T2108 Update (May 9, 2012) – Overbought Conditions Extend Further As Currencies Flash Major Signals

(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 highly 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 … Read more

T2108 Update (April 3, 2013) – A New Beginnnig for T2108

(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 highly 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 … Read more

T2108 Update (February 20, 2012) – A Change In the Wind

(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 highly 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 … Read more

Trading Lessons: Verisign Closes October Earnings Gap Down

Earnings announcements are supposed to reveal the fundamental strength (or weakness) in a company. The reaction to those earnings should indicate the underlying fundamentals of a company. Yet, there is no time like earnings where the contrast between the true fundamentals of a company and market sentiment can clash in the most dramatic fashion. Case … Read more

A Trading Plan For Herbalife: A Pullback Likely Before A New Trading Range

“This is the hedge-fund equivalent of Stalingrad. Someone is going to lose big. And the victor will be so bloodied that the word victory will sound hollow… For a short-seller who is as risk-averse as me watching this is pure hedge-fund porn.” From “Bill Ackman enters the city of Stalingrad,” John Hempton of Bronte Capital, … Read more

T2108 Update (January 9, 2013) – Technical Tensions Build As Extreme Overbought Conditions Persist

(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 highly 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 … Read more

T2108 Update (January 4, 2013) – Pushing On More Extremes In the Wake Of Record Volume On VIX Futures

(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 highly 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 … Read more

Chart Review: Apple Finally Challenges Downtrend Again

For the fist time in about a month, Apple (AAPL) is challenging its short-term downtrend, currently marked by the declining 50-day moving average (DMA). Over the past two trading days, AAPL has surged 7.7%. The stock had gained as much as 8.9% at today’s high. This tremendous surge maintains AAPL’s tendency to begin the week … Read more

T2108 Update (December 27, 2012) – Volatile But Resistance Holds

(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 highly 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 … Read more

Time to Pare Back Bullish Positions In the Australian Dollar

(This is an excerpt from an article I originally published on Seeking Alpha on December 16, 2012. Click here to read the entire piece.) Almost two weeks ago, I noted that as long as the Australian dollar (FXA) maintained its stubborn strength, it made sense to play the currency long versus the weakening Japanese yen … Read more