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 give you a quick recap. Be sure and check out the MarketWatchers LIVE ChartList for many of today's charts. 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?
Erin and Tom opened the show with a discussion of the big declines in today's market. Tom covered the lagging Transports industry group that he also covered in today's Trading Places blog. Treasury yields ($TNX) suffered greatly with yields down over 4% at one point.
Dow was being hit hard and seems to still be suffering as of publishing:
Agree or Disagree? In this regular segment, Tom and Erin will come up with a question about a chart or industry group and agree or disagree on their outlooks. Erin posts the Agree or Disagree polls on Twitter to find out what you think. The current Twitter poll is here. Tom discussed seasonality and showed how the SPX typically suffers during the June - September timeframe. Given current conditions, do you believe the SPX will be 2% lower, 2% higher or flat on September 30th? Tom and Erin agreed the SPX would likely be 2% lower than today on September 30th.
Ten in Ten Before One: In this regular segment, Tom reviews ten charts in ten minutes with Erin's comments and comments from the Twitter "peanut gallery" peppered in there. 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. Tom annotated and discussed the following symbols today: CRM, FEYE, WDC, BX, NTES, COP, BAC, AWR, VEU, TZA. When asked whether he would hold BAC, he replied that he would hold it but watch to make sure support is held.
AWR was requested as it came up in a PMO scan that a viewer ran yesterday. It would nice to see a breakout above previous resistance around $45, but the MACD reset and PMO BUY signal are encouraging.
Erin was first asked about gaps and whether they all close. Quick answer is yes, most do close. Exhaustion gaps should close in a few days to a week. Most other gaps (breakaway, area, common, runaway) typically will close within a one to two week period according to Thomas Bulkowski in his book, Visual Guide to Chart Patterns, found in the StockCharts.com Store. Tom was asked what he meant when he talks about a stock going "parabolic". Tom sees fast moves to the upside that show too much bullish exuberance as "parabolic". Erin used the example of AMBA of a parabolic move. Typically after these moves you get a very very quick crash that will take you back to the previous basing pattern that was in place before the parabola.
It's a Wrap! In closing Erin said that she would be watching SPX support near the 2325 after seeing a probable PMO negative crossover SELL signal. Tom said he will be watching to see if the market can recapture support at the 50-MA at the close.
Tune in on Friday at 12:00p - 1:30p EST on 05/19. We'll be asking for your sentiment regarding the market next week, revealing the answers to our Agree/Disagree poll, and taking your symbol requests for the popular Ten in Ten to One segment!
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