The S and P Five Hundred Daily Exchange Traded Fund chart displays my easy volume analysis throughout corrections of the market.  Throughout early trend stages, pullbacks are easy and fast.  Yet, as trends mature one begins to observe corrections getting a lot more complicated.  We first observed the easy one wave corrections last year, then we observed a much deeper three wave correction, and that was adequate for shaking the most average retail establishments out of the market prior to going higher, and currently it seems like we’re going into a complicated five wave correction that should be adequate for shaking the market once again.

It is vital to observe that the longer a trend lasts, the bigger the shakeouts and corrections have to be to get everybody out.  From what I’ve read and seen all over the web, the circumstances aren’t good.  I believe that this is great.  One more leg down should be adequate for shaking everybody prior to observing a decent ten to twenty percent rally.  As soon as we observe this bounce we may once again analyze the markets to find out if we’re headed back up to test this year’s highs, or if it is merely a rally for a bear market.  All in all, it doesn’t matter if we play the short and long sides of the market.

Over the course of the last two months the Crude oil Fund (USO) has been struggling to stay at it’s resistance level.  By looking at the chart below you can see that this fund could either go up or down depending on what happens next in the world.  I don’t want you to get into coin flip trades,  but rather something with more upside.  In the end I would bet that oil will continue to slide as the value of the dollar continues to increase. 

Cash is important, and throughout uncertain times, this is certain, it’s of much comfort to understand that the majority of the time, we’re in cash, and merely have market involvement when there’s not much of a risk, but a bigger chance on the charts.

If you would like to get my trading analysis and trading alerts check out my services at:www.FuturesTradingSignals.com and www.TheGoldAndOilGuy.com

Chris Vermeulen

I used a video this week because it saves time and lets me give you even more information. The film displays a small risk gold setup with a small risk S and P five hundred trading set up, and I believe you’ll see fresh things with it.

While investors panicked.we took a long position in gold. Low risk setups can be very beneficial if you use market internals, sentiment readings and technical analysis.

The diagram shown below illustrates gold from its bull market last year in 2009 all the way up to the current situation, which happens to be yielding considerable profit for all of us. I think gold will hit $1400 an ounce but believe there is limited time to cash in on the rally.See my video.

Low Risk Setups for Trading-S&P500 and Gold
View Video by clicking here: http://www.futurestradingsignals.com/trading-education/gold-and-es-futures-trading-video/

If you would like to get my Low Risk yet Powerful Trading Alerts be sure to checkout my services at www.TheTechnicalTraders.com