Welcome to the recap of Friday'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. Remember! You can now watch the latest episode under the "Webinars" tab!
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 email@example.com 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?
Talking Technically: On Friday Tom and Erin focused on interesting earnings news, upgrades/downgrades, etc. Erin started it off with a look at the Nasdaq vs. the NDX since the Nasdaq was leading all of the indexes during taping. The Nasdaq has held onto its PMO BUY signal and avoided a ST Trend Model Neutral signal unlike the NDX. Today, the Nasdaq set an all-time high, while the NDX is working hard to challenge previous all-time highs. This could be a warning given that large-cap market leaders are stumbling. However, the markets don't seem to care.
Upgrades today were CON, ENTG, TRN, TSN and NVDA.
KBH reported earnings and beat top and bottom. Tom really liked the chart, but will be hitting his watch list rather than be traded right away.
Trading Strategies: Tom is asked frequently about how he trades so he went through a few examples to help. This segment began at about 24 mins into the show. The best example he had was a recent Don't Ignore This Chart blog article. Highly recommend you check that article out!
Earnings Spotlight: John Hopkins joined us from EarningsBeats.com to discuss some of his interesting charts. The Chart of the Week was SalesForce.com (CRM) and he summarized his comments as "Stock is up slightly as it moves back above its 20 day moving average. A close above $94.06 would be very bullish."
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: SEAS, G, ISRG, VZ, TM, GILD, CNCR, TSN, FRAN and F. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.
Sentiment Update: Erin discussed the surge in bullish sentiment by NAAIM (National Association of Active Investment Managers) as their exposure moved much higher this past week. Note that when we see especially bullish readings or in this case, high market exposure, that is actually considered bearish for the market.
We can see in the AAII (American Association of Individual Investors) poll that most investors are still bullish. Erin noted that there are quite a few "neutral" votes out there. She'd like to see more bullishness in AAII to match NAAIM.
This "neutrality" is best observed on the Rydex Asset analysis chart. We can see that money is beginning to leave bear funds, but it isn't necessarily moving into bull funds; what we do see is an increase in money markets and that suggests neutrality to Erin.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Tom discussed the seasonality of Autodesk (ADSK). Although November/December (and even October) look great, he doesn't trade off seasonality even if it looks this good. He uses it as a confirmation tool.
Erin showed everyone how to scan on a particular sector or industry group. You need to be an Extra member to access the custom scanning workbench. While on the workbench, simply choose the group you wish to scan as shown below. Be sure to check the syntax before you run a scan!
It's a Wrap! In closing, Tom reminded Erin we had to make our "prediction" on whether the market will close higher or lower next week. Tom and Erin are in agreement that the market will close higher next week. What do you think? Our viewer poll will be open on Twitter until showtime on Monday at noon EST. Look for our weekly sentiment polls at @mktwatcherslive on Twitter.
Tune in on Monday at 12:00p - 1:30p EST on 10/1 for Monday Set-Ups. Tom and Erin will discuss which charts look hot or not for the upcoming week.
The regular segments, Ten in Ten to One and Mailbag are also on tap for Monday, where we look at your recent questions and symbol requests.
Don't miss it!!