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.
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Click here to visit the Profit Pilot website to follow along with what TG is seeing in the markets.