Mastercard Inc (NYSE:MA) is hammering on a trend line that stretches back to November 2015. The stock chart has hammered on this trend line five times now and is likely nearing a breakout. While upside is likely, make sure you do not buy it now. At a current price of $96.88, the stock has already climbed ten straight Dollars in the last month. There have been no pull backs during this period. This means the stock will likely pause, then have a small pull back. A smart investor will wait for that pull back then buy.

Game Plan

Look for a pull back from $96.88 to $93.75. At this point the buy signal will trigger and a swing trade buy can be initiated. The upside target becomes $101.50. If a buy is initiated at $93.75, the percentage gain to target will be 8.2% gain, likely in a month or less.

Gold collapsed on Friday after the Non Farm Payrolls showed better than expected jobs growth in July. At 255,000, job creation blew most analyst expectations out of the water. The SPDR Gold Trust (NYSEARCA:GLD) fell to $127.55, -2.32 (-1.79%).

The most important aspect of the gold decline was the lack of a higher high made in the recent surge. In fact, a clear lower high was put in on the stock chart. On a technical basis this is a strong bearish signal for the near-term. It likely signals a continued sharp decline in gold.  Take a look at the chart below to see and understand this. Ultimately, this lower high signals a highly likely correction in gold over the next few months from its current $1,342 down $1,270.00.

Interest rates surged on Friday after the Non Farm Payrolls Report showed more jobs added in July than expected. The 10 year yield jumped over 10%. Based on the 10 year yield chart, interest rates are headed higher. The first target is 1.7%, the second target is 1.75%. These levels will likely be hit in the coming week.

What Does It Mean For The Stock Market?

There are only two things at this point that can hurt the market in the near term. The first is a black swan event. Black swan events are something unexpected that hits the stock market. For example a China stock market crash or major terror event. The other issue that could cause a stock market fall is interest rates surging. Why? Artificially low interest rates induced by the Federal Reserve are the main reason why the stock market is at all-time highs.

As a fellow pro trader pointed out late last week, JPMorgan Chase (NYSE: JPM) has been surging with the rise in yields. If you read the charts, though, it appears this surge could be nearing an end in the short-term. Just a little higher from Friday’s close of $66.30, at $67, $JPM will hit significant resistance. This resistance is from an up-sloping trend line dating back to February coupled with where a prior breakdown occurred. See this on the daily chart below. $JPM should experience a pullback if it reaches this resistance point. I’ll be watching to pull the trigger on a swing trade, either shorting $JPM itself, or buying $FAZ.