Stock Market, Miners Update
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.
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