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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals

Stock-Markets / Stock Markets 2019 Jul 18, 2019 - 02:55 PM GMT

By: Chris_Vermeulen

Stock-Markets

Our researchers identified this critical Double-Top pattern in the Transportation Index after a very strong price rally on Friday, July 12.  Double-Top patterns are very important in terms of Fibonacci price structure because they reflect a complete price rejection at a certain price level.  In this case, the TRAN Double Top level is $10,655 and our research team believes weakness at this level will push a downward price swing which should attempt to break through the $10,250 level and possibly attempt to move much lower.

The Transportation Index reflects future expectations for shipping of goods and raw materials across the US and, of course, is somewhat related to global economic activity.  If the Transportation Index falls in price, then future expectations are for weaker economic activity.  If it rises, then investors expect the economy to continue to strengthen.


This Double-Top formation in the TRAN could set up to become a very ominous warning sign for traders and investors.

Recent news about the contraction of China’s economy and the fact that Q2 earnings are about to hit the US markets and global markets could become a key factor in the future for volatility and price.  We believe the markets are already setting up a topping pattern after breaching key psychological levels last week.

MINERS ARE OUTPERFORMING US EQUITIES – TOP IS NEAR!

Last month I talked about how I have been waiting for gold miners to start outperforming the US stocks market. Once miners start outperforming in a big way (just like we saw in 2007), we know the stock market is topping out and something really bad is about to happen.

In the last couple of weeks, the gold miners index is up over 20% while the SP500 is up only 4%, this feels like the start-of-the-end if you know what I mean.

Gold miners and silver broke out today in a big way which could very well be the start of an epic rally for the precious metals sector as we heading into the end of the year.

Looks at the SP500 index in the chart below which is of the 2007 bull market top. Currently, the SP500 has formed a very similar pattern in 2019 and with the precious metals rocketing higher I think it almost lights out for the US equities.

See my updated chart showing where gold miners and the stock market is today within this cycle:  https://www.thetechnicaltraders.com/next-bull-and-bear-markets-are-now-set-up/

TRANSPORTS, INDUSTRIALS, and SMALL-CAP STOCKS Confirm Market Is Topping

Based on the 2008 weekly chart below the US stock market could be literally 2-6 weeks away from collapsing. What makes this even scarier is that the market liquidity is the worst its been in my 23 years of trading. This means when the selling starts we will likely see some sort of flash crash as we saw in 2008, 2015, and 2018. Price drops so quickly that by the time you figure out what you want to do and get your money properly positioned most of the move is already finished. See 2008 and 2019 Comparison Charts here.

CONCLUDING THOUGHTS: 

Pay attention to our research because we feel the market could breakdown on weakness later this week or early next week.  Our predictive modeling systems are suggesting an August 19th, 2019 breakdown date and we are only about 25 trading days away from that date.

In short, the bear market has been a long time coming, but finally, almost all the signs are showing that it’s about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Stay Tuned for My Cycle Analysis Article Next! 

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.  You won’t want to miss this big move, folks.  As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it. 

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped To You Free. 

I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime 

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly. 

I’M GIVING AWAY – FREE GOLD & SILVER WITH MEMBERSHIPS 

So kill two birds with one stone and subscribe for two years to get your  FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis! 

Chris Vermeulen – www.TheTechnicalTraders.com 

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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