{"id":157096,"date":"2019-10-08T07:45:05","date_gmt":"2019-10-08T11:45:05","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=157096"},"modified":"2019-10-08T07:10:23","modified_gmt":"2019-10-08T11:10:23","slug":"us-stock-markets-trade-sideways-waiting-on-news-guidance","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/us-stock-markets-trade-sideways-waiting-on-news-guidance\/","title":{"rendered":"US Stock Markets Trade Sideways \u2013 Waiting on News\/Guidance."},"content":{"rendered":"
October 8, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Our researchers believe the global concerns centered around Banking and Debt within the Emerging Markets and Asia\/Europe are very likely to become major issues over the next 3+ months.\u00a0 These potentially dangerous issues could have far-reaching pricing ramifications for almost all of the world\u2019s financial markets.\u00a0 This weekend, we received first-hand information from an associate in Hong Kong about banks limiting ATM withdrawals and very limited transportation services.\u00a0 Our source stated the biggest issue was the lack of transportation right now.<\/p>\n

We also followed the news of the Bank collapse in India this weekend and the aftermath for Indian banking customers \u2013 PMC Bank<\/a><\/p>\n

Many of you remember how the US credit crisis event started in a similar manner.\u00a0 First, it is news of a few select financial institutions or lenders that are in trouble.\u00a0 This sends a shock-wave throughout the populous \u2013 they react by becoming more \u201cprotectionist\u201d in their actions.\u00a0 Sometimes, small bank runs can happen as consumers want to have more cash on hand instead of \u201cin the bank\u201d.\u00a0 Next, the local economic metrics start to fall \u2013 almost like a self-fulfilling nightmare, the consumers, acting to protect their interests and assets, are now pushing the local economy over the edge and the banks, possibly, over the breaking point in terms of Non-Performing Loans.<\/p>\n

This time, as we have detailed in our previous research posts, we believe the crux of the credit problems is related to how emerging markets and foreign markets took advantage of the cheap US dollar between 2011 and 2015.\u00a0 At that time, it was cheaper for banks to borrow the US Dollar than it was for them to borrow money from their own local central banks.\u00a0 Thus, many went out seeking to borrow as much US Dollar as they could because it provided an opportunity to save on interest fees.\u00a0 Now, as the global economy continues to contract in a \u201cstagflation\u201d type of manner, it becomes even harder for many of these firms, banks, and individuals to service their debt.<\/p>\n

We believe the global markets and the US stock market are waiting for news before initiating any new price trends.\u00a0 We believe the recent US manufacturing number is indicative of the type of economic output values we can expect over the next 30+ days.\u00a0 Unless the US Christmas season starts off with a big spending spree or the US\/China trade issue is resolved and settled within 30+ days, we believe the markets will continue to search for and identify \u201ctrue price value\u201d by seeking out true support before attempting to move higher again.<\/p>

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Our\u00a0morning coffee video analysis recap<\/strong><\/a>\u00a0is the one thing\u2026 that single investment that\u2019s going to turn into the greatest thing you\u2019ve\u00a0ever\u00a0made for your trading and\u00a0investment accounts.<\/p>\n

S&P 500 Daily Chart<\/h3>\n

This ES Daily chart highlights the recent resistance, triple-top formation, near 3025.\u00a0 It is clearly obvious that this 3025 level is a very strong price resistance level.\u00a0 Below this ceiling, we have multiple support levels to watch.\u00a0 2875 is highlighted in MAGENTA and is one that we believe is the most critical right now.\u00a0 Below that, the Moving Average level, currently at 2845, could also provide some support.\u00a0 Below these two, we suspect the 2700 level is the only level of support left before we could experience a much bigger price breakdown.<\/p>\n

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Dow Jones Daily Chart<\/h3>\n

This YM Daily chart sets up a similar type of price pattern.\u00a0 In fact, they are almost identical.\u00a0 Again, the current downside price rotation has already established new recent price lows.\u00a0 The RED resistance channel we drew across the tops should provide some real level of a price ceiling within this trend.\u00a0 Our concern is that price will attempt a further breakdown without any positive news to extend a positive perspective for the US markets future.\u00a0 There is just too much uncertainty in the world for investors to have the confidence to push prices higher.\u00a0 The most logical transition would be for price to \u201creset\u201d by rotating lower, finding true price value levels and establishing a new price bottom to begin a new rally from.<\/p>\n

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Dow Jones 2-Week Chart<\/h3>\n

This 2-Weekly YM Chart highlights exactly why we believe skilled technical traders need to be cautious right now and why having a very skilled team of researchers is important.\u00a0 This is not the time to go ALL-IN on any trades.\u00a0 This is not the time to roll your retirement account into HIGH-RISK funds.\u00a0 We suggest being very cautious at the moment and to prepare for any downside rotation by scaling back your trading account to 70 to 80% CASH.\u00a0 Deploying only about 20 to 25% into the markets right now.<\/p>\n

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Concluding Thoughts:<\/h3>\n

It is funny how real traders understand the value of having a skilled team of dedicated technical and fundamental researchers assisting them at times like this.\u00a0 While other people freak out and turn into \u201csuper protectionist traders\u201d.\u00a0 The reality of these types of markets is that they are the best markets for traders.\u00a0 Price swings are larger, opportunities are setting up nearly everywhere and skilled traders can attempt to make 45%, 65%, 85% or more within a very short time-frame.\u00a0 Not like the regular market moves of 3~5% annually in the SPY.\u00a0 This is the time when you want to become more attentive and active in the markets \u2013 with the right team.<\/p>\n

Opportunities are setting up EVERYWHERE and will continue to present very clear trade setups over the next 16+ months.<\/p>\n

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.<\/p>\n

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.<\/p>\n

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. My simple technical trading strategy using ETFs will allow you to follow the markets closely and trade with it so you never get caught on the wrong\u00a0side\u00a0of the market with big losses.<\/p>\n

Chris Vermeulen
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/a><\/p>\n

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NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.\u00a0 Visit our web site to learn how to take advantage of our members-only research and trading signals.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Our researchers believe the global concerns centered around Banking and Debt within the Emerging Markets and Asia\/Europe are very likely to become major issues over the next 3+ months.\u00a0 These potentially dangerous issues could have far-reaching pricing ramifications for almost all of the world\u2019s financial markets.\u00a0 This weekend, we received first-hand information from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-157096","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=157096"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157096\/revisions"}],"predecessor-version":[{"id":157100,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157096\/revisions\/157100"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=157096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=157096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=157096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}