{"id":28760,"date":"2015-06-09T00:38:40","date_gmt":"2015-06-09T07:38:40","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=28760"},"modified":"2015-06-09T00:40:48","modified_gmt":"2015-06-09T07:40:48","slug":"t2108-update-150608","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/06\/09\/t2108-update-150608\/","title":{"rendered":"T2108 Update (June 8, 2015) &#8211; No Bounce Yet As S&#038;P 500 Makes Rare Extension of Selling"},"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>: 33.7%<br \/>\n<strong>T2107 Status<\/strong>: 46.2%<br \/>\n<strong>VIX Status<\/strong>: 15.3<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Neutral with a &#8220;wavering bullish bias&#8221;<br \/>\n<strong>Active T2108 periods<\/strong>: Day #159 over 20%, Day #118 above 30% (overperiod), Day #3 under 40% (underperiod), Day #12 under 50%, Day #29 under 60%, Day #228 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=$SPX&amp;p=D&amp;st=2014-12-08&amp;en=2015-06-08&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2014-12-08&amp;en=2015-06-08&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2014-12-08&amp;en=2015-06-08&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2014-12-08&amp;en=2015-06-08&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=2014-12-08&amp;en=2015-06-08&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=2014-12-08&amp;en=2015-06-08&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=2014-12-08&amp;en=2015-06-08&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=2014-12-08&amp;en=2015-06-08&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=2014-12-08&amp;en=2015-06-08&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar).<\/p>\n<p><strong>Commentary<\/strong><br \/>\nIn <a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/06\/07\/t2108-update-150605\/\" target=\"_blank\">the last T2108 update<\/a>, I laid out the case for an imminent bounce in the S&#038;P 500 (SPY) and several other stocks. This is day #1 and counting waiting for this bounce. The S&#038;P 500 sank further below its 50DMA pivot and recorded a feat rare these days: three straight closes below the 50DMA. This last occurrence was in mid-January with 5 straight such closes. Before that was the October plunge which ended with a major oversold print and bounce. In this market of chop, it has become rare for the index to do ANYTHING three straight days, so I am taking wary note.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28765\" aria-describedby=\"caption-attachment-28765\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_SP500.png\" alt=\"The S&amp;P 500 is still well within its uptrend pivoting around its 50DMA, but the selling to the bottom of the channel is a bit heavier than usual.\" width=\"550\" height=\"375\" class=\"size-full wp-image-28765\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28765\" class=\"wp-caption-text\">The S&#038;P 500 is still well within its uptrend pivoting around its 50DMA, but the selling to the bottom of the channel is a bit heavier than usual.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The volatility index still supports a bounce but just marginally. The VIX closed right at the 15.35 pivot with a 15.29 close. <\/p>\n<p><center><br \/>\n<figure id=\"attachment_28766\" aria-describedby=\"caption-attachment-28766\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_VIX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_VIX.png\" alt=\"The volatility index, the VIX, presses right up against its pivot line\" width=\"550\" height=\"375\" class=\"size-full wp-image-28766\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_VIX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_VIX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28766\" class=\"wp-caption-text\">The volatility index, the VIX, presses right up against its pivot line<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The dollar index (UUP) also fell today, once again defying those who want to draw simple relationships between the dollar and the stock market. The dollar index fell hard enough to reverse all its gains from the strong Friday jobs report. With the S&#038;P 500 and the dollar down since then, the strong data might as well have never happened!<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28763\" aria-describedby=\"caption-attachment-28763\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_DXY0.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_DXY0.png\" alt=\"The U.S. dollar index quickly lost all its steam from Friday&#039;s strong jobs report\" width=\"550\" height=\"375\" class=\"size-full wp-image-28763\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_DXY0.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_DXY0-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28763\" class=\"wp-caption-text\">The U.S. dollar index quickly lost all its steam from Friday&#8217;s strong jobs report<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Interestingly, oil did not experience a lift from the dollar&#8217;s weakness. Oil closed down on the day so I reviewed a few oil-related names. Chevron (CVX) closed at a three-year closing low. This milestone means that the downward momentum since oil began its crash continues for CVX even as the chart still looks like it contains a 6-month trading range. I nibbled on some CVX on Friday assuming this trading range will hold.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28761\" aria-describedby=\"caption-attachment-28761\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CVX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CVX.png\" alt=\"Chevron (CVX) hit a new closing low as the collapse in oil continues to press down on the stock: trading range or new leg down?\" width=\"550\" height=\"375\" class=\"size-full wp-image-28761\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CVX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CVX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28761\" class=\"wp-caption-text\">Chevron (CVX) hit a new closing low as the collapse in oil continues to press down on the stock: trading range or new leg down?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Seeing the fresh weakness in CVX, I turned my gaze to the Energy Select Sector SPDR Fund (XLE). XLE includes CVX as a major holding. Sure enough, XLE is facing a major juncture. It is testing the uptrend line from its lows. If this gives way, I will probably rush to short the United States Oil Fund LP (USO) and\/or XLE itself (perhaps there is an excellent pairs trade in here?).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28767\" aria-describedby=\"caption-attachment-28767\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_XLE.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_XLE.png\" alt=\"The Energy Select Sector SPDR Fund (XLE) is retesting its uptrend from its post-oil crash low\" width=\"550\" height=\"375\" class=\"size-full wp-image-28767\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_XLE.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_XLE-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28767\" class=\"wp-caption-text\">The Energy Select Sector SPDR Fund (XLE) is retesting its uptrend from its post-oil crash low<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>In other trading news, I bought Amazon.com (AMZN) call options given my anticipation of a bounce. AMZN is now at the bottom of a presumed post-earnings trading range. I also bet on a bounce for Netflix (NFLX). Finally, Shake Shack (SHAK) triggered a long trade &#8211; I started with a half position since the stock triggered right at the open. Sure enough, SHAK faded, and I bought my other half at a better price.<\/p>\n<p>CyberArk Software, Ltd. (CYBR) is the stock I wish I never sold. It broke out briefly today and finally looks ready for new all-time highs.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28762\" aria-describedby=\"caption-attachment-28762\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CYBR.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CYBR.png\" alt=\"CyberArk (CYBR) breaks out and briefly prints a new all-time high\" width=\"550\" height=\"375\" class=\"size-full wp-image-28762\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CYBR.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_CYBR-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28762\" class=\"wp-caption-text\">CyberArk (CYBR) breaks out and briefly prints a new all-time high<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Intel (INTC) is the stock I am salivating to buy, but it continues to sink like a rock. The stock is now getting over-stretched as it trades below its lower-Bollinger Band (BB). One more day of this kind of selling, and I will consider it effectively oversold. However, given the effective resistance around the 200DMA and now the 50DMA breakdown, I will stay patient in waiting for a better entry signal (like a hammer bottom or ANY kind of re-emergence of buying interest!).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_28764\" aria-describedby=\"caption-attachment-28764\" style=\"width: 540px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_INTC.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_INTC.png\" alt=\"Intel (INTC) continues its post-Altera plunge - where it stops, no one knows.\" width=\"550\" height=\"375\" class=\"size-full wp-image-28764\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_INTC.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/06\/150608_INTC-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-28764\" class=\"wp-caption-text\">Intel (INTC) continues its post-Altera plunge &#8211; where it stops, no one knows.<\/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 CVX shares, long call options for AMZN and NFLX, long and short various currencies against the U.S. dollar<\/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 (June 8, 2015) &#8211; No Bounce Yet As S&#038;P 500 Makes Rare Extension of Selling\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/06\/09\/t2108-update-150608\/\">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":[20,219,599,377,338,796,1311,21],"tags":[398,1548,1549,1518,1519,299,1443,222,221,405,536,65,1544,1597,1591,303,931,1444],"class_list":["post-28760","post","type-post","status-publish","format-standard","hentry","category-forex","category-high-tech","category-internet","category-oil","category-retail","category-semiconductors","category-software","category-u-s-dollar","tag-amzn","tag-chevron","tag-cvx","tag-cyberark-software","tag-cybr","tag-dxy0","tag-energy-select-sector-spdr-etf","tag-intc","tag-intel","tag-nflx","tag-oil-2","tag-sp-500","tag-shak","tag-technical-analysis","tag-u-s-dollar","tag-vix","tag-volatility-index","tag-xle"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (June 8, 2015) - No Bounce Yet As S&amp;P 500 Makes Rare Extension of Selling - 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\/06\/09\/t2108-update-150608\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (June 8, 2015) - No Bounce Yet As S&amp;P 500 Makes Rare Extension of Selling - 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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