Sell Off Coming!

By: Chris Vermeulen | Tue, Jun 14, 2016
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This "distortion" between "risk" and "return" has created a "bubble" effect in all global equity classes. I informed my subscribers to exit the SPX on November 25th, 2014 and to enter cash. Their equity risk exposure was reduced to zero. Momentum oscillators are now extremely overbought and are very clearly trending bearish. I wait for confirmation before entering any new long SDS and long VXX positions.

This week (Tuesday) there is another FOMC meeting. The news of this monetary policy will be released on Wednesday, June 16th, 2016. Expect choppier price going into the meeting and shortly thereafter.


The Only Chart You Need to Read!

S&P500 Bullish Percent Index Daily Chart


The U.S. markets failed to break out!

S&P500 Daily Chart


Daily Chart Of Bonds

The bond rally set a record high in the rush to a new "safe haven". We are now experiencing a global rally in government bonds which broke out last Friday, June 10th, 2016, while equities declined. We entered this new long term trade on for bonds.

TLT Daily Chart


Daily Chart Of Gold

Nothing will stop this new bull market in gold and silver. We entered this new long term trade on June 8th, 2016. Now there is a stampede into this much talked about "asset class". Just take a look as the chart of gold below

Gold Trust Daily Chart

In short, the major trends of all asset classes which have been in place for several years are coming to an end. The majority of investors have no idea what is starting to take place and will do what the masses do every time a new bear market takes place. They will hold their positions, watch the value of their nest egg get cut 30-60% in size, and then give up and exit equities near the bear market lows 6-18 months from now. It is unfortunate, but technically we need the masses to do what they always in order for things to unfold in a controlled fashion. In a recent post I showed where the financial markets and sectors are within this major economic cycle.

There are some new trades I will be taking very soon with my money and subscribers.

 


If you want to be in tune with the markets and profit during chaos, then you should think about joining my morning daily video newsletter and ETF trade alerts service: www.TheGoldAndOilGuy.com

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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