{"id":28952,"date":"2015-06-21T14:30:47","date_gmt":"2015-06-21T21:30:47","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=28952"},"modified":"2015-06-22T06:48:26","modified_gmt":"2015-06-22T13:48:26","slug":"t2108-update-150619","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/06\/21\/t2108-update-150619\/","title":{"rendered":"T2108 Update (June 19, 2015) – Embracing the Chop"},"content":{"rendered":"

<\/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 T2108 Resource Page<\/a>. You can follow real-time T2108 commentary<\/a> on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag<\/a>. T2107 measures the percentage of stocks trading above their respective 200DMAs)<\/p>\n

T2108 Status<\/strong>: 46.3%
\nT2107 Status<\/strong>: 48.1%
\nVIX Status<\/strong>: 14.0
\nGeneral (Short-term) Trading Call<\/strong>: Neutral
\nActive T2108 periods<\/strong>: Day #168 over 20%, Day #127 above 30%, Day #3 over 40% (overperiod), Day #21 under 50% (underperiod), Day #38 under 60%, Day #237 under 70%<\/p>\n

Reference Charts<\/strong> (click for view of last 6 months from Stockcharts.com):
\nS&P 500<\/a> or SPY<\/a>
\nSDS<\/a> (ProShares UltraShort S&P500)
\nU.S. Dollar Index<\/a> (volatility index)
\nEEM<\/a> (iShares MSCI Emerging Markets)
\nVIX<\/a> (volatility index)
\nVXX<\/a> (iPath S&P 500 VIX Short-Term Futures ETN)
\nEWG<\/a> (iShares MSCI Germany Index Fund)
\nCAT<\/a> (Caterpillar).<\/p>\n

Commentary<\/strong>
\nLast week I decided to embrace the chop, and the results were pretty good. In the last T2108 Update<\/a>, I reviewed the results of the previous week’s trades which took advantage of a bounce I anticipated based on T2108. I was wary about the coming Federal Reserve’s meeting and did not want to make any predictions for last week. However, when Monday (June 18th) delivered a down day, I sprung into action…<\/p>\n

<\/p>\n
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#forex market not (yet?) showing angst of stock market, so inclined to look for $SPY<\/a> to bounce from short-term extended condition.<\/p>\n

— Duru A (@DrDuru) Jun. 15 at 06:49 AM<\/a><\/p><\/blockquote>\n