Stock Market Going Down, Gold Chop Continues
Two weeks ago, I warned that September 17th would be a critical date: the perfect storm coming together with Mercury going retrograde and Jupiter opposing Neptune on the date that the FED announces its intents regarding interest rates. I also warned that gold stocks would take a dip into September 22/23.
The stock market as measured by the S&P 500 made its low on Sept 24 falling over 111 points in one week (down over 5%) and gold stocks made their low on September 23 (down over 10%). Now we have Pluto going direct while the super moon eclipses on September 27. The set up is there for a huge rally in stocks on September 28 (to knock out the shorts) followed by a sharp drop into October 5th (especially after September 29/30). Gold stocks should rally into September 30 and then fall hard to new lows into October 5/6.
While the stock market fell last week, an unusual aberration occurred in the money flow indicators: they rose dramatically even above the zero lines. I can't but help to think these aberrations are occurring around the FED dates for a reason. I'll leave other to speculate on the why.
The charts below give my projections for the future. These are rough speculations based on the past, but not to be taken verbatim as things change day to day as my calculations are adjusted. We trade the market not the forecast.
Another thing that you may have noticed: the next important top is projected to be October 27th, which is right at the same time as the next FED meeting Oct. 27/28. Could this be the time when they finally raise rates and the SPX finally falls to below 1700 in early November?
Our Gold Mining Stock trading signals are already +55% since August 19, 2015. Are you still buying and holding, or are you finally trading this market?
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
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