"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 1 hour Could This Software Giant Beat Apple To $1 Trillion?
  • 2 hours Kenya: The Blockchain Capital Of Africa
  • 3 hours Can Anyone Compete With Netflix?
  • 4 hours Can Europe Beat U.S. Sanctions on Iran?
  • 5 hours U.S.-China Trade War “On Hold”
  • 7 hours Experts vs Investors: Who Has It Right?
  • 9 hours The Wild World Of Celebrity Endorsed ICOs
  • 1 day The Five Most Important Market Indicators
  • 2 days Ethereum Blockchain Tops Bitcoin's In Latest Study
  • 3 days Is Gold Only For Long-Term Investors?
  • 3 days Record Refinancing Points At Next Big Housing Bubble
  • 3 days Bitcoin Forks Explained
  • 3 days PayPal’s Latest Acquisition Has Competitors On Edge
  • 3 days The Royal Wedding Could Bring Billions Into The UK
  • 3 days Goldman’s Crypto Trading Desk Is Just The Beginning
  • 4 days The Five Most Important Blockchain Trends In 2018
  • 4 days Walmart’s E-Commerce Rebound Fails To Boost Stock Price
  • 4 days Japan Threatens U.S. With $400M In Tariffs
  • 4 days Are Markets Showing Signs of A Topping Pattern?
  • 4 days Goldman: Tesla May Need To Raise $10B By 2020
3 Tech Stocks With Real Upside

3 Tech Stocks With Real Upside

The stock market rally has…

Are Markets Showing Signs of A Topping Pattern?

Are Markets Showing Signs of A Topping Pattern?

The U.S. stock market indexes…

Goldman: Tesla May Need To Raise $10B By 2020

Goldman: Tesla May Need To Raise $10B By 2020

Amid Tesla’s latest round of…

Brad Gudgeon

Brad Gudgeon

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…

More Info

FED Induced Sharp Drop in Stock Market Coming!

The planets are coming together for the perfect storm on September 17th. First we have Mercury Retrograde, which often occurs at a top for the precious metals sector (and even the stock market). Then we have Jupiter opposing Neptune while Saturn enters into the sign of Sagittarius. Exaggerated hysteria or panic would be the best way to explain this astrological set up. My best guess is: the FED won't raise rates this time, but will hint strongly for the need to do so very soon (China may have nipped a September hike in the bud by devaluing the yuan). Everyone is expecting a retest of the August 24-25 lows anyway, so this is the perfect excuse to take it down. It also fits the pattern of an X wave of [B] bottom within an IMP (Irregular Megaphone Pattern -- discussed a few weeks ago). The big question is: will we fall just below the SPX cash price of 1867 near 1850 or below the SPY or S&P 500 futures price set the morning of August 24, 2015?

As I said in my last article, I believed the stock market was topping and gold bottoming. Gold and the gold stock sector (GDX hit a new low Friday) look to rally strongly onto the FED announcement. GDX made a nice reversal hammer. As it looks, the set up is there to rally strongly so they can knock it down again. By September 21-22 both sectors (stock market first and then gold stocks with gold) will likely be bottoming and a strong rally should ensue into early October. This will be the set up for the final C Wave down in the stock market to around 1700 by October 12th, in my opinion.

Below are three charts with e-wave, cycles and astro notations for the SPX, GDX and GLD. In times like these, often times, the Gann 8 TD tops run an 8,7,6 trading day topping pattern. This is due to the excessive chop after a huge plunge like we just had.

S&P500 Hourly Chart
Larger Image

GLD Daily Chart
Larger Image

GDX Daily Chart
Larger Image


 

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

We also offer auto-trading for those who don't have the time to trade their own accounts.

To view the details more clearly, you may visit our free chart look at http://charts.blustarmarkettimer.com
This web site is sometimes updated periodically as events unfold.

 

Back to homepage

Leave a comment

Leave a comment