A Little Q&A on the T2108

Monday's column on the "T2108" indicator generated a few questions:

1. Where can I find T2108?

This chart is available only through Worden Brothers' TC2000 software. I believe you can find similar charts elsewhere on the Net, save for one feature: The Worden chart applies only to common stocks within the New York Stock Exchange. That makes it a bit cleaner than other indicators. (Info is available at tc2000.com.)

2. In this market, why don't you use T2108 for going short?

You could, probably just by flipping the percentages around. However, my guess is that most readers are long only, so that's generally how I approach my columns.

3. Does this work in bull markets?

Upon cursory examination, it does, although you won't get the big dips necessary to really load up at discounted prices. In a year like 1995, for example, you had only one buying opportunity.

4. How did you arrive at the lines you drew?

I tried to draw lines that looked like logical areas of support. Someone might well come up with different lines, and that's fine. The theory behind the chart is more important than the actual lines I drew.

5. Why not just stay in cash until the chart crosses into the 200% buy area?

That, of course, would be the most profit for the least risk. The problem, though, is that if we return to a bull market, you won't likely get many buying opportunities.

6. Will you keep us posted on how T2108 is progressing?

You bet!

Today, the Nasdaq, Altria (MO - commentary - Cramer's Take), Gillette (G - commentary - Cramer's Take), Blue Rhino (RINO - commentary - Cramer's Take), Rent-A-Center (RCII - commentary - Cramer's Take), the Philadelphia Stock Exchange Gold and Silver index, or XAU, and 3M (MMM - commentary - Cramer's Take).

---

---

---

---

---

---

---

---

Charts produced by TC2000, which is a registered trademark of Worden Brothers Inc.

---

And that is the final word from Winston-Salem, N.C., where MO is now Altria? No, Altria is a car. Maybe a brand of bottled water, or even a feminine hygiene product. It is not, however, a cigarette company. No, that is Philip Morris. Always was. Always will be.

---

Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. At time of publication, he was long Altria, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Smith writes a daily technical analysis column for RealMoney.com and produces a daily premium product for TheStreet.com called The Chartman's Top Stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback to Gary B. Smith.