A Look at September: Gold and Stock Market

By: Brad Gudgeon | Mon, Sep 5, 2016
Print Email

The month ahead looks choppy for both markets. Gold (especially the miners) has just come off of hard drop, so we may expect an upward/sideward bias until we get past Mercury Rx (retrograde) around September 22, where we could see a more explosive up move into early October with a GDX target above 33. Next week looks fairly bullish to me, but with some attempt at selling the rallies (look for the 28.43 area Wednesday and also around 29 Friday to be sell zones). Tuesday may go down and if it does, would represent a nice buying opportunity in the miners and PM's, IMO. Taking profits early when in Mercury Rx is usually a wise idea.

Taking profits early in the SPX would also be a good idea with Mercury Rx next week. Ideally, we have the 8 TD top on September 2 with the 5/10 week low due on September 7. It is possible we could eke out a higher high on Tuesday, but a fairly sharp drop next week looks likely although I would say that the 2150's should hold any decline in the SPX.

Overall, we are nearing an important top around the 13th on the SPX, but a drop of less than 100 points would be the maximum expected as we progress toward month's end. An early October top in the low/mid 2200's should set the stage for a large drop into November.

As you can see, the chart of GLD has just had a False Break of a rising wedge. This means the next rally would be the terminal or last rally of both sequences.

GDX Daily Chart
Larger Image

SPX Daily Chart
Larger Image

As always, we trade the market not the forecast. FREE One Week Trial Subscriptions are available in September.

 


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

Disclaimer: The information provided by the BluStar Market Timer is to be used for educational purposes only. We do not recommend the buying or selling of any securities, are not registered investment advisers and do not offer investment advice. Stock market investing is considered risky. Market timers can and do make mistakes. Past performance is never a guarantee of future performance.

Copyright © 2014-2017, Bradley Ray Gudgeon, BluStar Market Timer, Eagles Over America. All rights reserved.

 

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com