Trader Scott’s Market Blog
October 16, 2016
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As to gold – with short term trading, my goal is to hit singles, lots of them. (For investments, I’m trying to hit grand slams.) If I get more than a single, great, but I am just trying to survive. So I am adamant about taking partial profits, both to lower overall risk, and to pocket something. If your goal is to hit lots of singles, as opposed to much bigger trades, then you have to also maintain a high batting average. So for the short term trade in GDX some of you have done, I took partial profits again into the resistance area yesterday (and once again, I took profits too early, as GDX is continuing higher today), so I have 1/3 of a position left. But both GDX and gold itself are short term overbought, and certainly not at a good entry point for either a long side trade or an investment. (However, an overbought technical condition is not, by itself, a reason to sell.) So overall, on a shorter term basis, this current rally in gold still has some legs – but we need to be careful what will happen to PMs when overall complacency starts to unravel, especially next month. It’s a good time to have plenty of dry powder.
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.