Stock Market, Miners Update

By: Brad Gudgeon | Mon, Jun 20, 2016
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Last week was one of our best profit weeks since March. We caught the short in the stock market from June 15 into the 16th and the GDX short into Friday where we went to all cash. Originally, my thinking was that we would see a June 17th bottom in the stock market, but perhaps as late as July 5th. Now I'm fairly certain that date is July 5th. My SPX target is now into the low 1910's for July 5th.

The miners look to make an important bottom on June 20th while the stock market counter trend rallies. I thought when I was making these charts that perhaps the stock market would gap down and GDX gap up Monday giving me a chance to go long and short each respectively. The futures are not complying as I write this.

My strategy is to wait for the stock market to make its move to perhaps as high as 2096 SPX Monday and short it into the end of the week looking for the SPX 1980/90's. GDX has an important low due on June 20th, but will likely remain subdued until at least June 23rd where a wave 2 low could launch a huge 3rd wave rally into or near June 28. Basically, I'm bearish the stock market and bullish the precious metals complex until July 5th.

SPX Daily Chart
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GDX 30-Minute 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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