MarketWatchers LIVE

4/24 - Monday's Show Recap with Greg Schnell

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

 

Welcome to the recap of Monday's MarketWatchers LIVE show, your antidote for CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market.

Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p shows, but we will try to incorporate a few charts that you found the most interesting during the show (or that we found most interesting!). 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.


What Happened Today?

Special Guest: Greg Schnell

Monday Set-Ups:

Every Monday, Tom and Erin look at which charts are shaping up as "ones to watch" for the week. Since we had Greg on as a guest today, we had him add a few set-ups himself. Today's charts included GRMN, NTAP, COL, WYNN, LVS, ADP, among others. Here's a look at Greg's WYNN chart.

Special Guest Spotlight: Commodities Countdown with Greg Schnell

Greg gave us a mini-webinar for commodities that was very enlightening. He showed us a number of charts, but here are our favorites. 

Both Erin and Greg discussed the importance of current overhead resistance for Gold in particular. Gold is reaching multiple resistance...long-term declining tops resistance, horizontal resistance, and rising trend channel resistance.

Tom also added his thoughts on $TNX:

"I continue to watch the action in the bond market, especially the 10 year treasury yield ($TNX). A rising yield is generally indicative of strengthening or potentially strengthening economic conditions ahead so it can be quite bullish to see the TNX rising. It's very beneficial for specific areas of the market like banks ($DJUSBK) and life insurance companies ($DJUSIL) where rising interest rates typically lead to rising profits. Also, as treasury yields rise, it means treasuries are selling off as treasury prices and yields move inversely to one another. The proceeds from the selling of treasuries can help to fuel a rise in equity prices. The 2.30% yield support level on the TNX was lost a little over a week ago and now the TNX is battling overhead resistance at that level. A breakout above 2.30% would further support higher equity prices."

Sentiment Poll Update: On Mondays Erin reviews the latest sentiment charts, reviews our polls.  While we didn't have time to look at all of the sentiment polls, Erin said that the Wall Street Sentiment poll shows "pros" believe the market will close higher this week. Erin notes a very "bullish" ratio which could be considered somewhat bearish.

Interestingly, Tom and Erin also called for a higher close at the end of the week as well as our Twitter followers who voted 75% for a higher close.

Market Updates: Erin reviews the intraday action of the major indexes, sectors and the "Big Four", (Dollar, Gold, Oil & Bonds). Erin also went over the DecisionPoint indicators and pointed out the bullish looking short-term indicators below:

Ten in Ten Before One: 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 looked at PHM, BABA, BZH, NMM, SPPI, SLB, BAC and KEY. Tom's comments on PHM:

The problem technically with PHM was the negative divergence that had emerged on PHM's most recent price high. Tom looks to the MACD centerline and 50 day SMA test (pink arrows) for support in such situations and pointed out the resulting drop. From an astute trader's perspective, negative divergences can be early warning signs and potential exit points.

Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email. Greg joined in today. They were asked about whether they use stops and all handle them somewhat differently. However, all agreed that they do not set them up for every trade. Greg discussed the basic idea behind the SCTR rankings by comparing it to baseball win/loss tables. You want to find rising SCTRs or those already doing well. Basically, you don't bet on the team in last place to win the World Series.

It's a Wrap! It was great having Greg on the show today and he will be back! Sooner than you probably thought! Greg will be joining Erin to co-host the show while Tom is away. 

Looking Forward:

Tune in on Wednesday at 12:00p - 1:30p EST on 4/26. Erin will announce the results of the latest Twitter poll and there will be a new "Agree or Disagree" segment with a poll for you to add your thoughts. Tom and Erin will be answering more mailbag questions, doing another Ten in Ten segment as well as regular market updates and indicator reviews! 

 

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