MarketWatchers LIVE

11/7 MarketWatchers LIVE Recap - Greg Schnell - Sector Rotation

 

Welcome to the recap of Tuesday'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-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?

Greg Schnell Talks Energy: Greg spent most of his time ribbing Tom about his bearish stance on energy. Greg has been extolling the virtues of the energy sector, in particular Oil and Gas producers. 

Chart 1 below - Total crude stocks
Chart 2 Gasoline
Chart 3 Diesel Fuel

The blue line is trending down sharply on all three suggesting inventory levels are tightening substantially.

These were three of the energy stocks he recommended a look at for investment opportunities:

These two countries have just broken to new all time highs after being stuck for years at these levels. Both Australia and Canada are major Commodity Countries.

 

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: V, SWKS, OPGN, JD, MS, NEE, SLCA, APC, COO and NWSA.  You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.

 

Sector Rotation: Erin started the segment showing the basics of sector rotation. The top of the market cycle is marked by relative strength in materials and energy. These sectors benefit from a rise in commodity prices and a rise in demand from an expanding economy. The tipping point for the market comes when leadership shifts from energy to consumer staples. This is a sign that commodity prices are starting to hurt the economy. With energy ramping up right now and the cyclicals still healthy, we're not at a market top.

Next she took a look at perf charts and RRG charts to see where we stand right now. Here's her latest RRG chart:

.

Tom finished the discussion with a look at a perf chart of just the SPX, XLY and XLP to show you how they move before and during a bear market like in 2008.

 

It's a Wrap! In closing Tom and Erin revealed their thoughts on where the market might be heading before the next show. Erin reminded everyone she would be writing her DP Alert tonight to give everyone a detailed analysis of the market in three timeframes and cover the "Big Four" (Dollar, Gold, Oil and Bonds). Check out the DP Blog!

 

Looking Forward:

Tune in on Wednesday at 12:00p - 1:30p EST on 11/8. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews! 


Helpful MarketWatchers LIVE Links:

Facebook - MarketWatchers LIVE Page

YouTube Channel for StockCharts

Erin's PMO Scan

Tom's Trading Places Blog

DecisionPoint Blog

MACD

PMO -Price Momentum Oscillator

RSI - Relative Strength Index

OBV - On Balance Volume

Stochastic

 

|

Subscribe to MarketWatchers LIVE to be notified whenever a new post is added to this blog!
comments powered by Disqus