Forex Critical: Key Changes in Positioning – Counter-Trend Edition

The following data cover the latest from the CFTC’s Commitment of Traders as reported by Oanda from the week of from Monday, February 8, 2016. From Oanada: “The Commitments of Traders (COT) is a report issued by the Commodity Futures Trading Commission (CFTC). It aggregates the holdings of participants in the U.S. futures markets (primarily … Read more

Forex Critical: Key Currency Charts for February 11, 2016

Currencies are a transmission mechanism. Since the financial crisis, central banks have become increasingly adept at manipulating them as agents of monetary policy. Traders who ignore currencies may have critical blindspots as stock markets twist and turn through currency transmissions. From time-to-time, I will post “Forex Critical” to highlight currency charts that I believe are … Read more

T2108 Update (February 3, 2016) – The Waterfall and the Whale: An Oversold Near Miss

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

T2108 Update (January 29, 2016) – An Impressive End to A Historic Oversold Period…With Caveats

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

T2108 Update (January 11, 2016) – A Subtle Market Panic May Signal Imminent End of Oversold Period

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

T2108 Update (December 29, 2015) – A Convergence of Indicators May Signal A Firming Market

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

Anatomy of A Bottom: Do Not Argue With Sellers – Celebrate With Buyers

So often I see “value investors” who equate the conviction of their position and alacrity of their analysis for being able to pick a bottom in a hapless stock. If the bottom fails, sometimes these investors will continue accumulating stock with each buy delivering the welcome opportunity to lower their cost basis. Meanwhile, losses keep … Read more

The U.S. Dollar Index Flirts With A Fresh Multi-Year Breakout

The U.S. Dollar index hit 100 on an intraday basis for the first time since March 16th, the day after the index closed at a 12-year high. The index faded back to a close of 99.73 at the end of the U.S. trading day. Source: FreeStockCharts.com The U.S. dollar’s steady, albeit slow, strengthening is happening … Read more

T2108 Update (November 18, 2015) – The S&P 500 Flips the Script

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more

T2108 Update (November 6, 2015) – A Toppy Feeling In the Market Even As Individual Stocks Shine

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more