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 12:00pm - 1:30pm EST shows, but the MWL blog will give you a quick recap. Be sure and check out the MarketWatchers LIVE ChartList for many of today's charts. When you first arrive at the MarketWatchers LIVE blog page, you'll see a link to the ChartList in the upper left corner. Also, we're now recording MarketWatchers LIVE shows and archiving them until the next show starts - so for a couple days you'll be able to go back at your leisure to review. That will give you an opportunity to review parts of the show, or to review it in its entirety later if you were unable to attend live. CLICK HERE for a replay of our latest show.
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What Happened Today?
It was actually a pretty slow day with the Dow Jones up very slightly to trade at fresh record highs, while much of the attention shifted to the NASDAQ and NASDAQ 100, where traders were attempting to break these indices out of their recent trading ranges. Here was an intraday look:
On the NASDAQ 100, you can see that much of the trading since July 27th has taken place between 5880-5935. We're awaiting a break from this range to give us short-term directional clues.
We reviewed setups from last Monday, when Tom selected Athenahealth (ATHN) while Greg chose Costco (COST). Both shot out of the gates in early trading last week with nice potential profits along the way, although ATHN managed to finish higher by 2-3%. COST ended the one week period close to where it began.
For the current week, Tom and Greg revealed their selections - Tom went with Blackhawk Network Holdings (HAWK) and Greg decided to ride Nike (NKE). Here are charts of both:
Tom liked HAWK because it was approaching key support in the 41.00-42.50 range and its RSI had dropped back into the 40s, generally a solid area to look for reversals during a longer-term uptrend.
Greg liked NKE's trend higher in its SCTR score and was looking for a breakout above 60, where NKE has struggled over the past year or so.
John Hopkins, President of EarningsBeats.com joined the show as he always does on Mondays to discuss recent earnings reports. John mentioned that approximately 80% of all S&P 500 companies have now reported and 73% of those have beaten Wall Street's consensus estimates, helping to fuel the recent stock rise. John discussed Syntel (SYNT) as a solid trading candidate after they recently beat Wall Street estimates on both the top and bottom lines. After gapping higher, SYNT has pulled back and John explained that the reward to risk had improved as a result of the recent selling. Here's the chart:
The blue circle highlighted key support from roughly 18.50-18.75, a decent pullback from its recent price high above 20.00. Volume trends are turning more bullish as well.
10 in 10
During his regular segment at 12:50pm EST, Tom showed how quickly you can review and annotate 10 stocks into a ChartList using the powerful tools here at StockCharts.com. Symbol requests were sent in by viewers on Twitter and GoToWebinar as Tom demonstrated how to use the annotation tool to highlight key levels of price support/resistance, trendline support, candlestick patterns, etc. Symbols reviewed today included TAN, TUR, NTNX, BMY, SIVB, BA, KEY, VRX, SALT and ONDK. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers LIVE blog page, or simply CLICK HERE. This link provides many annotated charts from the last two MW Live shows.
Greg spent 10-15 minutes discussing Keltner Channels, Bollinger Bands and EMA envelopes to follow trends. He used NVDA as an example to show how the Keltner Channel worked. Here was his chart:
While no trading system is perfect, the above chart shows how the mid-point of the channel could be used as entry points...or to provide a potential stop level.
With the Fed out of the way and earnings reports from the biggest companies winding down, it'll be more important than ever to watch the price action as technical indications dictate direction. Stay tuned as Tom and Greg will be back on Wednesday, keeping you up to date on the latest technical happenings.
About the author:Tom Bowley co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years.
His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading.
A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015.