The KE Report TG Watkins – Technical Trading Setups, Crypto & Cannabis Stocks, Tesla Breakout
Aug 15, 2025
TG Watkins, Director of Stocks at Simpler Trading and Profit Pilot editor, shares powerful trading insights. He discusses market seasonality, noting how recent trends defy August's typical weakness. Sector rotation is highlighted, showcasing a shift from mega-cap tech to small caps. The conversation shifts to crypto, with Ethereum's breakout and promising Bitcoin miners. Cannabis stocks are on the rise, driven by legislative hopes. Lastly, he analyzes Tesla’s resilience amidst challenges, emphasizing key trading strategies and support levels.
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Seasonality Vs This Market's Strength
- July's big advance usually leads to a subdued August as markets digest gains and take profits.
- TG notes this year may buck the trend because the market shrugged off hot data and focused on growth and rate-cut hopes.
Breadth Recovered After Early August Flush
- Market breadth worsened then recovered, moving from 80% to 40% of stocks above moving averages before improving.
- TG interprets the refresh in breadth as permission for the market to resume higher if rotation continues.
Revisit Small Caps After CPI Surprise
- Look for small-cap and equal-weight strength after CPI cooled, with IWM and RSP making new highs.
- Consider reentering small-cap plays as institutions cover shorts and rotation broadens.