{"id":28148,"date":"2015-04-29T20:33:18","date_gmt":"2015-04-30T03:33:18","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=28148"},"modified":"2015-04-29T20:33:41","modified_gmt":"2015-04-30T03:33:41","slug":"t2108-update-150429","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/04\/29\/t2108-update-150429\/","title":{"rendered":"T2108 Update (April 29, 2015) &#8211; Back to the Chop"},"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 occasionally posted on twitter using <a href=\"http:\/\/twitter.com\/#!\/search\/%23120trade\" target=\"_blank\">the #120trade hashtag<\/a>. T2107 measures the percentage of stocks trading above their respective 200DMAs)<\/p>\n<p><strong>T2108 Status<\/strong>: 56.9%<br \/>\n<strong>T2107 Status<\/strong>: 56.0%<br \/>\n<strong>VIX Status<\/strong>: 13.4<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Neutral.<br \/>\n<strong>Active T2108 periods<\/strong>: Day #132 over 20%, Day #91 above 30%, Day #35 above 40%, Day #19 over 50% (overperiod), Day #1 under 60% (underperiod), Day #201 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=$SPX&amp;p=D&amp;st=2014-10-29&amp;en=2015-04-29&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2014-10-29&amp;en=2015-04-29&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2014-10-29&amp;en=2015-04-29&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2014-10-29&amp;en=2015-04-29&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=2014-10-29&amp;en=2015-04-29&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=2014-10-29&amp;en=2015-04-29&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=2014-10-29&amp;en=2015-04-29&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=2014-10-29&amp;en=2015-04-29&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=2014-10-29&amp;en=2015-04-29&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar).<\/p>\n<p><strong>Commentary<\/strong><br \/>\n<a href=\"http:\/\/www.federalreserve.gov\/newsevents\/press\/monetary\/20150429a.htm\" target=\"_blank\">The Federal Reserve issued its latest judgement on monetary policy and the economy<\/a>, and it resolved very little. Volatility did manage to increase post-Fed, but it was not meaningful relative to my flyer trade on ProShares Ultra VIX Short-Term Futures (UVXY) call options. <\/p>\n<p>T2108 dipped below 60% again as the S&#038;P 500 (SPY) dropped fractionally. Even with the 50DMA continuing its ever so subtle uptrend, the S&#038;P 500 remains effectively trapped within a chopfest. The Fed was not able to release any pent-up energy to the upside or downside.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28149\" aria-describedby=\"caption-attachment-28149\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_SP500.png\" alt=\"The S&amp;P 500 chops away in the middle of a VERY subtle uptrend\" width=\"550\" height=\"375\" class=\"size-full wp-image-28149\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28149\" class=\"wp-caption-text\">The S&#038;P 500 chops away in the middle of a VERY subtle uptrend<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The biggest headline for me is the end of the U.S. dollar&#8217;s (DXY0) primary uptrend. Today marked convincing follow-through on the breakdown.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28150\" aria-describedby=\"caption-attachment-28150\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_DXY0.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_DXY0.png\" alt=\"The primary uptrend of the U.S. dollar comes to an end\" width=\"550\" height=\"375\" class=\"size-full wp-image-28150\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_DXY0.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_DXY0-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28150\" class=\"wp-caption-text\">The primary uptrend of the U.S. dollar comes to an end<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>This is happening at the same time yields are increasing again. The combination of dollar weakness and higher yields could suggest a marginal reversal in the attractiveness of the U.S. to foreign investors and traders.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28157\" aria-describedby=\"caption-attachment-28157\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TLT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TLT.png\" alt=\"The iShares 20+ Year Treasury Bond (TLT) is breaking down again\" width=\"550\" height=\"375\" class=\"size-full wp-image-28157\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TLT.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TLT-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28157\" class=\"wp-caption-text\">The iShares 20+ Year Treasury Bond (TLT) is breaking down again<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I am honestly not ready to jump off the dollar bull bandwagon. Yet, the technicals force me to do so. As I stated in <a href=\"http:\/\/seekingalpha.com\/article\/3114496-risk-management-waiting-out-the-shifting-sands-in-the-currency-market\" target=\"_blank\">my last fundamentally-driven article<\/a>, I practiced the new discipline by cleaning out all my forex positions the night before the Federal Reserve meeting &#8211; and thank goodness! I expect this breakdown to cause a lot of ripple effects that should increase volatility in currency markets until traders get used to a new paradigm.<\/p>\n<p>Moving on quickly to individual stocks, I have several charts of interest. Commentary is included at the bottom of the charts&#8230;<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28154\" aria-describedby=\"caption-attachment-28154\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_AAPL.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_AAPL.png\" alt=\"Apple (AAPL) post-earnings is looking toppy yet again with a bearish engulfing right at fresh all-time highs\" width=\"550\" height=\"375\" class=\"size-full wp-image-28154\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_AAPL.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_AAPL-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28154\" class=\"wp-caption-text\">Apple (AAPL) post-earnings is looking toppy yet again with a bearish engulfing right at fresh all-time highs<\/figcaption><\/figure><\/p>\n<figure id=\"attachment_28151\" aria-describedby=\"caption-attachment-28151\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB.png\" alt=\"iShares Nasdaq Biotechnology (IBB) has failed two days in a row to maintain a hold of its 50DMA uptrend...\" width=\"550\" height=\"375\" class=\"size-full wp-image-28151\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28151\" class=\"wp-caption-text\">iShares Nasdaq Biotechnology (IBB) has failed two days in a row to maintain a hold of its 50DMA uptrend&#8230;<\/figcaption><\/figure>\n<figure id=\"attachment_28152\" aria-describedby=\"caption-attachment-28152\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB-30min.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB-30min.png\" alt=\"...however, intraday trading shows that selling surged in the first hour of trading on Tuesday. A bearish breakdown is not confirmed until IBB cracks this low. The selling may be the mark of an early washout.\" width=\"550\" height=\"375\" class=\"size-full wp-image-28152\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB-30min.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_IBB-30min-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28152\" class=\"wp-caption-text\">&#8230;however, intraday trading shows that selling surged in the first hour of trading on Tuesday. A bearish breakdown is not confirmed until IBB cracks this low. The selling may be the mark of an early washout.<\/figcaption><\/figure>\n<figure id=\"attachment_28153\" aria-describedby=\"caption-attachment-28153\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TWTR.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TWTR.png\" alt=\"Two key pivots have developed for Twitter (TWTR): $50 at the top and around $38.50 at the bottom\" width=\"550\" height=\"375\" class=\"size-full wp-image-28153\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TWTR.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_TWTR-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28153\" class=\"wp-caption-text\">Two key pivots have developed for Twitter (TWTR): $50 at the top and around $38.50 at the bottom<\/figcaption><\/figure>\n<p><figure id=\"attachment_28155\" aria-describedby=\"caption-attachment-28155\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_CRM.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_CRM.png\" alt=\"salesforce.com, inc. (CRM) catapults off 50DMA support in a bullish resolution of  post-earnings wedge that was starting to press on the 50DMA\" width=\"550\" height=\"375\" class=\"size-full wp-image-28155\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_CRM.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/04\/150429_CRM-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28155\" class=\"wp-caption-text\">salesforce.com, inc. (CRM) catapults off 50DMA support in a bullish resolution of  post-earnings wedge that was starting to press on the 50DMA<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><center><br \/>\n<strong>Daily T2108 vs the S&amp;P 500<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" title=\"T2108 vs. the S&amp;P 500 (DAILY)\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\" width=\"500\" height=\"350\" \/><\/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%)<br \/>\n<\/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\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"Weekly T2108\" 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><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 UVXY call options, long TLT call options, long IBB put options<\/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 (April 29, 2015) &#8211; Back to the Chop\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/04\/29\/t2108-update-150429\/\">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":[456,300,219,599,1311,62,21],"tags":[250,534,1352,299,1595,1522,1523,65,1365,226,1597,280,1257,1258,1591],"class_list":["post-28148","post","type-post","status-publish","format-standard","hentry","category-bonds-2","category-health-care","category-high-tech","category-internet","category-software","category-technical-analysis","category-u-s-dollar","tag-aapl","tag-apple-inc","tag-crm","tag-dxy0","tag-federal-reserve","tag-ibb","tag-ishares-nasdaq-biotechnology","tag-sp-500","tag-salesforce-com","tag-t2108","tag-technical-analysis","tag-tlt","tag-twitter","tag-twtr","tag-u-s-dollar"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (April 29, 2015) - Back to the Chop - 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\/2015\/04\/29\/t2108-update-150429\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (April 29, 2015) - Back to the Chop - 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]. 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