Welcome to the recap of Friday's MarketWatchers LIVE show, your antidote for the CNBC 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 we 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 (#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?
Today's Big Market Movers: Tom and Erin decided to look at a basketful of stocks trading well over their average daily volume, among them KOPN, AZPN, BABA, VHC, BLUE and NVDA. Tom says there is a bearish engulfing candle in play with MAJOR price resistance now established at 164.74. He pointed out that major price support is at 120 with overhead resistance likely at 165. Profit taking may be in play for many of the large-cap technology stocks based on the Nasdaq losers being primarily tech stocks with health care stock leading (defensive sector).
Erin liked KOPN. There's a double-bottom pattern that shows a break earlier today above the neckline. The PMO BUY signal is in overbought territory and the SCTR is entering the hot zone.
ETF Watch: Tom and Erin pulled up the ETF Summary and took a look at some of the more interesting ETFs. Despite technology selling off today, Tom likes the Technology ETF (XLK). There's potential but he'd like to see it settle down after today's sell-off.
Erin looked at many of the international ETFs with a spotlight on EWU, the UK ETF. She noted that while today's decline may be politically motivated, EWU was already set up for failure with a topping PMO with ultimate SELL signal as well as the double-top formation.
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. Today we only had time for eight. MTY.TO, HRL, NVMI, LPTH, PLUG, CAT, JCAP, KWEB. You can review all of these charts and other "10 in 10" charts in the MarketWatchers LIVE ChartList.
Sentiment: Erin reviews the sentiment charts made up of the AAII Survey and the NAAIM Exposure. Additionally, she looked at the DecisionPoint Rydex Ratio which gives you insight into how many assets are in bull v. bear funds. Here are the charts. She noted that AAII is showing a bullish bias as far as the survey but the bull/bear ratio was not at extremes. NAAIM exposure has been lessening. When you see the big money managers pulling back exposure, that should be a cautionary flag.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Today they both discussed their typical exit strategies. The main answer from both was it did depend on the trade. Erin focuses on setting price targets and sticking to them unless the technicals warrant holding. Tom leaves before earnings every time. In general, he uses the MACD with a combination of price movement and moving average support/resistance. For more about Tom's trading strategies, be sure and read his Trading Places blog.
It's a Wrap! Looking at last week's Twitter viewer poll from Monday:
The majority of viewers felt the market would finish higher for the week and they would be wrong with the SPX DOWN 0.30% for the week. Look for our weekly sentiment polls at @mktwatcherslive. This week, Tom and Erin are in disagreement. Erin believes the market will finish lower next week, while Tom believes it will finish a bit higher. What do you think? Our viewer poll will be open on Twitter until showtime on Monday at noon EST.
Looking Forward:
Tune in on Monday 6/12! We have a special guest! President and CEO John Hopkins from EarningsBeat.com will come in to give us his take on upcoming earnings announcements!
On Wednesday 06/14, Julius de Kempenaer, Director/Owner of RRG Research in Amsterdam and creator of Relative Rotation Graphs will be joining us to explain RRG.
Don't miss it!!
