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.
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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. Today's charts included SINA, CERN, GD, HD, CCP, ILG, PFF and WK. You'll find a complete write-up on SINA in Tom's blog today. Erin pointed out her set-ups, but did state that she wasn't entering any positions this week.
Agree or Disagree? Today's question was whether you consider moving averages major technical indicators in your trading? You'll find the live Twitter poll here. The question box and Twitter were in agreement as of show closing that they do consider MAs critical in their trading. However, there are a handful out there that don't use them as a primary indicator. Erin said that they are critical to her analysis in terms of screening and scanning. The DecisionPoint Trend Models are all based on EMA crossovers, so clearly they are important to her. Tom agreed that it was a large part of his analysis especially when looking for MACD divergences and resets. Tom also uses the 20-EMA as support and to see retests. Here are the current results of the Twitter poll:
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 with comment/question via Twitter (@mktwatcherslive) before the show and we'll try and add them. We also take requests through the GoToWebinar question box. Tom and Erin both looked at UTX, RACE, EGO, VSLR, CNHI, AMZN, KR, OLED, PZZA, and TREX. You'll find all of these annotated charts in the MarketWatchers LIVE ChartList. The link is at the top of our blog page.
Earnings Beats: We were fortunate to have John Hopkins from EarningsBeats.com to talk to us about upcoming earnings and how they trade on earnings on their website. The hot chart today was H&R Block (HRB). John discussed this chart in detail in his recent ChartWatchers article. We encourage you to go check it out. In general, John suggests being patient, the gap support area could offer a great trading opportunity.
DecisionPoint Report: Erin reviews the DecisionPoint indicator suite and the "Big Four", (Dollar, Gold, Oil & Bonds) using the DecisionPoint Analysis Process. She suggested that ultra-short-term indicators (Breadth, VIX) aren't giving us any information with the Bollinger Bands on the VIX shrinking, penetrations will likely not provide any good information. Short-term and intermediate-term indicators are soft and are calling for consolidation or pullback. For a complete write-up and daily/weekly chart review, check out Carl Swenlin's "DecisionPoint Weekly Wrap" in the DecisionPoint blog. Here's a link to this week's article.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Today Erin was asked whether she uses more than the PMO to pull the trigger on buying/selling a stock. As noted in the Agree or Disagree section, she said that she uses PMO and Trend Models to screen for potential investments, not necessarily to trigger a purchase but to find attention flags. Actual trades are typically triggered when support/resistance levels are met or chart patterns that use minimum upside/downside targets. Tom was asked what time of day does he usually trade. Typically he said that he trades in afternoons. His opinion is that the first hour or so is "amateur" hour, when less sophisticated investors or small money enters trades. Big money tends to watch and learn during the trading day and places trades in afternoon. Both Erin and Tom were asked if they trade options and both said they do not.
It's a Wrap! In closing Erin discussed the Twitter viewer poll from Friday. The results are below. The majority of viewers felt the market would rally this week. Erin and Tom are neutral to bearish for the week. Interestingly, Wall Street Sentiment made up of newsletter writers and market timers, showed a slight bearish bias.
Looking Forward:
Tune in on Wednesday at 12:00p - 1:30p EST on 6/21. Erin will announce the results of the Agree or Disagree Twitter poll. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews!
