Perfect Storm for Swing Traders Is Happening Now

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I am looking for one more wave down and I require “reversal” confirmation before placing a short term long trade on the DIA, but I have to make sure that this wave of selling has lost its downward momentum.  We are entering a cycle low on Friday January 15, 2016, PLUS/MINUS +1 day.

Theoretically, it should cause a substantial rally/bounce, considering how oversold the market is. I would be surprised if this cycle passes without the Dow Jones capturing a nice 500 to 1,000 point upside move. I can see the Dow Jones going all the way to major resistance at 17,500 at best, but certainly NOT beyond this point. It will create a NEW LOWER HIGH which is ideal for the next major decline down breaking August 2015 lows.

dia

This is not” buying the dip” to purchase any new long term positions, but an opportunity to grab some easy money right now in early 2016.

Traders will refer to this as a “Relief Rally,” which will be fine for the average trader in which to comprehend this next move UP!

We could see a powerful rally here, regardless of what the mass traders are thinking and all of that “panic selling” we saw based on my proprietary panic selling indicator shown in the chart below.

dia-panic

I look for a break above $162.40 to confirm this next move up.

I need to confirm that the DIA’s made the low before setting it up as a new swing trade to the long side.

There is a major cycle low coming in on FEB 30, 2016 for CONFIRMATION that GOLD has bottomed. So I look towards this date as the low for gold as of now.

Of course, the equity markets must be under the AUG 2015 lows to completely confirm that the 5th WAVE DOWN on GOLD has been put in place!

To profit handsomely, this bounce up and then reverse back down may provide us with a perfect setup. A lot of money could be made in a very short period of time.

Follow My Analysis & Trades Free: www.GoldAndOilGuy.com

Chris Vermeulen

[Image Courtesy of Wikipedia]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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