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 here we will give you a quick recap. Be sure and check out the MarketWatchers LIVE ChartList for many of today's charts. Our Twitter handle is @MktWatchersLIVE, Email is email@example.com and our Facebook page is up and running so "like" it at MarketWatchers LIVE.
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** Greg Schnell will be co-hosting with Erin on Friday (6/16) while Tom is away. Don't miss it!
What Happened Today?
Today we were joined by Julius de Kempenaer, creator of Relative Rotation Graphs (RRGs) and director/owner of RRG Research in Amsterdam. We spent quite a bit of time with Julius and you'll find many of the links to the charts and information below.
Talking Technically: This morning the big topic of conversation was about the upcoming Fed announcement later in the afternoon. Rates were raised and you can see the effect of the announcement (2pm) in the 10-minute chart below. Price basically reclaimed its position by the market's close.
Special Guest - Julius de Kempenaer: Julius spent time this morning explaining some of the basics of RRG charting and how you can use them to trade. Unfortunately there simply isn't enough space to completely recap the information, but he sent us some great links! First is a link to his RRG blog article on asset rotation. Below is the RRG chart that demonstrates asset class rotation.
Julius was asked how to use the RRGs for trading. One of the ways he does this (similar to Erin and Tom) is to pull up the sector ETFs, find the strongest candidates and then find the stocks that make up the ETF. In order to find members of the ETFs, you can go to the SPDRs website at this link to parse which equites make up your target ETF or industry. At that point, you can create an RRG of the stocks and look up which are leading in that sector.
Later in the program, Julius was asked about using international ETFs. Below is the RRG chart he pulled up.
He made some great points about trading international ETFs and currency issues that can be associated with them. Here's is an excellent article he wrote on just this subject.
Sector/ETF Watch: Tom and Erin discussed various sectors today including Home Builders, LEN, DHI, BZH as well as $DJUSBK. Both agreed that the banking sector should benefit from a rate hike and the chart has some bullish characteristics. Erin's chart is below. Note the positive divergence in blue and the bullish confirmation in green. The 20-EMA is about to cross above the 50-EMA so a new IT Trend Model BUY signal is very near.
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. With Julius on the show, Tom was only able to take seven symbol requests. Tom and Erin discussed MOBL, THC, ECA, AGG, KXS.TO, CC and SVXY. You can find all of these charts in the MarketWatchers LIVE ChartList. The link is at the top of the MWL Blog.
It's a Wrap! In closing Tom and Erin both said they'd be watching how the Fed news would effect the market. It appears it didn't shake things up much today.
Greg Schnell will be joining Erin on Friday while Tom is out of the office. Tune in on Friday at 12:00p - 1:30p EST on 06/16 where we'll focus on commodities since we have commodities expert, Greg on the show!