Welcome to the recap of Thursday'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 through 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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** UPCOMING SCHEDULE **
Friday (12/1) - Tom Bowley's Workshop "Trading Strategies Using the MACD"
Saturday (12/2) - ChartWatchers Newsletter Released (Sign up at the bottom of homepage to receive this FREE newsletter)
Wednesday (12/6) - Guest Tushar Chande on the "Trend Meter"
What Happened Today?
Talking Technically: On Friday Tom and Erin focus on interesting earnings news and their latest take on the market. Today Tom provided us with the latest economic reports from Bloomberg. First, jobless claims are very low and Puerto Rico has stabilized in what is the latest good news on the labor market. Initial jobless claims fell 2,000 in the November 25 week to 238,000. Claims in Puerto Rico, after peaking at 7,000 in the prior week, fell back to 2,965 suggesting that the worst of the hurricane impact from Maria may have passed. Second, looking at personal income and outlays, the core PCE price index, which is the inflation gauge FOMC members most closely watch, rose an as-expected 0.2 percent in October with September revised 1 tenth higher and now also at 0.2 percent. Finally Chicago PMI report was released and according to Bloomberg, "Overall economic growth remains steady at robust levels among Chicago's sample where the PMI, at a slightly higher-than-expected 63.9 in November, has posted its third straight plus 60 score. This is the best streak for this index in 3-1/2 years."
Tom looked at a few earnings spotlights: KR, GWRE
Tom looked a couple of upgrades: GILD, BSX, HCA, MDCO
Erin looked a some of the downgrades: GPS, ABX, NCLH, CRS
Momentum Sleepers: Erin showed viewers three "sleepers". In Erin's estimation a "sleeper" is a chart that shows a PMO rising nearing a breakout or with a nice price pattern and upside potential. Below are her three:
Tom showed us ILMN, BIIB, ARRY, NVAX, GRFS and VRTX. Below is his chart of ILMN and NVAX.
Sector Rotation: Tom discussed the weekly chart for XLK and said it MACD looks good and this decline is a "blip on the radar". We could see more weakness but not a serious correction. Money is rotating out of technology, but appears to be flowing into financials and industrials. Erin presented a daily and weekly view of the sectors on an RRG chart. She explained that the daily is a short-term view of rotation, but what really is important is looking at a weekly version to see the longer-term rotation. Longer-term rotation can tell you about the defensive or aggressive activity by investors that can have implications on the strength of the market. These RRG charts are linkable, so if you click on it, you can bring it up and manipulate or animate it.
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: JWN, CVS, RWJ, X, MU, FFTY, OIH, ABB, ALSN and ATD/B.TO. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.
Anatomy of a Trade: Erin started the discussion by explaining here trade considerations and how she sets stops and targets based on timeframe. Since she doesn't trade as frequently as Tom, she felt it could be helpful to see a short and intermediate-term trade analysis. She explained that typically she sets stops not at absolute levels (i.e. $80, $85, $90...), she prefers to add or subtract a few cents or dollars to ensure not getting stopped out on small selling spree at an absolute level, but also consider a stop slightly higher than the absolute level. If a price shock occurs, your sell order could go in before the waterfall at the 'absolute' levels.
Tom showed us GWW which was a previous Monday Set-Up. Turned out to be a winner, but he did miss the breakout. Volume was low and he opted to sell at overhead resistance. His target had been met and he took the profit, but missed out on the high volume that followed later in the day.
Tom also discussed recent trades of INTC and BIIB.
Looking Forward:
Tune in on Friday at 12:00p - 1:30p EST on 12/1 for Tom's workshop on "Trading Strategies Using the MACD" and Erin will go over the latest sentiment charts.
Don't miss it!!
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PMO -Price Momentum Oscillator
