TG Watkins – Trading the Trump Trend and Parabolic Precious Metals
In this daily editorial, TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot, analyzes the explosive start to 2026. As political headlines from the Trump administration drive massive sector rotations, TG discusses how his technical process identifies institutional “footprints” beneath the noise.
From the sudden reversal in homebuilders to the vertical moves in silver and gold, we explore how to manage risk in parabolic markets. TG also provides a preview of his “State of the Markets” presentation (happening tomorrow, January 13th), where he will dive deeper into the recovery of small caps, the potential bottoming in cannabis and crypto, and the technical indicators signaling a shift away from Mega-Cap Tech.
Key discussion points:
- Bullish Small Caps & Broad Market Rotation: TG highlights a healthy shift away from mega-cap tech into small caps (IWM), mid-caps (MDY), and equal-weight indexes (RSP). This is fueled by a “sweet spot” of low unemployment and an increasingly dovish Fed.
- Homebuilder Resilience: Despite restrictive housing policy headlines, homebuilders (XHB/NAIL) showed strong institutional “footprints” and technical reversals, signaling that the lower interest rate environment is the primary driver for the sector.
- Precious Metals Velocity: Silver has entered a parabolic phase, skyrocketing from $50 to over $80 in a month. TG cautions that while the trend is intact on the hourly 50 SMA, the vertical move lacks technical support levels, increasing the risk of a sharp reversal.
- Crypto & Cannabis Bottoming: TG sees “percolating” strength and a double-bottom pattern forming in Bitcoin and Ethereum, alongside renewed interest in the cannabis sector following recent reclassifications.
Click here to visit TG’s site – Profit Pilot – https://www.profit-pilot.com/
For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/
Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
For somebody who is always complaining about corruption and theft you aren’t very smart when you make a post like the one you just made above. You are setting yourself up to be a mark. DT
I do not understand a thing you said but I will send you half of it. The check is in the mail. Please contact Schwab if it fails to clear.
https://www.tradingview.com/x/5bDGtNb0/
DOLLAR : Current AB.CD = 99.775
For a few seconds I had a good day with Schwab (again). This time instead of one stock going up in the millions, my whole account with about 45 stocks… they all went into the millions. Then reset …maybe they were just estimating my end of week account value. (It happened again. I was disappointed as it was only $75 million total)