MarketWatchers LIVE

8/23 MarketWatchers Recap - Anatomy of a Trade - DecisionPoint Update

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

 

Welcome to the recap of Wednesday'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. Go to the "Webinars" tab to watch the latest edition!

Information abounds in our Monday/Wednesday/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?

Talking Technically:

Every Wednesday, Tom and Erin start the show off with important earnings announcements, economic news and developing news in the major markets. Tom concentrated on showing us some of the interesting industry groups that he is watching and in some cases, stalking. Erin finished up the segment looking at four stocks that reported low earnings (CREE, LOW, CRM and SYK). With positive divergence on weekly chart and so far a successful test of support, CREE actually looks like a promising BUY.

 

Anatomy of a Trade: Tom took us through his trade of Celgene (CELG). He explained when he got in, when he got out and how he bought back in during a pullback, followed by filling out the position as it hit support.

Erin went through a trade that she set a tighter stop on when she left for her honeymoon. The market was flirting with new all-time highs, so she wanted to preserve profits should the market experience a correction. The equal-weight Technology ETF (RYT) was something she bought back in early 2016. Technology has been enjoying a great run, but in order to protect against a price shock, she tightened her stop to just above support. The reason? Typically everyone has their stop set at or just below support. If she set her stop in a similar place, she would be risking a larger loss should all of the SELL orders fly in at the same time. Using rising bottoms support as well as horizontal support, she set her stop at $124. The ensuing pullback after she left didn't stop her out, but did protect from a move below support at $123. With the short-term double-bottom now in play, she's holding in anticipation of a breakout to new all-time highs, but will reevaluate if horizontal support is hit later.

 

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. Symbols reviewed today: COTY, BX, UTX, CQQQ, EXTR, COR, FCX, PBR/A, ZEB.TO and DYN. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers blog homepage.

 

DecisionPoint Report: Erin reviewed the DecisionPoint indicators and "Big Four" (Dollar, Gold, Oil and Bonds). You'll find complete analysis in her last blog article in the DecisionPoint blog here.

 

Mailbag Segment: Each show Erin and Tom answer questions received via chat, Twitter, Facebook and Email. Today, Erin was asked what she used when she wanted to determine the health of the overall market in the intermediate and long terms. While she does depend on her regular indicators (ITBM, ITVM, STOs), the best indicators in her opinion are the PMOs on the weekly and monthly charts. Below is her monthly chart for the SPX. Note that there are very few signal changes and the signals that arrive are very timely and mostly accurate.

Looking Forward:

Tune in on Friday at 12:00p - 1:30p EST on 8/25 for a review of sentiment polls and numbers, more 10 in 10 symbols and your mailbag questions answered.

 

Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More