TG Watkins – Technical Factors To Watch In US Equities, The Dollar, Gold, And Cryptos
TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website, joins us to share the technical levels and key moving averages he’ll be watching to see where support comes in and holds for US equities, the US dollar, gold, and the cryptos. TG points out that in many stocks in the general equity markets or the S&P 500 index that recent bounce off the 21 day moving average has been encouraging, but he is watching to see if the 50 day moving average is tested next and will hold as a key line in the sand. The greenback has been in an overall downtrend and may just be putting in an oversold bounce, while inversely gold and the precious metals sector have put in solid new uptrends and may just be putting in an overbought pullback. Cryptos surging recently also has TG of the belief that there may be more legs to the rally in most markets, with more of a risk-on posturing from investors.
We also discussed some of the recent market moves on the back of a string of financial reports, and what would constitute a “soft landing” in the economy. It really comes down to if we’ve seen the recession already play though last year, or if there is another contraction period for more of a “double-dip recession.” Regardless of how it plays out, TG sees a lot of individual stocks and smaller sectors of the markets having already had their bear markets, and that we may see a basing and then lift in many equities regardless of the trends in the larger indexes or large-cap leadership.
Click here to visit the Profit Pilot website to follow along with what TG is seeing in the markets.
I reiterate my call to sell SOXX and buy silver/silver related. SOXX still looks strong relative to silver but if it does manage to break out here it will likely be a bull trap. It’s just too late in the daily cycle as well as too overbought to sustain such an advance. Obviously this is a short term (daily chart) call for now.
SLV bottomed precisely at its 200 week MA today after topping just a few weeks ago perfectly at fork resistance. I don’t know how anyone could be bearish this picture…
SLV also tested its 50 week MA for the first time since November.
GDX filled most of its January 3rd gap today.
Silver jumped (from Schiff fork support) 11% versus sugar yesterday.
It was kinda a boring day in the resource sector stocks, with my personal portfolio essentially flat on the day, and some of the PM mining stock ETFs like GDX, GDXJ, SIL, SILJ, GOEX, down about half a percent on the average.
In light of the fact that my JDST position had continued to grow in weighting inside the portfolio, and that we haven’t been seeing big selloffs in the mining stocks, I decided to trim back that position by about 1/3 today to pull some profits and add to a few individual PM stocks that were continuing to correct like SCZ, EXK, GROY, GATO, and IAUX.