Market Update – Gold

 

Trader Scott’s Market Blog

November 1, 2016

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My belief has been gold will generally rally into the end of October, but it was in the first part of November when we have to get concerned about a secondary top. However we would continue to see some rally attempts. So here we go, November 1st and gold is getting itself into a bit of a pickle. It has gotten quite overbought and is seeing distribution coming in (blue arrow). So now, I will do some light selling of gold, and likely also do some shorting, if gold trades above a large (for now) resistance area around $1305. But that’s for me, it’s just how I approach this business. For most people, just be patient and wait for the really good entry points I have marked on the chart – those are very good buy zones. Right now, is a lousy time to be buying PMs. But just to add, PMs are in a bull market. In a bull market, we often don’t see the “best” entry points to buy. It is why for months in this blog, I kept telling people if gold trades below $1252, then that would be our first good, but definitely not great, entry point into gold on the long side. I took my own advice and did some nibbling on physical below $1250. But, I do believe we are heading lower first, before we head much higher. If gold does have a good selling wave, I do plan on buying much more – especially mining stocks and silver. And I also received a question about shorting GDX yesterday – the reply can be seen at the post. So currently, I’m quite cautious about gold.

 

About

img_0074bwcrsmTrader 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.



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'Trader Scott’s Market Blog – Market Update – Gold – November 1, 2016' have 4 comments

  1. November 3, 2016 @ 7:42 am aamer

    Hi Scott,

    Just wanted to thank you for the insights on Gold. I was too scared to actually short GDX and GDXJ early yesterday ….momentum was very strong and Gold was going way past the levels I was expecting. After chatting with you and seeing the resistance levels on your chart plus heeding your advice to wait for the fed minutes….before shorting was spot on. Still have my shorts on and took some profits yesterday as per your suggestion….

    The charts were very helpful and am getting more comfortable with the idea of using simpler tools for trading….the Resistance levels worked well and gave me the ‘courage’ that i was lacking as i was only feeling adrenaline and the momentum of the asset class in question. Also really appreciate your hands on advice….

    I think I am finally ready to follow your philosophy and approach….trading right is more important than having an idea or a system.

    Still have my shorts on ……and will likely press harder today as we can see lower lows in Silver…and a decent pullback in Gold.

    Love to see more of your charts on the S&P and of course your comments.

    thanks again,

    Aamer

    Reply

    • November 3, 2016 @ 10:41 pm traderscott

      Your new approach is going to make your life much easier – trust me. It’s so important to have a clear, less confused mind and approach.

      Reply

  2. May 31, 2017 @ 10:00 pm Why Are the Gold Miners Lagging?

    […] waves in gold, the miners are going down also. Right before the election on November 1, 2016, this post explained why I was very concerned about gold, and would use trading above $1305 to sell/short. […]

    Reply

  3. July 4, 2017 @ 12:30 pm Winners July 3 After Hours - Gold Update 9:15 PM

    […] version of right before the election. I was bearish on gold then, and shorting it as laid out in a November 1st post. This was  written well beforehand, not in the rear view mirror. I’m still treating this […]

    Reply


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