{"id":31628,"date":"2015-11-09T02:36:42","date_gmt":"2015-11-09T10:36:42","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=31628"},"modified":"2015-11-09T20:26:16","modified_gmt":"2015-11-10T04:26:16","slug":"t2108-update-151106","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/11\/09\/t2108-update-151106\/","title":{"rendered":"T2108 Update (November 6, 2015) &#8211; A Toppy Feeling In the Market Even As Individual Stocks Shine"},"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>: 61.7%<br \/>\n<strong>T2107 Status<\/strong>: 34.6%<br \/>\n<strong>VIX Status<\/strong>: 14.3<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: slightly bearish<br \/>\n<strong>Active T2108 periods<\/strong>: Day #26 over 20%, Day #25 over 30%, Day #25 over 40%, Day #23 over 50%, Day #8 over 60% (overperiod), Day #340 under 70% (underperiod)<\/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=$SPX&amp;p=D&amp;st=2015-05-06&amp;en=2015-11-06&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2015-05-06&amp;en=2015-11-06&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2015-05-06&amp;en=2015-11-06&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2015-05-06&amp;en=2015-11-06&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=2015-05-06&amp;en=2015-11-06&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=2015-05-06&amp;en=2015-11-06&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=2015-05-06&amp;en=2015-11-06&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=2015-05-06&amp;en=2015-11-06&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=2015-05-06&amp;en=2015-11-06&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar).<br \/>\n<a title=\"6-month chart of IBB\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=IBB&amp;p=D&amp;st=2015-05-06&amp;en=2015-11-06&amp;id=p15880085697\" target=\"_blank\">IBB<\/a> (iShares Nasdaq Biotechnology).<\/p>\n<p><strong>Commentary<\/strong><br \/>\nT2108&#8217;s struggle to advance continues. On Friday, November 6, my favorite technical indicator extended its latest pullback from the overbought threshold.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31631\" aria-describedby=\"caption-attachment-31631\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_T2108.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_T2108.png\" alt=\"How much longer can T2108 continue to churn just under overbought levels?\" width=\"550\" height=\"375\" class=\"size-full wp-image-31631\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_T2108.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_T2108-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31631\" class=\"wp-caption-text\">How much longer can T2108 continue to churn just under overbought levels?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I am now ready to conclude that T2108 will NOT broach overbought levels anytime soon. The churn for the past month means that despite the impressive advance of the S&#038;P 500 (SPY), buyers are having trouble pushing additional stocks over the hump. The advancing tide has failed to lift more boats for at least a month.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31632\" aria-describedby=\"caption-attachment-31632\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_SP500.png\" alt=\"The S&amp;P 500 has marched nearly straight up for a month in stairstep fashion. Even the current mild pullback is well within the uptrending channel defined by the upper Bollinger Bands.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31632\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31632\" class=\"wp-caption-text\">The S&#038;P 500 has marched nearly straight up for a month in stairstep fashion. Even the current mild pullback is well within the uptrending channel defined by the upper Bollinger Bands.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The sharpening divergence between T2108 and the S&#038;P 500 is very surprising to me. With <a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/11\/07\/policy-island-for-fed\/\" target=\"_blank\">the market finally gearing up for an imminent rate hike<\/a>, I am now inclined to interpret this divergence as bearish. I flipped the trading call from neutral to bearish. My major caveat is that I still do not think it is worth getting aggressive on any shorts until the S&#038;P 500 closes below 200DMA support. At this market juncture, it will take such a breakdown to confirm my bearish trading call.<\/p>\n<p>Earnings season winds down leaving some impressive charts in its wake. I hope to spend this week covering the majority of the ones of most interest to me. They are an interesting mix of breakouts, breakdowns, and confirmed moves.<\/p>\n<p>First of all, honors go to Amazon.com (AMZN) and Alphabet (GOOG). These big cap tech stocks are clear market leaders that are pushing the narrow charge higher. I was not aggressive enough trading these stocks after stellar post-earnings up-gaps. AMZN in particular quickly went to work invalidating the same kind of bearish &#8220;gap and crap&#8221; that stalled the stock out after July earnings. Alphabet (GOOG) has also refused to submit to its bearish gap and crap.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31633\" aria-describedby=\"caption-attachment-31633\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_AMZN.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_AMZN.png\" alt=\"Amazon.com (AMZN) quickly resumed post-earnings momentum after a bearish gap and crap reminiscent of previous earnings.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31633\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_AMZN.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_AMZN-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31633\" class=\"wp-caption-text\">Amazon.com (AMZN) quickly resumed post-earnings momentum after a bearish gap and crap reminiscent of previous earnings.<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_31634\" aria-describedby=\"caption-attachment-31634\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GOOG.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GOOG.png\" alt=\"Alphabet (GOOG) is melting up in a continuation of post-earnings momentum.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31634\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GOOG.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GOOG-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31634\" class=\"wp-caption-text\">Alphabet (GOOG) is melting up in a continuation of post-earnings momentum.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Even Netflix has reversed its post-earnings losses and is on the edge of a major breakout. <\/p>\n<p><center><br \/>\n<figure id=\"attachment_31635\" aria-describedby=\"caption-attachment-31635\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_NFLX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_NFLX.png\" alt=\"Netflix (NFLX) is doing its best to return to bullish shape and rejoin the rest of the market leaders.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31635\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_NFLX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_NFLX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31635\" class=\"wp-caption-text\">Netflix (NFLX) is doing its best to return to bullish shape and rejoin the rest of the market leaders.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Outside of tech, Goldman Sachs (GS) has printed a major 200DMA breakout. I got caught napping in my small short position. With GS presumably about to benefit from higher rates, it might be time to get bullish on GS despite what I see as more bearish tidings in the general market.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31636\" aria-describedby=\"caption-attachment-31636\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GS.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GS.png\" alt=\"Goldman Sachs (GS) continues n impressive post-earnings reversal with a very bullish 200DMA breakout\" width=\"550\" height=\"375\" class=\"size-full wp-image-31636\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GS.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_GS-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31636\" class=\"wp-caption-text\">Goldman Sachs (GS) continues n impressive post-earnings reversal with a very bullish 200DMA breakout<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I sold <a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/10\/24\/disney-trade-two-month-update\/\" target=\"_blank\">my position in Disney<\/a> (DIS). I am not bearish; I even want to get back in to buy dips. I just did not like the way the stock stopped cold at resistance from the sell-off earlier in sympathy with poor earnings resuls from Time Warner (TWX).<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31637\" aria-describedby=\"caption-attachment-31637\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_DIS.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_DIS.png\" alt=\"Disney (DIS) may struggle to make further progress after a pre-earnings plunge interrupted impressive momentum.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31637\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_DIS.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_DIS-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31637\" class=\"wp-caption-text\">Disney (DIS) may struggle to make further progress after a pre-earnings plunge interrupted impressive momentum.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Finally, for a breakdown, I have Teradata Corporation (TDC). Amazingly, the stock busted a sharp 180 the very next day and almost closed its entire post-earnings gap down. I m guessing the on-going bleeding in this stock may finally abate for a while.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31638\" aria-describedby=\"caption-attachment-31638\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_TDC.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_TDC.png\" alt=\"Blink and you missed it: Teradata stages its own quick post-earnings reversal.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31638\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_TDC.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151106_TDC-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31638\" class=\"wp-caption-text\">Blink and you missed it: Teradata stages its own quick post-earnings reversal.<\/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><\/p>\n<p>The charts above are the my LATEST updates independent of the date of this given T2108 post. For my latest T2108 post <a href=\"http:\/\/drduru.com\/onetwentytwo\/tag\/t2108\/\" target=\"_blank\">click here<\/a>.<\/p>\n<p>\n<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: short GS<\/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 (November 6, 2015) &#8211; A Toppy Feeling In the Market Even As Individual Stocks Shine\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/11\/09\/t2108-update-151106\/\">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":[584,483,482,1576,548,219,599,512,62],"tags":[398,1578,231,208,405,65,362,226,1650,1597],"class_list":["post-31628","post","type-post","status-publish","format-standard","hentry","category-bollinger-band","category-breakdown","category-breakout","category-entertainment","category-financials","category-high-tech","category-internet","category-resistance","category-technical-analysis","tag-amzn","tag-dis","tag-goog","tag-gs","tag-nflx","tag-sp-500","tag-spy","tag-t2108","tag-tdc","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 (November 6, 2015) - A Toppy Feeling In the Market Even As Individual Stocks Shine - 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\/11\/09\/t2108-update-151106\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (November 6, 2015) - A Toppy Feeling In the Market Even As Individual Stocks Shine - 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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