Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
Where’s my self-driving car? - 16th Aug 22
Real Reason why Pakistan and India Gained Independence in 1947 at 75th Anniversary - 16th Aug 22
Electronic Payments Can Benefit Your Business - Here’s How - 16th Aug 22
Qualcom Stock Market Harbinger - 12th Aug 22
Apple Exec Gets World's 1st iPhone 14 for Daughters 14th Birthday Surprise Present Unboxing! - 12th Aug 22
Steps to remember while playing live roulette online - 12th Aug 22
China Bank Run Protests - Another Potential Tiananmen Square Massacre? - 11th Aug 22
Silver Coin Premiums – Another Collapse? - 11th Aug 22
Gold-to-Silver Ratio Heading Lower – Setup Like 1989-03 - 11th Aug 22
Severe Stocks Bear Market: Will You Be Among the Prepared 1.5%? - 11th Aug 22
There's a Hole in My Bucket Dear Liza, UK Summer Heatwave Plants Watering Problem Song - 11th Aug 22
Why PEAK INFLATION is a RED HERRING! Prepare for a Decade Long Cost of Living Crisis - 9th Aug 22
FREETRADE Want to LEND My Shares to Short Sellers! - 8th Aug 22
Stock Market Unclosed Gap - 8th Aug 22
The End Game for Silver Shenanigans... - 8th Aug 22er
WARNING Corsair MP600 NVME2 M2 SSD Are Prone to Failure Can Prevent Systems From Booting - 8th Aug 22
Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions - 6th Aug 22
COST OF LIVING CRISIS NIGHTMARE - Expect High INFLATION for whole of this DECADE! - 6th Aug 22
WHY PEAK INFLATION RED HERRING - 5th Aug 22
Recession Is Good for Gold, but a Crisis Would Be Even Better - 5th Aug 22
Stock Market Rallying On Slowly Thinning Air - 5th Aug 22
SILVER’S BAD BREAK - 5th Aug 22
Stock Market Trend Pattren 2022 Forecast Current State - 4th Aug 22
Should We Be Prepared For An Aggressive U.S. Fed In The Future? - 4th Aug 22
Will the S&P 500 Stock Market Index Go the Way of Meme Stocks? - 4th Aug 22
Stock Market Another Upswing Attempt - 4th Aug 22
What is our Real Economic and Financial Prognosis? - 4th Aug 22
The REAL Stocks Bear Market of 2022 - 3rd Aug 22
The ‘Wishful Thinking’ Fed Is Anything But ‘Neutral’ - 3rd Aug 22
Don’t Be Misled by Gold’s Recent Upswing - 3rd Aug 22
Aluminum, Copper, Zinc: The 3 Horsemen of the Upcoming "Econocalypse" - 31st July 22
Gold Stocks’ Rally Autumn 2022 - 31st July 22
US Fed Is Battling Excess Global Capital – Which Is Creating Inflation - 31st July 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market VIX Spike Prediction Revisited

Stock-Markets / Stock Market 2017 Jun 30, 2017 - 01:09 PM GMT

By: Chris_Vermeulen

Stock-Markets

Nearly 2 weeks ago, we issued a research/analysis report indicating our analysts had seen a VIX pattern that forecasted a VIX spike on June 29th of this month to coincide with a potential explosive move in the markets.  Today (June 29th) the vix spiked over 45% exactly as we has predicted, so we thought we would revisit this analysis and update our valued followers.

Recently, as many of you already know by being ATP members, the US and global markets have rotated on a number of news items and concerns.  First, the IMF revised US economic expectations to address slower than expected economic activity.  Next, NASDAQ technology stocks have recently been very volatile in relative terms and have driven some very big moves.  Additionally, just last weekend two banks in Italy have been closed as a result of failed ability to raise capital levels to support activities/risk.  Lastly, the BITCOIN drama seems to be continuing with this recent ransom-ware outbreak originating from within Ukraine.  All this uncertainty and risk is a bit concerning for the markets in terms of volatility.


Today, the US markets recovered well, but we are still watching these price levels closely for further signs of weakness.  Our interest in terms of revising our VIX spike projection is as it relates to the metals markets, so lets get started.

The recent rotation in the US majors is setting up a consolidation period that may be similar to past price moves.  This weekly NQ chart illustrates the previous 4 years of price action and clearly shows levels of consolidation prior to upward price expansion.  Notice the two most recent examples, October through December 2016 and April through July 2016.  Volatility throughout these periods spiked as the markets rotated magnitudes away from Standard Deviation ranges – yet, the markets resumed the upward price moves after a period of time.  We believe this is a function of capital searching for price validation.

Also, notice the cycle indicators near the bottom of the chart.  This recent rotation is not really evident in the cycle rotation analysis.  Although the cycle indicator is showing us extended upward cycle expansion, we believe this rally still has room to run.

This 60 minute NQ chart more clearly illustrates the recent “washout low” price rotation and defines support near 5650.  We can see the price move after the US Fed increased rates (near June 11th) as well as the rotation in price thereafter.  We can also see the near perfect “Triple Bottom” formation that coincides with major cycle rotations.

Our analysis suggests this type of price rotation and congestion may continue for another few weeks as we were expecting this weeks VIX Spike and we took advantage of it with our automated vix trading system today which hit a new high watermark for the portfolio today, and more VIX spikes may follow yet.  Because of this expectation, we also believe the metals markets will attempt to find lower lows over the next few days/weeks as volatility increases and the VIX rallies above $14~15.

Our analysis of the metals markets indicates we may be setting up for an explosive upside price move – but not before we retest some recent lows.  Based on this analysis, we believe the Gold may fall to near $1200 as the US majors resume some attempt at recent highs before the VIX spike explodes – resulting in the beginning of a massive move in the metals and likely many global markets.

The VIX is setting up for what we believe will be a spike higher that may break recent highs (well above $16).  Our VIX analysis tells us that between now and July 7th, we should see the beginning of a VIX spike that could be 2x or 3x larger than the most recent price spikes. As this relates to the US majors, metals and global markets, this could be a massive disruption/trend.  We believe our analysis of the VIX price cycles are accurate and we have positioned our ActiveTradingPartners.com members appropriately to take advantage of these moves.

We will likely revisit this analysis near the middle of July to follow-up with our research and to better inform our members with regards to future price action and opportunities.  If you find this type of analysis helpful and insightful, then visit ActiveTradingPartners.com to learn more about our research team and opportunities.  Our most recent trades illustrate our dedication to delivering success to our members and providing the best research we are capable of.  Join ATP today to take full advantage of our success.

Chris Vermeulen
www.TheGoldAndOilGuy.com – Daily Market Forecast Video & ETFs
www.ActiveTradingPartners.com – Stock & 3x ETFs

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 7 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

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

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in