Welcome to the recap of Monday's MarketWatchers LIVE show, your antidote for the CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market. Use the convenient "ON AIR" button from the StockCharts.com homepage during show hours and listen while you peruse your own charts!
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!). Be sure to bookmark the "MarketWatchers LIVE ChartList". You can reach it using the link at the top of this blog or by clicking here. Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, Email is firstname.lastname@example.org and our Facebook page is up and running so "like" it at MarketWatchers LIVE.
What Happened Today?
Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week. Today's charts included CSCO as well as AXP, which he featured in his blog this morning. Erin's scan produced FEMS, LIT and SR. You'll find the charts below and charts from previous shows in the MarketWatchers LIVE ChartList here.
Indicators/Sentiment/Polls: On Mondays Erin reviews the latest sentiment charts, reviews our polls and reviews DecisionPoint indicator charts in ultra-short term, short term and intermediate terms to prepare you for the week. On Friday we ask our viewers whether they believe the market will close higher, lower or flat the following week. This poll is similar to the Wall Street Sentiment Survey taken on Fridays by professional market timers. Erin reported the results of both polls.
DecisionPoint Report: Erin gives viewers their dose of DecisionPoint analysis. Today she looked at the charts that can be found in the DecisionPoint LIVE ChartList. Overall her indicators suggest short-term internal strength as they tick back up from somewhat oversold territory. The PMOs on the major indexes are reversing back up. The intermediate-term indicators are moving bearish which is a concern. However so far, bearish indicators have been relieved with consolidation and not a deep decline.
Ten in Ten Before 1: In this regular segment, Tom reviews ten charts in ten minutes, followed by Erin's comments and comments from the Twitter "peanut gallery". Send in your symbol requests via Twitter (@mktwatcherslive) before the show and we'll try and add them. Symbols covered were: XEL, AAOI, XSD, DDD, UNG, LUV, MACK, GG, GT, and GLYS.
"Stock A has a 'good' chart with a 10 P/E and Stock B has a 'great' chart with a 100 P/E. Which do you buy?"
Great question! In fact, so great, we want to know your answer! You can take the poll right here on Twitter! Both Tom and Erin gave their reasons and ultimately agreed that the chart is more important than P/E. They both freely admitted that they have invested in stocks without even looking at the P/E before or during the trade.
It's a Wrap! Final thoughts.... Erin: "I'll be watching the play between Gold and the Dollar this week" Tom: "I'm watching the S&P 500's breakout of cup with handle near 2400 price resistance"
Tune in on Wednesday at 12:00p - 1:30p EST on 05/17. What is on tap? "Agree or Disagree?", "Ten in Ten to One", and they'll be answering your mailbag questions!