VIX Volatility Warns Of Imminent Stock Market Correction

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX.  These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance.  This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. (read more here)

ZWH20 Wheat March 2020

D6Z19 Canadian Dollar December 2019

The Next Energy, Gold, and Stock Index Trade Setups

 Chris Vermeulen, Founder of The Technical Traders joins me to discuss the shift over the past few months away from the safe-haven assets and into the more risk on equity markets. He points to the record outflows in some of the gold ETFs as a sign that the selling could finally be getting exhausted. We wrap the interview with a comment on the oil price.
(read more here)

Oil Set To Collapse to $40 - Part I & II

Currently, commodity prices are the cheapest they’ve been in over 40 years compared to equity prices.  US Equities have continued to rise over the past 7+ years due to a number of external processes.  QE1, 2, 3, and Fed Debt Purchases Share Buy-Backs and creative credit facilities.  Only recently have investors really started to pile into the US stock market (see charts below). Global investors were very cautious throughout the rally from 2011 to 2016.  In fact, the amount of capital invested within the US money market accounts was relatively flat throughout that entire time.

It was only after the 2016 US presidential election that investors really began to have confidence in the global economy and started piling into the US stock market and money market accounts.  This was also after the time that Oil began to collapse (2014~16) as well as the deflation of Emerging Markets rallies.  With all this new money having entered the global markets and equities being extremely overbought currently, what would happen is Oil collapsed below $40 and the global economic outlook soured headed into the 2020 US presidential election? (read more here) 

Read Part II here

 

How to Trade Gold, Oil and Bonds with Cycles

We have been using cycles since 2011 and have developed multiple proprietary price modeling tools over the past 5+ years that assist us in finding and timing great trades.  Most of what we have learned over the past 8+ years is refined into “experience and skill”.  When you follow the markets every day – every hour, for the past 8+ years and see various types of price and technical indicator setups and reactions, you learn to hone into certain setups that have proven to be highly accurate trading triggers.

Our research team had dedicated thousands of hours to develop the tremendous skills and experience to be able to produce accurate cycles, and to also interpret them, which is what we specialize in doing. Determining which cycles to trade may look simple, yet they are far from easy to trade without the setups and price rotation signals. (read more here)

TMF 20+ Year Trsy Bull 3X Direxion