The Stock Market’s Garden Grows More Weeds In Sell-Off – Above the 40 (September 8, 2020)

Stock Market Statistics AT40 = 42.5% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 42.1% of stocks are trading above their respective 200DMAs (2 1/2 week low)VIX = 31.5Short-term Trading Call: cautiously bearish Stock Market Commentary The swift stock market sell-off took a fresh turn for the worse. AT200 … Read more

Second Derivative Selling Produces A Stock Market Crash – Above the 40 (March 9, 2020)

AT40 = 4.2% of stocks are trading above their respective 40-day moving averages (DMAs) (9th oversold day)AT200 = 11.4% of stocks are trading above their respective 200DMAsVIX = 54.5Short-term Trading Call: bullish Stock Market Commentary The Shake and Bake bottom completely collapsed on Monday in the face of massive second derivative selling. The stock market … Read more

Oil-Related Plays Reverse Post-Election Gains

The big story coming out of the November presidential elections was the flurry of “Trump Trades” that soared on an incremental surge of optimism and expectations. Now the growing story includes the sprouting list of trades that have completely reversed post-election gains. The recent rapid decline in oil prices on the heels of surging U.S. … Read more

Russia Versus Oil: Potential Technical Implications of A New Divergence

In recent months, I have been in the habit of fading rallies in Market Vectors Russia ETF (RSX) using Direxion Daily Russia Bear 3X Shares (RUSS) for quick, short-term trades. That streak may be on the verge of ending. Source: FreeStockCharts.com As the chart shows, RSX looked like it was ready to resume its downtrend … Read more

The United States Oil Fund Flirts With A Breakdown

A little over two weeks ago I generated some simple trading scenarios for the United States Oil Fund LP (USO). The scenarios depended upon well-behaved volatility for oil, the CBOE Crude Oil ETF Volatility Index (OVX). OVX is now on the edge of breaking out above its 50-day moving average (DMA). The move was led … Read more

T2108 Update (July 10, 2014) – Monitoring Action More Than News As the S&P 500 Survives Another Close Call

(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