Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Gold Bullhorns Quieted for a Day, at Least - 22nd Feb 19
US Auto Loans - Americans Missing Car Payments Is a Symptom of a Much Bigger Problem - 22nd Feb 19
Stock Traders Must Be Cautious Part III - 22nd Feb 19
Stock Traders Must Stay Optimistically Cautious II - 22nd Feb 19
Sheffield FlyPast Footage - "Mi Amigo" US Bomber Crash Memorial Endcliffe Park - 22nd Feb 19
Sheffield "Mi Amigo" Memorial Fly Past , BBC Crew Setting Up Stage for Breakfast TV Endcliffe Park - 21st Feb 19
Stocks Closer to Medium-Term Resistance Level - 21st Feb 19
The Stock Market’s Momentum is Extremely Strong. What’s Next for Stocks - 21st Feb 19
QE Forever: The Fed's Dramatic About-face - 21st Feb 19
Gold Technical Perspective – Why So Bullish? - 21st Feb 19
Sheffield "Mi Amigo" Memorial Fly Past at 8.45am on 22nd Feb 2019 - 20th Feb 19
Here’s The Real Reason You Stress About Money - 20th Feb 19
Five Online Marketing Predictions that will Matter in 2019 - 20th Feb 19
Has Gold Price Reached Upside Resistance Near $1340-1360? - 20th Feb 19
So Many Things are Not Confirming Stock Market Rally - 20th Feb 19
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

Stock Market Macro/Macro View: Waves and Cycles Part II

Stock-Markets / Stock Markets 2018 Sep 24, 2018 - 03:19 PM GMT

By: Brad_Gudgeon

Stock-Markets Last week, I mainly discussed the coming economic crash and where we are in the cycles.  I also talked about the short term stock market cycles, which I believe have peaked as of Friday or will peak on Monday. In this segment, I will mainly talk about my short term work.

Due to the fact that the waves no longer move up in 5 wave sequences anymore, and the normal cycles are changing rapidly, I have had to augment my wave work with other data including astro-cycles and more technical data. This has forced me to buy other timing experts’ work to meld with my own so I can hone my timing skills better.


Ideally, the 16 TD top was to occur on the stock market on the 21st. We also have some astro signatures suggesting a top between Friday and this Monday.  The daily MACD is diverging badly from the last 16 TD top suggesting that this wave up since September 7 is a Y (irregular on the SPX) or B wave top (failing on the NASDAQ).  This, along with other data like Fibonnaci support, the dollar index and past cycles and wave structures lead me to believe we should fall about 5% into around October 8 with a target near SPX 2792.

Meanwhile, the dollar should rally.  GDX topped on its 16 TD top Thursday last week and we got out for a nice profit on NUGT. Our call for a low on Wednesday was met mainly with the NASDAQ, which powered higher into Friday.  The actual 8 TD low came two days earlier as it did the 16 TD cycle before.

The overall Cycle/Wave pattern calls for a move up to around 3016 SPX by around Nov 1, or about a 7 ½ % move up from the October low.  What comes next may surprise a lot of people.  We are calling for a move down to near 2667 by or around Nov 15. The week of the US mid-term election may become the catalyst point or secondary (b wave) top that sends the market into a (c wave) tailspin.  Could it be that the Democrats control the House again? We shall soon see.

As far as the precious metals and mining stocks are concerned, with what I see: dollar strength ahead and a falling stock market into October 8th , I would think we either pull back to a secondary low or possibly form a new low around Oct 4-8 on GDX.  There is a case for a head and shoulders bottom forming, giving us a nice target of around 21.50 on GDX by the end of October.  NUGT buyers on this coming dip should make some nice coin on the coming rally, (at least that is my opinion). As far as anything beyond that, it remains to be seen.  I have been negative on the precious metals for quite some time. 

As far as I can see, we are in a technical precious metals bear market and have been since 2011.  My work suggests we have a ways to go before it bottoms in any meaningful way (other than perhaps another fierce short covering rally like we had in 2016).  My thinking it won’t happen (THE bottom) until the 7-8 year cycle bottoms no earlier than late 2022.

The dollar should drop again beginning around Oct 8th or so into late October completing an abc drop. This should be the catalyst for both a fierce mining share rally and stock market rally in October. I don’t know what the catalyst for that would be, but it could be a foreign central bank raises their interest rates a couple of weeks after the FED does their magic.  We’ll see, some interesting times ahead.

The chart below shows that we are in a bearish rising wedge. Notice also the glaring negative divergence on the daily MACD. The .382 retracement figure of 2792 is the ideal target for the bottom and fits for my projection to 3016 SPX by Nov 1.

We have also finished a Triple Three pattern A Wave since April 2 (next chart), which suggests we see a B Wave decline.  B Waves and 4th waves are known as channel breakers so the charts below figure. We also have the negative B Wave top NASDAQ market that did not make new highs.  It has been the leader for quite some time, so watch out!

In Elliott terms, the XYZ pattern irregular flat like this is a very bullish pattern and in this instance launches Wave C into early Nov. , topping WAVE Y of a larger bull flag pattern as seen below.

9_21_18_spx_5%_correction.png

9_20_18_cycle_spx_overview.png

9_21_18_divergent_b_wave_nasdaq.png

9_20_18_XYZ_bull_flag.png

Below, we see the expected GDX rally target up against some serious resistance near 21.50.  Also, we see the ABC decline in the dollar with B sporting the typical “wxy” bear flag.

9_20_18_gdx_daily.png

9_20_18_dollar_index_daily.png

An important note: I’m no longer taking anymore clients at BluStar Market Timer.  If you are interested in getting my ETF trading signals, you can sign up at http://eaglesoveramerica.com for a much reduced price. I’m trying to help as many people as I can get ready for the Great Reset of 2020-2023.

Brad Gudgeon
Editor of The BluStar Market Timer

www.blustarmarkettimer.info

The BluStar Market Timer was rated #1 in the world by Timer Trac in 2014, competing with over 1600 market timers. This occurred despite what the author considered a very difficult year for him. Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The website is www.blustarmarkettimer.info To view the details more clearly, you may visit our free chart look atwww.blustarmarkettimer.com

Copyright 2018, BluStar Market Timer.  All rights reserved.

Disclaimer:  The above information is not intended as investment advice.  Market timers can and do make mistakes.  The above analysis is believed to be reliable, but we cannot be responsible for losses should they occur as a result of using this information.  This article is intended for educational purposes only. Past performance is never a guarantee of future performance.

Brad Gudgeon Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules