Dow: Just Over 25,000 Monday; Then Brief Relief Rally; Then DownOn Monday I am targeting a finish just over 25,000 but not by much, followed by a slight relief rally to trap bulls further before coming down further.
My target is near 24,000 +/- 50pts by the Fed meeting in mid September where as a result of the stock market on the verge of collapsing, and the trade war escalation, there will likely be a 25bps cut. However, I do not see the Fed providing more immediate relief by proposing a 50bps cut. Therefore, I don't see a huge relief rally off the cut.
At this point, if the Fed cuts 50bps, this will induce more scare into the market as a confirmation of a failing economy. So a one day relief will turn into a potential melt-down. Moreover, I do not believe the Fed can rescue the market at this point (nor can the ECB).
Ultimately, to rescue the market from full melt-down and collapse, you will see huge fiat currency money printing in expense of the USD (and other currencies around the world). For this reason, people should have significant entries in Gold/Silver.
- zSplit
*Note: I will continue to update this idea incase Trump issues some "fake news trade updates", in which case relief rallies may extend further than I have suggested here.
