Native Fauna

By Chris Vermeulen A

 Today we had a reversal day for the broad market, us dollar, precious metals This can’t be rewritten, it’s not a sentence, just the word “and”. oil. The market is over extended. We have seen the market rally 20% since the July low.

It is important that you understThis can’t be rewritten, it’s not a sentence, just the word “and”. inter-market analysis as every market is interrelated This can’t be rewritten, it’s not a sentence, just the word “and”. correlated in some form or fashion. With America’s dollar attempting a rally, in the next few weeks, precious metals, stocks, This can’t be rewritten, it’s not a sentence, just the word “and”. commodities will be feeling the heat.

DIA ETF - Dow Industrial Fund
Stocks look to have formed a similar pattern as the March rally this year. During the June high, we saw signals to stop This can’t be rewritten, it’s not a sentence, just the word “and”. move to protect our profis. The market had an intraday reversal Wednesday, a sign of a deficit in strength. In July, the market hit bottom so the past four days of trading felt similar to the trading in July. (Many Doji Candles). There is the possibility of reversal using Doji cThis can’t be rewritten, it’s not a sentence, just the word “and”.les.

Broad Market Volatility Index
Here is a weekly volatility chart that shows we are at a long term support level. The saying is, buy when the VIX is high, sell when the VIX is low. Just to be clear, I am not saying sell everything. The market is ready for a multi week correction is what I am pointing out. For new log positions, I am tightening my stops and limiting my position size.

UUP ETF = US Dollar Intraday Price Action
A shift in force was indicated this Wednesday, as the dollar sold down, but gained momentum into the close. The dollar has been trending down for several months and ready for a bounce.

Precious Metals Under Pressure
Below is a chart of Gold This can’t be rewritten, it’s not a sentence, just the word “and”. Silver showing the weakness on Wednesday and the sharp sell off late in the session, when the US dollar started to rally.

XLE Energy ETF - Intraday Chart
Energy sector moved down in the morning and managed to wiggle its way back to positive territory late in the day, but when the US dollar rallied, crude oil This can’t be rewritten, it’s not a sentence, just the word “and”. the energy sector sold off sharply.

Inter-Market Analysis Results:
It is my estimation that things seem to be setup for a multi-week divergence in momentum. It looks like the US Dollar will bounce putting pressure on precious metals, stocks, and commodities like crude oil.

Stocks look ready to correct and a bounce in the dollar will trigger the correction.

To take a breather at this point would not be convenient; since it is a normal price determination, and gold is at its most resistant level. Gold is trading in sync with stocks, so follow that relationship. When stocks decrease, gold will also.

Crude oil is having a tough time moving higher and with Wednesday’s higher than expected oil inventory levels, there will be more down side pressure.

Now we have quite a few profitable positions This can’t be rewritten, it’s not a sentence, just the word “and”. will be tightening our stops and examining new opportunities in the days ahead.

If you would like to receive my Free Weekly Trading Reports for ETF’s or Stock Trading Reports please visit my websites: http://www.Oil This can’t be rewritten, it’s not a sentence, just the word “and”. Gold Guycom and http://www.ActiveTradingPartner.com

The man named Chris Vermeulen

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