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.

The Gold ETF is trading the way we thought it would.  We were able to cash in on the recent upswing in prce and are now waiting to buy it again when the price is more favorable.  

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 would perfer that you don’t get into coin flip trades, and would perfer 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. 

Mid-Week ETF Trading Conclusion:

Briefly, the wide market’s in a downturn whilst selling volume keeps rising.  All over the globe, investors keep accumulating and the United States dollar as they continue to be the safety net for right now.  In addition, oil’s in a downturn and trading at a resistance, meaning we must observe lower prices for oil and oil businesses and this will have a hefty weight on the equities market.

When there are economic bad times, having cash is very important.  It brings peace of mind to have cash in hand with the option of trading in the market when you have low risk, high probability trades as demonstrated 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