Knowing the Trends

January 27, 2016
Howdy Gents,
Over the course of this year, I’m going to continue sharing some insight into my approach to markets. The only way to be successful as a trader/investor is to have a very specific method of judging supply vs. demand, and nothing is more important than knowing the TREND. The very best way of accomplishing this is thru the understanding of the interaction between price and volume on a chart. Richard Wyckoff was the master of this.

https://en.wikipedia.org/wiki/Richard_Wyckoff

Two other books to read – “Popular Delusions” and “Reminiscenses of a Stock Operator”.
Now the markets.
In my outlook from last November, for the first time in many years and with stocks right at their all time highs, I recommended shorting stocks. And yes, it’s likely stocks are going much lower.
How much lower? The Dow of 14,000 or lower. And a possible timeframe of March, 2017. However, in the short term, after one more selling wave, we are then set to have a substantial rally right into the next Fed meeting. We might even see new highs. That’s when the most serious decline so far should unfold.
After this brutal bear market in commodities over the last 5 years, there can’t be more than 10 people on this planet that are still bullish. However, over the next 60 days, I expect many commodities to have hit their major lows for this cycle. I’m becoming especially bullish on agriculture. And although I personally don’t eat grains, any selloff into the March timeframe is a tremendous buying opportunity. Food prices are set to soar beginning in 2017.
In the December outlook, when I recommended buying gold, – that was the first recommendation in 7 years. If any listeners bought some gold into weakness at $1050ish, you did well . Presently gold is near a short term top, but gold is in the process of putting in a major low. A new low below $1043 is still possible, but as of Sept. 2015, the selloffs in gold are buying opportunities.
Lastly, being a perma bull or a perma bear on any market is very dangerous, and that has been and will continue to be clear to all, as the volatility in markets continues to ratchet higher. Any one without a skill set of being able to both buy and to SELL, will not survive these markets. Especially as the biggest bubble in the world blows sky high. And that is the bubble in the confidence in central bankers. I have received some excellent correspondence from listeners. Let me know if I can help. [email protected]


'Trader Scott – Knowing the Trends – January 27, 2016' has 1 comment

  1. January 28, 2016 @ 12:34 am Stu the Canuk

    I expect things to be very volatile till beginning of 2018. Will be switching into most of money into commodity currency at that time.
    Golds last big low for rest of decade towards end of this year at latest.
    Hold onto your general security as weather could get far worse…… Fits with Scott’s Ag thoughts.
    Religious wars likely.

    Reply


Would you like to share your thoughts?

Your email address will not be published.

©Copyright One Radio Network 2019 • All rights reserved. | Site built by RedLotus Austin
The information on this website and talk shows is solely for informational and entertainment purposes. IT IS NOT INTENDED TO PROVIDE MEDICAL ADVICE. Neither the Editors, producers of One Radio Network, Patrick Timpone, their guests or web masters take responsibility for any possible consequences from any treatment, procedure, exercise, dietary modification, action or application of medication which results from reading or following the information contained on this website in written or audio form, live or podcasts. The publication of this information does not constitute the practice of medicine, and this information does not replace the advice of your physician or other health care provider. Before undertaking any course of treatment, the reader must seek the advice of their physician or other health care provider and take total responsibility for his or her actions at all times. Patrick Joseph of the family of Timpone, a man...All rights reserved, without recourse.