Is Stan Druckenmiller Long Gold Again?
Trader Scott’s Market Blog
February 7, 2017
Stan Druckenmiller caused a big hullabaloo right after the election when he said that he sold his entire gold position. Mypost about it the next day talked about the “news”:
“First of all, anyone who sold gold into the grotesquely bearish upthruston Tuesday did a very good job…….So Stan Druckenmiller was one who sold all of his gold Tuesday night. He’s one of the few big money managers around whom I respect (even though he did work for the ancient mummy idiot George Soros). But long ago when I became confident in my ability to survive in this business, listening to others’ market views became a distraction. My outlook for gold is much different than Druckenmiller’s. If gold is in a bull market, which is my view, then selling waves are potentially buying opportunities.”
Now there is an article claiming Stan Druckenmiller has “bought his gold position back”. And if this is the case, then he made a nice trade, selling into an ugly bearish upthrust on election night, and buying it back lower. Whatever he did doesn’t change the fact that gold is in a major bull market which began in December of 2015, and my belief we’d see a retest of the December 2015 low, but at a higher low in late 2016. Mr. Druckenmiller’s buying or selling doesn’t change the European and global political problems, the Euro banking problems, the Japanese banking problems, and the derivatives problems. Nor does it change the global currency problems, and the debt problems. Need we go on? Gold just needed to get out a lot of the weak hands into the December 2015 lows, and again late last year. The weak hands will continue this dumb behavior of getting in en masse too late and then getting shaken out, but that won’t stop this bull market. Gold, silver and the miners are in a big bull market, but into these big rallies is not the place to enter.
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.