{"id":49372,"date":"2019-08-07T01:44:39","date_gmt":"2019-08-07T08:44:39","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=49372"},"modified":"2019-08-07T01:51:08","modified_gmt":"2019-08-07T08:51:08","slug":"t2108-update-190806","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/08\/07\/t2108-update-190806\/","title":{"rendered":"An Enticing and Risky Bounce Off the Oversold Threshold &#8211; Above the 40 (August 6, 2019)"},"content":{"rendered":"\n<p><strong>AT40<\/strong> = 30.4% of stocks are trading above their respective 40-day moving averages (DMAs) <br><strong>AT200<\/strong> = 44.9% of stocks are trading above their respective 200DMAs <br><strong>VIX<\/strong> = 20.2 (the day before it closed at 24.6 and a 7-month high)<br><strong>Short-term Trading Call<\/strong>: neutral (caveats below!)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Market Commentary<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-embed-twitter aligncenter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">ALMOST Oversold. % of stocks above their 40DMA closed at 24.9% and was as low as 21.7%. <a href=\"https:\/\/twitter.com\/hashtag\/T2108?src=hash&amp;ref_src=twsrc%5Etfw\">#T2108<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/AT40?src=hash&amp;ref_src=twsrc%5Etfw\">#AT40<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$SPY<\/a> <a href=\"https:\/\/t.co\/mBPNhlZbqE\">pic.twitter.com\/mBPNhlZbqE<\/a><\/p>&mdash; Dr. Duru (@DrDuru) <a href=\"https:\/\/twitter.com\/DrDuru\/status\/1158633183115718656?ref_src=twsrc%5Etfw\">August 6, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Almost Oversold<\/strong><\/h3>\n\n\n\n<p>I <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/08\/04\/t2108-update-190802\/\">underestimated the market&#8217;s readiness to panic<\/a>.<\/p>\n\n\n\n<p>The week started with a major bout of selling in the wake of China allowing its currency to drop as part of an expanding trade war with the U.S. The S&amp;P 500 (SPY) gapped open below its 50-day moving average (DMA) right into bearish territory. The NASDAQ (COMPQX) did the same. The selling was sharp and heavy enough to drive AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, close to the oversold threshold of 20%.<\/p>\n\n\n\n<p>Monday&#8217;s conditions were ripe for a rebound off what I would call &#8220;quasi&#8221; oversold conditions. The next day delivered a sharp rebound.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_SP500.png\" alt=\"The S&amp;P 500 (SPY) gapped up and gained 1.3% in a partial recovery of Monday's 3.0% loss.\" class=\"wp-image-49377\"\/><figcaption>The S&amp;P 500 (SPY) gapped up and gained 1.3% in a partial recovery of Monday&#8217;s 3.0% loss.<\/figcaption><\/figure><\/div>\n\n\n\n<br><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-1196033822186410\" data-ad-slot=\"3478942445\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_NASDAQ.png\" alt=\"The NASDAQ (COMPQX) gapped up and gained 1.4% in a partial recovery from Monday's gap down and 3.5% loss.\" class=\"wp-image-49376\"\/><figcaption>The NASDAQ (COMPQX) gapped up and gained 1.4% in a partial recovery from Monday&#8217;s gap down and 3.5% loss.<\/figcaption><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_T2108.png\" alt=\"AT40 (T2108) bounced sharply away from the oversold threshold off 20%.\" class=\"wp-image-49383\"\/><figcaption>AT40 (T2108) bounced sharply away from the oversold threshold off 20%.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Volatility Surge and Plunge<\/strong><\/h3>\n\n\n\n<p>The violent bout of selling and buying sent the volatility index (VIX) on a wild ride. On Monday, the VIX soared 39.6% to close at 24.7. A VIX over 20 conventionally represents elevated levels of fear. The next day the VIX plunged back to 20.2 in a major bout of relief.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_VIX.png\" alt=\"The volatility index (VIX) tumbled 18.0% off the previous day's fear-induced 24.6 level.\" class=\"wp-image-49378\"\/><figcaption>The volatility index (VIX) tumbled 18.0% off the previous day&#8217;s fear-induced 24.6 level.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Signals in the Currency Market<\/strong><\/h3>\n\n\n\n<p><a rel=\"noreferrer noopener\" aria-label=\"The U.S. Treasury Department slapped China with the label of a currency manipulator (opens in a new tab)\" href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sm751\" target=\"_blank\">The U.S. Treasury Department slapped China with the label of a currency manipulator<\/a> shortly after the market closed for trading on Monday. It touched off another bout of sharp selling during a relatively illiquid time of trading. I am guessing the Treasury did not expect such a violent market reaction given the timing of the announcement.<\/p>\n\n\n\n<p>The selling was startling. I believe, for example, the S&amp;P 500 (SPY) sank another 2% or so. I saw Apple (AAPL) trading at least as low as $189. I avidly watched the currency market for signs of a bottom. It came much more quickly than I expected.<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Watching <a href=\"https:\/\/twitter.com\/search?q=%24AUDJPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$AUDJPY<\/a> intraday as correlate to <a href=\"https:\/\/twitter.com\/search?q=%24SPY&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$SPY<\/a> prospects. Flush move during illiquid trading followed by push higher that reverses earlier big move. Now fade from highs. <a href=\"https:\/\/twitter.com\/hashtag\/forex?src=hash&amp;ref_src=twsrc%5Etfw\">#forex<\/a> <a href=\"https:\/\/t.co\/LXTU7perhc\">pic.twitter.com\/LXTU7perhc<\/a><\/p>&mdash; Dr. Duru (@DrDuru) <a href=\"https:\/\/twitter.com\/DrDuru\/status\/1158594978756603904?ref_src=twsrc%5Etfw\">August 6, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The trading action validated once again the importance of watching the Australian dollar (FXA) versus the Japanese yen (FXY) (AUD\/JPY) as <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/04\/13\/why-australian-dollar-japanese-yen-matter-for-stock-traders\/\">an approximate measure of the market&#8217;s risk appetite, especially at extremes<\/a>. AUD\/JPY continued to rally into the U.S. open and continued to confirm the flip in sentiment to the bullish side of the ledger.<\/p>\n\n\n\n<p>During these times of selling, I look for big gaps lower to flush out sellers and set up a sustained rally, even if it is just a relief rally. A gap down into oversold conditions would have been ideal and would have flipped me bullish. (In Monday&#8217;s selling, I did little except sell remaining put options, nibble on AAPL and SPY, and hedge my UVXY call spread&#8230;which I wished was just a group of outright calls!). Instead, the gap up on Tuesday set up conditions for late sellers to come and fade the market. At the time of writing, AUD\/JPY is waning and suggesting Wednesday will feature a return of sellers who want to use Tuesday&#8217;s higher prices as a chance to head for the exits.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1320\" height=\"883\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_AUDJPY.png\" alt=\"The Australian dollar versus the Japanese yen (AUD\/JPY) has been in near freefall the month of August. AUD\/JPY is now pivoting around its January flash crash intraday low (thick horizontal line).\" class=\"wp-image-49389\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_AUDJPY.png 1320w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_AUDJPY-768x514.png 768w\" sizes=\"auto, (max-width: 1320px) 100vw, 1320px\" \/><figcaption>The Australian dollar versus the Japanese yen (AUD\/JPY) has been in near freefall the month of August. AUD\/JPY is now pivoting around its January flash crash intraday low (thick horizontal line).<br><strong>Source: <\/strong><a rel=\"noreferrer noopener\" aria-label=\"TradingView (opens in a new tab)\" href=\"https:\/\/www.tradingview.com\/x\/kNvXoPYJ\/\" target=\"_blank\"><strong>TradingView<\/strong><\/a><\/figcaption><\/figure><\/div>\n\n\n\n<p>AUD\/JPY is now struggling with its flash crash low, so it is amazing the S&amp;P 500 is still as high as it is. Recall that the Japanese yen surged briefly in <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/01\/02\/t2108-update-190102\/\">the wake of a massive earnings warning from Apple<\/a>. It was an ugly start to the year. <\/p>\n\n\n\n<p>Again, August is <a href=\"https:\/\/drduru.com\/onetwentytwo\/2018\/10\/14\/what-a-price-history-of-drawdowns-says-about-october-bottoms\/\">the most dangerous month of the year<\/a>, so this ominous start to the month is seasonally consistent. My threshold for flipping the short-term trading call to bullish will be stringent: a spike in volatility into or during oversold conditions (AT40 below 20%). <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A Looming Warning?<\/strong><\/h3>\n\n\n\n<p>While the short-term drama unfolds, the longer-term danger looms. The monthly chart below of SPY shows the market&#8217;s mighty and volatile struggle going nearly nowhere for the last 18 months.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_SPY-monthly.png\" alt=\"The monthly chart of SPY shows how the index ETF has essentially stalled for a year and a half.\" class=\"wp-image-49379\"\/><figcaption>The monthly chart of SPY shows how the index ETF has essentially stalled for a year and a half.<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Bearish<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Apple<\/strong> (AAPL)<\/h3>\n\n\n\n<p>I underestimated the danger to Apple (AAPL) and now wish my hedge 200\/190 put spread did not carry last week&#8217;s expiration date! AAPL gapped below 50DMA support on Monday and rallied back to that trend line on Tuesday. The chart is technically bearish, but I am sticking to a rose-colored tint in the lens I use to view the stock. Because I am in a more aggressive mode to buy options in AAPL, I used Monday&#8217;s selling to reset bullish call positions. Still, I bought a put option expiring next week for good measure.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_AAPL.png\" alt=\"Apple (AAPL) gained 1.9% after gapping back up into its 50DMA\" class=\"wp-image-49375\"\/><figcaption>Apple (AAPL) gained 1.9% after gapping back up into its 50DMA<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Caterpillar <\/strong>(CAT)<\/h3>\n\n\n\n<p>Caterpillar (CAT) gapped down on Monday but ended the day with a kind of hammer bottoming pattern. In a sign of weakness, CAT under-performed the market on Tuesday by fading off its intraday high and closing with a mere 0.4% gain. I should have held a fresh batch of CAT puts going into this week. I will be a little more aggressive in buying CAT puts as a hedge. Given the extreme in volatility, I will target put spreads rather than buying puts outright.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_CAT.png\" alt=\"Caterpillar (CAT) is testing its 2019 low.\" class=\"wp-image-49382\"\/><figcaption>Caterpillar (CAT) is testing its 2019 low.<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Chart Reviews &#8211; Bullish<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>DexCom <\/strong>(DXCM)<\/h3>\n\n\n\n<p>DexCom (DXCM) <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/06\/23\/t2108-update-190621\/\">caught my attention after an extended rally in June<\/a>. The stock had the marker of a brewing major event. My trade in calls were a bust as the stock&#8217;s upward momentum ended and transformed into a lot of chop into earnings. The stock pulled back into and through 50DMA support in the wake of earnings. With Tuesday&#8217;s rebound, I am looking to try a fresh bullish position.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_DXCM.png\" alt=\"DexCom (DXCM) gained 3.9% as it bounced away from 50DMA support.\" class=\"wp-image-49373\"\/><figcaption>DexCom (DXCM) gained 3.9% as it bounced away from 50DMA support.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">i<strong>Shares Barclays 20+ Year Treasury Bond Fund<\/strong> (TLT)<\/h3>\n\n\n\n<p>The iShares Barclays 20+ Year Treasury Bond Fund (TLT) continues to soar. Enough said!<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"375\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/08\/190806_TLT.png\" alt=\"The iShares Barclays 20+ Year Treasury Bond Fund (TLT) gained another 0.8% as part of an 8 straight days of gains.\" class=\"wp-image-49374\"\/><figcaption>The iShares Barclays 20+ Year Treasury Bond Fund (TLT) gained another 0.8% as part of an 8 straight days of gains.<\/figcaption><\/figure><\/div>\n\n\n\n<p>&#8212; &#8211; &#8212;<br>\n<\/p>\n\n\n\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\" rel=\"noopener noreferrer\">email<\/a>, <a href=\"https:\/\/stocktwits.com\/DrDuru\" target=\"_blank\" rel=\"noopener noreferrer\">StockTwits<\/a>, <a href=\"https:\/\/twitter.com\/DrDuru\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>, and even <a href=\"https:\/\/www.instagram.com\/drduru_market_breadth\/\" target=\"_blank\" rel=\"noopener noreferrer\">Instagram<\/a>!<\/strong><br>\n<\/center>\n\n\n\n<p>&#8220;Above the 40&#8221; uses the percentage of stocks trading above their respective 40-day moving averages (DMAs) to assess the technical health of the stock market and to identify extremes in market sentiment that are likely to reverse. Abbreviated as AT40, Above the 40 is an alternative label for &#8220;T2108&#8221; which was created by <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\" target=\"_blank\">Worden<\/a>. Learn more about T2108 on my <a href=\"https:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">T2108 Resource Page<\/a>. AT200, or T2107, measures the percentage of stocks trading above their respective 200DMAs.<\/p>\n\n\n\n<p><strong>Active AT40 (T2108) periods<\/strong>: Day #146 over 20%, Day #1 over 30% (overperiod, ending 1 day under 30%), Day #2 under 40% (underperiod), Day #4 under 50%, Day #13 under 60%, Day #103 under 70%<\/p>\n\n\n\n<center><br>\n<strong>Daily AT40 (T2108)<\/strong><br>\n<figure><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"T2108 (DAILY)\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\" width=\"500\" height=\"350\"><\/a><\/figure><p><\/p>\n<p>Black line: AT40 (T2108) (% measured on the right)<br>\nRed line: Overbought threshold (70%); Blue line: Oversold threshold (20%)<br>\n<\/p><\/center>\n\n\n\n<center><br>\n<strong>Weekly AT40 (T2108)<\/strong><br>\n<figure><a href=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"Weekly T2108\" src=\"https:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"Weekly T2108\" width=\"500\" height=\"350\"><\/a><\/figure><br>\n*<strong>All charts created using <\/strong><strong>FreeStockCharts<\/strong> unless otherwise stated<\/center>\n\n\n\n<p>The T2108 charts above are my LATEST updates independent of the date of this given AT40 post. For my latest AT40 post <a href=\"https:\/\/drduru.com\/onetwentytwo\/tag\/t2108\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">click here<\/a>.<\/p>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<p><strong>Full disclosure<\/strong>: long long TLT puts, long , long UVXY put, long UVXY call spread, long SPY call, long AAPL calls and puts<\/p>\n\n\n\n<p>*Charting notes: FreeStockCharts stock prices are not adjusted for dividends. TradingView.com charts for currencies use Tokyo time as the start of the forex trading day. FreeStockCharts currency charts are based on Eastern U.S. time to define the trading day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AT40 = 30.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.9% of stocks are trading above their respective 200DMAs VIX = 20.2 (the day before it closed at 24.6 and a 7-month high)Short-term Trading Call: neutral (caveats below!) Stock Market Commentary Almost Oversold I underestimated the market&#8217;s readiness to &#8230; <a title=\"An Enticing and Risky Bounce Off the Oversold Threshold &#8211; Above the 40 (August 6, 2019)\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/08\/07\/t2108-update-190806\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":49383,"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":[456,483,4,20,300,219,62],"tags":[250,1819,772,1955,1942,413,65,362,226,280,9,303],"class_list":["post-49372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bonds-2","category-breakdown","category-china","category-forex","category-health-care","category-high-tech","category-technical-analysis","tag-aapl","tag-at40","tag-audjpy","tag-compqx","tag-dxcm","tag-nasdaq","tag-sp-500","tag-spy","tag-t2108","tag-tlt","tag-trade-war","tag-vix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>An Enticing and Risky Bounce Off the Oversold Threshold - Above the 40 (August 6, 2019) - 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\/2019\/08\/07\/t2108-update-190806\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"An Enticing and Risky Bounce Off the Oversold Threshold - Above the 40 (August 6, 2019) - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"AT40 = 30.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.9% of stocks are trading above their respective 200DMAs VIX = 20.2 (the day before it closed at 24.6 and a 7-month high)Short-term Trading Call: neutral (caveats below!) Stock Market Commentary Almost Oversold I underestimated the market&#8217;s readiness to ... 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