I'm assuming that you live out west somewhere, and based on that, your watering requirements will be different than mine. I keep my saguaro in Pennsylvania, and found out rather quickly that I could not water it like my other cacti. I think the fact that I had just planted it last year may have had something to do with that, as my saguaro had to establish a new root system as well. I never gave it that much water to begin with, but I noticed that mine got just a little bit wrinkly at the bottom shortly after watering it one time (almost like a raisin). That scared me a bit, and I've since cut back on the amount I give it, with good results. Believe me that saguaro can handle drought conditions. Depending on what kind of plant it is, it can also be somewhat "hard" on a plant to develop a new root system. Now, your climate, soil, and root system are what's going to determine you watering regimen. Basically, I let my saguaro stay bone dry for long periods of time. I don't water it as soon as it dries out (except for maybe a few weeks in mid-summer). I have a feeling that when my saguaro develops a better root system, I will be able to water it a bit more in the summer (possibly). It receives ZERO water during winter months. I'm not trying to confuse you here, but how I water my saguaro will most definitely be different than how you water yours, because of the difference in our climates. Just trying to give you ideas. I have to be VERY careful with mine, here in Pennsylvania. Also, I wouldn't worry about that yellow/red coloration between the areola, as that just looks like normal coloration from hot sun. I would just try not to over water it (I use chopstick method for mine). They are slow growers, so give her time to grow her new roots, and be happy. Hope this helps you, and congrats again. It's a fine saguaro
. Good luck, and have good day.