Trader Scott’s Market Blog
November 12, 2016
After the October 14th retest (retest of theOctober 7th selling climax), I kept repeating gold would generally rally thru the end of October, but it was the first week of November when we had to get concerned about another top. And the ridiculous buying upthrust on Tuesday night turned the market (and me) even more bearish (fresh strong handed short selling/short covering/morons buying). The initial $1305 resistance area which I initially used to short gold, was already forming a fairly powerful supply area. But that ridiculous upthrust thru that resistance area turned gold quite bearish and “confirmed” in my mind of a very likely breaking thru support areas. The bearish upthrust “told” me to be more patient with gold and also “told” me of a very likely scenario where we would not hold support areas, as sell stops would be targeted. This selling wave is doing its’ job to rapidly increase bearishness. We now need to wait for a selling climax to get a bullish/solid bottoming environment. We’re getting there. And as far as silver goes, breaking below $17 would be very helpful in setting up a fantastic investment entry point later this month. On September 10th, my view was we would see the next great opportunity in PMs towards the end of November. And that is now coming into focus. And don’t be afraid of buying into “broken support”. It’s when I almost always enter long positions (and cover any remaining short positions). Just be patient, but very attentive. And here are the exact same support areas in the gold and silver charts which I have been running for many months showing the buy zones.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.