The Weak Hands Do It Again

The Entry Points

From May 9th premarket – recap:

….Having said this, the $ is at a resistance area short term. Gold is mainly weak now because of the Yen. This week should see a bottom in the Yen. Silver is quite oversold, and is nearing that first support area I talked about – $16.10….

The weak hands were at it once again – freaking out about silver and the Euro, right into their tradeable bottoms. We had a totally different view at the time, and laid it out in charts and in videos, about the opportunities on the long side, and did a recap lesson here. Sell stops create opportunities. I’ve been expounding upon this ever since I started writing in public. Why do people keep doing this to themselves? In December 2015 they were convinced gold was “crashing”; right before the election in November 2016 they fervently believed gold was going to the moon; and in December 2016 they were convinced bonds were crashing and the $ was going to the moon. Recently, the weak hands were convinced silver was breaking out at $18.50, but it was actually about to go into freefall. And below $16.10 the weak hands were sure manipulation meant continued freefall. We took the other side of all of those trades. Why? Because the weak hands always, always are on the wrong side at turning points. The weak hands  basically are the definition of a turning point.

The weak hands focus on the outcome, like “OMG. Billionaire Eric Sprott said silver is going to $250, I have to buy it this second!”. And the weak hands also operate in the markets via emotions. They lazily look at a chart, and if it’s up, they’re bullish, and if it’s down, they’re bearish. And the weak hands also believe the higher a market is going, then the more bullish it is. So buying it, at the market, is a very wise, prudent, and risk-free maneuver. Well geez, everyone else is buying it, so “I want in on the action”. And the more upward slanted the price chart is, then the more excited the weak hands become. And then the more confident they get and then they throw their money right into the market. As the uptrend keeps going, and more weak hands jump aboard, then the more obnoxious and cocky they become. They ridicule and sneer at anyone who has the audacity to claim that their cruise ship is about to hit an iceberg. Because they look at their charts and all of their moving averages are pointing up. These charts look great when prices are in a sustained move higher. The moving averages all “say” buy, buy, buy. The support areas are “holding”, and the trendlines  are slanting up, up, up. Who wouldn’t be confident? Thus they seek out the GURUS who tell them what they want to hear. And these GURUS gain fame and fortune without taking any risk themselves (thanks to the weak hands). The GURUS conjure up completely bogus, factless theories about horrific outcomes and crashes and mayhem, and they predict stratospheric prices for what the weak hands want to buy anyway. While at the same time, not saying a word about manipulation being the “reason” the market is headed higher. But certainly claiming a “commercial signal failure” is imminent. It’s been “imminent” since 2010. So the trend is getting shaky, it’s stalling, but the weak hands are obnoxiously claiming the market is “hanging in there”. And then, guess what? The weak hands will buy way too close to the highs, with all of their compatriots, and the market will selloff, like it always does. And then the cycle repeats as the selling begins, and the idiotic claims about manipulation come in.

And a reminder to all of the weak hands – the “manipulators” have never once forced anyone to buy a long position.

 

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About traderscott 729 Articles

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.

3 Comments

  1. Good synopsis… Rinse, wash and repeat. … like herding sheep to the to the next shearing…. getting it coming and going. …

    • Don’t want to make this business sound easy bro, but it’s doing the exact opposite of the weak hands at the turning points, and that is the key – recognizing the potential of a turning point. And we can get pretty good at that, but seriously at a minimum, when they are climbing over themselves like at Walmart to be the first to buy the Sceptre LED for $50, stay far, far away. And right there, what a world of difference that can make in performance.

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