Welcome to the recap of Wednesday's MarketWatchers LIVE show, your antidote for the CNBC lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market with live market updates and symbols that are hot.
Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p shows, but we will try to incorporate a few charts that you found the most interesting during the show (or that we found most interesting!). Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, Email is marketwatchers@stockcharts.com and our Facebook page is up and running so "like" it at MarketWatchers LIVE.
What Happened Today?
Market Update/SCTR Movers/Earnings:
Every Wednesday, Tom and Erin start the show off with any important earnings announcements, economic news and developing news in the major markets. Today we focused on SCTR Movers using the table on the homepage. We looked at those making big moves higher and lower. This was one of the big SCTR movers today.
Market Updates: Erin reviews the intraday action of the major indexes, sectors and the "Big Four", (Dollar, Gold, Oil & Bonds). Erin went over her ultra-short-term indicators to specifically note the VIX's readings gapping and reaching overbought territory. In the very short-term time frame usually a penetration of the Bollinger Band marks a reversal. With the VIX closing slightly higher today, the penetration of the band isn't likely so in this case, Erin wasn't looking for a major pullback or correction, more likely a drop back to gap support before moving higher.
Agree or Disagree? In this regular segment, Tom and Erin will look at two charts and agree or disagree. Erin posts the Agree or Disagree polls on Twitter to find out what you think. Today Tom and Erin reviewed Apple and Amazon. To put us on the spot a bit more, Tom decided that we would decide make the question, "Would buy it today or not." Tom said that he would wait to make the trade but he was bullish on them both. To be cheeky and to make it more interesting, Erin said that she would buy them today based on both of their analyses. FYI - She didn't buy either of them. From Erin: "Truth be told, after the close today, Apple doesn't look quite as appealing, although Amazon still looks pretty good." Do you agree or disagree? Would you have bought either of these stocks today? Take the polls here on Twitter!
Ten in Ten Before One: In this regular segment, Tom reviews ten charts (from those requested) in ten minutes at ten minutes to 1p with Erin's comments and comments from the Twitter "peanut gallery" peppered in. Send in your symbol requests via Twitter (@mktwatcherslive) before the show and we'll try and add them. If we missed them this show, we have many of them in the queue for Friday. Today Tom both looked at TGTX GILD PAYC FAST ADBE OCLR ETP IMGN CFG LEA
Tom says that the weekly chart showed a nasty negative divergence had developed over a 4-5 month period and that the apparent slowing momentum was still unwinding. OCLR was getting very close to a 50 week SMA test, however, and its weekly MACD had fallen close to centerline support (pink arrows). The reward to risk is improving with each tick lower in price.
Anatomy of a Trade: Doing something completely new, Tom and Erin went through the process they each go through to seek a good trade. Tom pointed out that he had been watching DHI as it formed a negative divergence, suggesting a possible upcoming test of its MACD centerline and 50 day SMA. A few days later, that's exactly what he got. The previous top was highlighted by a reversing bearish engulfing candlestick while the bottom saw a hammer form. Tom disclosed that he had bought DHI this morning after watching these technical developments in one of his ChartLists. For more information on Erin's style, she wrote an article on how she uses her PMO scan and CandleGlance to find trades.
It's a Wrap! In closing Tom and Erin both agreed that we should continue to see higher prices, but a small pullback may be required.
Looking Forward:
Tom will be out on Friday so Greg Schnell will join Erin to co-host this Friday's show! Tune in at 12:00p - 1:30p EST on 04/28 for bonus information on how to use the SCTR and Greg's unique analysis of commodities.
