Gold Accumulation and Bull Markets
Trader Scott’s Market Blog
October 23, 2016
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Contrary to common wisdom, the public is actually right much of the time. It’s at the big turning points where the public/weak hands goes wrong in a big way. And it’s the strong handswho “make them do it”. The strong hands/”manipulators” get the weak hands in a frenzy by allowing and also creating very “bullish” conditions which seemingly are taking over. So naturally what does one do when the conditions are “bullish”. Well, of course, we buy – that just makes sense – right? One problem though – markets rarely make sense, at least as far as common wisdom goes regarding markets. When I started in markets, they never made sense to me – they seemed to usually be doing what they “shouldn’t” be doing. And today they often still don’t make “sense” to me, it’s just that now, I’ve learned to wait patiently and to pick my spots to enter when they do make “sense” to me. And as to gold currently on a very big picture, we are in a massive area of accumulation concurrent with the beginning stages of a new bull market. This phase of the bull market began at $1043 gold last December, and I gave my first ( investment basis) buy recommendation in 7 years, with the focus on the miners.But it’s a weird situation currently, where you have the strong hands attempting to finish up most of their buying, while at the same time the overall supply/demand situation is very bullish and the line of least resistance naturally wants to go up. So you have the strong hands trying to rein gold in, but the supply/demand forcing it up. It’s why these situations are very volatile. But use these situations as a buying opportunity when the strong hands allow the shorter term distribution to take hold, and thus make it easier to force the market back down again. So I took my own advice to buy, when gold went below $1250 a few Fridays ago. In other words, it made “sense” for me to buy it there. Even though the lower levels (marked on the chart) make even more “sense”. But in a bull market, what makes the most “sense” often does not materialize. And when the market does get into a full fledged bull market, it will be very tough to buy. My belief is the $1435 area is the area where we’ll start seeing that.
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.