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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SPECIAL ANNOUNCEMENT! Arthur Hill will be joining MarketWatchers LIVE on Wednesday at 12:00 EST.
What Happened Today?
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". For Erin, RTRX was down on the week, but did have a good run right after she picked it. Tom's pick of EW was up over 1% for last week. Today's Set-Ups included PII for Tom and QRVO for Erin.
Excerpt from Tom's Trading Places blog: "This week, I'm looking at Polaris Inds (PII). After a solid volume breakout above 100 in mid-September, PII became quite overbought with its RSI approaching 80 and stochastic well into the 90s. Simply put, it needed a breather. We've seen that breather over the past couple weeks and on Thursday and Friday, PII traded beneath its rising 20 day EMA, only to finish above it. I believe that could mark a short-term bottom:"
From Erin: "I liked this chart the best of the 22 candidates that came up in my PMO scan. 200-EMA support held. Bullish confirmation between PMO bottoms and price bottoms and an established rising trend channel could make this a good potential short-term investment."
ChartWatchers Newsletter: Tom highlighted the free ChartWatchers Newsletter that is produced by StockCharts bloggers twice a month. Just add your email address in the box on the main blogs page and the newsletter will be delivered to you free via email. You must be a member to read John Murphy's Market Message, but he writes an article for ChartWatchers twice a month available to you free! Look for Martin Pring to pop in as well as your other favorite bloggers, Arthur Hill, Greg Schnell and yours truly.
Earnings Spotlight: Tom took a momentum to discuss his earnings spotlight chart. He started by looking at the $DJUSPB, publishing index which has had about a 5% pullback. He thinks we could see money rotating to this group. Fastest Research (FDS) is pulling back and is about to enter an accumulation zone at gap support.
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: KHC, BCOR, TSCO, ANIP, CCLP, HL, NVCR, APH.TO, OLED and IMGN. 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. 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. Erin spotlighted the Russell 2000 ETF (IWM) to get a handle on the recent rally and deep pullback today of the Russell 2000. We could be looking at a possible bull flag. IWM rose in parabolic fashion off the August low. Parabolic moves can be dicey, but the possible bull flag that is printing could be interesting if it executes with a breakout.
Overall, Erin is looking for a possible rally pop tomorrow based on the VIX rising above its moving average. After that, short-term indicators need to unwind. Intermediate-Term indicators still look pretty good albeit overbought.
It's a Wrap! In closing, Tom and Erin revealed their thoughts on where the market might be heading before the next show. Erin is looking for a rally pop tomorrow and Tom expects to see the market move higher by the end of the week. By a large margin, viewers felt that the market would move lower this week.
Tune in on Wednesday at 12:00p - 1:30p EST on 10/11. Arthur Hill will be joining the program on Wednesday! You will not want to miss it!