Stock Market Update

By: Brad Gudgeon | Wed, Mar 9, 2016
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Over the weekend, my thinking was we had higher prices ahead of us. I actually ignored the astrological reversal mid-zone of the Sun translating Neptune, Saturn and Jupiter on March 4th. My logic was the powerful, advancing MACD and momentum indicators. My main reservation was the lack of early volume.

We have now broken down through a rising wedge much like we did back in early November 2015; as well the 4 hour MACD and current action is very similar to that time frame. If we follow the same pattern, we should be down into the low 1700's SPX minimum by May 2016.

SPY 4-Hour Chart
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Gold and GDX could run sideways into or around FED day March 16, but I believe it is doomed to go much lower. We shorted GDX via DUST last week and Monday and covered by selling DUST early today on GDX weakness expecting a bounce, which we got.

 


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
BluStar Market Timer offers auto-trading for those who don't have the time or inclination to trade their own accounts.

 


 

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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