Chris Vermeulen - The Technical Traders – Wed 2 May, 2018

The Markets Most Impacted By A Rising USD

With the USD on an uptrend for at least the short term we need to consider what markets will be impacted the most. Sometimes the USD has a strong inverse correlation to certain commodities and other times it doesn’t seem to matter. Chris Vermeulen, from The Technical Traders website joins me to shares his thoughts on the markets that will be impacted the most by the USD if it continues to rise.

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Chris VermeulenCory Fleck
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  1. On May 2, 2018 at 7:28 am,
    Tom says:

    long AQMS

  2. On May 2, 2018 at 9:00 am,
    Matthew says:

    The dollar (UUP) is overbought but the weekly chart shows the potential for more upside.

  3. On May 2, 2018 at 9:04 am,
    Matthew says:

    I’ve been adding significantly to my JAG position over the last few weeks and it now looks ready to move up…

    • On May 2, 2018 at 9:04 am,
      Matthew says:
    • On May 2, 2018 at 9:06 am,
      Matthew says:
    • On May 2, 2018 at 9:11 am,
      Matthew says:
    • On May 2, 2018 at 10:52 am,
      OOTB Jerry says:

      Thanks for the chart and comments………

    • On May 2, 2018 at 11:16 am,
      Excelsior says:

      I’m ready for JAG to get on its bike and ride..

      • On May 2, 2018 at 11:18 am,
        Matthew says:

        Well it is about to!

      • On May 2, 2018 at 11:26 am,
        Matthew says:
        • On May 2, 2018 at 5:24 pm,
          Excelsior says:

          I liked the series of higher highs and higher lows that it was putting, but it has stalled out the last 2 months which gave me a little cause for concern.

          Regardless, I’m holding onto a core position in JAG and will add if it pulls back down.

  4. On May 2, 2018 at 9:20 am,
    Matthew says:

    Imminent important breakout for NGD:

    • On May 2, 2018 at 10:56 am,
      Silverdollar says:

      I believe this is one of Morris’ trading issues. Looks good.

  5. On May 2, 2018 at 11:19 am,
    Matthew says:

    Silver looks good today but needs the silver miners to confirm the action…

    • On May 2, 2018 at 12:59 pm,
      Charles says:

      Hi Matthew,

      I have a position in ISVLF and wanted to pick up more shares on this downswing. I was thinking around $0.30 might be a good place for a limit order, but wanted to get your input on how low you think it might go given your significant trading experience with the issue.


      • On May 2, 2018 at 2:01 pm,
        Matthew says:

        Hi Charles, the stock has been pretty well supported in the low thirties lately and the chart action makes me think we might have already seen the low (yesterday at .3242 just below the 600 EMA on the 2 hour chart).

        It doesn’t help your plan that silver and the miners performed so much better than gold today but I think both will pull back at least briefly before going higher.

        Since ISVLF is even less liquid than the venture exchange listing (IPT) and has already given back about half of its gain since the December low, I, personally, would buy any weakness from here and not worry about catching the exact low. Of course, I am very bullish the sector longer term and even more bullish ISVLF. In addition (and for what it’s worth), I won’t be dumping my shares if silver does manage to break down sharply. In other words, you should play these things with your own risk tolerance in mind.

        At least short term, the .32 area might be the best you can hope for (I don’t currently think the lower daily chart Bollinger band will be broken):

        • On May 2, 2018 at 3:17 pm,
          spanky says:

          A solid close below the 50 week EMA would be a terrible sign.

          • On May 2, 2018 at 3:27 pm,
            Matthew says:

            It’s a weekly close below it that we don’t want but there’s more to it than that. For example, what’s the MACD doing?

            Here are a bunch of Fibonnacci EMAs:

          • On May 2, 2018 at 5:07 pm,
            Charles says:

            Thanks Matthew. Looking at your charts I think I will revise my bid. I already have a nice position so if I don’t get filled I’ll move on to something else.

          • On May 2, 2018 at 8:27 pm,
            Matthew says:

            That’s a good idea; there are plenty of good companies to choose from. I’ve been accumulating Brixton Metals lately for its exploration potential. It gained 2,300% in 2016 but has now dropped more than 80% from its 2016 high. With a market cap of C$14M, C$4.5M in cash and no debt, it’s pretty appealing to me right now.

            It is technically appealing as well and looks like a small double bottom is in the works:

          • On May 2, 2018 at 8:29 pm,
            Matthew says:

            Assuming silver doesn’t completely fall apart, the weekly chart also suggests only limited downside risk:

          • On May 2, 2018 at 8:30 pm,
            Matthew says:
          • On May 2, 2018 at 8:31 pm,
            Matthew says:

            BXTMF in the U.S.

  6. On May 2, 2018 at 12:40 pm,
    spanky says:

    big ole pump n dump today. Typical Fed action. Going to be interesting to see what gold and silver do between now and the mid June FOMC meeting.

    Sideways to down for the next 2 weeks is my guess. I would love to be wrong.

  7. On May 2, 2018 at 12:44 pm,
    spanky says:

    The smaller cap silver stocks knew what was up today. They are either going to make an immediate run for their lower bollinger band or hover around the 20 DMA for a week or two as the BBs tighten up.

  8. On May 2, 2018 at 12:50 pm,
    spanky says:

    Just look at the Dow for cues as to how the miners will act. The beats are exactly the same.

    I do expect the Dow to form a significant low soon, likely at the 50 WMA, but that could be a week or two out yet. Also look for the MACD on the weekly to hit neutral. When the Dow turns, the miners will turn, and not a week before IMO.

    • On May 3, 2018 at 6:47 am,
      Matthew says:

      I don’t see a significant low soon. Stocks are in a bear market and the low for the year looks to be many weeks away.

    • On May 3, 2018 at 6:50 am,
      Matthew says:

      Also, the Dow has been down the last three days while the miners have been up…

  9. On May 2, 2018 at 1:10 pm,
    spanky says:

    That is one ugly shooting star today in the GDX. We are going to close lower tomorrow in all likelihood–that will clean up the chart a bit. the next big day will be Friday’s employment report.

    Hard to see gold making much headway between now and the June FOMC. I’m guessing where ever we make a near term low in the next few days (if not yesterdays low) we will make a lower low in June.

  10. On May 2, 2018 at 1:19 pm,
    spanky says:

    FWIW, today’s $gold daily chart is showing $gold printing a textbook inverted hammer. I would wager a buck that yesterday at least marked the daily cycle low and we should at least get above $1317 in the next few days before gold rolls over again. It’s anyone’s guess how soon it rolls over.

  11. On May 2, 2018 at 1:56 pm,
    Jason says:

    2 year bills hitting 2.5%. 5 year bills hitting 2.8%. Sure beats a CD and they are backed by the full faith and power of the US military… 🙂

  12. On May 3, 2018 at 5:18 am,
    Excelsior says:

    The new $URA is wacko, and they’ve reduced down many of the better #Uranium #Producers and #Developers to replace them with Gold & Lithium companies under the guise of “Nuclear Components”. Adding in Barrick Gold, Sibanye Gold, Altura Mining, Power Metals corp to reduce Energy Fuels, Ur-Energy, UEC, Denison, Peninsula, Berkeley, UEX etc… is ridiculous.

    Even though Rio and BHP have large Uranium mining operations, that isn’t how they are typically valued and they are really commodity juggernauts. I’ve never liked the weighting in $URA where they have earlier stage companies with far higher weightings than the advanced developers or producers. #BuildYourOwnETF