Gold, Stock Market Down: Now What?
Last I wrote, I was expecting a stock market top early in the week with the late week dropping. We had gone short on Thursday, but late screwy wave action had me pull out to neutral (to my chagrin). I had been looking for a 10 week low within this general time frame and I believe we are there. A move down to challenge the SPX 1994-2100 area would not surprise me on Monday. This should be a great buying area for one more move to new highs by early October at the latest before we see the expected autumn swoon.
On GDX, I was looking for the 28.43 to 29 area by Wednesday and we hit 28.70 early Wednesday in the pre-market. A look at the dollar's action combined with Mercury Rx had us getting short GDX via DUST and GDX puts for some nice profits as I expected a possible move to as low as 26.42/.49 Friday (we tagged 26.25). GDX looks like a great buying opportunity to me for next week into OPEX as the astro/cycle/waves look good for a nice rally. Mars is rearing its ugly head again early in the week, but tops off with a trine to Uranus later in the week.
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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