Inroducing new T2108 pendulum; T2108 recovers from oversold 9.5% on Tuesday


My son and webmaster, Mike, has added a new visual representation of the Worden T2108 Indicator.   This indicator acts as a pendulum   of the market technicals, going from extreme readings of oversold, around 15% or below, and overbought, above 75%.   It seems to me to work better with oversold readings.     After an extreme oversold reading the market tends to rally quickly, as yesterday.

On the other end, especially in bull markets, it can remain above 75% for months.   On January 6, it topped out at 89%, and the present decline began right away.   At its low in October, it bottomed out around 1%.   Only at the 1987 crash, did it register a reading below 1%.   This bear market has resulted in very low readings, hitting 4.9% on November 2nd.

The indicator is charted daily in TC2007 back to October, 1986.   T2108 measures the percentage of all NYSE stocks that closed above their simple 40 day moving average.   The way I should use it during a bear market, is to not initiate new shorts when T2108 is oversold, and to watch for   retracements in my short stocks.   Another way would be to buy the Index ETF’s or options   when T2108 is very oversold.   Note, however, that if I do not post on a specific day, the pendulum will show its value as of the date and time of the last post.   Good luck using T2108!

7 thoughts on “Inroducing new T2108 pendulum; T2108 recovers from oversold 9.5% on Tuesday”

  1. Mike – Very Nice thanks! BTW – why are the POST so slow getting to my Yahoo email? Eric’s Posts arrive in my email usually around Midnight vs. during the day when the Posts are Time Stamped.

    Just curious as to why?

  2. Jim, I apologize for the delays. I fixed the problem and now you will get a daily post email between 7am-9am. Most of Dr. Wish’s posts are posted at midnight the day they are to be released so you should be in the clear =)

    Thanks for the feedback. It’s users like you that keep this site in top shape!

  3. Mr. Risk – I custom made the widget with the help of Google Charts API. Glad you enjoy it!

    Joseph – I changed the settings for all emails so yours should be fixed as well.

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