If the Fed does not lower interest rates on Sept 18 this will disappoint the market and we will see a sell off. The broad stock market will have short covering which means they will sell everything including the good performing stocks to raise cash to cover margin calls. This will be a fire sale and an opportunity to buy gold stocks once the dust settles. The market is already baking in an anticipated rate decrease of between 25 to 50 basis points. So if the market is rising toward highs then why should the Fed lower rates which will further weaken the US dollar.

The US Dollar will go up (it’s currently below the low 30 years ago) and gold will go down and pull the gold equities down even though they are strong stocks in a bear market. I am a long term bull so any pull backs is a great buying opportunity.