(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.)
T2108 Status: 42%.
VIX Status: 21.0.
General (Short-term) Trading Call: Hold.
Commentary
T2108 dropped from 54% to 42% as the regularly scheduled selling resumed in the stock market. T2108 remains on target for hitting the low 30s, perhaps even this week. The S&P 500 dropped 0.8% and seems destined to retest the 200DMA sooner than later. If everything somehow works out “perfectly,” the index will execute its retest just as T2108 hits oversold levels (20% or below).
Apple (AAPL) remains a very strange caveat to all this bearishness. While sellers were busy pushing the general market down, buyers were snapping up all the Apple shares from the orchard. Apple saw strong buying all day and hit another fresh all-time high at $373.80, closing with a 2.4% gain. Amazing how much difference a mere month can make. I will definitely be watching Apple earnings with GREAT interest Tuesday evening!
Charts below are the latest snapshots of T2108 (and the S&P 500)
Refresh browser if the charts are the same as the last T2108 update.
Daily T2108 vs the S&P 500
Black line: T2108 (measured on the right); Red line: S&P 500 (for comparative purposes)
Weekly T2108
*All charts created using TeleChart:
Related links:
The T2108 Resource Page
Expanded daily chart of T2108 versus the S&P 500
Expanded weekly chart of T2108
Be careful out there!
Full disclosure: long puts on SSO, long SDS
Very interested in your APPL insights. Given the run, would you be a seller into earnings?
Thanks
Hi thanks for all the great articles and insights. given your stance on APPL would you be a seller into earnings?
Thanks very much!
VERY tough question! I would not sell AAPL into earnings UNLESS I just recently bought the stock. My only reason to sell would be to preserve profits. Otherwise, without knowing anything else, better to just stick with the momentum here.
Thanks! Yeah, really tough. I’m holding Jan ’12s and am really conflicted.
Thanks again for all your help and insight!
I think you are one of many who loaded up on Jan 2012 calls. If Apple quickly punches over $400, you should do quite well for at least the next month or two after that. Good luck!