Big Gold Rally This Week, Stocks Down?

By: Brad Gudgeon | Mon, Aug 29, 2016
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Last week, I wrote that I believed GDX would make one final blow-off top into or around September 1. I also wrote that the stock market looked too hard to trade at this point. When the SPX dropped to below 2161 on Friday we went long via SPXL and SVXY. Today (8/29) we sold for some nice profits (+2.8% and +5.5%).

I believe the SPX could drop all the way to 2112/13 by September 1 and GDX could hit my 35.47 target on the same day. The charts below show what I believe could happen. As always, please keep in mind that these charts are forecasts over the next week and may be subject to change.

GDX Daily Chart
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SPX Daily 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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