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MAJOR reason stocks could plunge soon
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Wednesday, August 26, 2009
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From Quantifiable Edges:

Some extreme readings are appearing in a few Worden Bros. indicators that look at stocks relative to their 200 day moving averages. One is T2107, which simply looks at the percentage of stocks trading above their 200ma. The other is T2109, which looks at the percentage of stocks trading at least 1 standard deviation above their 200ma.

Both indicators are near all time highs (dating back to 1986). In fact, the only period of time in which these indicators registered higher readings was in the beginning of 2004.

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Topics: Trading Ideas | Stocks
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