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. Watch the latest episode here!
Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p 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.
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What Happened Today?
Talking Technically: Tom looked at quite a few sectors in the morning. XLK (Tech) has been hit very hard, but we're seeing money rotating into energy. Tom believes that there might be a possible run-up in Consumer Staples (XLP). It's sitting at important support when you look at the volume by price overlay.
Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week, but to start, they reviewed last week's Monday Set-Ups "picks", AMP and CTLT which were both up on the week by a percentage point or two. Today's Set-Ups included for Tom: LEN, RHT, ISRG, SYNT and his pick for the week, WIT. To see charts of his picks, you can go to his ChartList at the top of the Trading Places blog.
Erin's list of Monday Set-Ups included: BBT, HRB, SLF, TDA and her pick of the week, NTRI. Nice breakout from declining tops trendline and some upside potential to $57.00 near term.
Anatomy of a Trade: Tom looked at a few trades. First, is HCSG (his best trade). He wrote about this stock in ChartWatchers right after the hammer printed on 9/15. He believes it will be running up before earnings in 3 weeks. He bought at around $50. He sold at $53.90 because there weren't any closes much above that. Below is the chart.
Erin went over a recent trade on ZNGA. She is still holding it, but will likely drop it if it closes much below the $3.75 level, but it did finish the day above $3.80 so it will likely continue to be a hold. She's looking for another test of resistance around $4.00.
Ten in Ten Before One: In this regular segment, Tom reviews ten charts in ten minutes with Erin's comments and comments from the Twitter "peanut gallery" peppered in there. Send in your symbol requests via Twitter (@mktwatcherslive) before the show and we'll try and add them. Symbols reviewed today: TAN, PG, KMB, NTDOY, CTL, TBBK, WEED.TO, IMGN, BK and GUSH. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.
DecisionPoint Report: On Monday Erin analyzes DP indicators to give us a heads up on the market conditions as we start the week by going over the charts from the last DP Weekly Wrap article written by Carl Swenlin on Fridays. She also reviewed the "big four": Dollar, Oil, Gold & Bonds. Carl did an excellent review of Apple (AAPL) to begin the article by discussing its effect on the large-cap indexes. Overall, she and Carl agree that the market is in for some consolidation or a pullback over the next week. Intermediate-term indicators are still mostly bullish so a rally to new all-time highs seems reasonable to start October.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Tom discussed the disconnect between the Dollar and Treasury Yields. When rates move higher, you expect the Dollar to rally and we haven't seen that yet. He said that you should consider looking at the US yields with foreign treasury yields. He uses German yields to US yields ($UST10y-$DET10Y). So he believes that foreign yields may be causing this disconnect.
It's a Wrap! In closing Tom and Erin revealed their thoughts on where the market might be heading before the next show. Both are in agreement that there is likely to be consolidation or a pullback over the next week. Tom discussed seasonality being bearish and Erin noted that her short-term indicators are in decline, but not ready to turn just yet.
Tune in on Wednesday at 12:00p - 1:30p EST on 9/27. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews!