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.
Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p shows, but in 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.
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What Happened Today?
Monday Set-Ups:
Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week. Today's charts included from Tom POL, NTAP and CIT. Erin included BAK, AMWD, AIR and BCO. You can read a detailed review of POL by Tom in his latest blog article here.
BAK finished the day with a tiny breakout and a new PMO BUY signal. A price target around $22.50 seems reasonable.
BCO just triggered a PMO BUY signal after a nice breakout. Erin always likes to see a stock hovering in the SCTR "hot zone" above 75 and this one has been there since February.
Anatomy of a Trade Gone Bad: Tom and Erin both discussed trades that simply didn't turn out the way we had hoped. They talked about their thought processes as they bought held and sold. Tom talked about Fastenal (FAST). Getting in on a high volume breakout, but it never really got it going. Tom really felt it had some internal strength and wanted to hold it through earnings, but ultimately chose not to.
Erin discussed her love/hate relationship with USO and UNG. Her last foray into USO began when the PMO backed out of an imminent SELL signal in late November. In retrospect, she realized she should've taken the profit in early January when it hit resistance, but the PMO was still rising. Her next warning was the declining PMO, but price tops were maintaining in a consolidation zone despite the negative divergence. After the price shock in March and with there being so much more room for price to move before testing support, she took the loss.
Ten in Ten Before 1: In this regular segment, Tom reviews ten charts in ten minutes, followed by Erin's comments and comments from the Twitter "peanut gallery". Send in your symbol requests via Twitter (@mktwatcherslive) before the show and we'll try and add them. Tom reviewed and annotated BIDU, WPM, GREK, PBA, FXI, AMGN, HACK, BMY, CZR and UNG. You'll see them all annotated right here in the MarketWatchers LIVE ChartList.
DecisionPoint Report: Erin reviews the intraday action of the major indexes, sectors and the "Big Four", (Dollar, Gold, Oil & Bonds). Her short-term indicators although declining are a sign of internal strength. They are decompressing without the need of a price decline.
IT indicators are particularly bullish right now, rising strongly and not yet overbought.
For more DecisionPoint analysis, check out Erin's articles in the DecisionPoint blog.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Erin was asked if she always uses the 'default' settings for her PMO. She helped develop this indicator with her father and after testing, the default parameters worked the best for them. But she suggested listeners try different ones to see if they work in their timeframe...you can't break StockCharts by changing it around so have some fun!
Tom was asked how important is the 'beta' when deciding which stocks to trade. Beta measures the volatility of a stock in comparison to a benchmark, the S&P 500 and can be considered a measure of risk. He said it warrants consideration, but as a primary.
It's a Wrap!
Looking Forward:
Tune in on Wednesday at 12:00p - 1:30p EST on 06/07 for the "Agree/Disagree" segment. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and DecisionPoint indicator reviews!
