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July 12, 2016 | Stock Market, Leading Sectors, and The Price of Coffee

Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic

It was a relatively dull session yesterday (Monday July 11th) with stocks gapping higher only to trade sideways up till now. As I talked about in the morning’s video I expected stocks to grind higher, and for vix ETF to keep moving lower for another day or three.

Coffee continues to be on caffeine-high today testing near today’s high, which looks as though it will continue to run higher in the coming days.

coffee-trent

Precious metals continue to hold up but I don’t expect them to go much higher until equities reverse down in the next week or so.

A couple leading sectors have been underperforming (transports, and financials). The stock market needs the financials to take part in this rally to new highs for the SP500 if the market is to have any real power behind it. The fact that both these key sectors are underperforming tell me there is not a ton of power behind this move to new highs for large cap stocks.

xfiyt

 

Also, a few months back I shared some bonus spike trade alerts with everyone.  Many of you loved these momentum trades every week as I do also. If you are interested in these spike alerts, see yesterday’s blog post for details – Exciting Stuff!

Talk soon,

Chris Vermeulen

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July 12th, 2016

Posted In: Gold and Oil Guy

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