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TG Watkins – Technical Outlook On General Equities After The Recent July Rally In The Markets

TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website, joins us to review his technical on the rebound in many sectors in the month of July, and where resistance may come into play.   We start off discussing the big rebound we saw in sectors that were more oversold like big tech companies and even the smaller growth tech, big components in the Nasdaq. 

 

When discussing the general equity markets TG is looking for the S&P 500 to go back up to test the 200 day SMA, 50 week SMA, and 10 month SMA, before rolling back over to retest the recent lows, and possibly head even lower.  We also talked about how recent weakness in the oil markets may be another signal to watch, because often times when the energy markets turn down, it precludes another stock market decline.

 

As far as safer asset classes, TG noted that the consumer staples, like Coca Cola, Herseys, McDonalds, Costo have fared better than most assets, and even Apple has held up well.   TG also provides a few companies he like on more of a short-term trading basis like Zoom & Crowd.

Click here to visit the Profit Pilot website to follow along with TG’s trading strategies.

Discussion
23 Comments
    Aug 01, 2022 01:18 PM

    http://www.wallstreetonparade.com

    Crypto owners may be interested in the first article about backing by FDIC.

    Reply
    Aug 02, 2022 02:32 AM

    germany in recession eg euro….is america next?…rate relief already?… is gold favorable because the inflation here cannot be contained, yet….

    Reply
      Aug 02, 2022 02:24 AM

      Larry, gold is favorable because it is the only form of honest money, our governments will be forced to go back to a gold based system because it works and money printing backed by nothing is a failure. For the same reason crypto’s will fail. If you have a basket of currencies as the new form of exchange they will fail too, Why? Because they already are a failure, you can’t expect money backed by nothing to succeed. DT

      Reply
      Aug 02, 2022 02:00 AM

      Inflation is in a new secular bull market that will probably last for decades. Of course there will eventually be periods of relief that cause people to claim it’s over. Several decades of extreme debt growth will be accounted for while debt creation simultaneously goes parabolic. There’s no way the economy is positioned to “grow our way out of it” so be prepared for even more government and an accelerating decline in most people’s living standards. A century of increasing collectivism (unsound/immoral behavior) has consequences that vastly exceed any benefits.

      Reply
        Aug 02, 2022 02:24 PM

        Charles Nenner all year hasn’t had any problem calling for a 30 year protracted inflation going forward.

        Reply
    Aug 02, 2022 02:29 AM

    timing is in a window of favor-ability now for precious…centrals banks are hitting the rate spike limit…glta

    https://www.zerohedge.com/markets/miserable-german-retail-sales-crash-most-record-europe-slumps-recession

    Reply
    Aug 02, 2022 02:35 AM

    In spite of all the hoopla about this gold pop, roughly 5% or so in last couple weeks, the sector equities are far from outpacing the pop. Same old again.
    Still a underwater bagholder with an assortment 25% add on at june lows when gold was floundering around 1810. The 30% drawdown improved by dozen % or so. At this pace will need gold will above 1850 to break even unless sector equities finally decide to outperform.
    GDX up a couple bucks to 26.50 from low, needs to show a lot more life to get to may/june around 30.
    Not exactly the barn burner some bagholders claim.
    Joe the jury is out, after yelling get out for the past year and a half, this pop up remains mired in BS.

    Reply
    Aug 02, 2022 02:59 AM

    Rationalization: Now that Canada is back trading, up on the average for the last two days.

    Reply
    Aug 02, 2022 02:32 PM

    The bullish rise and breakout of SILJ:GDX came with the strongest RSI reading in 18 months. Even today with silver down and gold outperforming, SILJ is up vs GDX…
    https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=D&yr=1&mn=8&dy=0&id=p42736297555&a=1218749453

    Reply
    Aug 02, 2022 02:39 PM

    With a further 1.3% drop tomorrow, the HUI will have a good right shoulder for a possible H&S bottom with a bullish right side slant up.
    https://stockcharts.com/h-sc/ui?s=%24HUI&p=D&yr=1&mn=6&dy=0&id=p95397200408&a=1172579925

    Reply
    Aug 02, 2022 02:52 PM

    At the moment, with 9 minutes to go, my account zeroed out yesterday’s gains. Such a coincidence.

    Close:
    Monday: + 2.23%
    Tuesday: – 2.26%

    Kind of close to even. Hmmmmm….

    Reply
    Aug 02, 2022 02:17 PM

    Get out the popcorn!!!!!!!!!!!!!! The party is about to start!;-D

    https://www.kitco.com/news/2022-08-01/JPMorgan-dominates-gold-market-as-jury-deliberates-spoofing-charges.html

    “The trial also showed just how much the three traders made related to trading gold and silver. According to data provided to the court, Nowak, who led the trading desk, made $23.7 million between 2008 and 2016. Smith made $9.9 million over the eight-year period. And Ruffo made $10.5 million.”

    “According to Bloomberg, some members of the jury “gasped” when they heard how much the three made.”

    BTW, I watch BNN/Bloomberg a lot and have seen very little about this as conspiracies are a taboo topic. Much of the problem was the gov regulators doing nothing but collecting their pay throughout the Obama/Trump years while the Dow/S&P soared to new heights… and now the reckoning…

    Reply
      Aug 02, 2022 02:22 PM

      I bet the data provided in the trial is conservative. I hope the Jury understands the depth of the theft and corruption and doesn’t nullify the evidence thinking it “a little rigging” doesn’t matter. If they do, the thefts will expand.

      Reply
      Aug 02, 2022 02:20 PM

      And…strip them of earnings and take their licenses fir life.

      Reply
        Aug 02, 2022 02:20 PM

        They could possibly lose everything they bought during the course of the ripoff.

        Reply
          Aug 02, 2022 02:52 PM

          If convicted, it would be nice if they get a little leniency if they turn on Dimon before sentencing.

          Reply
    Aug 02, 2022 02:25 PM

    JP Morgan and Corruption Enabled by the Federal Government:
    RE: $ 920 Million Payout In Restitution
    To Victims
    Operative Word: Victims

    Discussion: When JP Morgan pled to the precious metals market manipulation felony, and was hit with $920 million in restitution, the Restitution Recovery Unit of the Justice Department solicited claims from “Victims” of JP Morgan’s fraud. Try to imagine who and how many people in the world were victimized by “market manipulation” of any sector of the markets and the impact on all other markets “around the world” whether previous metals or not.
    I decided to test their request for claims, and submitted a request for $5 million. They responded (how could they not) by providing me a “form” to complete. The glitch was that the “defined victims” of the market manipulation were those that bought “fraudulent paper contracts” and not those that bought physical or mining stocks or general market participants or mining companies or wholesalers or or coin sales companies or any derivatives of those.
    The second glitch was that the $920 mil was split about one-third of the amount paid in a fine to the Federal Government and not to an actual victim of fraud.
    In essence, the total $920 mil went to co-defendants in the paper market fraud scheme i.e. The Federal Government one-third and the Paper Market Contract participants two-thirds The actual victims (those listed above) go without recognition or being made whole in the “spirit and intent” of the Federal restitution statutes.
    So when you read that $920 mil punishment, ask yourself was it a punishment? Also ask yourself whether the money came from JP Morgan or the Future US Treasury as there is no audit of the Fed.
    Then ask yourself if these JP Morgan “traders” , if convicted can ever repay the actual victims of their crimes of manipulation. We, the real victims, along with the guy a mile down in some remote area of the world, risking his life and the future of his family in the darkest part of the mine … will not receive a dime of Restitution.

    Reply
      Aug 02, 2022 02:36 PM

      If a 150 year old company can have this much rot in it then there should be an opportunity to sue them right out of business. I thought the same about Volkswagen when they programmed the ECUs in their diesels to pass emissions test. Even the dinosaurs eventually died off…

      Reply
        Aug 02, 2022 02:57 PM

        Over many years, there have been many that have stated the only way to end the Corruption is to sue them with Class action suits. Of course, Congress has seen fit to require customers to sign agreements (the fine print we never read) that we submit ourselves to binding arbitration so disputes can be handled by administrative pro-corporate bodies that normally rule in favor of the ….corporation.

        Reply

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