TG Watkins – Precious Metals Outperforming, Will Market Weakness Continue?
TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website joins me to share his view on the recent market weakness and the precious metals (and commodities) outperforming for the last almost 2 months.
We start with TG’s assessment of the markets and if the correction this month is a natural correction or the start of a larger downtrend. We discuss the mixed moves in large tech stocks and the pullback in AI chip manufacturers. We also discuss time frame of the market pullback, which happened on the first day of Q2.
We then move to the sectors that are outperforming the market, which are commodities. We focus mostly on gold. Is this sideways move simply a consolidation of the recent gains?
Click here to visit the Profit Pilot website to keep up to date with what TG is trading.
Possibly but I think it just had to deal with that April 3rd gap:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=1&dy=0&id=p92859297792
Then there’s the channel breakout that needed backtesting:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=5&mn=9&dy=0&id=p69695994912&a=1655319765
There been a lot of volume in the .27-.28 area today which is a good sign in my book.
Maybe IPT is showing us what’s next for silver since SLV has its own April 3rd gap to deal with…
https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=0&id=p45645505935&a=1663367326
I might just be suffering from pp fatigue….been seeing it a lot lately for the small number of plays I’m in.
The Impact story is reminding of the Toronto Maple Leafs, who always have excuses for being losers in the playoffs. Time is up for IPT.
Loser? Impact is behaving perfectly well especially considering the (dilutive) purchase of that zinc producer last year. It jumped 171% in less than 2 months and is now having a normal pullback. The action since the low should cause chart watchers to be more enthusiastic buyers now than when it was at 14 cents in February.
It has a bunch of long term MA resistance above but watch out when it gets through it…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=9&mn=0&dy=0&id=p18508363206&a=1655309597
It could go lower but I will buy more if it does.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=0&mn=9&dy=0&id=p32369612876&a=1654079986
https://www.youtube.com/watch?v=st2nPpy-BNg
Michael Boutros, Technical Analysis:
02:54 – US Dollar (DXY)
10:12 – US 10-year (US10Y)
34:26 – Japanese Yen (USD/JPY)
44:15 – Gold (XAU/USD)
49:12 – Crude Oil (WTI)
51:40 – S&P 500 (SPX500)
‘My take’ appears to be working out.
Excellent buy opportunities coming.
Initial spot targets: 2213 / 25.64.
Jim Grant was on CNBS this morning telling the truth. Joe Kernen validated Grant’s comments by trying to “joke” them away. What’s new….
So, we really didn’t land men on the Moon?
That is correct …it was all women except for a miniature white poodle.
😉
CNBS actually allowed Grant to speak? Kernan attended the same high school that I did. Not something I’m proud of.
Yes … they let him speak but attempted to discredit him through jokes. Jim Grant, up until the financial crisis of 2008, was sthe “go to” guy on mainstream TV on interest rates and banking issues. He even admitted himself, that after he criticized Fed Policy, he was no longer asked to speak on national TV. However, now that The Fed has painted itself in a corner, Financial “experts” want to distance themselves, but not panic the serfs with truth about about the loss of value of the dollar, loss of Reserve Currency status, loss of the Petro Dollar, bankruptcy of the banking system, false data of the government, etc. They are phasing back in some people that don’t work for the Federal Government or the Banks but don’t want to acknowledge people like Jim Grant have been right all along.
Not a fan of the way the 2008 meltdown was handled, but for me personally, it was not a bad year.
Paid off my mortgage, then took a short position in Lehman Bros., proceeds from which met
80% of my expenses for the year.
Interesting:
US sanctions Russia and takes funds for Ukraine
Russian Court orders seizure of $440 million of JP Morgan funds.
Wonder if the $440!Million is US Treasury funds with the people being the losers.
Crime syndicates stealing from each other.
SLV has gapped lower and filled most of that gap that I’ve been watching. Notice that today’s low (with 20 minutes left) happened at a fork support so the gap isn’t completely filled yet.
https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=11&dy=0&id=p37938907714&a=1663367326
IPT could fall further without hurting the overall bullish picture. There’s fork support as well as the sharply rising 50 day MA at about .235:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=3&mn=11&dy=0&id=p41561979526&a=1069200136
SILJ also looks fine and is currently 10 cents above its 150 week MA.
https://stockcharts.com/h-sc/ui?s=SILJ&p=W&yr=3&mn=11&dy=0&id=p60228408647&a=1659293773
SILJ would have to fall 5% from here to fill its own April 3rd gap:
https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=0&dy=0&id=p83985325070
Thanks Matthew.
Such a Circus …
Wolfster’s suspicion about an IPT private placement was correct:
https://finance.yahoo.com/news/impact-silver-announces-c-6-152500264.html
I’m sure the new zinc operation is going to get the bulk of the new capital.
Interestingly, this PP will not have the usual 4 months-and-a-day hold on the new shares.
Warrants have 24 months. I guess it is all moot if prices are allowed to achieve fair value. Not sure if Wall Street knows how to find fair market anymore. Hard to stop picking losers and winners when you are always on the winning team.
Anyway…. the rest of the World is tired of Wall Street.
About a month ago when IPT uncharacteristically got ahead of itself, it was pretty obvious a pp was coming soon. Sold the whole shitaree at that time and wiped it off my watchlist. IPT is too small and inconsequential, with this steady diet of pp’s every 6-8 months.
“Every 6-8 months” is a byproduct of last year’s purchase of Plomosas (which I believe was a great move).
The only thing that’s changed compared to previous great moves is that IPT has far more going for it this time. It smoked large companies of consequence in 2020, 2016, etc. and it will likely do so again.
Might be wrong but wouldn’t be surprised if impact is about to announce another pp.