TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website, joins us to review his technical outlook on the general equites as well as the energy sector. The recent 5 day bounce in equities looks to be more of a short-covering rally, but overall TG is more apt to short the markets and various general sectors again once things approach resistance levels. We discuss some of the pricing action in relation to key moving averages that have his attention.
Next we shift over the commodities sector taking a look at the recent undercut double-bottom patterns created in gold and silver, and covered how silver’s support down at $17-$18 goes back 15 years, and it was a natural place to see a rally up to fill the gap that was created on the charts.
We wrap up with getting the technical levels TG is watching in energy sector starting with oil via (USO), where he could see a bit more choppy volatility, but ultimately expects to see more weakness. If oil stays more rangebound to heading lower, then he doesn’t see how this will bode well for either (XOP) or (XLE), ETFs that represent the oil stocks. One area of note that we see a strong fundamental future in is the nuclear energy sector and related uranium stocks. Despite the longer-term macro, he doesn’t think the uranium stocks can remain being “honey badgers” and do their own thing, and expects prices to stay more rangebound in the near-term as a result. TG lays out some levels he is watching in US natural gas using (UNG), which has really been on a tear higher, and then reviews the more sideways and mixed technical set up than with oil.
Click here to visit the Profit Pilot website to follow along with TG’s trading strategies.