{"id":33295,"date":"2016-02-22T01:27:11","date_gmt":"2016-02-22T09:27:11","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=33295"},"modified":"2016-02-22T01:30:00","modified_gmt":"2016-02-22T09:30:00","slug":"t2108-update-160219","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2016\/02\/22\/t2108-update-160219\/","title":{"rendered":"T2108 Update (February 19, 2016) &#8211; Buyers Hang On to Bounce from Oversold Conditions"},"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>: 39.8%<br \/>\n<strong>T2107 Status<\/strong>: 20.1%<br \/>\n<strong>VIX Status<\/strong>: 20.5<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: bullish<br \/>\n<strong>Active T2108 periods<\/strong>: Day #4 over 20%, Day #3 over 30% (overperiod), Day #48 under 40% (underperiod), Day #52 below 50%, Day #67 under 60%, Day #408 under 70%<\/p>\n<p><strong>Commentary<\/strong><br \/>\nT2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), remained as steady as the S&#038;P 500 (SPY) to close last week. T2108 was flat at 39.8%. Buyers picked the S&#038;P 500 off its lows for the day to get a flat close and a strong week overall. T2107, the percentage of stocks trading above their respective 200DMAs, managed to close up in a small positive sign. <\/p>\n<p><center><br \/>\n<figure id=\"attachment_33296\" aria-describedby=\"caption-attachment-33296\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_SP500.png\" rel=\"attachment wp-att-33296\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_SP500.png\" alt=\"The S&amp;P 500 looks like it is trying to hold onto its strong bounce out of oversold conditions.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33296\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33296\" class=\"wp-caption-text\">The S&#038;P 500 looks like it is trying to hold onto its strong bounce out of oversold conditions.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Interestingly, the volatility index made a much more dramatic move with a fade from highs that resulted in a definitive breakdown below its 50DMA. This move breaks the recent uptrend. This is a significant development that could support further market gains.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33276\" aria-describedby=\"caption-attachment-33276\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_VIX.png\" rel=\"attachment wp-att-33276\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_VIX.png\" alt=\"The volatility index has struggled mightily to push past the intraday high of 2012 even as market fears have presumably skyrocketed.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33276\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_VIX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_VIX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33276\" class=\"wp-caption-text\">The volatility index has struggled mightily to push past the intraday high of 2012 even as market fears have presumably skyrocketed.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>This week sets up well as a major test of the market&#8217;s ability to sustain post-oversold momentum. Here are some charts that have my attention going into this week. These are all the kinds of &#8220;recovery&#8221; stocks that get more and more interesting, the firmer the bounce from the S&#038;P 500&#8217;s oversold conditions.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_33300\" aria-describedby=\"caption-attachment-33300\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_WMT.png\" rel=\"attachment wp-att-33300\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_WMT.png\" alt=\"Wal-Mart Stores (WMT) failed to deliver the goods and vindicate all the recent buying. The support at the 50DMA is encouraging, but 200DMA resistance could stiffen further.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33300\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_WMT.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_WMT-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33300\" class=\"wp-caption-text\">Wal-Mart Stores (WMT) failed to deliver the goods and vindicate all the recent buying. The support at the 50DMA is encouraging, but 200DMA resistance could stiffen further.<\/figcaption><\/figure><\/p>\n<figure id=\"attachment_33299\" aria-describedby=\"caption-attachment-33299\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_RAX.png\" rel=\"attachment wp-att-33299\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_RAX.png\" alt=\"Rackspace Hosting (RAX) is already up 33% from its post-earnings intraday low. Some consolidation below 50DMA resistance could set the stock up for a major breakout.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33299\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_RAX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_RAX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33299\" class=\"wp-caption-text\">Rackspace Hosting (RAX) is already up 33% from its post-earnings intraday low. Some consolidation below 50DMA resistance could set the stock up for a major breakout.<\/figcaption><\/figure>\n<figure id=\"attachment_33298\" aria-describedby=\"caption-attachment-33298\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_QLYS.png\" rel=\"attachment wp-att-33298\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_QLYS.png\" alt=\"I have had my eye on Qualys, Inc. (QLYS) but missed the classic trade to fade an over-extension below the lower-Bollinger Band (BB). A break of the 20DMA downtrend could signal\/confirm a bottom.\" width=\"550\" height=\"375\" class=\"size-full wp-image-33298\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_QLYS.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_QLYS-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33298\" class=\"wp-caption-text\">I have had my eye on Qualys, Inc. (QLYS) but missed the classic trade to fade an over-extension below the lower-Bollinger Band (BB). A break of the 20DMA downtrend could signal\/confirm a bottom.<\/figcaption><\/figure>\n<p><figure id=\"attachment_33297\" aria-describedby=\"caption-attachment-33297\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_IBM.png\" rel=\"attachment wp-att-33297\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_IBM.png\" alt=\"International Business Machines (IBM) has had a rough time for a very long time. Over the past week, IBM rocketed off a near 6-year low to break out above its 50DMA. Is THIS the breakout that finally sticks?\" width=\"550\" height=\"375\" class=\"size-full wp-image-33297\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_IBM.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/02\/160219_IBM-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-33297\" class=\"wp-caption-text\">International Business Machines (IBM) has had a rough time for a very long time. Over the past week, IBM rocketed off a near 6-year low to break out above its 50DMA. Is THIS the breakout that finally sticks?<\/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=$SPX&amp;p=D&amp;st=2015-08-19&amp;en=2016-02-19&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2015-08-19&amp;en=2016-02-19&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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=2015-08-19&amp;en=2016-02-19&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<\/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 19, 2016) &#8211; Buyers Hang On to Bounce from Oversold Conditions\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2016\/02\/22\/t2108-update-160219\/\">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":[584,1303,483,482,921,219,512,338,1311,511,62],"tags":[399,1292,1265,65,362,226,1597,303,1177],"class_list":["post-33295","post","type-post","status-publish","format-standard","hentry","category-bollinger-band","category-bottom","category-breakdown","category-breakout","category-downtrend","category-high-tech","category-resistance","category-retail","category-software","category-support","category-technical-analysis","tag-ibm","tag-qlys","tag-rax","tag-sp-500","tag-spy","tag-t2108","tag-technical-analysis","tag-vix","tag-wmt"],"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 19, 2016) - Buyers Hang On to Bounce from Oversold Conditions - 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\/22\/t2108-update-160219\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (February 19, 2016) - Buyers Hang On to Bounce from Oversold Conditions - 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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