{"id":36956,"date":"2016-11-08T01:40:32","date_gmt":"2016-11-08T09:40:32","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=36956"},"modified":"2016-11-08T18:46:55","modified_gmt":"2016-11-09T02:46:55","slug":"t2108-update-161107","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/","title":{"rendered":"T2108 Update (November 7, 2016) &#8211; Almost As Bullish As A Relief Rally Can Get"},"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:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">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>: 35.4%<br \/>\n<strong>T2107 Status<\/strong>: 52.3%<br \/>\n<strong>VIX Status<\/strong>: 18.7 (16.9% drop)<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: bullish<br \/>\n<strong>Active T2108 periods<\/strong>: Day #181 over 20%, Day #1 over 30% (overperiod ending 6 days under 30%), Day #12 under  40%, Day #29 under 50%, Day #44 under 60%, Day #70 under 70%<\/p>\n<p><strong>Commentary<\/strong><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/2016\/11\/06\/t2108-update-161104\/\" target=\"_blank\">Two days straight of bullish divergences<\/a> erupted in nearly the most bullish way possible. The S&#038;P 500 (SPY) started the week with a gap up and never looked back. After the dust settled, the index logged a gain of 2.2%. The main thing missing from this move was a breakout &#8211; like over declining resistance at its 50-day moving average (DMA). The index closed nearly on top of its declining 20DMA.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36959\" aria-describedby=\"caption-attachment-36959\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png\" alt=\"The S&amp;P 500 (SPY) confirmed support at its 200-day moving average (DMA) after 9 straight days of losses.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36959\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36959\" class=\"wp-caption-text\">The S&#038;P 500 (SPY) confirmed support at its 200-day moving average (DMA) after 9 straight days of losses.<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_36958\" aria-describedby=\"caption-attachment-36958\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_NASDAQ.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_NASDAQ.png\" alt=\"The NASDAQ (QQQ) paced the S&amp;P 500 with a gain of 2.4%.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36958\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_NASDAQ.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_NASDAQ-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36958\" class=\"wp-caption-text\">The NASDAQ (QQQ) paced the S&#038;P 500 with a gain of 2.4%.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), underlined the bullish tone of the day. T2108 confirmed &#8220;support&#8221; at the threshold of oversold levels (20%) with a massive 12.2 percentage point gain from 23.2% to 35.4%.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36960\" aria-describedby=\"caption-attachment-36960\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_T2108.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_T2108.png\" alt=\"T2108 soared off near oversold levels. Yet, the technical indicator remains locked within a 4-month downtrend now well-defined by its 50DMA trendline.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36960\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_T2108.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_T2108-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36960\" class=\"wp-caption-text\">T2108 soared off near oversold levels. Yet, the technical indicator remains locked within a 4-month downtrend now well-defined by its 50DMA trendline.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>While T2108 made a very bullish move, the 4-month downtrend remains a note of caution. Similarly, while volatility cratered with a 16.9% loss, the VIX is still well above the 15.35 pivot line. Still, it is at least below the 20 level which conventionally defines &#8220;high.&#8221; This move should be the beginning of the end of the latest volatility spike, but I suspect the path back to and below the pivot line will not be nearly as straight as the path straight up to the recent high.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36961\" aria-describedby=\"caption-attachment-36961\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_VIX.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_VIX.png\" alt=\"Volatility cratered - likely the beginning of a fresh round of volatility implosion.\" width=\"550\" height=\"375\" class=\"size-full wp-image-36961\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_VIX.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_VIX-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36961\" class=\"wp-caption-text\">Volatility cratered &#8211; likely the beginning of a fresh round of volatility implosion.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I took this opportunity to sell my puts in ProShares Ultra VIX Short-Term Futures (UVXY). The profits partially offset the losses I incurred last week trying to fade voalitility. In the near-term I plan to fade any further volatility spikes. Per the rules I laid out in the last T2108 Update, I have switched the short-term trading call from cautiously bullish to bullish. I hope to buy a dip in the S&#038;P 500 and use the recent low and 200DMA as a clear stop. The first upside target will be the (declining) 50DMA.<\/p>\n<p>The week ahead likely has more surprises ahead, especially with a U.S. Presidential election on tap. So I will end with just one stock chart: Cognizant Technology (CTSH). The information technology outsourcing firm soared on well-received earnings. The 5.1% gain closed the September gap down which  marks news of an internal invesitgation and the resignation of CTSH&#8217;s president.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_36962\" aria-describedby=\"caption-attachment-36962\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_CTSH.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_CTSH.png\" alt=\"Cognizant Technology (CTSH) reversed all its post-&quot;bad news&quot; loss and gapped up well above 50DMA resistance and its upper-Bollinger Band (BB)\" width=\"550\" height=\"375\" class=\"size-full wp-image-36962\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_CTSH.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_CTSH-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-36962\" class=\"wp-caption-text\">Cognizant Technology (CTSH) reversed all its post-&#8220;bad news&#8221; loss and gapped up well above 50DMA resistance and its upper-Bollinger Band (BB)<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>I assume CTSH is a buy on the dips going forward with the 50DMA as support, formerly resistance.<\/p>\n<p>&#8212; &#8211; &#8212;<br \/>\n<center><br \/>\n<strong>FOLLOW Dr. Duru&#8217;s commentary on financial markets via <a href=\"https:\/\/feedburner.google.com\/fb\/a\/mailverify?uri=onetwentytwo\" target=\"_blank\">email<\/a>, <a href=\"http:\/\/stocktwits.com\/DrDuru\" target=\"_blank\">StockTwits<\/a>, <a href=\"https:\/\/twitter.com\/DrDuru\" target=\"_blank\">Twitter<\/a>, and even <a href=\"https:\/\/www.instagram.com\/drduru_market_breadth\/\" target=\"_blank\">Instagram<\/a>!<\/strong><br \/>\n<\/center><\/p>\n<p><center><br \/>\n<strong>Daily T2108 vs the S&amp;P 500<\/strong><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\"><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\" \/><\/a><\/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\" \/><\/a><br \/>\n*<strong>All charts created using <\/strong><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=\"hhttp:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">The T2108 Resource Page<\/a><\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long UVXY shares and short UVXY call<\/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 7, 2016) &#8211; Almost As Bullish As A Relief Rally Can Get\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/\">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":[584,1303,482,921,219,491,512,62],"tags":[718,413,535,65,362,226,303],"class_list":["post-36956","post","type-post","status-publish","format-standard","hentry","category-bollinger-band","category-bottom","category-breakout","category-downtrend","category-high-tech","category-oversold","category-resistance","category-technical-analysis","tag-ctsh","tag-nasdaq","tag-qqq","tag-sp-500","tag-spy","tag-t2108","tag-vix"],"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 7, 2016) - Almost As Bullish As A Relief Rally Can Get - 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\/11\/08\/t2108-update-161107\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (November 7, 2016) - Almost As Bullish As A Relief Rally Can Get - 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]. 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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 ... Read more","og_url":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2016-11-08T09:40:32+00:00","article_modified_time":"2016-11-09T02:46:55+00:00","og_image":[{"url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png","type":"","width":"","height":""}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"T2108 Update (November 7, 2016) &#8211; Almost As Bullish As A Relief Rally Can Get","datePublished":"2016-11-08T09:40:32+00:00","dateModified":"2016-11-09T02:46:55+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/"},"wordCount":703,"commentCount":0,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png","keywords":["CTSH","NASDAQ","QQQ","S&amp;P 500","SPY","T2108","VIX"],"articleSection":["Bollinger Band","Bottom","Breakout","Downtrend","High Tech","Oversold","Resistance","Technical Analysis"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/","url":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/","name":"T2108 Update (November 7, 2016) - Almost As Bullish As A Relief Rally Can Get - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png","datePublished":"2016-11-08T09:40:32+00:00","dateModified":"2016-11-09T02:46:55+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#primaryimage","url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png","contentUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2016\/11\/161108_SP500.png"},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2016\/11\/08\/t2108-update-161107\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"T2108 Update (November 7, 2016) &#8211; 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