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TG Watkins – Markets Lose Momentum, Opportunities In Interest Rate Sensitive Sectors

Cory
July 2, 2024

TG Watkins, Director of Stocks at Simpler Trading and Editor of The Profit Pilot Website joins me to outline the opportunities he is seeing for longer term investors in this market environment where upside momentum has been lost.

 

We start with the recent momentum shifts in the S&P and NASDAQ, the performance of interest rate-sensitive sectors like small caps and regional banks, and the outlook for precious metals and ETFs such as GDX. TG shares his thoughts on potential Federal Reserve interest rate cuts, summer trading patterns, and the broader market environment as we approach the Fourth of July and the end of the year. Right now he is looking at the regional banks and small caps as having a potentially very bullish set up for when the Fed actually starts cutting rates. 

 

Additionally, TG offers insights into the current 30% discount available at Simpler Trading.

 

Click here to visit the Simpler Trading website

Discussion
15 Comments
    Jul 02, 2024 02:14 PM

    Irving Kahn a Wall Street trader said in 1928, ” Most of the time people are Greedy”! If you didn’t have greed, you wouldn’t have a stock market.

    After The Market Crash in 1929 he said, “The Two things that define humans are Folly and Greed verses Reasoning and Restraint.”

    In 1932 a lot of laws had been enacted to protect the economy, they have since been cancelled because Greed is the strongest of human emotions and the rulers have short memories because they know the public has forgotten real hard times and greed has them motivated. DT

    Reply
    Jul 02, 2024 02:20 PM

    IPT finished at a declining fork support that it last hit over 2 months ago. An important difference between the two hits is that the first one happened on 15 times the volume of today’s move.
    https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=2&mn=3&dy=0&id=p94806802781&a=1443777374

    Reply
    Jul 02, 2024 02:28 PM

    No Nvidia in Your Portfolio? ‘You’re Just Toast’
    The average stock in the S&P 500 is lagging behind the index by most since at least 1990

    Charley Grant – Wall Street Journal – July 1, 2024

    “In this year’s bull market, there are artificial-intelligence plays like Nvidia NVDA -0.96%decrease; red down pointing triangle—and then there’s everything else. As the second half of the year begins, investors are wondering whether something has to give.”

    “Enthusiasm for the chip maker, whose products are seen as essential to powering AI technology, kept building through the second quarter. Nvidia reported sales and profits in May that blew past Wall Street expectations for the fifth consecutive quarter. The stock rose 37% in the second quarter and is up 149% for the year.”

    “Much of the rest of the index has languished. The average stock within the S&P 500 is up 4.1% this year, while the broad index is up 14.5%. That is the largest underperformance since at least 1990, according to Dow Jones Market Data. Six of the 11 sectors in the index declined in the second quarter, including financials, energy and industrials.”

    The divergence has some value investors throwing up their hands.

    “We can’t keep up because we don’t own Nvidia,” said Max Wasserman, co-founder and senior portfolio manager at Miramar Capital. “If you don’t own that one stock, it really hurts. Every day feels like a root canal without novocaine.”

    https://www.wsj.com/finance/stocks/no-nvidia-in-your-portfolio-youre-just-toast-1a166572

    Reply
      Jul 02, 2024 02:30 PM

      The herd of generalist investors all piled into Nvidia, better hope it just keeps surging higher to the moon, and doesn’t roll over and find gravity with a more reasonable valuation anytime soon.

      If that were to happen, the headline could shift to “If You Own Nvidia In Your Portfolio You’re Just Toast.”

      Reply
        Jul 02, 2024 02:31 PM

        It’s not just them all investors will feel the undertow, the whole market is listing on one side and when they try to right the rowboat in the middle of the Atlantic it will sink fast. DT😜😏

        Reply
      Jul 02, 2024 02:31 PM

      The tooth is dead when you get a root canal so no need for novacaine

      Reply
        Jul 02, 2024 02:14 PM

        I just had a root canal, and they used plenty of novacaine, as you’d still feel the pain from removing the roots (nerves) without it. They also injected something up to into the space to help my tooth recalcify and grow, even though it is “dead” from a nerve standpoint now. There are still nerves around the gums and tooth that also remain sensitive.

        So that line from the article makes sense: “Every day feels like a root canal without novocaine.”

        Reply
          Jul 03, 2024 03:04 AM

          I had a molar done in 1967. Dentist insisted the tooth was dead and no freezing necessary. Frontier dentistry back in the old days in northern Canada.

          Reply

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