TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website, joins us to review his technical on the rebound in many sectors in the month of July, and where resistance may come into play. We start off discussing the big rebound we saw in sectors that were more oversold like big tech companies and even the smaller growth tech, big components in the Nasdaq.
When discussing the general equity markets TG is looking for the S&P 500 to go back up to test the 200 day SMA, 50 week SMA, and 10 month SMA, before rolling back over to retest the recent lows, and possibly head even lower. We also talked about how recent weakness in the oil markets may be another signal to watch, because often times when the energy markets turn down, it precludes another stock market decline.
As far as safer asset classes, TG noted that the consumer staples, like Coca Cola, Herseys, McDonalds, Costo have fared better than most assets, and even Apple has held up well. TG also provides a few companies he like on more of a short-term trading basis like Zoom & Crowd.
Click here to visit the Profit Pilot website to follow along with TG’s trading strategies.