Stock Market Topping, Silver Dropping

By: Brad Gudgeon | Sat, May 23, 2015
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Last time I wrote, I was looking for a top in the stock market early last week near 2130-35 SPX and a 5% drop in silver. We got a 4.5% drop in silver and the stock market topped on Wednesday. Tuesday, May 26, I'm looking for a big drop in silver, perhaps as much as 7.5% and a small drop in the stock market to perhaps 2109/10 SPX.

The 12.5/25 TD low is due Tuesday, so we may see strength from that date into June 1 and new highs in the stock market (near 2140?). From there, we may drop as much as 5% or so into around June 9/10. Mercury Retrograde's mid point is due around June 1 and markets that don't reverse when Mercury goes retrograde (like silver did) usually reverse around this time.

With Jupiter Trine Uranus on June 22, I would expect an 8 TD barn burner rally to new highs. This whole set up reminds me of Dec 5-16 last year and then Dec 16 to the 29th. Silver looks like it is entering another bearish mode and is likely to keep dropping into July 6th, based on Mercury Retrograde.

The charts below explain my thinking (I reserve the right to change my mind).

S&P500 Chart
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Silver Chart
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The point of market forecasting is to put out a roadmap of possibilities, not to necessarily be right all the time. There is an old saying, "Trade the market, not the forecast". Some of the best traders out there are only right 30-50% of the time. The big difference between those who succeed trading and those who don't is in "recognizing when you are wrong and repositioning". One cannot be afraid to take a loss. Staying in a losing position, hoping it will come back, is a fast track to blowing up an account.

 


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Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

To view the details more clearly, you may visit our free chart look at www.blustarcharts.weebly.com This web site is also updated periodically as events unfold.

 


 

Brad Gudgeon

Author: Brad Gudgeon

Brad Gudgeon
BluStar Market Timer
Blog
eaglesoveramerica.com

BluStar Market Timer Investment Philosophy: The stock market is currently in a technical Elliott Wave Bear Market Rally. It has been exhibiting A-B-C type waves instead of the normal 5 Waves since the market topped in 2000. According to "The Original Works of R.N. Elliott", we are due for a move down to about the S&P 500 442/443 area in the next few years. In my opinion, this is no longer a buy and hold market, but a traders' market. We mainly swing trade the market with funds and ETF's, but otherwise trade according to the market's disposition and to the traders' discretion. For the year 2014, BluStar Market Timer is rated #1 according to Timer Trac. http://www.blustarmarkettimer.info

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