MarketWatchers LIVE

5/22 - MarketWatchers LIVE Recap - Monday Set-ups - XLP/XLY Relative Ratio

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

 

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 with live market updates and symbols that are hot.

Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p shows, but in the MWL Blog 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 and/or #mktwatchers, email is marketwatchers@stockcharts.com and our Facebook page is up and running so "like" it at MarketWatchers LIVE.


What Happened Today?

Monday Set-Ups:

Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week. Tom's charts included PVH AXP CHTR CRL SCSS and CTAS. Erin's PMO scan didn't turn up much for today, but she did like CPT and CCP.

DecisionPoint Report: Erin reviews DecisionPoint Indicator sets, sectors and the "Big Four", (Dollar, Gold, Oil & Bonds). UUP has busted a bullish wedge pattern which I find especially bearish for the Dollar. Today UUP broke down below support at the November low. The next area of somewhat strong support could lie around $24.90. I say this is UUP's last best chance to find support. If that level fails, I'd be looking toward last year's August lows around $24.30. Good news is that the PMO is getting oversold, but it is still accelerating downward which is bearish.

For more DecisionPoint analysis, be sure and subscribe to the DecisionPoint Blog. Erin and Carl review the general market, indicators and "big four" on Tue/Thur/Fri.

 

Ten in Ten Before 1: In this regular segment, Tom reviews ten charts in ten minutes, with 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 reviewed today included BAB, BIDU, NKE, GIS, ELY, DDD, INSY, GM, LMT, FDC. For all ten annotated charts, check out the MarketWatchers LIVE shared ChartList. The link is at the top of our blog or you can click here for a shortcut!

 

Relative Ratio XLY:XLP Tom looked at the relative ratio between Consumer Discretionary SPDR (XLY) and Consumer Staples SPDR (XLP). For a bull market, you want to see discretionary sector doing well. When consumer staples begin leading that represents caution on the part of investors and could suggest a pullback or correction.

 

Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. One of the questions received was whether a PMO BUY signal is more accurate than a PMO SELL signal. First off, it is a simple numbers game. If you're in a strong bull market--your PMO BUY signals will generally be more successful and vice versa in a bear market. A signal tends to be more accurate when it arrives in overbought or oversold territory as well. For more on this, check out today's DecisionPoint blog article (when it's published!)

It's a Wrap! In closing Erin discussed the Twitter viewer sentiment poll from Friday. The majority of viewers felt the market would close lower this week while the "pros" were more bullish with 53% believing the market will close higher on the week. Look for our Twitter polls at @mktwatcherslive. 

First for the "Pros"...Wall Street Sentiment Survey is conducted after the market close on Friday where participants are asked, "Will the market close lower, higher or flat next week?" You'll find the Wall St Sentiment chart below, followed by our Twitter results.

Looking Forward:

Tune in on Wednesday at 12:00p - 1:30p EST on 05/24. Erin and Tom will do the popular "Agree or Disagree" segment. They will also be answering more mailbag questions, doing another Ten in Ten to 1 segment as well!

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Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More