T2108 Status: 64.9%
T2107 Status: 31.7%
VIX Status: 15.0
General (Short-term) Trading Call: Neutral (target of 1996 on the S&P 500 occurred ahead of overbought conditions. See “From the Edge of A Breakout to the Ledge of A Breakdown” for more details).
Active T2108 periods: Day #12 over 20%, Day #11 over 30%, Day #11 over 40%, Day #9 over 50%, Day #5 over 60% (overperiod), Day #326 under 70%

Reference Charts (click for view of last 6 months from Stockcharts.com):
S&P 500 or SPY
SDS (ProShares UltraShort S&P500)
U.S. Dollar Index (volatility index)
EEM (iShares MSCI Emerging Markets)
VIX (volatility index)
VXX (iPath S&P 500 VIX Short-Term Futures ETN)
EWG (iShares MSCI Germany Index Fund)
CAT (Caterpillar).
IBB (iShares Nasdaq Biotechnology).

Commentary
Not a lot of action today: the S&P 500 (SPY) and T2108 were essentially flat on the day. However, for my last T2108 oversold trade, it was a big day.

 

The ProShares Short VIX Short-Term Futures (SVXY) finally breaks out above its 50DMA and closes at its highest point since the oversold periods began.

This 7.2% gain was a sneaky move because the volatility index, the VIX, barely budged on the day. I will probably sell my SVXY shares this week.

 

The volatility index seems setup to trend all the way back to recent lows.

On the flip side, the ProShares Ultra VIX Short-Term Futures (UVXY) has ended the August Angst with an exclamation point. UVXY has now completely reversed its entire run-up from late August. UVXY is also likely to get back to familiar territory: all downhill.

 

ProShares Ultra VIX Short-Term Futures (UVXY) looks set to resume its downtrend as the August Angst ends with an exclamation point.

In the last T2108 Update, I completely forgot to note the growing buying interest in iShares Nasdaq Biotechnology (IBB).

 

iShares Nasdaq Biotechnology (IBB) showing some signs of life off the recent lows.

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