• 5 hours Biden Will Be A Boon For Solar Stocks
  • 2 days The Gold Rally Has Finally Run Out Of Steam
  • 2 days Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 5 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 5 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 7 days Why 12 Million American Millionaires Isn’t Good News
  • 8 days Big Oil Is Paying The Price For Investing In Renewables
  • 9 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 10 days Did Amazon Just Democratize Prescription Drugs?
  • 11 days The Private Space Race Just Got Very Real
  • 13 days Short Sellers Are Willing Big In This Turbulent Market
  • 14 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 15 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 16 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 17 days Black Friday Could Be Retailers’ Only Hope
  • 18 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 19 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 21 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 22 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 23 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

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…

Contact Author

  1. Home
  2. Markets
  3. Other

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