I admit I missed the GDX move down to 22.93 today, but at the same time it has presented itself with a great opportunity. The chart below is predicting GDX 29.84 by October 14. I am now leveraged, extremely leveraged with options for a strong rally ahead in gold and GDX.
A lot of negative bias now in the precious metals complex has me thinking the other way: and that is a massive short covering rally ahead. The e-wave look and cycles suggest the same. The "nonfarm payrolls report" on Friday could be (likely) the catalyst.
Also, I believe the SPX could go as high 2236 by October 14. A lot of negativity out there in the stock market coincides with my charts saying: "The top is not in yet!"
Do I believe that a large drop in gold, silver, GDX and SPX is in our immediate future? You can bet your bottom dollar I do. The charts below explain everything.
Another thing I wish to mention: please don’t trade this or any other forecast verbatim without getting proper updates from the author. Tracking the stock market is much like tracking the weather: you need to have regular updates. Things can and do change. With the changes, come strategy changes.
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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