{"id":18858,"date":"2013-07-17T22:15:16","date_gmt":"2013-07-18T05:15:16","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=18858"},"modified":"2013-07-17T22:15:16","modified_gmt":"2013-07-18T05:15:16","slug":"t2108-update-130717","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2013\/07\/17\/t2108-update-130717\/","title":{"rendered":"T2108 Update (July 17, 2013) &#8211; Small Stall At All-Time Intraday High; Chart Review Madness"},"content":{"rendered":"<p>(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 <a href=\"http:\/\/www.drduru.com\/money\/T2108.htm\">T2108 Resource Page<\/a>. You can <a href=\"http:\/\/twitter.com\/#!\/search\/%23T2108\">follow real-time T2108 commentary<\/a> on twitter using the #T2108 hashtag. T2108-related trades and other trades are posted on twitter using <a href=\"http:\/\/twitter.com\/#!\/search\/%23120trade\" target=\"_blank\">the #120trade hashtag<\/a>)<\/p>\n<p><strong>T2108 Status<\/strong>: 60.0%<br \/>\n<strong>VIX Status<\/strong>: 13.8<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Hold &#8211; Aggressive traders who got long the breakout can STILL stay long; otherwise, buy dips with tight stops<br \/>\n<strong>Active T2108 periods<\/strong>: Day #15 over 20% (overperiod), Day #1 over 60%, Day #42 under 70%<\/p>\n<p><strong>Reference Charts<\/strong> (click for view of last 6 months from Stockcharts.com):<br \/>\n<a title=\"6-month chart of the S&amp;P 500\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$SPX&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p25615696567\" target=\"_blank\">U.S. Dollar Index<\/a> (volatility index)<br \/>\n<a title=\"6-month chart of the VIX\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$VIX&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p25615696567\" target=\"_blank\">VIX<\/a> (volatility index)<br \/>\n<a title=\"6-month chart of VXX\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=VXX&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p15880085697\" target=\"_blank\">VXX<\/a> (iPath S&amp;P 500 VIX Short-Term Futures ETN)<br \/>\n<a title=\"6-month chart of EWG\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=EWG&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p15880085697\" target=\"_blank\">EWG<\/a> (iShares MSCI Germany Index Fund)<br \/>\n<a title=\"6-month chart of CAT\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=CAT&amp;p=D&amp;st=2013-01-17&amp;en=2013-07-17&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar)<\/p>\n<p><strong>Commentary<\/strong><br \/>\nI estimated last week that T2108 would reach overbought by tomorrow (Thursday). With T2108 at 60.0%, I think it is unlikely. The S&#038;P 500 (SPY) has stalled out a bit right at the all-time intraday high, and it would take a strong rally to push T2108 through the overbought threshold in one more day. It is earnings season so anything can happen of course, but I am adjusting my forecast to Monday or Tuesday of next week.<\/p>\n<p>In the meantime, all the bullish signals remain. T2108, and thus the S&#038;P 500, still has room to run from here.<\/p>\n<p>I will quickly finish this update with six stocks of interest which are providing (or should provide) the excitement that S&#038;P 500 has not in the past four days.<\/p>\n<p><strong>Caterpillar (CAT)<\/strong><br \/>\nCAT plunged back through its 200DMA in a topping kind of pattern. Volume surged to about twice the daily average. The cuplrit was apparently Dick Chanos. Chanos provided his bearish case <a href=\" http:\/\/video.cnbc.com\/gallery\/?play=1&#038;video=3000183677#eyJ2aWQiOiIzMDAwMTgzNjc3IiwiZW5jVmlkIjoiL3B0MS9JQkszWXZEa3grVE5pU29Qdz09IiwidlRhYiI6InRyYW5zY3JpcHQiLCJ2UGFnZSI6MSwiZ05hdiI6WyLCoExhdGVzdCBWaWRlbyJdLCJnU2VjdCI6IkFMTCIsImdQYWdlIjoiMSIsInN5bSI6IiIsInNlYXJjaCI6IiJ9\" target=\"_blank\">on CNBC<\/a> (video is 2:50 long).<\/p>\n<p><center><br \/>\n<object id=\"cnbcplayer\" height=\"380\" width=\"400\" classid=\"clsid:D27CDB6E-AE6D-11cf-96B8-444553540000\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=9,0,0,0\" ><param name=\"type\" value=\"application\/x-shockwave-flash\"\/><param name=\"allowfullscreen\" value=\"true\"\/><param name=\"allowscriptaccess\" value=\"always\"\/><param name=\"quality\" value=\"best\"\/><param name=\"scale\" value=\"noscale\" \/><param name=\"wmode\" value=\"transparent\"\/><param name=\"bgcolor\" value=\"#000000\"\/><param name=\"salign\" value=\"lt\"\/><param name=\"flashVars\" value=\"startTime=000\"\/><param name=\"flashVars\" value=\"endTime=000\"\/><param name=\"movie\" value=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/3000183677\/code\/cnbcplayershare\" \/><embed name=\"cnbcplayer\" PLUGINSPAGE=\"http:\/\/www.macromedia.com\/go\/getflashplayer\" allowfullscreen=\"true\" allowscriptaccess=\"always\" bgcolor=\"#000000\" height=\"380\" width=\"400\" quality=\"best\" wmode=\"transparent\" scale=\"noscale\" salign=\"lt\" src=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/3000183677\/code\/cnbcplayershare\" type=\"application\/x-shockwave-flash\" \/><\/object><br \/>\n<\/center><\/p>\n<p>Chanos has long been bearish on China, so I am surprised that his words were able to generate such a sharp and sudden surge in selling on CAT. These fireworks demonstrate the power of Chanos. It will now be incredibly hard for me to remain long the few shares that I have. In the meantime, I will ride the puts I just bought last week anticipating CAT to fail at 200DMA resistance. Going forward, I will likely get even more aggressive on my put buying on CAT.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18860\" aria-describedby=\"caption-attachment-18860\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_CAT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_CAT.png\" alt=\"Chanos knocks CAT off its 200DMA\" width=\"500\" height=\"350\" class=\"size-full wp-image-18860\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_CAT.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_CAT-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18860\" class=\"wp-caption-text\">Chanos knocks CAT off its 200DMA<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>Apple (AAPL)<\/strong><br \/>\nYes, my favorite charting (and trading) stock. Hopefully, you are not getting too tired of my constant chatter on it. Anyway, AAPL had another strong start to a week, but it is clearly struggling to break through upper resistance at the convergence of the old $532 pivot and the 50DMA. I took a chance and held onto my calls for the start of the week play; I am looking for the outside shot that AAPL manages to gap higher by Friday. I bought my puts a little early and they are essentially worthless right now.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18861\" aria-describedby=\"caption-attachment-18861\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_AAPL.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_AAPL.png\" alt=\"Apple struggles at resistance again\" width=\"500\" height=\"350\" class=\"size-full wp-image-18861\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_AAPL.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_AAPL-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18861\" class=\"wp-caption-text\">Apple struggles at resistance again<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>SolarCity (SCTY) (and Tesla (TSLA))<\/strong><br \/>\nSCTY broke out and started traveling the upper-Bollinger Band almost according to &#8220;plan.&#8221; Goldman Sachs (GS) ruined things by slapping TSLA with an average target price across three scenarios of $86. In sympathy, fellow Elon Musk stock SCTY came tumbling down. I stretched out this play by holding onto my July $45 calls. Now the race to the buzzer is really hot. I am not likely to win on this one. Note how TSLA came roaring back on extremely high volume. The run on that one is far from over.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18863\" aria-describedby=\"caption-attachment-18863\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_TSLA.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_TSLA.png\" alt=\"TSLA tumbles hard. A big comeback did not help SCTY as much as the tumble hurt....\" width=\"500\" height=\"350\" class=\"size-full wp-image-18863\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_TSLA.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_TSLA-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18863\" class=\"wp-caption-text\">TSLA tumbles hard. A big comeback did not help SCTY as much as the tumble hurt&#8230;.<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_18862\" aria-describedby=\"caption-attachment-18862\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_SCTY.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_SCTY.png\" alt=\"SCTY loses orbit velocity and peels off the upper Bollinger Band.\" width=\"500\" height=\"350\" class=\"size-full wp-image-18862\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_SCTY.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_SCTY-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18862\" class=\"wp-caption-text\">SCTY loses orbit velocity and peels off the upper Bollinger Band.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>Baidu (BIDU)<\/strong><br \/>\nThis was the HUGE win of the week. The BIDU pop was a great reminder of how it can pay to be patient, stick to the technicals, and execute on the analysis. <a href=\"http:\/\/drduru.com\/onetwentytwo\/2013\/07\/13\/chart-review-baidu-amazon\/\" target=\"_blank\">The moment of truth on BIDU<\/a> transformed into a major breakout. The very next day, the stock zipped above 200DMA resistance and sliced through $100. On Tuesday, the stock gapped up about 6% on news of an acquisition, and I sold my call options into the open. They expire on Friday, so need to keep pressing my luck on that one.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18865\" aria-describedby=\"caption-attachment-18865\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_BIDU.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_BIDU.png\" alt=\"Is BIDU&#039;s long-standing downtrend FINALLY coming to an end?!\" width=\"500\" height=\"350\" class=\"size-full wp-image-18865\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_BIDU.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_BIDU-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18865\" class=\"wp-caption-text\">Is BIDU&#8217;s long-standing downtrend FINALLY coming to an end?!<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><strong>Google (GOOG)<\/strong><br \/>\nGOOG reports earnings Thursday evening. For some reason, I do not feel particularly compelled to speculate on the earnings. I still believe that GOOG is heading soon to $1000, but I do not expect earnings to propel it there in one day. So, I am thinking I am fine waiting out the post-earnings reaction and making a move from there. Hopefully, I get a trigger-happy sell-off&#8230;down to the 20 or 50DMA would be perfect.The stock has conveniently stalled just like the S&#038;P 500 the past three days around the former intraday all-time high.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18866\" aria-describedby=\"caption-attachment-18866\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_GOOG.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_GOOG.png\" alt=\"Is GOOG setting up a coiled spring or will it disappoint? Hard to tell!\" width=\"500\" height=\"350\" class=\"size-full wp-image-18866\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_GOOG.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130717_GOOG-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18866\" class=\"wp-caption-text\">Is GOOG setting up a coiled spring or will it disappoint? Hard to tell!<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><center><br \/>\n<strong>Daily T2108 vs the S&#038;P 500<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" title=\"T2108 vs. the S&amp;P 500 (DAILY)\" alt=\"T2108 vs. the S&amp;P 500 (DAILY)\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" width=\"500\" height=\"350\" \/><br \/>\n<\/center><\/p>\n<p>Black line: T2108 (measured on the right); Green line: S&amp;P 500 (for comparative purposes)<br \/>\nRed line: T2108 Overbought (70%); Blue line: T2108 Oversold (20%)<\/center><\/p>\n<p><center><br \/>\n<strong>Weekly T2108<\/strong><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"Weekly T2108\" alt=\"Weekly T2108\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" width=\"500\" height=\"350\" \/><br \/>\n*<strong>All charts created using <\/strong><\/a><strong><a title=\"Freestockcharts.com\" href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">freestockcharts.com<\/a><\/strong> unless otherwise stated<\/center><\/p>\n<p><strong>Related links:<\/strong><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/T2108.htm\">The T2108 Resource Page<\/a><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily.jpg\">Expanded daily chart of T2108 versus the S&amp;P 500<\/a><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly.jpg\">Expanded weekly chart of T2108 <\/a><\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long SCTY calls; long CAT shares and puts; long AAPL shares, calls, and puts<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(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 &#8230; <a title=\"T2108 Update (July 17, 2013) &#8211; Small Stall At All-Time Intraday High; Chart Review Madness\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/07\/17\/t2108-update-130717\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[368,219,43,599,3,135,62],"tags":[250,534,759,760,64,63,231,230,65,1170,16,1193,226,1597,888,887],"class_list":["post-18858","post","type-post","status-publish","format-standard","hentry","category-automotive","category-high-tech","category-industrial-sector","category-internet","category-solar-energy","category-stock-market-trading","category-technical-analysis","tag-aapl","tag-apple-inc","tag-baidu","tag-bidu","tag-cat","tag-caterpillar-inc","tag-goog","tag-google","tag-sp-500","tag-scty","tag-solar-stocks","tag-solarcity","tag-t2108","tag-technical-analysis","tag-tesla-motors-inc","tag-tsla"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (July 17, 2013) - Small Stall At All-Time Intraday High; Chart Review Madness - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/07\/17\/t2108-update-130717\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (July 17, 2013) - Small Stall At All-Time Intraday High; Chart Review Madness - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(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 ... 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