Above The 40 – A Scramble To Catch Up As Stock Market Flips Overbought

Best Buy (BBY) hit a post-earnings high with a close right at 50DMA resistance.

Best Buy (BBY) hit a post-earnings high with a close right at 50DMA resistance.

Fitbit (FIT)

When it comes to scraping the bottom of the barrel for catch-up plays, FIT is surely a prime candidate. The stock of this wearable device maker is already up 34.1% in June. Citron thinks FIT is a perfect contrarian play and could be a $15 stock. The stock still has 20.9% of its float sold short. I am not sure what the bears are still waiting for…bankruptcy?

Fitbit (FIT) soared 14.7% today. Is a revival underway? This move confirms the 200DMA breakout and logged a marginal 16-month closing high.

Fitbit (FIT) soared 14.7% yesterday. Is a revival underway? This move confirms the 200DMA breakout and logged a marginal 16-month closing high.

“Above the 40” 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 “T2108” which was created by Worden. Learn more about T2108 on my T2108 Resource Page. AT200, or T2107, measures the percentage of stocks trading above their respective 200DMAs.

Active AT40 (T2108) periods: Day #79 over 20%, Day #48 over 30%, Day #43 over 40%, Day #25 over 50%, Day #8 over 60%, Day #1 over 70% (1st overbought day, ending 92 days under 70%)

Daily AT40 (T2108)

Black line: AT40 (T2108) (% measured on the right)
Red line: Overbought threshold (70%); Blue line: Oversold threshold (20%)

Weekly AT40 (T2108)

Weekly T2108

 

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Disclosure: Long UVXY calls.

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