TG Watkins, Director of Stocks at Simpler Trading and editor at the Profit Pilot website, joins us to discuss the continued volatility in these markets, and which areas he’s still shorting, contrasted against sectors that have run higher. We review the macro factors showing weakness under the surface of the general markets, and combine that with TG’s technical outlook for why he was anticipating this recent market rout, and why he was so active to the short side. This period of time has a parallel with the Dot Com Bubble bursting, and we review that many stocks didn’t bounce and in fact never recovered, and prior leaders were not the leaders that emerged, or took large amounts of time to recover after that similar corrective period.
Next we look at some of the positive traction that the defensive and safe haven sectors that have run recently on the geopolitical factors like the US dollar, bonds, gold, oil, agricultural products, and cybersecurity sectors. TG makes the point that they weren’t in focus for him recently, but that is OK and urges investors not to try to follow everything but to pick their spots and wait for the right trade set ups in the markets or stocks they know and understand best.