Looking on the weekly equity charts, you will see one of the most powerful Japanese candlestick lines. This one line on the chart indicates that there could be some major problems ahead for the stock market.

In our new video we explain what this line is and how it can play out in the short and longer term time frames. As always our videos are free to watch and there is no need for registration. We would really like to get your feedback on this powerful formation and what you see for the markets ahead.

Watch Does This One Chart Line Spell Doom for the Markets?


Share

Friday, June 25, 2010

New Video: Do You Know About Market Divergences?

In the market there are two types of market divergences that can occur....a bullish divergence and a bearish divergence. Both of these divergences are important and you need to know how they work and how you can benefit from this knowledge.

In this short educational trading video, we will show you the tools we use to spot market divergences. We will be using the Relative Strength Indicator (RSI) and the Moving Average Convergence Divergence indicator (MACD) which was developed by our friend Gerald Appel.

As always our videos are free to watch and there are no registration requirements. Please feel free to leave a comment on this or any of our other videos.


Watch "Do You Know About Market Divergences?"


Share

Wednesday, June 23, 2010

New Video: Forex Should not be Foreign to You

It's the biggest market in the world and is traded 24 hours a day, 6 days a week, and therefore one that is impossible to ignore. I'm speaking, of course, about the forex market.

The question is, is this the tail that's wagging the dog? Meaning, is the forex market, mainly the euro, dictating the trend in American and European equity markets.

The answer is yes, for the moment it is. Now, if you're not familiar with the forex markets and the euro, you should look at the ETF FXE, the spot euro, and also the euro futures market at the Chicago Mercantile Exchange (CME), as they are all tradable.

In today's short video we show you exactly how we think this currency will play out in the future. And as always, our videos are free to watch and there is no need for registration. Please leave us a comment on your thoughts on this video and the current market.


Watch "Forex Should not be Foreign to You"



Share

New Video: Why Markets Reverse...Blame it on Fibonacci!

There are times when markets reverse for no apparent reason and seem to defy any news that would support the direction of the trend. We call the this occasional event the "Fibonacci factor"and this occurs when markets reach certain retracement levels and often reverse direction from their
previous trend.

In this new short video we outline this phenomenon on the S&P500 and will also be covering it when our new educational trading video debuts this Friday, which will be of course, "Fibonacci Friday".

As always there is no charge and no need to register. Enjoy today's video and please let us know what you think by leaving a comment.

Watch "Why Markets Reverse...Blame it on Fibonacci"

New Video: How To Use Fibonacci Retracements



Share

Monday, June 21, 2010

New Video: How To Use Fibonacci Retracements

We have had a number of requests to do a video on Fibonacci retracements and how they can be used in trading.

We put together this five minute lesson on Fibonacci trading and how we use this important tool to determine turning points in the market. Like all tools, it has its flaws and should be used with other complementary tools like our "Trade Triangle" technology.

As always, our videos are free to watch and there are no registration requirements. We hope you have the time to comment and share if this video helped you understand this important trading tool, or how you're already using it.

We hope you enjoy this brief lesson and it helps you understand how to use this important tool.


Just click here to watch "How To Use Fibonacci Retracements"



Share

Sunday, June 20, 2010

Dow, Gold & Crude Oil are Breaking Out or Bouncing

Over the years we have seen the stock market make some pretty exciting moves for share holders. This year alone there have been some interesting events unfold causing wild market swings which most of us did not think could happen. Things like countries going bankrupt and the May flash crash. Also the BP Oil well leak which looks as though its about to kill not only businesses around the world but a large population of animals and fish which our planet will never be able to get back… It’s been a crazy year!

It sure would be nice if the financial situations between all he countries could be resolved, and if we could have some proper regulations on banks and the financial system to minimize fraud and manipulation. From the looks of everything we have a few years still before things get sorted out, fixed and some what stabilized.

Below are some charts showing where the Dow, Gold and Oil are currently trading and my thoughts on them.

DIA – Dow Jones Industrial Average ETF – Daily Chart

The past 12 years we have seen the DJIA go through some large bull and bear markets providing those with trading experience to generate large profits in both the bull and bear markets.

Recently we have seen the DJIA pullback and test the key pivot point and has started to bounce. Although this price action is positive I have my doubts about another bull market rally because of how the chart looks. I focus most of my analysis on chart patterns, volume and market internals. These allow me to monitor the overall heath of the market on a daily, week and monthly basis. Using these techniques I am able to pull money from the market consistently.

This year we saw some extremely heavy selling in May which could have been strong enough to shift the trend from an up trend to a down trend. I call these large volume candles Get Ready Spikes. If they are green then we are looking for higher prices but when they are red it means distribution is starting and lower prices could start to form in the coming months.

The DIA chart below looks to be forming a very large head and shoulders pattern which is currently trading near the top of the right shoulder. This pattern is very bearish and points to much lower prices in the next couple years if the major support level (neckline) is broken.


GLD – Gold Exchange Traded Fund – Daily Chart

The chart of gold shows the same cup and handle pattern which I have been talking about for a while now. Last week the price of gold made a new high breaking out of this pattern. We could see the price of gold start to work its way up to the $1400-1500 level over the next 3-6 months which calculates to $140-150 on the GLD etf.


USO – Crude Oil Fund – Daily Chart

USO oil fund has been trend down for a couple months and recently put in a nice bounce from the May low. I feel as though oil is forming a bear flag and could head lower in the coming weeks. Until it breaks the key resistance level traders must be cautious if they have any long trades right now.


Weekend Dow, Gold and Oil Trading Conclusion:

In short, I’m bullish on stocks for the short term and think we could retest the April high in the next month or two. But after that the market could roll over and from there we could see much lower prices. Or we could see the indexes breakout and start another leg higher… During volatile times like we are in now… we must trade with caution until the overall health of the market clearly indicates the direction of stocks. Until then focusing on low risk setups and taking profits quickly is the safest trading strategy.

Gold looks to be setup for a strong move higher. I am hoping for another dip to shake out some investors before it continues its march upwards. Oil on the other hand is trading near a key resistance level. Only time will tell if it can break through and start a rally. If not then we will see the market struggle.


Just click here if you would like to receive Chris Vermeulen's ETF Trading Signals.



Share

Tuesday, June 15, 2010

New Video: The Talk Of The Day Is Crude Oil

Whether it is the spill in the Gulf, which continues unabated, or talk on Capitol Hill, the subject is crude oil. Today we received a signal by way of our weekly "Trade Triangle" to get long crude oil.

In this new brief video, we show you the exact levels to keep your eye on and also where a logical stop would go for this position. We have had a lot of questions on Fibonacci retracements lately and this video goes into detail about that phenomenon and how you can best use it.

As always our videos are free to watch and there are no registration requirements. We are always interested in your views so please leave us a comment and let us know what you think about the direction of crude oil.

Watch "The Talk Of The Day Is Crude Oil"


Share

New Video: A Quick Update on the S & P 500

The sharp rally we saw on Friday followed through on Monday, but appears to have run out of steam. In this new short video, we show you what you should be looking at in this market and how we think it should be played.

The video is short, less than two minutes, but you'll get a lot of good information that will help you trade these choppy, choppy markets.

As always we are interested in your views on the SP 500, so please leave us a comment and tell us what you think.


Watch "A Quick Update on the S & P 500"



Share

Monday, June 14, 2010

New Video: How to Tell When a Market is Oversold

Markets can get oversold, but when is a market really oversold?

In our latest video we show you a specific example of how markets can become oversold, stay that way, and why sometimes a relief rally doesn't change anything.

This is a short video and it's one we highly recommend watching as it will help you in the future to be aware of the oversold phenomenon.

We invite you to take a look at this new video and as always it can be viewed with no registration and at no charge.

We are also interested in your views or strategy dealing with an oversold market, so please feel free to leave us a comment.

Watch "How to Tell When a Market is Oversold"



Share

How Candlesticks Can Turn Your Portfolio Gold

We have just finished a short video on the spot gold market using Japanese candlestick charts. In this new video we show you some important elements that you would not necessarily see using traditional Western charts.

We invite you to take a look at this new video with no registration and no charge. And whether you agree, disagree, or just want to comment on this video, please feel free to do so.


Watch "Japanese Candlesticks and The Gold Market"



Share

Friday, June 11, 2010

New Video: The Battle of the Bull and Bears

The battle between the Bulls and Bears continues with very choppy trading action. The rally from a potential double bottom is cause for concern for the Bears, however the Bulls are in a similar situation as they have to prove their case with sustained market action.

In our new video, we outline some of the key levels that we think are important in the S&P 500 market. Volume continues to to be light and that is why the markets are moving around and are so volatile at the moment.

This is our first video this week, but expect many more as the market rotates. Don't miss our special risk free trial offer to MarketClub, my premium charting service, offered at the end of this video.


Just click here to watch "The Battle of the Bull and Bears"



Share

Thursday, June 10, 2010

SPX, Gold & Oil on the VERGE of Something BIG

Market volatility continues to shake things up making it profitable for traders who are quick to spotting key reversal points, manage risk and taking profits before it evaporates. On Tuesday we saw the market go up and down more than I have seen in a long time… It moved over 5% as it trended up then down in 1% increments as shown in the chart below. Members of FuturesTradingSignals were able to capture a 1-2% gain which may not sound like much but when trading the leveraged ETFs, Futures or CFD’s we are making 4-200% profit within a few hours. That being said this type of price action is proof that the market just does not know which way to go and why trades must be very quick to enter and exit positions.


The SP500 daily etf chart shows my simple volume analysis during market corrections. During the early stages of a trend, pullbacks are quick and simple. But as a trend matures we start to see corrections become much more complex. We first saw the simple 1 wave corrections in 2009, then we saw a much deeper 3 wave correction which was enough to shake most retail (average Joe’s) out of the market before heading higher, and now it looks as though we are headed into a complex 5 wave correction which should be enough to shake out the majority again.

It’s important to note that the longer a trend lasts the larger the corrections/shake outs must be in order to get everyone out. From what I am reading and seeing everywhere online are doom and gloom scenarios. In my opinion this is good. One more leg down should be enough to shake everyone before we see a nice 10-20% rally. Once we see that bounce/rally then we can reanalyze the market to see if we are headed back up to test the 2010 highs or if its just a bear market rally. In the end it does not matter as we play both the long and short side of the market.


Gold ETF continues to unfold as planned. We caught a good chunk of the recent rally and are now in cash waiting for another low risk entry point in the coming days or weeks.


Crude oil Fund (USO) has been struggling to stay up the past 2 months. As you can see the chart below it’s trading at a key resistance level and at this point it could go either way… I don’t like to get involved in trades when they look to be a 50/50 probability of going each direction. If anything I would think oil will head back down as the US dollar continues its strong rally.


Mid-Week ETF Trading Conclusion
In short, the broad market is in a down trend and selling volume continues to rise. Investors around the world continue to accumulate gold and the US dollar as they seem to be the safe havens for the time being. Oil is also in a down trend and trading at resistance which means we should see lower prices for oil and oil companies and this will weigh heavily on the equities market.

Cash is king and during times of uncertainty that’s for sure… It is very comforting to know we are in cash most of the time and only get involved with the market when there is a low risk, high probability setup on the charts.

If you would like to get Chris Vermeulen's trading analysis and trading alerts check out The Gold And Oil Guy .Com



Share

Monday, June 7, 2010

New Training Video: Stock Market "Profit Pockets"

Did you know that on any given stock chart, there are very specific & precise low risk, high probability entry points that can lead to some potentially deep "profit pockets"?

* 4 of them were recently discovered by a 35+ year market veteran...

....and he's recording some brand new training videos that show you what they look like, how they work together, and how you can spot them on your own. The first training video is done, just click here to see his new training website.

Pay close attention to the chart that's displayed early on in the training video that outlines these 4 "profit pockets", which are identified by these custom methods designed to "pinpoint" each one:

* The Profit Pipeline Method...

* The Trend Validator Method...

* The Velocity Method...

* The Countertrend Cash Method...

I'm really excited about these 4 additional ways to pull more profit potential out of almost ANY stock chart, because they can complement any existing method you're currently using...

And that just gives you even MORE of an edge over those traders who DON'T know about these techniques.

These training videos likely will NOT be online for long, so make sure you watch & take notes here:

Good Trading,
Ray C. Parrish
President/CEO The Stock Market Club

P.S. Whenever this 35+ year market veteran releases complimentary training videos, I PAY ATTENTION because the "on the house" information he just "gives away" is often worth more than many training courses you'd have to pay for. So, don't take
this training lightly and pay close attention to what he teaches. Your portfolio will thank you for it later.

Watch New Training Video: Stock Market "Profit Pockets"


Share

Safe Havens are Shining but are Equities about to Rocket Higher?

It was another extremely volatile week sharp rallies followed by sharp sell offs. Fear is in no doubt controlling the market. The bulls and bears continue to battle it out. The charts below cover some important trends and market internals I pay attention to on a daily basis.

US Dollar Index – Daily Chart
The past two months the dollar as been in rally mode. The last 14 days we have seen a large bullish pennant form and this pattern typically marks the half way point for the current tend. The measured move for the USD is pointing to 93 over the next few months.


Gold Futures Prices – Daily Chart
Gold as we all know is seen as the major safe haven and the price per ounce has been steadily climbing. Friday we saw the major indexes sell down very hard but both the dollar and gold posted some solid gains. Gold does looks as though it needs some time to digest the recent move higher and this could take a week or two before anything exciting happens but I am on the lookout for low risk setups.


VIX – Volatility Index – 60 Minute Chart
This index measures the fear in the market. When fear is high and everyone is selling their positions we see the VIX jump in price. Over the past month we can see a possible Head & Shoulders pattern forming. If this pattern unfolds like it should then we will see the price of equities bottom in the coming week with the VIX dropping below the blue neckline. The old saying is “When the VIX is High is time to Buy, when the VIX is low its time to Go”.


Put Call Ration – 60 Minute Chart
In short, when the put/call ration is over 1.00 then there are more traders/investors buying Put Options than Call Options. Put options are when people are buying leverage to take advantage of lower prices. My thought/opinion about this is when more people are trading with leverage anticipating lower prices, I figure they have sold all their long positions and are now using leverage to profit from lower prices. Well if the majority of individuals have sold everything then in reality there should not be much left to be sold… So I feel this correction which started in April is almost finished.


NYSE Advance/Decline Line – 60 Minute Chart
This is one of my favorite charts to look at. While there are several indicators, market internals and technical analysis needed to clearly determine if the market is currently overbought or oversold, this chart is one that can help give you a good idea if you should be looking to buy, short or just stay in cash for the time being.


SP500 Futures Prices - 2 Hour Chart
The SP500 has been up and down like a yo-yo with some very dramatic moves. Up 2+% day down 2+% the next… very sharp and powerful moves can be both every profitable or costly if not traded correctly. Last week we caught a nice 2% gain in less than 24 hours which was an exciting trade. It looked at though the market was about to breakout to the upside and possibly reach the 1150 level but early Friday morning there were rumors about some Euro bank having serious problems and that was just enough to cause a domino effect sending the market lower throughout the entire session closing on a very strong negative note for the day/week.

That being said the market internals are indicating that equities are oversold at these current prices and a bounce is due any time. With the panic selling on the NYSE Friday reaching 119 sell orders for every 1 buy order I think we will see some follow through next week with lower prices, then a rebound once investors finish selling everything they own at which point we will be looking to get involved again.


Weekly Trading Conclusion:
In short, money continues to flow into the safe havens (Gold & US Dollar). The major indices are showing extreme panic selling and look ready to in the next few days. There is a possibility that the market could break down and start another major leg lower which is a big concern to me. I will be glued to the market internals and support levels for the major commodities and equity sectors in hopes to catch the bottom or to avoid another melt down.

Just click here if you would like to receive Chris Vermeulen's "Daily Pre-Market Videos and Trading Alerts"


Share

Thursday, June 3, 2010

Top Trader Exposes Penny Stock Frauds

This article will make a lot of people nervous. Very nervous.

Why? Because it’s about a trading breakthrough available to only a small number of people that has the potential to make the recent run up in the stock market look like chicken feed.

But it’s also going to calm the nerves of every investor troubled by recent market upheavals and volatility....the kind of nerves that normally grip your gut in ice cold fear when there’s money at stake.

Here's what's at stake: a limited number of people are going to get an opportunity at this all new approach to trading that's generating returns 141% and more per year! And if that's not exciting enough, these lucky few will get personal access to a trader ranked #1 out of 45,000 by Covester.com.

Just click here to find out how to Use The Fraudsters Tricks Against Them....For HUGE Profits!




Share