We apologize for technical difficulties this afternoon that resulted in a cancellation of today's show. However, Tom and I, in preparation for the show came up with our charts for "Monday Set-Ups". So in lieu of today's show, we're sharing the charts we think you should watch this week.
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Monday Set-Ups:
Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week. Tom's picks are NetEase.com (NTES) and Caterpillar (CAT). Here is a link to his commentary on CAT from this morning's Trading Places blog. Tom explains NTES, which gapped up with earnings, has just filled its gap. He's looking for a quick pop pre-earnings. Remember NTES reports earnings Wednesday after the bell.
Erin's set-ups for today came from one of her PMO Scans. I've listed the scan below the charts so that Extra members+ can copy and paste into the Advanced Scanning Workbench. Erin's thoughts:
First is Fastenal Co (FAST). We get asked nearly every show to look at FAST. This is a set-up worth watching in the short term. I'm seeing a double-bottom which I note is in a positive bullish divergence with the OBV bottoms. At this time, we haven't seen a breakout above the neckline, which would execute the double-bottom. If it does execute, the move should reach $48 where gap resistance lies. I like the PMO sitting in oversold territory on the precipice of new BUY signal. The SCTR seems to be improving slightly as well. Double-bottom support is at the August high and should hold.
My second pick is Surgery Partners, Inc (SGRY). Currently the Healthcare SPDR (XLV) is in the "leading" quadrant on my RRG Chart. I like this chart. The PMO is nearing a nicely oversold BUY signal. Note that the OBV tops have been mostly straight across even though price tops have been sliding quickly downward. The SCTR is improving and I always like to see a rounded bottom. Currently price is stuck below resistance at the November top, but a breakout on a PMO BUY signal would be very promising.
Here is the PMO Scan that dropped these charts in Erin's lap.
// Narrows down the universe to US stocks with decent volume and a close above $10
[type = stock] AND [Daily SMA(20,Daily Volume) > 50000]
AND [country is US]
AND [Close > 10]
// This identifies a PMO that hasn't yet had a positive crossover its signal line
AND[today's PMO Line(35,20,10)<today's PMO Signal(35,20,10)]
AND [today's PMO Line(35,20,10) > yesterday's PMO Line(35,20,10)]
AND [yesterday's PMO Line(35,20,10) > 2 days ago PMO Line(35,20,10)]
AND [2 days ago PMO Line(35,20,10) > 3 days ago PMO Line(35,20,10)]
// Stock is in a "bull" market - 50-EMA higher than 200-EMA
AND [today's ema(50,close) > today's ema(200,close)]
// Stock just had a 5-EMA positive crossover 20-EMA - Short-Term bullish
AND [today's ema(5,close) X today's ema(20,close)]
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. Since the show didn't air today, below is a picture of the current DecisionPoint Scoreboards and the results of our sentiment polls. For complete analysis and commentary about the DecisionPoint indicators, "Big Four" coverage, among others, you can read last Friday's "DP Weekly Wrap" here.
First a look at what the "pros" are saying from the Wall Street Weekly sentiment poll. After the close on Friday, timers were asked whether they believe the market will close higher, lower or mostly unchanged. It appears there are more bulls than bears as we enter trading this week. This results of the Wall Street Weekly poll is below, as well as YOUR results from the Twitter poll:
Looking Forward:
Tune in on Wednesday at 12:00p - 1:30p EST on 05/10. We'll have our popular "Agree or Disagree" segment. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews!
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