Market Update – Gold
Trader Scott’s Market Blog
November 1, 2016
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.
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.