{"id":24258,"date":"2014-09-03T22:54:10","date_gmt":"2014-09-04T05:54:10","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=24258"},"modified":"2014-09-03T22:59:25","modified_gmt":"2014-09-04T05:59:25","slug":"t2108-update-140903","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2014\/09\/03\/t2108-update-140903\/","title":{"rendered":"T2108 Update (September 3, 2014) &#8211; Quick Chart Updates including Apple&#8217;s Doubly-Ominous Print"},"content":{"rendered":"<p><code><\/code>(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>: 61.5%<br \/>\n<strong>VIX Status<\/strong>: 12.4%<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Hold (Bullish)<br \/>\n<strong>Active T2108 periods<\/strong>: Day #301 over 20% (includes day #280 at 20.01%), Day #15 over 40%, Day #13 over 50% (overperiod), Day #40 under 60%, 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 5005\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$SPX&amp;p=D&amp;st=2014-03-03&amp;en=2014-09-03&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2014-03-03&amp;en=2014-09-03&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2014-03-03&amp;en=2014-09-03&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2014-03-03&amp;en=2014-09-03&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=2014-03-03&amp;en=2014-09-03&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=2014-03-03&amp;en=2014-09-03&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=2014-03-03&amp;en=2014-09-03&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=2014-03-03&amp;en=2014-09-03&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=2014-03-03&amp;en=2014-09-03&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar).<\/p>\n<p><strong>Commentary<\/strong><br \/>\nPost-summer trading is still crawling along but excitement continues to roil under the covers. This T2108 is more of a quick chart update given T2108, the S&#038;P 500 (SPY), and the VIX all barely budged. The S&#038;P 500 actually managed a fresh intra-day all-time high before fading back toward 2000. It remains in a bullish zone.<\/p>\n<p>However, the story starts to get more complicated as soon as I turn the lens to Apple (AAPL). Over the weekend, <a href=\"http:\/\/seekingalpha.com\/article\/2461685-celebrating-apples-new-all-time-highs-with-4-reasons-for-caution\" target=\"_blank\">I updated my sentiment analysis on AAPL and concluded with four points of caution<\/a>. I did not have a specific day or time for a pullback, but I sure did not imagine one so sharp, sudden, and deep all in one day and well in advance of the September 9th product announcement!<\/p>\n<p><center><br \/>\n<figure id=\"attachment_24263\" aria-describedby=\"caption-attachment-24263\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_AAPL.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_AAPL.png\" alt=\"A massive and sudden rejection of AAPL from all-time highs\" width=\"550\" height=\"375\" class=\"size-full wp-image-24263\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_AAPL.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_AAPL-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-24263\" class=\"wp-caption-text\">A massive and sudden rejection of AAPL from all-time highs<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>As much as I like Apple, this selling has to be taken seriously no matter the reason. It was an outsized loss at -4.2% that occurred on heavier than usual trading volume. Buyers have a major hurdle to overcome here, and now the bar is REALLY high for AAPL&#8217;s product announcement to dazzle and amaze. I purely speculated on a relief bounce by buying up some call options. I am looking for a move at least back toward $100 for this week and a late run-up into September 9th next week. I also bought put options that I flipped very quickly into the selling. I did not use <a href=\"http:\/\/drduru.com\/onetwentytwo\/2014\/06\/01\/apple-trading-model-update-end-of-era\/\" target=\"_blank\">the Apple Trading Model<\/a> (ATM) for these trades. The ATM is predicting very high odds of follow-through selling for Thursday, so it is very possible I attempt to flip put options again after the open. (The model was invalid for Wednesday given the Monday holiday).<\/p>\n<p>Of course it is far too early to weep over Apple. A steady 50DMA and even stronger 200DMA await below to provide support if needed. If the (near-term) bullish thesis remains intact, Apple will more drift toward support levels rather than plunge into them.<\/p>\n<p>The plunge in Apple (AAPL) was enough to punch a potentially ominous bearish engulfing pattern into the NASDAQ (QQQ), creating a kind of double-trouble for tech. Since the index found support at the bottom of its uptrending trading channel, I am NOT calling a top or changing my trading signal to short. But another close in the red will have me raising a red flag. I just wish T2108 were in overbought territory to make a bearish call easier. After all, <a href=\"http:\/\/drduru.com\/onetwentytwo\/2014\/09\/02\/t2108-update-140902\/\" target=\"_blank\">the trading action on Tuesday had me convinced that the indices still have a lot more upside immediately ahead<\/a>.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_24259\" aria-describedby=\"caption-attachment-24259\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_NASDAQ.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_NASDAQ.png\" alt=\"A bearish engulfing pattern shows up on the NASDAQ - the first potentially bearish signal in a month\" width=\"550\" height=\"375\" class=\"size-full wp-image-24259\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_NASDAQ.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_NASDAQ-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-24259\" class=\"wp-caption-text\">A bearish engulfing pattern shows up on the NASDAQ &#8211; the first potentially bearish signal in a month<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>To round out the red side of the ledger, Splunk (SPLK) faded hard on the day, a loss of 4.9% that was as high as 6.5% or so. THIS is the kind of move I expect when a stock runs up so far above its upper-Bollinger Band (BB). Note well how neatly the stock bounced off that upper-BB. <a href=\"http:\/\/drduru.com\/onetwentytwo\/2014\/09\/02\/t2108-update-140902\/\" target=\"_blank\">While I was supposed to be stopped out of my short position as I attempted a fade<\/a> a day early, I think the lesson here is to perhaps pace out fades of particularly strong bursts above the upper-BB.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_24262\" aria-describedby=\"caption-attachment-24262\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_SPLK.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_SPLK.png\" alt=\"The big fade of over-extended Bollinger Band conditions came one day later than expected\" width=\"550\" height=\"375\" class=\"size-full wp-image-24262\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_SPLK.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_SPLK-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-24262\" class=\"wp-caption-text\">The big fade of over-extended Bollinger Band conditions came one day later than expected<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>On the more bullish side, Baidu (BIDU) followed-through as I expected from Tuesday&#8217;s impressive breakout from a BB-squeeze. Note how BIDU failed to hold the highs after extending well above the upper-BB. Regardless, I was definitely left wishing my limit order to sell my BIDU calls had gone unheeded on Tuesday.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_24260\" aria-describedby=\"caption-attachment-24260\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_BIDU.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_BIDU.png\" alt=\"Baidu (BIDU) buying follows through but quickly stalls as it extends above the upper-BB again\" width=\"550\" height=\"375\" class=\"size-full wp-image-24260\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_BIDU.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_BIDU-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-24260\" class=\"wp-caption-text\">Baidu (BIDU) buying follows through but quickly stalls as it extends above the upper-BB again<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Finally, Monster Beverage Corporation (MNST) is following through almost exactly as I had hoped when <a href=\"http:\/\/drduru.com\/onetwentytwo\/2014\/08\/25\/t2108-update-140825\/\" target=\"_blank\">I posted about the trade setup on August 25th<\/a>. As soon as MNST manages to trade on the other side of the first BB, I think its upward momentum should really take off.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_24261\" aria-describedby=\"caption-attachment-24261\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_MNST.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_MNST.png\" alt=\"Monster Beverage Corporation (MNST) ends its post-deal slide right at the anticipated spot, but it has not yet traded above the desired trendline\" width=\"550\" height=\"375\" class=\"size-full wp-image-24261\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_MNST.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2014\/09\/140903_MNST-300x204.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-24261\" class=\"wp-caption-text\">Monster Beverage Corporation (MNST) ends its post-deal slide right at the anticipated spot, but it has not yet traded above the desired trendline<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><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)\" alA=\"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 AAPL call options, long MNST call options, short SPLK<\/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 (September 3, 2014) &#8211; Quick Chart Updates including Apple&#8217;s Doubly-Ominous Print\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2014\/09\/03\/t2108-update-140903\/\">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":[584,483,1129,219,599,512,338,511,62],"tags":[250,534,759,760,1059,1058,65,1335,1416,226,1597],"class_list":["post-24258","post","type-post","status-publish","format-standard","hentry","category-bollinger-band","category-breakdown","category-food-retail","category-high-tech","category-internet","category-resistance","category-retail","category-support","category-technical-analysis","tag-aapl","tag-apple-inc","tag-baidu","tag-bidu","tag-mnst","tag-monster-beverage-corporation","tag-sp-500","tag-splk","tag-splunk","tag-t2108","tag-technical-analysis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (September 3, 2014) - Quick Chart Updates including Apple&#039;s Doubly-Ominous Print - 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\/2014\/09\/03\/t2108-update-140903\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (September 3, 2014) - Quick Chart Updates including Apple&#039;s Doubly-Ominous Print - 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 ... 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