{"id":33220,"date":"2016-02-17T23:25:50","date_gmt":"2016-02-18T07:25:50","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=33220"},"modified":"2016-02-17T23:26:07","modified_gmt":"2016-02-18T07:26:07","slug":"t2108-update-160217","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2016\/02\/17\/t2108-update-160217\/","title":{"rendered":"T2108 Update (February 17, 2016) &#8211; Full Bull (FB) Part Two"},"content":{"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 <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>: 39.9%<br \/>\n<strong>T2107 Status<\/strong>: 19.2%<br \/>\n<strong>VIX Status<\/strong>: 22.3<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: bullish<br \/>\n<strong>Active T2108 periods<\/strong>: Day #3 over 20%, Day #2 over 30% (overperiod), Day #47 under 40%, Day #51 below 50%, Day #66 under 60%, Day #407 under 70%<\/p>\n<p><strong>Commentary<\/strong><br \/>\nOn January 28, 2016, Facebook (FB) gained 15.5% in <a href=\"http:\/\/drduru.com\/onetwentytwo\/2016\/01\/28\/t2108-update-160128\/\" target=\"_blank\">a post-earnings move that I described as &#8220;full bull<\/a>.&#8221; The bullishness of the day was confirmed when <a href=\"http:\/\/drduru.com\/onetwentytwo\/2016\/01\/30\/t2108-update-january-29-2016-an-impressive-end-to-a-historic-oversold-period-with-caveats\/\" target=\"_blank\">T2108 finally exited an excruciating oversold period the following day<\/a>. I am calling this day, February 17, 2016, &#8220;Full Bull (FB) Part Two&#8221; because FB has recovered from a near complete reversal of all its post-earnings gain to close above its 50-day moving average. This bullish move comes after six straight trading days testing and retesting resistance at the 50DMA only to get turned back.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33221\" aria-describedby=\"caption-attachment-33221\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_FB.png\" rel=\"attachment wp-att-33221\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_FB.png\" alt=\"This close-up of Facebook (FB) shows how the stock almost gave up its entire monster post-earnings gain and then struggled mightily to fight 50DMA resistance. The close above resistance positions FB to make a fresh run to regain its post-earnings luster.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33221\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_FB.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_FB-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33221\" class=\"wp-caption-text\">This close-up of Facebook (FB) shows how the stock almost gave up its entire monster post-earnings gain and then struggled mightily to fight 50DMA resistance. The close above resistance positions FB to make a fresh run to regain its post-earnings luster.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The road ahead to confirm FB&#8217;s bullish move will not (should not?) be nearly as easy as Full Bull Part One. On the positive side, T2108 soared for a third straight day demonstrating broad participation in this current bounce from oversold trading conditions. At 39.9%, T2108 closed exactly at the peak of December&#8217;s bounce from oversold conditions.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33223\" aria-describedby=\"caption-attachment-33223\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_T2108.png\" rel=\"attachment wp-att-33223\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_T2108.png\" alt=\"T2108 is putting on an impressive display of strength. Can it now hurdle over critical resistance and FINALLY close above 40%?\" width=\"550\" height=\"375\" class=\"size-full wp-image-33223\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_T2108.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_T2108-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33223\" class=\"wp-caption-text\">T2108 is putting on an impressive display of strength. Can it now hurdle over critical resistance and FINALLY close above 40%?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>T2108 is right at critical resistance just as other key indicators are at critical testing points.<\/p>\n<p>The S&#038;P 500 (SPY) printed its first 3-day gain since December. The index is staring down resistance from the last high in late January.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33224\" aria-describedby=\"caption-attachment-33224\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_SP500.png\" rel=\"attachment wp-att-33224\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_SP500.png\" alt=\"The S&amp;P 500 has finally strung together an impressive 3-day rally. Resistance is directly overhead from January&#039;s high and the downtrending 50DMA.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33224\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33224\" class=\"wp-caption-text\">The S&#038;P 500 has finally strung together an impressive 3-day rally. Resistance is directly overhead from January&#8217;s high and the downtrending 50DMA.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The volatility index, the VIX, is also facing an important test; this is a test of support.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33225\" aria-describedby=\"caption-attachment-33225\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_VIX.png\" rel=\"attachment wp-att-33225\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_VIX.png\" alt=\"If the VIX survives this test of support, it will likely be time to brace for a freshly imminent sell-off in the stock market.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33225\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_VIX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_VIX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33225\" class=\"wp-caption-text\">If the VIX survives this test of support, it will likely be time to brace for a freshly imminent sell-off in the stock market.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I used this further plunge in volatility to lock in profits on my put options on ProShares Ultra VIX Short-Term Futures (UVXY).<\/p>\n<p>This continued rally surprised me because overnight trading going into the U.S. session featured a resurgent Japanese yen (FXY) and weakening Australian dollar (FXA). For whatever reason, they both turned around and delivered a supportive rally in AUD\/JPY. Note however, the recovery was NOT complete and, like the S&#038;P 500, AUD\/JPY faces resistance from a rapidly declining 50DMA.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33226\" aria-describedby=\"caption-attachment-33226\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_AUDJPY.png\" rel=\"attachment wp-att-33226\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_AUDJPY.png\" alt=\"AUD\/JPY recovers from a bearish drawdown but has not quite provided a freshly bullish signal.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33226\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_AUDJPY.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_AUDJPY-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33226\" class=\"wp-caption-text\">AUD\/JPY recovers from a bearish drawdown but has not quite provided a freshly bullish signal.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I will conclude here with a chart of Tesla Motors (TSLA). This is one of similar charts of individual stocks surging from recent lows. This move surprised me as I expected TSLA to struggle like other big stocks in the wake of their earnings. Instead, TSLA showed off some of its old flair with a monster 8.7% gain which looks to erase the bad taste of a 2-year low. TSLA is in the open field with a fresh post-earnings high, a fully bullish move.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33227\" aria-describedby=\"caption-attachment-33227\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_TSLA.png\" rel=\"attachment wp-att-33227\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_TSLA.png\" alt=\"Tesla Motors (TSLA) is soaring again.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33227\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_TSLA.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160217_TSLA-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33227\" class=\"wp-caption-text\">Tesla Motors (TSLA) is soaring again.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>&#8212; &#8211; &#8212;<\/p>\n<p>For readers interested in reviewing my trading rules for T2108, please see my post in the wake of the August Angst, &#8220;<a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/08\/25\/t2108-update-150824\/\" target=\"_blank\">How To Profit From An EPIC Oversold Period<\/a>&#8220;, and\/or review my <a href=\"http:\/\/www.drduru.com\/money\/T2108.htm\" target=\"_blank\">T2108 Resource Page<\/a>. <\/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.hcom\/h-sc\/ui?s=$SPX&amp;p=D&amp;st=2015-08-17&amp;en=2016-02-17&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2015-08-17&amp;en=2016-02-17&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2015-08-17&amp;en=2016-02-17&amp;id=p25615696567\" target=\"_blank\">U.S. Dollar Index<\/a> (U.S. dollar)<br \/>\n<a title=\"6-month chart of EEM\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=EEM&amp;p=D&amp;st=2015-08-17&amp;en=2016-02-17&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=2015-08-17&amp;en=2016-02-17&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=2015-08-17&amp;en=2016-02-17&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=2015-08-17&amp;en=2016-02-17&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=2015-08-17&amp;en=2016-02-17&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=2015-08-17&amp;en=2016-02-17&amp;id=p15880085697\" target=\"_blank\">IBB<\/a> (iShares Nasdaq Biotechnology).<\/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: long SSO call options, long SSO shares, long SVXY shares, short AUD\/JPY, short FB (hedge)<\/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 (February 17, 2016) &#8211; Full Bull (FB) Part Two\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2016\/02\/17\/t2108-update-160217\/\">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":[482,599,512,511,62],"tags":[943,65,226,1597,887,303,931],"class_list":["post-33220","post","type-post","status-publish","format-standard","hentry","category-breakout","category-internet","category-resistance","category-support","category-technical-analysis","tag-fb","tag-sp-500","tag-t2108","tag-technical-analysis","tag-tsla","tag-vix","tag-volatility-index"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (February 17, 2016) - Full Bull (FB) Part Two - 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\/2016\/02\/17\/t2108-update-160217\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (February 17, 2016) - Full Bull (FB) Part Two - 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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