Trader Scott’s Market Blog
October 9, 2016
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There have been numerous stories over the weekend deciphering/guessing what happened to gold last week. What a complete waste of time, energy, and focus. Another in a long list of reasons why so many struggle in markets. I’m in markets/my goal is to (hopefully) make profits as often as possible. Focusing on all of the ancillary nonsense has zero positive influence on me meeting my goal. Those of you who have been reading this blog for awhile know that (in the big picture) I am mainly focused on the overall TREND of the market. And also (if there has been no major ENDING ACTION of the overall TREND) where/when are the higher PROBABILITY/lower RISK entry points into the market in sync with the bigger TREND. That’s a mouthful, so basically it means for example in gold currently, I believe the major trend is up, and we have seen no major ending action.So I want to identify those good (sometimes great) entry points in harmony with the UPTREND. Meaning I want to identify the better/best places to enter buy orders.
On Patrick and Sharon’s show on Friday, Open Phones Friday, (scroll down that page to listen) I called in to give a quick market update and also to give an update about buying gold into the 11:30ish AM sell stop run courtesy of the strong hands and “manipulators”. Let me explain the thought process. I have been posting this chart of gold for several months. It’s the same chart (cleaned up a bit) which I use. I kept repeating that the $1252 support area (actually, for me it’s always going to be below the support area to lower the RISK even more) is the first decent area to enter longer term purchases (and shorter term trades) – below $1200 is a much better spot to enter for longer term. But below $1252 was a good probability entry point. And I believed there were a lot of sell stops below $1252, so when I saw the stops being triggered, I entered some buy orders – long term “nibbling” physical and also an ETF trade. And I talked about it a few minutes later on the show, late in the second hour.
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.