Welcome to the recap of Wednesday'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. You'll find 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.
Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE and/or #mktwatchers, email is firstname.lastname@example.org and our Facebook page is up and running so "like" it at MarketWatchers LIVE. Don't forget to sign up for notifications at the end of this blog entry by filling in your email address.
What Happened Today?
Every Wednesday, Tom and Erin start the show off with important earnings announcements, economic news and developing news in the major markets. Erin began by showing a PMO Analysis chart of the S&P 500. You'll note momentum has topped within the index components and that generally is bad news for the market. Fortunately, the tops have been put in as the readings continue lower. We'll want to watch closely to see if SPX members begin shifting to positive momentum.
Tom reviewed MU, CTAS and FDS which all reported positive earnings. Additionally, he focused in on the Home Builders industry group given the recent natural disasters. While fundamentally it makes sense that we might see an upswing in this group, but Tom warned to be careful given technicals. As of showtime, price had not cleared overhead resistance.
Eye on International ETFs: Tom and Erin hadn't reviewed international ETFs for some time and decided today was the day. Erin reviewed Canadian ETF (EWC), India ETF (INP) and Spain ETF (EWP).
Tom looked at the German ETF (EWG), Australia ETF (EWA) and Brazil ETF (EWZ). Most important, Tom noted that when reviewing international ETFs, you need to be aware that they can be affected by the Dollar. A rising Dollar is not bullish for international ETFs.
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: COST, PFE, FMCC, TDOC, TOG.TO, XLU, EXPE, IRBT, SHAK and SSL. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.
What Would You Do? In this special segment, Tom and Erin will look at two charts and agree or disagree. Post your thoughts in our Twitter poll (@mktwatcherslive) and let us know what you would do. The current Twitter polls are here. Tom presented the Monster Beverage (MNST) as the chart to discuss. Ultimately, both Erin and Tom agreed that this actually could be setting up a nice entry based on horizontal support, 50-EMA support and rising bottoms support. Additionally as one viewer pointed out, seasonality is also strong. Note also the RSI is where we like to see it.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Today Tom and Erin discussed their exit strategies. Both rely heavily on current support and resistance to set stops and targets. Erin says that she likes to set an upside target and when reached depending on the technicals, pull part of the position in for profits or close out the position. While she doesn't necessarily set hard stops, she does watch closely if certain areas of support or the PMO turn the wrong way. Tom follows a similar pattern, although he typically holds on to a position sometimes beyond target depending on the technicals.
Tune in on Friday at 12:00p - 1:30p EST on 9/29 for a review of sentiment polls and numbers and see how everyone did on calling market action for this week. It's also month-end so Erin will update you on any new DecisionPoint signals or news on the monthly charts.