TG Watkins, Director of Stocks at Simpler Trading and editor at the Profit Pilot website, joins us to discuss the new watchlist of companies he is following as the market trends have shifted from growth stocks in 2021 to value stocks in 2022.
We start off looking at defensive stocks in the semiconductor sector mentioning examples like the VanEck Semiconductor ETF (SMH), Applied Materials Inc (AMAT), and Advanced Micro Devices Inc (AMD). We also discuss the stronger trend in consumer staples sector in names like Coca-Cola Consolidated Inc (COKE), PepsiCo Inc (PEP), Sprouts Farmers Market Inc (SFM), Coty Inc (COTY), and the Consumer Staples Select Sector SPDR® Fund (XLP).
Next we pivot over to the precious metals as safe haven and defensive plays and TG mentions he likes the set up in both (GLD) and (GDX), after seeing a “trampoline move” using his Moxie indicator, as well as a solid double-bottom chart pattern in both.
We wrap up getting thoughts on sectors that were hot to start 2021 with the change in US administrations, like EVs, solar stocks, and pot stocks, and now they are not so hot. While these sectors have corrected in a big way, TG doesn’t see a discernable trend in them for now, and is wait for more data to indicate a turn in those sectors.
Click here to visit the Profit Pilot website to follow along with what TG is trading.