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. See the latest show 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?
Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week; however, since today was the first show of the week, they decided to throw some out on a Wednesday. To start they reviewed last week's Monday Set-Ups "picks", ALB and AYI. Both concluded last week up between 1.5% to 2.5%. Today's Set-Ups included LKQ for Erin and CINF for Tom.
Erin liked the breakout from the symmetrical triangle continuation pattern alongside a PMO BUY signal. EMAs are lined up bullishly, OBV is turning around and the SCTR is healthy.
Tom wrote that CINF blew away earnings estimates on August 2nd and saw a very nice gap higher the following day on much higher than normal volume. Since then, however, the combination of profit taking and a falling TNX sent CINF down nearly 10%. It appears to be starting an uptrend so I like it at the current level:
Earnings Spotlight: Catalent, Inc. (CTLT) was the chart Tom spotlighted today. After beating top and bottom earnings, Tom pointed out the gap move up. It is continuing its rise, but at this point he has it on his strong earnings watch list waiting for a pullback.
Breakouts vs. False Breakouts: You should go and listen to his detailed explanation. Tom discussed how he uses candlesticks to help him determine whether a move is a false breakout. You'll find the start of this segment at the 45 minute mark for the show. He used the chart of AMD to discuss the false breakout at the July high. He felt that by seeing a black candle coming at overhead resistance, it was likely a false breakout.
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: REMX, LL, IBB, CHK, LUV, ALRM, AVAV, ARTNA, GSY.TO and ORCL. 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. She also reviewed the "big four": Dollar, Oil, Gold & Bonds. You'll find the complete analysis in the DecisionPoint blog, specifically yesterday's DP Alert. Don't miss the DecisionPoint Weekly Wrap by Carl Swenlin on Saturday morning to get the scoop on market action the prior week and find out what the indicators are suggesting for the future.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Time was running low at the end of the show. Erin quickly answered the following question: "On a declining PMO, is there a way to roughly estimate a price range where the daily PMO will start to turn up?" Erin said that the angles of ascent and dependence on price prevent one from picking a price range where price should turn up based on the PMO. Tom discussed where his stop was on his earnings spotlight CINF. He used the "volume by price" overlay to help him determine the stop at around $74.00.
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 feeling bearish in the shorter-term and expect to see prices decline a bit more by Friday.
Tune in on Friday at 12:00p - 1:30p EST on 9/8. Sentiment numbers will be in and John Hopkins will be in to do a detailed "Earnings Spotlight". Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews!