{"id":20881,"date":"2013-12-31T01:27:05","date_gmt":"2013-12-31T09:27:05","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=20881"},"modified":"2013-12-31T01:27:05","modified_gmt":"2013-12-31T09:27:05","slug":"t2108-update-131230","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2013\/12\/31\/t2108-update-131230\/","title":{"rendered":"T2108 Update (December 30, 2013) &#8211; A VIX Pop, the 200DMA Barrier, and Intriguing Chart Reviews"},"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 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>: 60.3%<br \/>\n<strong>VIX Status<\/strong>: 13.6<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Hold (bullish bias)<br \/>\n<strong>Active T2108 periods<\/strong>: Day #123 over 20%, Day #3 over 60% (overperiod), Day #41 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=$SPX&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&amp;id=p25615696567\" target=\"_blank\">U.S. Dollar Index<\/a> (volatility index)<br \/>\n<a title=\"6-month chart of EEM\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=EEM&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&amp;id=p15880085697\" target=\"_blank\">EEM<\/a> (iShares MSCI Emerging Markets)<br \/>\n<a title=\"6-month chart of the VIX\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$VIX&amp;p=D&amp;st=2013-06-30&amp;en=2013-12-30&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=2013-06-30&amp;en=2013-12-30&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=2013-06-30&amp;en=2013-12-30&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=2013-06-30&amp;en=2013-12-30&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar)<\/p>\n<p><strong>Commentary<\/strong><br \/>\nThere are no major changes in the technical readings or outlook since <a href=\"http:\/\/drduru.com\/onetwentytwo\/2013\/12\/24\/t2108-update-131224\/\" target=\"_blank\">the last T2108 Update<\/a> where I described the potentially bullish parallels between this period and the last two years. I am whipping up this quick note to point out an interesting pop in the volatility index, do an overdue review of T2107, and to do some follow-up chart reviews.<\/p>\n<p>The VIX surged today 8.8% even though the S&#038;P 500 (SPY) went absolutely nowhere for the second day in a row.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20882\" aria-describedby=\"caption-attachment-20882\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_VIX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_VIX.png\" alt=\"The VIX puts on a surprise pop ahead of the new year\" width=\"500\" height=\"350\" class=\"size-full wp-image-20882\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_VIX.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_VIX-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-20882\" class=\"wp-caption-text\">The VIX puts on a surprise pop ahead of the new year<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Given how strange this looks, I went to see what volatility and VIX expert Bill Luby had to say about this. Unfortunately, <a href=\"http:\/\/vixandmore.blogspot.com\/2013\/11\/the-evolution-of-holiday-effect-in-vix.html\" target=\"_blank\">his last post was in early November discussing the holiday effect on the VIX<\/a>. Interestingly, he observed at that time the VIX tends to decline during the first 17 days of December before hitting its low of the year. This year was MUCH different. The VIX rose for the first half of December in anticipation of wild trading around the Fed meeting where it finally launched bond tapering. <a href=\"http:\/\/drduru.com\/onetwentytwo\/2013\/12\/18\/t2108-update-131218\/\" target=\"_blank\">As I had expected going into the meeting<\/a>, the VIX collapsed post-Fed. And then, voila, in five more days, the VIX managed to trade close to its low for the year but never quite made it. There were no <a href=\"https:\/\/twitter.com\/VIXandMore\" target=\"_blank\">tweets from Luby<\/a> today either.<\/p>\n<p>So, I am left to speculate. My guess is that this is another very temporary rise in the VIX. I do not have a specific catalyst in mind for a reversal, but a strong open to 2014 could certainly do the trick.<\/p>\n<p>In the meantime, T2108 is just as listless as the S&#038;P 500. It closed at 60.3% and has not moved much for the fourth day in a row. If 2014 is going to burst onto the scene like the previous two New Year&#8217;s celebrations, then T2108 is a tightly wound spring. As we have seen before, T2108 could bumrush into overbought territory in just one day on a big flourish in the stock market. Until we get some kind of resolution, the bias remains bullish and to the upside for the market. <\/p>\n<p>I have two caveats to stir up the pot a bit. First, note that T2108 has spent a LOT of time under the 70% threshold for overbought now. At day #41, it is just two trading weeks away from ending bearish territory. This is the time when the bias to the S&#038;P 500&#8217;s performance at the end of this underperiod turns negative and the range of possible outcomes significantly widens (early next year I will need to update all these charts!).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18639\" aria-describedby=\"caption-attachment-18639\" style=\"width: 394px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130705_T210870PctUnderperiod.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130705_T210870PctUnderperiod.png\" alt=\"S&amp;P 500 Price Change By Duration Below the T2108 70% Threshold\" width=\"404\" height=\"352\" class=\"size-full wp-image-18639\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130705_T210870PctUnderperiod.png 404w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130705_T210870PctUnderperiod-300x261.png 300w\" sizes=\"auto, (max-width: 404px) 100vw, 404px\" \/><\/a><figcaption id=\"caption-attachment-18639\" class=\"wp-caption-text\">S&#038;P 500 Price Change By Duration Below the T2108 70% Threshold<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The next caveat is T2107, the percentage of stocks trading above their 200DMAs. I have been VERY remiss in not monitoring this indicator more closely in recent months. I was VERY surprised to find that T2107 has been languishing even as the S&#038;P 500 has continued to print new highs. Ever since T2107 peaked with new all-time highs in July, it has struggled to break out of a narrow range. I am not ready to call this behavior outright bearish &#8211; especially since T2107 has been in decline since a major peak in 2009 after the historical March lows on the S&#038;P 500. However, the current struggles certainly suggest that the participation in the rally is narrow or narrowing from the perspective of the longer-term uptrends (200DMA).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20886\" aria-describedby=\"caption-attachment-20886\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107-weekly.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107-weekly.png\" alt=\"The post-recession downtrend remains downward so recent trends are consistent with the larger one\" width=\"550\" height=\"375\" class=\"size-full wp-image-20886\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107-weekly.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107-weekly-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-20886\" class=\"wp-caption-text\">The post-recession downtrend remains downward so recent trends are consistent with the larger one<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_20885\" aria-describedby=\"caption-attachment-20885\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107.png\" alt=\"Since July, T2107 has struggled to keep up with the S&amp;P 500\" width=\"500\" height=\"350\" class=\"size-full wp-image-20885\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_T2107-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-20885\" class=\"wp-caption-text\">Since July, T2107 has struggled to keep up with the S&#038;P 500<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I have not developed any formal methods for trading on T2107 signals, so I have no immediate prescription in light of these data. I just strongly advise caution: I find it difficult to get exuberant with a rally that lacks wide enough participation.<\/p>\n<p>I conclude with several chart reviews: Apple (AAPL), Twitter (TWTR), Intel (INTC), Caterpillar (CAT), and International Business Machines (IBM). The time is late, so I have to make this quick. Hopefully the charts largely speak for themselves&#8230;<\/p>\n<p>First, Apple (AAPL). Ever since the spectacular pop on the China Mobile (CHL) news, AAPL has been all downhill. Today, the stock almost reversed all its gains &#8211; a bearish development that could finally send AAPL to a retest of its 50DMA.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20895\" aria-describedby=\"caption-attachment-20895\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_AAPL.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_AAPL.png\" alt=\"Apple reverses juicy gains from the announced China Mobile deal. 50DMA almost in play...\" width=\"550\" height=\"375\" class=\"size-full wp-image-20895\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_AAPL.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_AAPL-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-20895\" class=\"wp-caption-text\">Apple reverses juicy gains from the announced China Mobile deal. 50DMA almost in play&#8230;<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I covered Twitter (TWTR) in &#8220;<a href=\"http:\/\/seekingalpha.com\/article\/1917761-twitters-recent-run-up-reaching-a-likely-crescendo\" target=\"_blank\">Twitter&#8217;s Recent Run-Up Reaching A Likely Crescendo<\/a>.&#8221; It turned out to be a very timely article. The next day, TWTR collapsed by 13.0% and the selling followed through with another 5.1% loss. TWTR has now reversed all its dot-com bubble-like gains from last week and sits at the first important level of support. Next important supports are at $55 (20DMA and last consolidation point) and $50 (the big breakout to the first post-IPO high). If (once?) $50 breaks, I am guessing TWTR will retest its lows before attracting a fresh set of recruits for bidding the stock back up.<\/p>\n<p>Note from the daily chart that TWTR has now formed a dreaded and very bearish &#8220;spinning top&#8221; that has selling confirmation. The pattern is VERY close to the even more dreaded abandoned baby top.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20894\" aria-describedby=\"caption-attachment-20894\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR.png\" alt=\"A remarkable crescendo for Twitter\" width=\"550\" height=\"375\" class=\"size-full wp-image-20894\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-20894\" class=\"wp-caption-text\">A remarkable crescendo for Twitter<\/figcaption><\/figure><\/p>\n<figure id=\"attachment_20893\" aria-describedby=\"caption-attachment-20893\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR-intraday.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR-intraday.png\" alt=\"Reversing the gains on the crescendo day trigger the first sell\/short signal\" width=\"500\" height=\"350\" class=\"size-full wp-image-20893\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR-intraday.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR-intraday-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-20893\" class=\"wp-caption-text\">Reversing the gains on the crescendo day trigger the first sell\/short signal<\/figcaption><\/figure>\n<p><figure id=\"attachment_20892\" aria-describedby=\"caption-attachment-20892\" style=\"width: 415px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR_impliedvolatility.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR_impliedvolatility.png\" alt=\"Implied volatility soared along with trading volume at the top - portending the rapidly increasing likelihood of a pullback\" width=\"425\" height=\"405\" class=\"size-full wp-image-20892\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR_impliedvolatility.png 425w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_TWTR_impliedvolatility-300x285.png 300w\" sizes=\"auto, (max-width: 425px) 100vw, 425px\" \/><\/a><figcaption id=\"caption-attachment-20892\" class=\"wp-caption-text\">Implied volatility soared along with trading volume at the top &#8211; portending the rapidly increasing likelihood of a pullback<\/figcaption><\/figure><br \/>\n<strong>Source for implied volatility: <a href=\"http:\/\/www.schaeffersresearch.com\/streetools\/filters\/equity_vix.aspx?TICKER=TWTR\" target=\"_blank\">Schaeffer&#8217;s Investment Research<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>Intel (INTC) has had an amazingly volatile two months. The stock is on the mend but now faces the challenge of breaking above the 2013 high set in June. The stock remains well off 8+ year highs set in 2012.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20891\" aria-describedby=\"caption-attachment-20891\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_INTC.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_INTC.png\" alt=\"A bumpy recovery for INTC on the long road back toward multi-year highs\" width=\"500\" height=\"350\" class=\"size-full wp-image-20891\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_INTC.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_INTC-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-20891\" class=\"wp-caption-text\">A bumpy recovery for INTC on the long road back toward multi-year highs<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Caterpillar (CAT) has had a rough year &#8211; lagging the general market by a wide margin. The stock also suffered a string of false breakouts to add insult to injury. The stock seemed all but done in mid-July when <a href=\"http:\/\/www.cnbc.com\/id\/100893599\" target=\"_blank\">Jim Chanos reminded the market he is short CAT<\/a>. Now, frankly amazingly, CAT is breaking out above the very critical pivot around the 2011 close. The lingering is not good, but if the stock gets follow-through buying&#8230;look out!<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20890\" aria-describedby=\"caption-attachment-20890\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_CAT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_CAT.png\" alt=\"Can Caterpillar reach escape volatility from the gravitas and gravitational pull of master short-seller Jim Chanos?\" width=\"550\" height=\"375\" class=\"size-full wp-image-20890\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_CAT.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_CAT-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-20890\" class=\"wp-caption-text\">Can Caterpillar reach escape volatility from the gravitas and gravitational pull of master short-seller Jim Chanos?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I covered the bullish case on International Business Machines in &#8220;<a href=\"http:\/\/drduru.com\/onetwentytwo\/2013\/11\/19\/simple-reasons-to-like-ibm\/\" target=\"_blank\">Simple Reasons to Like IBM Despite the Headwinds<\/a>&#8221; and I declared an entry point near the end of in late November in &#8220;<a href=\"http:\/\/drduru.com\/onetwentytwo\/2013\/11\/27\/fresh-buying-entry-for-ibm-as-nasdaq-flips-on-overdrive\/\" target=\"_blank\">Fresh Buying Entry for IBM As NASDAQ Flips On Overdrive<\/a>.&#8221; I had to wait almost another three weeks before IBM found a true bottom and bounced sharply. I fortunately doubled down on call options at the potential W-bottom pattern and sold those last week. I remain bullish on IBM for dip-buying.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_20889\" aria-describedby=\"caption-attachment-20889\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_IBM.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_IBM.png\" alt=\"A W-bottom for IBM\" width=\"550\" height=\"375\" class=\"size-full wp-image-20889\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_IBM.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_IBM-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-20889\" class=\"wp-caption-text\">A W-bottom for IBM<\/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 SPHB and SPLV and SSO puts (pairs trade); long AAPL shares, calls, and puts; long INTC calls; long CAT; long TWTR puts and calls<\/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 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 &#8230; <a title=\"T2108 Update (December 30, 2013) &#8211; A VIX Pop, the 200DMA Barrier, and Intriguing Chart Reviews\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/12\/31\/t2108-update-131230\/\">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":[135,62],"tags":[250,534,64,63,399,222,221,1199,619,65,225,226,1597,1257,1258],"class_list":["post-20881","post","type-post","status-publish","format-standard","hentry","category-stock-market-trading","category-technical-analysis","tag-aapl","tag-apple-inc","tag-cat","tag-caterpillar-inc","tag-ibm","tag-intc","tag-intel","tag-international-business-machines","tag-jim-chanos","tag-sp-500","tag-t2107","tag-t2108","tag-technical-analysis","tag-twitter","tag-twtr"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (December 30, 2013) - A VIX Pop, the 200DMA Barrier, and Intriguing Chart Reviews - 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\/12\/31\/t2108-update-131230\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (December 30, 2013) - A VIX Pop, the 200DMA Barrier, and Intriguing Chart Reviews - 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 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\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2013\/12\/31\/t2108-update-131230\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2013-12-31T09:27:05+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/12\/131230_VIX.png\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2013\\\/12\\\/31\\\/t2108-update-131230\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2013\\\/12\\\/31\\\/t2108-update-131230\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"T2108 Update (December 30, 2013) &#8211; 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