Market Update
Trader Scott’s Market Blog
October 16, 2016
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Last week I sent an e-mail to our subscribers about shorting opportunities currently. One of them was XLE and energy (not natural gas big picture) and there are posts here and here.Since last week, XLE today went to a new low for this current selling wave. Short term, XLE is approaching a support level. But I need to see much more selling in energy to consider purchasing.
Lastly, I continue to be very bullish long term on agriculture, and have mentioned numerous times about using weakness in agriculture (RJA) to purchase. RJA is at a multi week high today, so waiting for the next selling wave to buy is the prudent strategy, as I never buy into strength.
About
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.
'Trader Scott’s Market Blog – Market Update – October 17, 2016' have 2 comments
October 18, 2016 @ 2:13 pm Mark
Hi Scott, triggered by your analysis and sentiments on “PMs” (precious metals), and GDX entering “dabble in” territory, I purchased some shares of GDX, NUGT and AG on 10/7/16, all of which have gone up handsomely since. THANKS FOR THE TIPS! Recently, you advised take profits while they’re there (otherwise, they’re not). My question is, do you think we’re entering a “breakout” phase, in which case I protect some profits with stop losses, or sell now and wait for the correction to new lows, that you’ve also been suggesting? It’s so nice to learn “profitably”, for a change! :)
October 18, 2016 @ 3:16 pm traderscott
Is it a trade or an investment (longer term trade) Mark? That’s super important to know. We are certainly right into a short term resistance area in GDX. But that is NOT a “prediction” that GDX is going lower. And this is why I constantly stress how TRADING SKILLS are way more important to surviving in markets than are ANALYTICAL SKILLS. You do some analysis, but then you become a trader, first and foremost. As a shorter term trader, absolutely this is a good area to take, at least, partial profits. I don’t have any idea if we’re entering a so-called breakout phase, nor does anyone else (but there will be plenty of folks out there who will claim they know). I don’t use breakouts. I use support and resistance and I totally respect them. But on a time frame basis, I don’t believe the lows are in yet. So based on your own time frames and your comfort level – that’s how you decide. Just be careful about the shoulda/woulda/coulda after the fact. It’s a killer.