TG Watkins – The Market Pullback Has Reset Many Overheated Metrics, But Is There More Downside?
TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website joins us to focus on the US markets and how he is trading at the moment. At the start of this month TG outlined why he thought a broad US market pullback could actually be good for the markets through a rotation of money into lagging sectors. We now follow up to get TG’s thoughts on the 3 week pullback.
TG shares some interesting breadth data which shows just how overheated markets were. He also outlines what he is looking for in the charts to signify if a turn back to the upside is coming. As TG says it’s more about short term trading strategies right now.
Click here to visit TG’s Profit Pilot website to keep up to date on what he’s trading.
The 200 day MA has capped the dollar so far…
https://stockcharts.com/h-sc/ui?s=%24USD&p=D&yr=0&mn=11&dy=0&id=p01721997666&a=1459851050
Silver looks great. It turned up at its 1 year uptrend and 250 day MA (250 trading days per year) and was able to take back its 200 day MA today. A new low would not be good at all.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=6&dy=0&id=p85803222625&a=1480270499
Silver also poked through its 50 and 200 week MAs before turning up which adds to the significance of the low and therefore the bearishness that would result should that low fail.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=3&mn=0&dy=0&id=p99544966566&a=1463850175
agreed….caveat…we are NOT in a world yet…where gold miners will be up in price as the general equities sell off…when that does happen……free at last free at last…glta
I think if we are in such a world soon it will be a sign that stocks are not going to crash but will just fall in a sort of 2000-2002 fashion as most “buy the dip” all the way down. Bulls climb a wall of worry while bears slide down a slope of hope.
HUI and QQQ 2000-2003
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&st=1999-09-30&en=2004-06-30&id=p52312812183&a=1484628469
i saved that chart….and i know you know Matthew. many think this intermediate correction lasts thru May or so of 2024…glta
Here’s a current version of the chart above:
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=6&mn=0&dy=0&id=p36594080504&a=1484643341
Can’t keep up with all the news as I am inundated with news about the Johannesburg Conference ………..Not
Bitcoin is among the most speculative assets so it is unlikely to buck a bear market in stocks.
https://stockcharts.com/h-sc/ui?s=%24BTCUSD&p=W&yr=5&mn=11&dy=0&id=p84075243827&a=1185465934
GDXJ vs GDX is another score for the bullish case…
https://stockcharts.com/h-sc/ui?s=GDXJ%3AGDX&p=D&yr=1&mn=6&dy=0&id=p24020493077&a=1484686872
The same goes for GDXJ vs DIA…
195 minute chart (2 price bars per day)
https://stockcharts.com/h-sc/ui?s=GDXJ%3ADIA&p=195&yr=0&mn=3&dy=11&id=t0993254989c&a=1484697670&r=1692696241571&cmd=print
weekly GDX does look better to buy down around 25.50…..https://tos.mx/Hstpaqi
same story /GC december weely…clearly looks more complete w more correcting down to1835 area…..https://tos.mx/vhUv8mv
Algos have failed to keep track of the phony metals price setting markets as my account is showing the same up/down pattern and daily loss of 1-2% at open and close as every other day. I think if you are going to run a phony intervention price market you should at least follow it. How can you explain the same individual account algo activity if you fail to follow your false data. Very frustrating that they aren’t even good criminals. Metal prices all doing well in the phony paper markets.
https://www.zerohedge.com/geopolitical/us-will-be-forced-embrace-gold-or-become-isolated