Mining Share, Gold, Stock Market Forecast

By: Brad Gudgeon | Sun, May 8, 2016
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The stock market, as measured by the S&P 500, reached its 115 trading cycle top the third week of April. The next important cycle low is due on July 5th. The SPX is in process of making a head and shoulders top, and should continue higher into the mid-point of the Mercury Retrograde Cycle around May 11th. My target price is 2080. Friday was the new moon low, but also a top for the precious metals complex.

SPX Daily Bradley Cycles Chart
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Conversely, the mining sector should hit a short term bottom on May 11, before eventually bottoming on the May 18-20 expected double bottom. Commercial COT's are record short on gold and gold's 20 week low looks to be due on week 22 from the December 17th bottom. The dollar chart looks like it has formed an Irregular Flat Bull Flag with a strong move up due in the coming 2 weeks.

GLD Daily Chart
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The IMP and Rising Wedge on GDX in the charts below show what I expect in the days and weeks ahead.

GDX Daily Rising Wedge Chart
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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

 


 

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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