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

  • 15 hours The $85B Merger That Could Change The Media Forever
  • 16 hours Why Are Governments Creating Their Own Cryptocurrencies?
  • 17 hours How Debt Cycles Impact Gold
  • 18 hours Investors Up the Ante In $1.5B Uber Loan Deal
  • 20 hours Are Gold Miners Poised For A Breakout?
  • 21 hours Is The "Crypto Winter“ Over?
  • 23 hours China Says It Doesn’t Fear Trade War
  • 2 days Twitter CEO: The World Will Have A Single Currency
  • 2 days Asian Currency Correction Could Signal Looming Crisis
  • 2 days Best Buy Drops Telecom Giant Over National Security Threat
  • 2 days The Pros And Cons Of The Federal Interest Rate Hike
  • 2 days Good News For Gold Bulls Despite Interest Rate Hike
  • 2 days Trump Hits China With $50 Billion In Tariffs
  • 2 days Russian Gold Reserves Hit Record High Amid Rising Tensions With West
  • 2 days Stocks Pull Back Following Interest Rate Hike
  • 3 days Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 3 days Tech Giants Could Be First Victims Of U.S. Trade War
  • 3 days Dow Gains Despite Fed’s Rate Hike
  • 3 days The Biggest Threat To Chinese Oil Futures
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

A Look at September: Gold and Stock Market

The month ahead looks choppy for both markets. Gold (especially the miners) has just come off of hard drop, so we may expect an upward/sideward bias until we get past Mercury Rx (retrograde) around September 22, where we could see a more explosive up move into early October with a GDX target above 33. Next week looks fairly bullish to me, but with some attempt at selling the rallies (look for the 28.43 area Wednesday and also around 29 Friday to be sell zones). Tuesday may go down and if it does, would represent a nice buying opportunity in the miners and PM's, IMO. Taking profits early when in Mercury Rx is usually a wise idea.

Taking profits early in the SPX would also be a good idea with Mercury Rx next week. Ideally, we have the 8 TD top on September 2 with the 5/10 week low due on September 7. It is possible we could eke out a higher high on Tuesday, but a fairly sharp drop next week looks likely although I would say that the 2150's should hold any decline in the SPX.

Overall, we are nearing an important top around the 13th on the SPX, but a drop of less than 100 points would be the maximum expected as we progress toward month's end. An early October top in the low/mid 2200's should set the stage for a large drop into November.

As you can see, the chart of GLD has just had a False Break of a rising wedge. This means the next rally would be the terminal or last rally of both sequences.

GDX Daily Chart
Larger Image

SPX Daily Chart
Larger Image

As always, we trade the market not the forecast. FREE One Week Trial Subscriptions are available in September.


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


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter