US$, Gold, Stocks



Trader Scott’s Market Blog

October 20, 2016

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The stock market is continuing to see the selling waves being supported to keep them contained before they get out of hand (smart maneuver). So until I see the volume come back in a big way on the selling waves, I will just wait to get aggressive shorting into the rallies. The more important support and resistance areas are marked off. And it is important to notice how the stock market is coiling (building potential energy), as are most markets. There will be explosive moves coming up. November is the month to watch, as will next Spring also.
As for gold, I ran this chart in last night’s blog update, with gold into resistance areas. Here is tonight’s update of that chart. Please notice the big volume surge (red arrows) into the “breakout to new highs”, with some short term distribution (green and red arrows) –strong hands selling/shorting into the highs, and the selling continued on the way back down.Gold needs a “rest”, at a minimum. With sufficient rest and re-energizing, it has a good shot at rallying into month end. Regardless, I try to make it simple and sell into strength, especially at resistance, no matter what the time frame. And on a bigger picture, I am very interested in silver, especially next month. Here is a bigger picture chart of silver with the buy zones which I am waiting for (patiently) and marked on the chart – so below those points.

And lastly the US$. I continue to get plenty of push back for my consistent bullishness on the US$. Tonight the Dollar hit another new high since putting in the “spring” low (Wyckoff spring) which occurred on May 3rd. On the included chart of the US$, there is a very important resistance area at 100.5 approximately. I do expect it to get there, and if so, then we’ll see where we stand technically. But for now the Dollar is at an interim resistance area tonight (the red arrow). And the euro is at an interim support area (marked on the chart) from the Brexit lows on June 23rd. And shorter term this will have an effect on both stock markets and PMs. But the large upside pressure on the US$ still remains.


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.


'Trader Scott’s Market Blog – US$, Gold, Stocks – October 20, 2016' have 4 comments

  1. October 21, 2016 @ 8:38 am Martin


    What is the significance of the dotted lines vs the solid lines on your charts? Are the dotted lines weaker support and resistance levels?

    Thank you


    • October 23, 2016 @ 8:00 pm traderscott

      Generally yes Martin, the darker solid lines are much more important, potential to be watched for ending action, and thus bigger turning point potential (anticipation). The dotted lines actually can just be for aesthetics when I publish the charts, but generally they are not as significant.


  2. October 22, 2016 @ 11:25 am Aamer

    Hi Scott,

    The coiling up of equity mkts and recent behaviour suggest sharp falls ? Probably after election ?

    I can also see the possibility of mkts starting a new trend up……with possibly new spending and infrastructure projects etc investors and the general public don’t care about spending levels and debt levels….so why wouldn’t the new clowns spend their asses off and try to claim credit for a new recovery…..and at some point money velocity will pick up….inflationary pressures will no longer be contained or ignored….and then we get the mother of all crashes. Still some time away ….




    • October 23, 2016 @ 8:04 pm traderscott

      I’m making no predictions by the coiling behavior, as you know Aamer, I believe stock markets are under distribution, so the likelihood is for selling waves. But do not discount the possibility of a big and very bearish upthrust to new highs around election time. And a fantastic shorting entry point possibility. Just “listen” to the market. I’ll repeat that I’m waiting for the STRONG HANDS to start tipping their hands.


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