September Weakness, Precious Metals Strength, and Trading Setups - with TG Watkins
Navigating market pullbacks, seasonality, and fresh breakouts in gold and silver.
Markets stumbled out of the gate in September, but TG Watkins, Director of Stocks at Simpler Trading and editor of Profit Pilot, explains why this weakness was expected, and how traders can spot opportunity in the pullback. From seasonal corrections to metals breaking out, TG shares where he sees setups forming for the weeks ahead.
Key Takeaways from TG Watkins
Seasonal Weakness Is Playing Out
August closed at all-time highs, but TG notes “internals showed no volume - institutions weren’t really moving money.”
September often brings corrections, with calendar-driven book-squaring and the “Sell Rosh Hashanah” effect adding to downside pressure.
Corrections Are Healthy, Not Alarming
TG: “I’d love to see things go lower… we need these pullbacks to refresh the market for the next leg higher.”
Watching SPX, NASDAQ, and SMH weekly charts, TG highlights the need for prices to retest weekly moving averages before setting up a new rally.
Precious Metals Are Breaking Out
Gold futures surged toward $3,600, silver broke above $41, with miners (GDX, SIL) showing leveraged upside.
TG notes setups: GDX flagging into the daily 50-day was “the easy trade,” while SIL clearing the 2016/2020 highs confirms bullish breakout momentum.
Crypto Shows Relative Strength
Despite equities sliding, Bitcoin-related names like Coinbase (COIN) are “already sitting on support” after prior pullbacks.
TG expects the space could rebound once September’s weakness runs its course.
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