MarketWatchers LIVE

10/4 MarketWatchers LIVE Recap - SCTR Update - Sector Rotation

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

 

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 marketwatchers@stockcharts.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:

Every Wednesday, Tom and Erin start the show off with important earnings announcements, economic news and developing news in the major markets. Tom looked at upgrades/earnings winners: PEP, MYL and NFLX. Erin took the downgrades and looked at ICPT, WGO, AAP, and KHC. In economic news, private payrolls grew by 135,000 in September, a sharp decline from the 228,000 in August, according to ADP and Moody's Analytics. The monthly decline in hiring — the worst since last October — was due in part to damage from Hurricanes Harvey and Irma.

 

Martin Pring's Market Roundup: Tom helped host Martin's latest webinar recording, so he went through some of the topics that they covered. At StockCharts.com, Martin is responsible for creating the Know Sure Thing (KST)  as well as the Special K indicators.  His StockCharts.com commentaries and webinars reflect this passion for education and provide invaluable insights for investors of all varieties. To see his latest recording, click here

 

 

SCTR Update and Review: Tom and Erin discussed the StockCharts Technical Rank (SCTR) and its many uses on StockCharts.com. The indicator was developed by John Murphy and emphasizes the long-term picture. To learn more about the SCTR, you can click here to read the ChartSchool article. A few things you may not know about the SCTR are various ways to find the big SCTR movers and how to analyze them. There are two ways. One is to click on the SCTR Report in the "Control Center" on your homepage:

The other way is to use one of your homepage "tiles" for SCTRs, notice also at the bottom, you can view these top movers in CandleGlance or in a Relative Rotation Graph (RRG):

 

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:  CLDR, AMAT, TEK/B.TO, CRAY, GDX, XES, MGM, PBPB, AJRD and SNAP.  You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.

 

Sector Rotation Situation: Tom and Erin decided to revisit sector rotation. Tom showed us how he uses the relative ratio of XLY:XLP to determine when rotation is moving from defensive positions to aggressive positions. XLP (Consumer Staples) is typically a 'defensive' sector, while XLY (Consumer Discretionary) is considered a more aggressive sector, like technology or financials. Erin reviewed her Relative Rotation Graph (RRG) with sector SPDRs and commodities/bonds. Here is her latest RRG, you can click on it to save it if you'd like:

If you'd like a RRG of less, there are "universes" that you can choose through the dropdown "Group" menu. This RRG has only the sector SPDRs:

 

It's a Wrap! In closing Tom reminded everyone that next Wednesday, Arthur Hill will be joining the program to share his insights on the market and sectors. 

 

Looking Forward:

Tune in on Friday at 12:00p - 1:30p EST on 10/6 for a review of sentiment polls and numbers as well as your favorites like the "10 in 10" (more like 10 in 15).

 

Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More