MarketWatchers LIVE

7/19 MarketWatchers LIVE Recap - Upgrades/Downgrades - Market Movers - Agree or Disagree?

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

 

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's 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 marketwatchers@stockcharts.com and our Facebook page is up so "like" it at MarketWatchers LIVE.


What Happened Today?

Talking Technically:  Every Wednesday, Tom and Erin start the show off with important earnings announcements, economic news, upgrades and downgrades, and developing news in the major markets. Housing starts came in above expectations. Building permits also came in above expectations--good news for the housing sector. Tom reported on recent earnings for CSX, GS, and AAPL among others. Below is the AAPL chart which Tom said he found encouraging. Erin reviewed the renewable energy industry group and noticed a possible reverse head and shoulders would be quite bullish for $DWCREE.

 

Market Movers: Eyes were on a few major movers today. Scripps Networks (SNI) and Discovery Communications (DISCA) were rumored to be looking at a merger and hence took off today. Vertex (VRTX) was also a big mover after three cystic fibrosis drugs were approved. The charts are below.

 

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 Monday. Symbols reviewed today:  ULTA, HMMJ.TO, CF, AMTD, CTRL, T, SPWR, JUNO, UCTT and XOM.  You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.

 

Agree or Disagree? In this regular segment, Tom and Erin will propose an idea and statement and then determine if they agree or disagree. Erin posts the Agree or Disagree polls on Twitter to find out what you think. The current Twitter polls are here. Today's question was whether Gold would break above the long-term declining tops trendline on the weekly chart. Erin is bullish Gold and believes it will overcome and reach past $1300. Tom disagreed. He is bearish Gold and doesn't believe we will overcome that long-term declining trend line support. What do you think? Take the Twitter poll here. Below is the weekly chart for $GOLD.

 

Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Erin discussed how to calculate minimum upside and downside targets on a few chart patterns. In general, double-tops/double-bottoms and head and shoulder formations' minimum targets are determined by measuring the height of the pattern and adding it to or subtracting from the neckline (bullish pattern v. bearish pattern). Triangles can also be used to determine targets based on the height from the start of the pattern. Flag formations work similarly, calculate the height of the pattern and add it to the top of the pattern for a bull flag and vice versa for a bear flag. Tom discussed why he uses a 20-EMA but 50/200-SMAs. Erin and he discussed that EMAs put more emphasis on the latest data. For Tom, he likes to have his fastest moving average be an EMA but he likes the even handedness of simple moving averages for the longer term averages. DecisionPoint Trend Models use EMAs exclusively because it puts more emphasis on the latest data.

 

Looking Forward:

Tune in on Friday at 12:00p - 1:30p EST on 7/21 as Greg Schnell will be filling in for Tom while he is out of town. Erin and Greg will talk indicators, commodities, SCTRs, and more!

** Erin will be traveling 7/25 - 8/20. Congratulations on the upcoming marriage and honeymoon! She'll return on 8/21 as Erin "Wood" **

 

 

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