Last week, I wrote that I believed GDX would make one final blow-off top into or around September 1. I also wrote that the stock market looked too hard to trade at this point. When the SPX dropped to below 2161 on Friday we went long via SPXL and SVXY. Today (8/29) we sold for some nice profits (+2.8% and +5.5%).
I believe the SPX could drop all the way to 2112/13 by September 1 and GDX could hit my 35.47 target on the same day. The charts below show what I believe could happen. As always, please keep in mind that these charts are forecasts over the next week and may be subject to change.
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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
