Thursday, June 26, 2008

T2108 Update

Thankfully, it appears my status as a "Spam Blog" has been removed and I'm free to post to Blogger once again. Though, some of you may think this blog is just as spammy as ever. Ha. Spurred on by Stewie's exuberance here is an update on the Worden TeleChart T2108 indicator.

T2108 is an indicator which tracks the % of stocks that are above their 40 day moving averages. It's worked very well in the past as an indicator that gets you long when everyone else is experiencing maximum amounts of pain. I first picked up on this indicator a few years back when Gary B Smith, formerly of, would reference it constantly.

We're at 15.00 as of the close today. This is below the levels we hit in Jan and Mar of this year and just above the Nov 07 lows (hit about 13). The Aug 07 lows hit 7.7.


HPT said...

Let us know when it hits 2, then maybe I'll buy something.

Stewie said...

thanks johnson. this indicator is great at getting you to buy while there is real blood on the streets. But i cannot help but notice on these charts that there were several spikes that took the indicator readings to very low levels(imagine how insanely scary that must be!) but i do feel that we are very very close to a massive short squeeze. I don't think it'll happen on a friday tho. So i am hoping for a bad close on friday and we can eyeing short term long positions for next week. If we get a shitty close like i think we will, you'll hear a lot 'BLACK MONDAY" chatter. Who knows, maybe we can Bo Yoder on the bearish side with a poor friday close.
thanks bro.

upsidetrader said...

i'm with stewie on this- i use technical indicators all the time but with finacials imploding and oil maybe rocking into the weekend(iran-israel) i dont see a squeeze tomorow,but WTF do i know.we will rally very soon but i dont think anyone has the balls to do it tomorrow, i'll buy you a frosty if im wrong


Johnson's Trading Blog said...

I'm with you guys as well. No need to get in the way of a fast moving train. The key is to be watching for signs of that capitulation / reversal. The market will let us know when it is time to go long.

Blue said...

You know you can get a vanilla frosty or a swirl now! *ala Homer Simpson* Mmmm...frosty.

TLtrader said...

Good posts guys! thanks to Johnson for posting the T2108 update. Like I said before, programs short all rallies when the S&P is under its 200/50 MA's (see my comment on June 15, where the SP was almost 100 points above for which I was in UltraShort profunds for about 50 of those down points, just kick myself for getting out too early). So at the moment the street's bleeding so I sit out and wait. I am simply looking for hammer days like 1/22 and 3/17 and vix at 30 - all of which I think may happen next week. We will see. Happy trading everyone.