• 2 hours $5 Million Gold Toilet Vanishes
  • 2 hours Gold On The Rise After Fed Rate Cut
  • 5 hours Oil Trader Loses $320 Million On Derivative Bets
  • 1 day S&P 500 Officially In An Earnings Recession
  • 1 day Miners Are Weathering The Trade War Storm
  • 1 day UK Credit Card Interest Rates Are Skyrocketing
  • 2 days From Frenzy To Flop, The Death Of This Year’s Most Hyped IPO
  • 2 days Are Smart TVs Spying On Us?
  • 2 days Is Fossil Fuel Divestment A Waste Of Time?
  • 3 days A Russian Billionaire’s Space Quest To Save Humanity
  • 3 days Markets Take Breather As Consolidation Continues
  • 3 days Economic Woes Weigh On Copper Prices
  • 3 days World's Largest IPO At Risk Following Drone Strikes
  • 4 days Gold Is Beating Buffett’s Berkshire Hathaway
  • 4 days What’s Behind The Silver Sell-Off?
  • 4 days The Retail Apocalypse Is Accelerating
  • 4 days The Top Tech Stocks Of The Year
  • 5 days America’s Workforce Elderly Workforce To Double By 2028
  • 5 days Toyota Tests Solar-Powered Prius
  • 6 days Why The Gold Rally Flatlined
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: 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