Welcome to the recap of Friday'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.
Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, email is marketwatchers@stockcharts.com and our Facebook page is up and running so "like" it at MarketWatchers LIVE. You'll also find archives of our shows on our Facebook page and YouTube channel. Don't forget to sign up for notifications at the end of this blog entry by filling in your email address.
** UPCOMING SCHEDULE **
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"
Friday (12/8) - Erin's Workshop on "DecisionPoint Trend Models"
What Happened Today?
Talking Technically: On Friday Tom and Erin focus on interesting earnings news, upgrades/downgrades and economic reports. Today both Tom and Erin talked about the deep decline in the morning but then commented on the bounce that followed to pare back large losses. Economic news that Tom shared from Bloomberg: "Markit's U.S. manufacturing sample reported a slightly slower rate of growth in November with the PMI ending the month at 53.9, down 1 tenth from the mid-month flash and down 7 tenths from October's 54.6 which was a 9-month high." Additionally, the ISM Manufacturing Index came in 2 tenths of a percent lower than expected at 58.2 v. expected 58.4. Last report from Bloomberg: "Spending on private non-residential construction jumped 0.9 percent in the month with strength centered in office construction and transportation construction." The market was expecting .5% v. 1.4% that construction spending increased in November.
"Trading Strategies Using the MACD": Tom did an absolutely amazing job of explaining the difference between the MACD and PPO and then went on to show everyone how he uses the MACD to trade. Below are the charts he showed us all. We highly recommend you go to our MarketWatchers LIVE Facebook page or StockCharts YouTube channel to review the show. The links are at the bottom of this article.
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: (insert symbols). You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.
Sentiment Update: Erin took a look at the sentiment charts and remarked mostly on the put/call ratio chart which is showing troughs on all three ratios. Typically you'll see the OEX put/call ratio top when the other two bottom, but sometimes we do see this phenomena as marked in pink. This is not a bullish set-up. Investors are too bullish when these ratios fall like this.
Next she showed that both AAII and NAAIM are showing bullish sentiment on the rise. AAII brought in a very low bull/bear ratio a few weeks ago and you can see that the following week, the market began to rise. Notice that NAAIM exposure is also beginning to expand.
Finally she looked at the Rydex Ratio chart. Her comments were that money is still moving out of cash, but interestingly it has been split between bull and bear funds.
It's a Wrap! In closing Erin and Tom decided how to vote in next week's Wall Street Sentiment Survey conducted by Mark Young on Fridays after the close. (More at Traders-Talk.com) Erin is going into next week expect the market to finish higher while Tom is taking a "neutral" position. 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 at 12:00p - 1:30p EST on 12/4 for Monday Set-Ups. Tom and Erin will discuss which charts look hot or not for the upcoming week.
The regular segments, Ten in Ten to One and Mailbag are also on tap for Monday, where we look at your recent questions and symbol requests.
Don't miss it!!
Helpful MarketWatchers LIVE Links:
Facebook - MarketWatchers LIVE Page
YouTube Channel for StockCharts
PMO -Price Momentum Oscillator
