TigerSoft and Peerless Daily Hotline  
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      (C) 1985-2014 William Schmidt, Ph.D.  www.tigersoft.com               All rights strictly reserved.  
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     Email william_schmidt@hotmail.com  
                                         
                                                    On Thursday
                                          
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                                                             www.tigersoft.com/-2GBL13HL/index.htm         
   --------------------------------------------------------------------------------------------------------------------
             A Guide To Profitably Using The Tiger Nightly HOTLINE

              Peerless Signals: 1915-2013     
           New   Peerless Signals and DJI Charts  - version 7/4/2013
           1965  1965-6    1966   1966-7    1967    1967-8    1968   1968-9   1969      1969-70   1970   1970-1 1971
               1971-2  1972  1972-3    1973   1973-4   1974     1974-5     1975   1975-6     1976    1976-7     1977 1977-1978
              1978  1978-79     1979   1979-80   1980    1980-1   1981    1981-2   1982     1982-1983     1983    1983-1984
              1984  1984-1985 1985 1985-1986    1986  1986-1987  1987    1987-8  1988 1988-9   1989    1989-90
              1990  1990-1  1991   1991-2  1992   1992-3    1993   1993-4   1994   1994-5   1995     1995-1996   1996
              1996-7    1997   1997-8    1998    1998-1999   1999    1999-2000   2000      2000-1   2001   2001-2   2002
              2002-3    2003   2003-4    2004   2004-5     2005   2005-6    2006    2006-7    2007    2007-8    2008    2008-9
              2009      2009-10    2010    2010-11    2011    2011-12     2012     2012-2013

       Background and New Studies 

                    Announcement:                         
                                   1  The On-Line Explosive Stocks is finished.
                                      2   The On-Line Killer Short Sales book is also finished, but
                                          will be re-edited this coming week.

                              I call your attention now to the many new concepts and
                              the  considerable new research in them:  For example:
                                   1) A very good New Tiger Buy B12 for Low Priced Stocks (1)
                                   2) After Red high volume reversal days use CP uptrend-breaks.
                                   3) Buy the stocks the Federal Govt wants you to buy.  (1)
                                   4) 100-Day Power Rankings...  (1)
                                   5) Using Closing Power Hooks after Buy B26s and B20s. (1)
                                   6) How A Stock Reacts to Its Earnings Report Is Very important. (1)
                                   7) TigerSoft Major Buy Signals' Combinations
                                           Which are most Powerful? Reliable? (1)
                                   8) Augmented Buy B20s' Independent Success Rate. (1)
                                   9) What factors warn a rising 65-dma will not hold? (2)
                                 10) The classic cluster of  technical characteristics that commonly appear
                                        in the 23 stocks falling 70% or more in the deep pullback of 2011. (2)

                     Purchase each all new book by CC for $42.50 or send a check
                     for $37.50 to me: William Schmidt, 5970 Gullstrand St., San Diego, CA 92122.

                     Introduction to Tiger/Peerless Buys and Sells.
new             Sept 2014 Peerless Buy and Sell Signals
                     Different Types of TigerSoft/Peerless CHARTS, Signals and Indicators
                 Documentation for TigerSoft Automatic and Optimized Signals.
                 How reliable support is the DJI's rising 200-day ma? 
                 SPY Charts since 1994: Advisory Closing Power S7s, Accum. Index, 65-dma, Optimized
Signals.
                  "The Jig Is Up": Calling September and October Tops.
                 A Keynesian's Warning Signs.
                 

4/7/2014   Advisory Pink Closing Power S7s at ETF at top since 1994
                              1994   1996  1997  1998  1999     2000 QQQ   SPY
                              DIA    2002   2007    2008    SPY 2011 2013-2014

                 Tiger Buy and Sell Signals: New 2014 Research:
                      These are randomly chosen groups.
                       but clearly we need to back-test them in more years.
                       You can replicate or do similar studies yourself
                       for other signals and/or other years.
                  9/1/2014 - 2014 Tiger B19s - Steady rallying and no pullbacks below the 21-day ma.
                       9/2/2014 - 2014 Tiger B17s on 14As taken alphabetically
                       9/3/2014 - 2014 Tiger B17s on 60 Biotechs taken alphabetically
                 9/4/2014 - 2014 Tiger B18s on all "R" stocks taken alphabetically
                 9/8/2014 - 2014 Tiger B20s  - Conclusion: Use Closing Power trendbreaks in aftermath.
                 9/8/2014 - 2014 Tiger B16s - Conclusion: Use mostly when LA/MA under 1.05.
                   9/11/2014 - 2014 Tiger B15s - Conclusion: Certain conditions improved the results dramatically.
                 9/12/2014 - 2014 Tiger B25s - Conclusion: 87.5% success rate when other internals are positive.
                 9/15/2014 - 2014 Tiger B25s - Best conditions for using B25s with somewhat higher RSX capitalization stocks.  
                 9/16/2014 -  New Tiger Closing Power Take-Off Buy Signal in 2014:  14s, QQQ, DJI-30 and ETFs
                 9/17/2014 -  New Tiger Closing Power Take-Off Buy Signal: 2009A-s
                 9/18/2014 -  New Tiger Closing Power Take-Off Buy Signal: 2010A-s
                 9/21/2014 -  New Tiger Augmented Sell S8s: DJI-30 - 2014
                                                       Requiring S8s to show Negative CP%-Pr and IP21<+.15 produced a 70% success rate
                                                       in a rising market. for DJI-30 stocks and big ETFs.
                 9/24/2014 -  Tiger Sell S14s: They make price  breakdowns very bearish.
                  The New 2014 Peerless.exe Software has now been posted on the Elite Stock Professional Page.
           ---> To Older Hotlines Lines

             Announcements

                 NEW   S17 Peerless update has been posted on Tiger Elite Stock Professionals' Page.
                It includes new Tiger signals showing most reliable tests of 65-dma, a Buy B2
                and a Sell S2.  Also in it is a Buy B13 and S13 to show Closing Power spikes.

                                                            NEAR65.exe on Data Page

                The Tiger Data page now offers a night download of the stocks that have
                closed within 1% of a 65-dma.  We want to see which way stocks are jumping.
                We also want to find stocks perfectly poised to take off or collapse.  Here the
                Closing Power trend reversals are important. 

                Lots of factors affect whether a stock will hold or whether it will fail on a test
                of the 65-dma.  I think the Closing Power Percent - Price Percent using their
                65-day highs and lows is one of the best predictors.  More on this in the
                coming nights. The current CP%-Pr% is shown to the right of the graph.

                This update is $95 if you do not have a subscription to the Elite Page.   If you
                purchased the B20 update a few weeks ago, I will send you the link to this
                update on Wednesday.        

                 
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Additional Peerless Indicators:

65-day ma Percent Data for Different Sectors  
    Steep breadth downtrend-lines were broken today.
     But only Bonds, Utilities, DJI stocks and Beverages show a majority of their stocks above the 65-dma.

Net Idosc on DJI, QQQ, SP-500 and Russell-1000 (very short-term)
    The NID fell today for the stocks in QQQ, SP-500 and Rus-1000 despite the big rally.

Hourly DJI (very short-term)
     The DISI (OBV Line) is still downtrending.

                                                       NIGHTLY HOTLINES  

              10/8/2014    The Two-Day Reversal today was Bullish.
              Who wants to fight the Fed?   Buy IBB, but wait on buying
              the other ETFs.  The pattern of wild Closing Power
              fibrillations may not be broken.  We need to see the
              Bears' response to this rally.

  Key Values  
   16994  la/ma=.997 21-dmaROC= -.014  P = -290  P-ch = 172   IP21 = -.011  V = -.126  OPct= -.003  65-d UpPct = .005




                             
                                                     A New 2-Day Turn-Around Buy B19?

                               Today's fine two-day turn-around did not generate a Peerless Buy signal.
                               No Buy B19 was given here because the DJI closed a little too close to
                               the 21-dma and showed an Adv/Decl Ratio of 4.0, which was less than
                               the 4.74 level required of Buy B19s.  In addition, the previous day's A/D
                               Ratio was only .297.  It needed to be less than .211 to get a Buy B17.

                               Still, who wants to fight the Fed? The Fed as a whole clearly wants to
                               give investors every confidence that they will not be raising rates soon,
                               that investors will be warned in a timely and a transparent way when this
                               is going to happen, that they consider a Dollar that runs away on the upside
                               does too much harm to US manufacturing to allow and that they need
                               much more good Jobs' Data to believe the US economy is safely on a growth
                               path.   Clearly, the Fed is on the side of keeping stocks rising.  They
                               do not want a potential October melt-down. 

                               So, what can we say about today's reversal?  When we test A/D
                               Ratio parameters that bracket what we saw today, we do find this
                               could easily be made into a good Buy signal, except that all
                               but one of the 10 test-B19s occurred before 1960.  The only real
                               paper losses came when this test-B19s occurred in the Summer.
                               See Table 1. 5 of the 10 would have gained more than 9% on
                               the DJI.  So, why fight the Feds?

                               My judgement is that after a few days' hesitation here at 17000, at the
                               DJI's 21-day ma and flat 65-day ma, the NYSE A/D Line will probably
                               break its downtrend and the DJI will rally back up to its resistance at 17200
                               where it will fall back again.  Since 70% of all stocks are still
                               below their 65-day ma, the Hourly DISI remains weak and
                               the Net IDOSC actually fell today for the stocks in the QQQ, SP-500
                               and Russell-1000, I would expect a pullback and some
                               re-grouping, although IWM did break its Closing Power's
                               downtrendline.  

     
                    Above its      CP>its      CP%-Pr%    IP21   Automatic
                     65-dma          21-day ma                                  Signal
          DIA     No                   no             -17%         -.009    Red Sell      CP is below its wildly fibrillating downtrend.
          QQQ   Yes                 yes            -7.5%         .088    ..............      CP caught in its own trading range
          SPY    No                   no             -6.9%       +.026    Red Buy     CP is below its wildly fibrillating downtrend.
          IWM  No                     no             +1.9%      -.116     Red Buy     CP broke its steep downtrend slightly.
          IBB    Yes                  yes             -0.4%      +.137    Red Buy     CP broke its downtrendline.

                      -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->58  +44    MAXCP stocks  Bullish MAXCP Stocks   (11/8/2014)
            --> 221 -173   MINCP stocks  Bearish MINCP Stocks   (11/8/2014)    Bearish plurality       
                                                                  
              --> 21 +12    New Highs on NASDAQ   93 -86   new lows.     Bearish plurality       
                  --> 27 +15   New Highs on NYSE 56 -90 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                                                 Buy IBB

                               Buy some of the Bullish MAXCP stocks and holding short
                               the Bearish MINCP stocks as long as they stay below their
                               falling Closing Power.  I would wait for the Closing Power
                               downtrends to be more clearly broken to do any buying in the
                               major market ETFs.   IBB is more bullish than any of these.
                               I would buy IBB. See it below.  It also shows a new Tiger Buy B13. 
                               Today its Closing Power took the biggest leap upwards in last
                               65 trading days.  See how well two earlier Tiger Buy B13s worked
                               in buying IBB.

                                                                  IBB
          

                   
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                                                          OLDER HOTLINES
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            10/7/2014    The Sell S17 and lop-sided DJI head/shoulders pattern normally
                                promise a test of the lower band.  Today's sell-off was occasioned
                                by heavy institutional and Professional Selling.  That is about 200
                                points lower.   We much watch now to see if the DJI can hold above
                                its well-tested uptrendline.  This crosses at 16624, or 95 points lower. 
                                As we feared, the Russell-2000 could not bounce up from its well-tested
                                flat support. Because it is October and because there are so many
                                leveraged vehicles for short sellers to apply theri trade on down-ticks,
                                I think it would be dangerous to try to call a market bottom here.

                               Today's weakness caused a majority of the DJI stocks to break
                                below the support of their 65-dma.  About  79% of ALL stocks are
                                now under that key support level.  The major market ETFs; Closing Powers
                                are all in downtrends.  The Hourly Down-Volume has bearishly picked
                                up and Down-Hour Volume is now leading the DJI lower.  The
                                Russell-2000 and IWM penetrated their well-tested horizontal
                                support.   Now the SP-500 and DJIA are testing their price uptrend-lines.
                                I would think these will need to be thoroughly challenged before
                                there can be much of a rally.  Until the Closing Powers break their
                                downtrends, I would expect lower prices.

                                             How Can The Economy Hold Up
                                      Now That The Big Boys Starting To Panic?

                                It is said that the big boys are now in a great hurry to get out of the market
                                and some are selling short.  And I read that 95% of SP-500 profits
                                are being used to buy back shares of stock rather than invest in
                                a business expansion.  This is a recipe for big trouble.  With the
                                shrinking middle class holding off on more and more big purchases
                                and the working class living pay check to pay check, only small businesses
                                and Government can keep the economy going.  Republicans don't
                                believe in Goverrnment stimulus and Democrats have utterly forgotten
                                how to teach Keynesian economics to the electorate.  So, everything
                                now depends on small business.  Let's hope the next Jobs Report
                                stays strong.  But now we are hearing of big corporate lay-offs
                                again.   Hewett Packard just announced today it will lay off 56,000 workers.
                                That will definitely hurt next month's Jobs numbers.  The recent declines in
                                the stocks of Ford, Boeing, Caterpillar and United Technologies are so
                                steep (because of the rising Dollar and weaker demand globally), I can't
                                see how they, too, will not be forced to layoff tens of thousands of workers.
                                And, as I showed this weekend here, negative Job Growth and lower
                                profits are what seem to set off bear markets.


                                                   The DJI (DIA), the Falling Closing Power
                                              and the Falling A/D Line for all the "C" Stocks.

                                Lest we trust too much that the absence of Sell S9s can save the market,
                                I need to remind readers that Sell S9s are based on the NYSE A/D Line
                                falling way behind the DJI.  But with interest rates so low, bond funds and
                                dividend stocks on the NYSE have gotten an extraordinary lift for years. 
                                Even now with the market falling, bond funds have turned up.  Low interest
                                rates reflect not just loose monetary policy but a lack of demand for Money,
                                in a weak economy, 

                                Such forces have artificially boosted the A/D Line ever since
                                2009.   What we need now to do is to be aware of how much weaker the
                                average common stock is than the DJI-30.  We can remedy this.

                                If we plot the DJI on top and, say, the A/D Line on the bottom for,
                                all the stocks beginning with "C", for example, we see that a growing bearish
                                divergence is taking shape between the DJI stocks and most other stocks.
                                If we also allowed S9s based on such breadth divergences when the DJI
                                tagged only the 1.75% band, we would have seen a Sell S9 two weeks ago
                                instead of a Sell S17.  I think we will have to start watching for such
                                bearish divergences. 

                                The good news is that this divergence only became glaring several
                                weeks ago.  In 1929, 1987, 2000 and 2007-8, the A/D Line lagged
                                the DJI for 6 or more months before a final top was reached.                                
                               



                             
                        -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->14  -4    MAXCP stocks  Bullish MAXCP Stocks   (11/7/2014)
            --> 394 +58  MINCP stocks  Bearish MINCP Stocks   (11/7/2014)    Bearish plurality       
                                                                  
              --> 9 -3      New Highs on NASDAQ 179  +75   new lows.     Bearish plurality       
                  --> 12 -5   New Highs on NYSE 146 +111 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------
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                                                                      OLDER HOTLINES
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            10/6/2014     "When the foundation weakens enough,
            even the penthouse will come down."

            This Monday's failure to continue Friday's rally suggests there are a lot of big
            Sellers who urgently want out of this market.  I don't know why, but
            we should fear that they have good reasons for selling so hurriedly.



                            A Test of the 3.5% lower band appears likely.

            Octobers are notorious for bringing violent declines: 1929,  1930, 1932, 
            1933,  1937, 1941, 1957, 1967, 1971, 1973, 1977, 1978, 1979, 1987, 1989,
            1997, 2000, 2002 and 2008.  We should be careful now.  Each of these
            years saw a drop of more than 10% from September to an October low. 
            Simply knowing this, I have suggested being fully hedged with
            Bearish MINCP short sales.

            If IWM and the Russell-2000 break their well-tested flat support, the sell-off will
            surely accelerate.   The presence of so many minor head and shoulders patterns
            in IWM's chart is a bearish warning that there are serious cracks in the
            market.    GTAT's sudden bankruptcy today will surely scare some tech
            investors.  Add to that: all our measures of internal strength are bearish on the IWM
            chart below.  Last but not least, Professionals are selling to the Public.  



           
                                                  Sell S9s and S12s Are Not
                                       The Only Peerless Sells We Should Heed.
                                 
            Though we have not had any of the Sell S9s or S12s that usually end a bull market, 
            we certainly have had plenty of warnings that there might have to be a test
            of the lower band, with perhaps a 33% chance that it will drop even more.

            The first warning was the Sell S17.  Though S17s are only September Sells,
            S17s are based on a concept that we also use with Tiger, namely that big drops in IP21
            for stocks are bearish (Tiger S17) just as big leaps up are bullish. (B17).  The
            next warning was the head/shoulders pattern, which showed the DJI was too weak to form a
            symmetrical right shoulder.  The third was the relative narrowness of Friday's
            rally and the fourth was the failure of the DJI to follow-through to the upside today,
            as usually happens on rebounds that lead to prices rallies to the upper band. 
            (See Table 2 below.)   Presently, the Hourly DJI shows that volume was badly
            missing on the current rally. (See Box 2 Below.)  The Closing Powers for the key
            ETFs are all falling.   Finally, our Tiger Net IDOSC refused to rally on Friday and
            fell more deeply into negative territory today. (See Table 3 below.)

                   -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->18  -13    MAXCP stocks  Bullish MAXCP Stocks   (11/6/2014)
            --> 326 +70   MINCP stocks  Bearish MINCP Stocks   (11/6/2014)    Bearish plurality       
                                                                  
              --> 12 -8      New Highs on NASDAQ 72 +28   new lows.     Bearish plurality       
                  --> 17 -7   New Highs on NYSE  35-17 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

Calling Major Tops in Stocks and Key ETFS.                 Today GTAT "suddenly" filed for bankruptcy.  There                 were lots of warnings signs.  And we should study these                 because they will appear over and over again, as more                 and more stocks top out while DJI maintains the                 appearance that all is well on Wall Street.                     1) Watch for Bearish Head/Shoulders Patterns.                     2) Watch for S14s (Institutional Dumping.                     3) Watch for S13s (Biggest Closing Power Declines in 65-trading days)                                             - See also the Tiger Candle-stick charts for BIG RED DAYS                                             - Especially bearish if they occur as 65-dma is penetrated.                     4) Watch for S17s (Big IP21 drops.)                     5) Watch for pattern of Closing Power weakness (S7 warnings) and then                          break in 65-dma.                     6) Watch for Sell S2s (Failures of prices to get past or stay above falling S65-dma)          Example:  GTAT  - Apple sapphire supplier GT Advanced files for bankruptcy  10/6/2014

BOX 2 - Hourly DJIA

Table 3                        Interpreting the Net IDOSC                                                as A Day-to-Day Predictor of DJIA                          The Tiger Net Idosc for the DJI predicts the next day or two in the DJI by              using simple rules when the DJI appears to be in a trading range or locked              inside its normal 3.5% bands.              You must each day consider:                          (1) whether the Net IDOSC rises or falls from the previous day as the DJI does.                          By itself, this suggests that the DJI will continue to move in the same direction                          another day.  This more reliably predicts a rally the next day if the NID is positive.                          It more reliably predicts a decline the next day if the NID is negative.                         (2) whether the Net IDOSC moves in a direction contrary to the daily direction of                         the DJI.  By itself, this weakly predict the DJI will reverse directions                         on the next day to be of use.  In these cases, we need also to see a negative NID                         to predict a decline or a positive NID to predict a rally.  A movement by NID                         for two or more days that is contrary to the DJI's price movement also predicts                         a reversal.                         (3) whether the Net IDOSC moves in a direction contrary to the daily direction of                         the DJI AND is NEGATIVE when the DJI advances or is POSITIVE                         when the DJI declines.  This rule has special force when the DJI has reached                         the 1% upper band or higher or the 1% lower band or lower.                        (4) A reading of -26 or lower shows an oversold condition and predicts a rally                        in a day or two.  Oppositely, a reading of +26 or higher shows an overbought                        condition and predicts a decline in a day or two.                        (5) Do not use these rules when the DJI shows unusual upwards or downwards                        momentum.                                           Illustration - Net Idosc from 9/16/2014 to 10/16/2014                                                     11 good predictions of next day.                                                      2 bad predictions of next day.                           9/16/2014       17132       + 10                           9/17/2014       17157         +2   NID falls but is still positive.  Rule #2                           9/18/2014       17266       +16  NID rises.  Rally to continue.  Rule #1                           9/19/2014       17280         -4    Contrary to price rise, NID falls and is negative.                                                                          Very bearish. Rule #3                           9/22/2014       17173       -20    NID falls and is negative.  Decline to continue.  Rule #2                           9/23/2014       17056       -26   Oversold bounce predicted.  Rule #5                           9/24/2014       17210       -20   Contrary to price rise, NID falls and is negative.                                                                          Very bearish. Rule #3                           9/25/2014       16946       -30   Oversold bounce predicted.  Rule #5                           9/26/2014       17113         -4   Contrary to price rise, NID falls and is negative.                                                                          Very bearish. Rule #3                           9/29/2014       17071       +18 Rally predicted using Rule #3.  BAD PREDICTION.                           9/30/2014       17043         +6 Falling NID.  Decline likely to continue.  Rule #1                          10/1/2014        16805       +18 Rally predicted using Rule #3.  BAD PREDICTION.                          10/2/2014        16801          +2 DJI falls but NID remains positive.  Predicts rally.                          10/3/2014        17010        -14 DJI rallies but NID turns negative. Very bearish. Rule #3                          10/6/2014        16992        -22 Falling NID.  Decline likely to continue.  Rule #1

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                                                                      OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------


           10/3/2014             The rebound Friday will probably allow the DJI to go back up
                                        to its recent highs.  It is doubtful unless breadth and the hourly
                                        up-volume improve from Friday's pace that other indexes will be
                                        able to get back to their peak.  Peerless has not given a reversing
                                        Buy signal, but a good rally based on how oversold the Invested MKDS
                                        was at Thursday's close is a 75% probability, I reckon. 

                                        Our Stocks' Hotline suggests staying short many of the Bearish
                                        MINCP stocks.  But I would  cover the most recently shorted
                                        Bearish MINCPs and those down 20% or more in recent decline. 
                                        Buy some of MAXCP stocks.   IBB looks like the best major
                                        market ETF.  Its Closing Power and Relative Strength Lines
                                        are still rising.                                     

                                        The up-trend of the Dollar coupled with the very good Jobs Report should 
                                        help the DJI avoid an October Massacre.  The strength in the DJI will
                                        continue to camouflage just how weak many other segments of the
                                        market are.  Eventually, the NYSE A/D Line's divergence from the
                                        DJI will give us Sell S9s.  Right now, the DJI must quickly destroy
                                        its lopsided head/shoulders pattern by getting past 17200.  It is not
                                        clear that it will be able to do this. 

                                                                   Can We Trust Friday's Reversal?                                       

                                         We've gotten used to expecting good rallies like Fridays to mean a
                                         major market rally back to new highs.  This reversal was on little
                                        more than 2:1 to the upside on the NYSE.  But very good breadth
                                        with a 3:1 ratio of NYSE Advances to Declines may still follow.
                                        Since 2009, we have always seen such ratios jump above 3.0  when they
                                        started rallies to the upper band.  If a 3:1 ratio does not follow,
                                        I would expect a narrow rally.  In addition, the DJI, SP-500,
                                       NASDAQ and QQQ will struggle to make new highs.  See Table 1 below.

                                                          Become An Expert on Jobs' Reports.

                                        Friday's Job Report was quite bullish.  Even though, we mostly look
                                        at technicals, we should follow the Job Report numbers closely.  With
                                        real wages and interest rates holding steady, corporate profits
                                        must be expected to rise when so many non-agricultural workers
                                        are hired, as the Job Report suggests.  Follow these numbers
                                        using the tables supplied by the US Dept of Labor.  I will post
                                        them here.  http://tigersoftware.com/PeerlessStudies/JobsR/index.html

                                        In the Jobs' numbers, we want to take note of the changes up or down
                                        from the month before and the year before.   As you go over
                                        this data, you will start to see how often the Job Report leads
                                        the stock market.  In Feb. 2004 (44), the bull market's rally ended
                                        for 7 month, only to resume again as the very fine October
                                        2004 (346) Jobs' numbers were released.   We got a Peerless S9
                                        only a few days after the very weak May 2006 (23) Jobs' Report.

                                        See below the deterioration in 2007, especially in October 2007 (2).  
                                        Then in February 2008, the numbers turned negative (-86).
                                        By the Summer, they were terrible.   More recently, last
                                        December showed a sharp drop to 84. Small wonder, Peerless
                                        gave a Sell at the end of the year when the Santa Claus rally
                                        was so weak.  The recent weakness may be attributed to
                                        the preliminary August 180 figure.   This was well below the
                                        previous month and the same month a year earlier.

                               Net Change in US Non Agricultural Employment by Month
                                                              (000s)

                          

                                                               Watch The Breadth Indicators
                                                                    for the Broader Market.

                                       There is no new Peerless Buy signal, despite the big jumps in
                                       in the DJI from its uptrend, in the SP-500   or SPY from their rising 30-week
                                       (149-day ma)) or the Russell-2000 from its well-tested support.
                                       A good trading bounce does, however, occur 75% of the time
                                       since 2009 when the 6-day ma of the Tiger Inverted Traders Index
                                       reaches a deeply oversold condition, such as occurred on Thursday
                                       night.  

                                       The problem now for the bulls is that the recovery must extend to
                                       stocks other than blue chips and defensive stocks.  One way we  may
                                       watch to see if the recovery broadens is to watch IWM.   See below
                                       how the key breadth downtrends for the Russell-1000 have been
                                       slightly broken.  These are its A/D Line and the Pct above 65-dma.
                                       The same thing is true for the SP-500 stocks.  See this in the second
                                       chart below.


                               




                         -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->31 +10    MAXCP stocks  Bullish MAXCP Stocks   (11/3/2014)
            --> 256 -95   MINCP stocks  Bearish MINCP Stocks   (11/3/2014)    Bearish plurality       
                                                                  
              --> 20 +4  New Highs on NASDAQ 34 -33   new lows.     Bearish plurality       
                  --> 24 +19         New Highs on NYSE  52-28 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                                        The Strong Dollar Plays Favorites


                                       The Big Banks love the stronger Dollar.  JPM and GS reflect that
                                       in the DJI-30.  The Dollar's advance buttresses New York's
                                       position as the center of international finance.   It brings in the money
                                       of the very Rich from overseas to make investments that are Dollar
                                       denominated.   Banks, blue chips and bonds are biggest beneficiaries.
                                       Meanwhile, foreign ETFs are likely to drop even further.

                                       But the DJI's strength will not lift all stocks, especially those
                                       being hurt by the advance of the Dollar, most notably the
                                       weakest MINCP stocks, especially those in Natural Resources,
                                       Foods, Gold, Silver and Coal.  Oil as a commodity looks better internally,
                                       but the great strength in the Dollar will likely continue to suppress
                                       oil and gas stocks, too.  This will help Transportation stocks just
                                       as the Rising Dollar helps importers, like WMT, HD and NKE
                                       in the DJI and may hurt CAT and BA, as manufacturing exporters.
                                       Many of our Bearish MINCP short sales continued to plunge
                                       despite Friday's recovery.  As long as their Closing Powers
                                       are falling, we will stay short them. 

                                       More DJI stocks benefit than are hurt by the stronger Dollar,
                                       as long as Deflation, Over-Production and Under-Consumption
                                       don't bring a Depression, as in the 1920s.  Traders will want to
                                       buy the DJI stocks mentioned above when their Closing Powers
                                       break downtrend-lines. 




  ------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------
          10/2/2014            The new Peerless Sell S17 and the half-sized right shoulder H/S pattern
                                     argue that there will be more new lows, and no reliable bottom probably
                                     until the DJI reaches the lower band or quite possibly not until another
                                     month has passed.   The percentage of all stocks below their 65-dma did
                                     improve today, but this statistic is in a downtrend for all the larger
                                     groups of stock, other than DJI-30 and Bonds.  See today's
                                     65-day ma Percent Data.   Foreign ETFs remain very weak.  This
                                     suggests a world-wide economic slow-down, which helps make Deflation
                                     a much bigger risk than Inflation.                                      



                                     Today Japan announced that they would start supporting the Yen.   This
                                     hurt Japanese car exporting firms' stocks.  It also finally stopped the
                                     Dollar's rally.  This may put a new dynamic in the market.   So, too would some
                                     new liberal assurances by the Fed tomorrow after the the Jobs Report
                                     is released.  But right now, all the trendslines point downward.

                         -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->21 +5    MAXCP stocks  Bullish MAXCP Stocks   (11/2/2014)
            --> 351   MINCP stocks  Bearish MINCP Stocks   (11/2/2014)    Bearish plurality       
                                                                  
              --> 16 +9  New Highs on NASDAQ 67    new lows.     Bearish plurality       
                  --> 5         New Highs on NYSE  80 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                                    When Peerless Shifts To A Sell,
                                            Sell Short the weakest ETFand/or a handful of the
                                            most Bearish MINCP stocks. 

                                     Then sit back and relax and wait for the Closing Power downtrends
                                     to be broken, even when the stock you have shorted has fallen 30%
                                     or more in a few weeks or days.             

                                     By watching the Closing Powers and heeding their trend changes we should
                                     be able to stay in tune with the best trends the market gives us to trade.  With a
                                     Peerless Sell signal, we want to switch to shorting the weakest major market
                                     ETF where its Closing Power is already in a downtrend or else where
                                     a Closing Power trend has just been broken. 
                              
                                     Then we wait.  We simply let Professionals tell us when to cover.  When they switch
                                     and become significant buyers, the Closing Power downtrend will be broken.
                                     This is when we should cover.  Sometimes, it's a little late or early.  But
                                     seeking perfection will only lead to frustration and losses in the market.

                                     The breaks in the ETFs' Closing Power will also tell us about the state
                                     of the general market and which direction it will probably take.

                                     In our case now, we want to be looking at the charts of, IWM or TNA
                                     (the 3x leveraged IWM).  They have a three or four times tested flat support
                                     that now has been reached.  A rally back upwards would become very likely
                                     if the Closing Powers break their uptrends.  At that point, it is not safe to
                                     stay short.




                                              Weak Stocks Go Down A Lot Faster and Further
                                               Than The Weakest ETFs


                                The same Closing Power rules apply to the Bearish MINCP stocks we pick
                                to hedge.  Our 2x-3x/week Tiger Stocks' Hotline will be watching the
                                Closing Power downtrends in the stocks we shorted. 

                                If the stock has fallen a long ways down, we should work with steep Closing
                                Power downtrends. 

                                Below are the charts for the biggest gaining short sales for the past few weeks.
                                They represent about half the stocks chosen to sell short.  Many of these gains
                                were excellent.  I present them to try to convince some of you to consider
                                selling short our Bearish MINCP stocks, especially when they look as ugly
                                as these did when we shorted them.  As you can see our timing was, by no
                                means perfect.  But they kept falling.  This is because both Professionals and
                                Insiders were heavy sellers.  This is the beauty of the nightly "Bearish MINCP"
                                stocks.   It makes shifting to an increasingly net short position is very easy
                                when hedging.   I think it would be a  strategic mistake not to take advantage
                                of this simple and effective Tiger shorting strategy.                              

                                                         Recent Stock Hotline Short Sales

                                      


====================================================================================
                                                                    OLDER HOTLINES
====================================================================================
          10/1/2014           Lower Prices Are Expected.   The DJI's completed head and
                                     shoulders pattern adds to the bearishness and predicts that
                                     a bottom may be 5 to 8 weeks away.

                                    Today the DJI fell through the neckline in a head and shoulder pattern.
                                    This H/S pattern features a half-sized right shoulder.  Its right shoulder
                                    is less than half the duration of its left shoulder.  This suggests the market
                                    was too weak to even complete a symmetrical head/shoulders pattern.
                                    The history of such patterns is distinctly bearish.  Bottoms are not made
                                    for 3 to 8 weeks.  Such patterns in September are particularly bearish.
                                    in 6 of the 9 cases, the DJI fall more than 8%.  This new information
                                    adds to my own bearishness.  It calls for more short selling and holding
                                    fewer long positions.   Our Bearish MINCP stock shorts all are in various
                                    stages of panic now.  Institutions and insiders are dumping them across
                                    the board.   Look for multiple Tiger Sell S14s now.

                                    Keep in mind that our theory is that head and shoulders patterns reflect
                                    some new bearish information has surprised Wall Street and stock
                                    prices must quickly make downward adjustments.
                                     

                                        DJI Head/Shoulders with "Half-Sized" Right Shoulders

                                       9/19/1930 229 to 174 in 6 weeks.          -24.1%
                                        7/21/1944 146.8 to 142.9 in 7 weeks.   -2.7%
                                        6/26/1950 213.9 to 187.5 in 3 weeks.   -12.3%
                                        5/18/1951 250.1 to 242.6 in 6 weeks.  -3.0%
                                        5/21/1965 922 to 840 in 5 weeks.        -8.9%

                                        9/22/1971 894.55 to 797.97 in 8 weeks. -10.8%
                                        9/1/1987 2610.97 to 1738.74 in 7 weeks. -33.4%
                                        8/3/1990 2809.65 to 2365.10 in 8 weeks. -15.8%
                                        5/18/2006 11128.29 to 10706.14 in 4 weeks 3.8%

                                    Less than 25% of all stocks are above their 65-dma; the key ETFs'
                                    Closing Powers made minor news and are downtrending; the NYSE
                                    A/D Line is falling and we are operating under the new Peerless Sell S17,
                                    which in all 4 of its previous cases brought a DJI decline down to the
                                    3% lower band.   The DJI made a 30-day low.  Because the duration of
                                    the right shoulder above 16900 was only 4 or 5 days, the pattern is
                                    far from being a perfect head/shoulders pattern. 



                                    The percentage of Russell-1000 stocks below their 65-dma is now
                                    26.1%.   This is the lowest percentage this year. 



                                    Without a new Peerless Buy signal, a break in the A/D Line
                                    downtrend or the Closing Power downtrends, Id suggest waiting
                                    and seeing if there will be more weakness.  The ETF for the
                                    Russell-2000 has now fallen to a support level that has held on
                                    four previous tests over the last 12 months.  We should watch
                                    this Index to see if the small caps as well as the Foreign ETFs
                                    lead the market, including the DJI, SP-500 and NASDAQ still
                                    lower.

                       -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->16 -27    MAXCP stocks  Bullish MAXCP Stocks  (too few)
            --> 494   MINCP stocks  Bearish MINCP Stocks   (11/1/2014)    Bearish plurality       
                                                                  
              --> 7 -16  New Highs on NASDAQ 171   new lows.     Bearish plurality       
                  --> 5 -12   New Highs on NYSE  184 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------


                                   
-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------
          10/1/2014          70% of all stocks are below their 65-dma. I believe we have
                                    weakening market conditions that seem consistent with
                                     the Sell S17 , the declining A/D Line and the still falling Pcts. of
                                     Stocks above their 65-dma.    Time Warner Cable's internet
                                    service was out from 5PM to 3:AM.  They should have problem
                                    fixed soon. 



-------------------------------------------------------------------------------------------------------------------------------------------------------
          9/29/2014     The new Peerless  Sell S17 still warns us that the 65-dma support may
                               still breakdown for the DJI.  But today's reversal was impressive.  So, a
                               retest of 17150-17200 seems likely.  The Closing Powers are still caught
                               in extended trading ranges.  There still are more than 70% of all stocks below
                               their 65-dma.  Down volume was proportionately still higher than up volume.
                               The NYSE A/D Line is still in a downtrend.  And if the DJI does stall out
                               at the upper 1.75% upper band, it would look more and more like a bearish
                               head/shoulders pattern.






       


                      -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->43   +30    MAXCP stocks  Bullish MAXCP Stocks  (9/29/2014)    
            --> 117 -120   MINCP stocks  Bearish MINCP Stocks   (9/29/2014)    Bearish plurality       
                                                                  
              --> 23 -3  New Highs on NASDAQ    58 +9    new lows.     Bearish plurality       
                  --> 17 -1    New Highs on NYSE   88 +43 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                    Schizophenia Is Not Usually A Constructive Condition.
     
                     This remains a market of multiple personalities.  A  handful of breakouts get the
                    bulls' full attention and money, just as bears remain happy driving the weakest
                    MINCP stocks still lower.  Adding to the schizoid aspect of the market
                    is how the rising dollar helps and hurts different stocks.  US manufacturers
                    like Ford are getting hit hard, but retailers like Nike love how much cheaper their
                    imports are.   I fault both the President and the Congress for neglecting
                    what's left of American manufacturing.  Since neither the Dems nor the Republicans
                    take up trade issues, nothing is present now to prevent the divide between
                    US manufactures and US importers from getting still bigger.                 

                    I also don't see any reason why the market's internal chasms will dimminish anymore
                    than will the Grand Canyon sized class chasms that reduce consumer buying
                    power but have sent many stocks soaring.  Meanwhile, the DJI is the
                    third personality here.  Its narrow price range might mislead a casual onlooker
                    into thinking that all is calm and quiet in the US or in the world of international finance,
                    but the collapse of Foreign ETFs is a warning.  In 1929, the DJI was the
                    last to peak. 

                    The DJI is stuck in an unusually narrow trading range between 16880 and 17300. 
                    Watching the Hourly DJI bounce around reminds me of a ping-pong game between equally
                    matched players.  This can be entertaining and profitable, however.  See below how
                    our Net Idosc program run against the 30-DJI stocks can make this narrow trading
                    much more interesting.

                                                   Daily Net Idosc on DJI-30

                    The Tiger Net Idosc (NID) oscillator here has a maximum oversold reading of -30
                    and overbought reading of +30 when applied to the DJI-30.  New highs with
                    negative Net Idosc readings are bearish.  New lows with a positive Net Idosc
                    are bullish. Watch also how changes of day-to-day direction usually lead price
                    movements, upwards if NID is positive and downwards if NID is negative.
                    This indicator works best when the market trades relatively narrowly.  I will start
                    posting it with the other graphs each night. 




===================================================================================
                                                             OLDER HOTLINES
===================================================================================

                    9/26/2014
                    The new Peerless  Sell S17 still warns us that Friday's 168 point rally does not prove
                    that the 65-dma will hold.  In fact, the DJI may even be forming a reversing
                    and bearish head/shoulders pattern.   The 2007 Peerless gave a Sell, too,
                    based on the A/D Line NC.  Right now the NYSE A/D Line is still
                    downtrending.   None of the Closing Power trends of the key major market
                    ETFs line is rising.  (See SPY, DIA, QQQ and IWM.)  The 6-day Inverted Traders'
                    Index did turn up, but not visibly. 



                    The broad market is still much weaker than the DJI or the SP-500.
                    Our data still show that less than 30% of all the A-Z stocks are above their 65-dma. 
                    And, very important, the A/D Lines for these A-Z directories are all still falling. 
                    See the 14-C stocks' A/D Line further below.  The downtrends of the Percent of stocks
                    above the 65-dma are still intact for all the A-Z directories.  Their numbers
                    are still low, so we have no assurance that a bottom has been made.  This
                    data also shows that Friday's recovery did not generally bring improvements
                    above levels of a week ago. 

                    Compare the current Over 65-day Percent Line with those earlier this year and
                    those in 2009, 2010, 2011, 2012 and 2013 for the sampled C-stocks.  This letter's
                    stocks are believed to be representaive, not special.  It was simply chosen
                    because it has more than 400 stocks in it and so is a large sample.



                                                      Can The Rally Continue?

                    Volume was lower on Friday's turn-around than on the day before.  But
                    Nike's good earnings go to show that there's still plenty of life left in blue
                    chips reporting good earnings.  As long as earnings are rising, bull markets
                    like this tend to keep rising.  See a new study I found on earnings and market tops.
                    See how earnings peaked before the 1990, 2000 and 2007 tops.  Earnings
                    are still rising now.

                    It does seem that the Republicans may win big in the mid-term elections.  This would
                    almost certainly bring a celebration on Wall Street.  In turn, this could give
                    bull market a chance to make a strong start in the normally bullish third
                    year in the 4-year Presidential cycle. 

                    But right now, the NYSE A/D Line is still downtrending.  It's risky to fight
                    a Peerless Sell signal when the Closing Powers and the A/D Line are falling.
                    Our stocks' Hotline remains hedged.  Let's be patient here.

                     -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->13              MAXCP stocks  Bullish MAXCP Stocks  (9/26/2014)    
            --> 239 +22    MINCP stocks  Bearish MINCP Stocks   (9/26/2014)    Bearish plurality       
                                                                  
              --> 26 +12  New Highs on NASDAQ 49 -9    new lows.     Bearish plurality       
                  --> 18 +2    New Highs on NYSE 45 -14 new lows.     Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------              

-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------
        9/25/2014          The new Sell S17 seems to be working.   The DJI has now
                                  reached its rising 65-dma.  If this mvg.avg. were likely to
                                  bring a good rally, Peerless would have issued a Buy B11.
                                  A bounce from the oversold condition is likely, but it may
                                  only produce a right shoulder in a DJI head and shoulders'
                                  pattern.  Note that the SP-500 did break its 65-dma and
                                  SPY's Closing Power has decisively broken its uptrend
                                  and so its CP is considered in a bearish downtrend.  Less
                                  than 40% of the SP-500 stocks are above their 65-dma

                                  Selling on Rosh Hashanah and Buying on Yom Kippur is
                                  generally a very good strategy when the high holidays begin
                                  between September 20th and September 26th. 

                                              DJI
                                  1971     -2.7%
                                  1976     -3.1%
                                  1979     -2.3%
                                  1987     + 2.1
                                  1990     -4.1%                                  
                                  1995     -0.5%
                                  1998     -0.7%
                                  2006     +1.4%
                                 
                                                 The Broader Market Worsened
                                                  Compared to Two Days Ago.

                                  We have reached over-sold territory according to our 6-day
                                  inverted traders Index but all the key internal strength indicators
                                  for the DJI are still declining.  What is worse?  Only 27%
                                 of all the stocks that we follow are above their 65-dma.  The DJI
                                  will have a hard time holding up when almost all the sectors we
                                  follow now have a majority of stocks below their 65-dma. 
                                  There are some remaining pockets of strength.  If they cave in,
                                  only very quick action by the Fed can hold up the market.
                                  Our Hotline will suggest doing more selling and shorting tonight.
                                  Our existing short sales should just be held.  

                                             Note the Falling Internal Strength Indicators.






                              
                                                            The Institutional Dumping
                                                  Has Started To Include The Blue Chips.
                                  
                                  I warned that there were mounting signs of instutional dumping
                                  as well as professional shorting.   Institutions and traders did not
                                  even give Wednesday's 0.9% rally any chance to continue higher. 
                                  They started unloading shares right from today's beginning.

                                  Why are they in such a hurry to get out of the market?
                                  What do they know that has not yet become public knowledge?
                                  Has the Fed leaked to the big bankers and their friends that
                                  it plans to wait and watch more numbers come in before providing
                                  any more stimulus?
                         
                                  With the bull market now 5 years and 6 months old, a lot of folks
                                  simply do not want to take a chance, especially since 74.8% of all the stocks
                                  we track are now below their 65-dma.  Personally, I fear Deflation and a Fed
                                  that has no more ammunition to fight off a severe recession
                                  a lot more than I fear the Russians or even ISIS. 

                                  If the DJI rallies with little company except the "BigFidel", the Big Bios
                                  and some big soda pop companies, it will only be postponing a much
                                  bigger decline.  

                         -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                        IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->10  -14      MAXCP stocks  Bullish MAXCP Stocks  (9/25/2014)  
                         This is a a market environment in which professionals remain very nervous.
            --> 351 +134    MINCP stocks  Bearish MINCP Stocks   (9/25/2014)    Bearish plurality       
                                                                  
              --> 10 -4   New Highs on NASDAQ 91 +33    new lows.     Bearish plurality       
                  --> 7 -9    New Highs on NYSE 125 +66    new lows.   Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------       

                                                             Two-Day Dow Reversal Down.

                                  Back in the Summer of 2008, I back-tested worse two day reversals'
                                  statistics than we just saw and came up with the Sell S13.  This turned
                                  out to be a signal that would appear in super bear markets, 1929-1932
                                  or in the very steep declines of 1987 and 2008-9. 

                                  What happens after a two-day reversal like we have just seen
                                  where the statistics are not so extreme and are similar to what we
                                  have just seen.  I searched for all the cases where the DJI rose .9%
                                  on the first day and fell more than 1.5% on the second day.  In addition,
                                  the first day had to have a breadth (NYSE advances/declines) ratio of
                                  1.45 or moreand the second day had to have a breadth ratio of .25 or
                                  lower.   As the DJI closed today .9% below the 21-day ma, I also
                                  screened out all cases where the LA/MA was below .974 or above  1.1.

                                  The study came up with 12 cases where the market had had such a
                                  two-day reversal.  In 8 cases a short seller would have made money
                                  selling short but in 4 instances he would have lost.  In Septembers,
                                  bear market declines followed the type of two day reversal we
                                  have just seen.  The IP21 (current Accummulation Index) now
                                  stands at a moderately negative -.035.  There were 5 two-day
                                  reversals with the IP21 between -.001 and -.05.  In 3 instandes
                                  the trader would have made money selling short and in two
                                  cases, he would have lost money.
                                 

Date                   LA/MA    IP21   Result  
9/25/2014            .991         -.035 (Good = tradeable decline, Bad = market rallied significantly.)
-----------------------------------------------------------

5/13/1929 .999 -.099       316.5 to 293.4    good
11/27/1933 1.005 -.025     95.8 to 103.39 bad
3/12/1936 .995 -.037        153.1 to 150.4 and then up bad
11/6/1944 .997 +.042 168.9 to 163.6 LB good
11/6/1980 .988 -.278 935.41 to 932.42 to 1000 bad

11/1/2007 .978 +.021 13567.87 to 12743.44 good
9/9/2008 .977 -.049 11230.73 to 8451.19 good
9/22/2008 .974 +.061 11015.69 to 8451.19 good
10/30/2009 .984 +.045 9712.73 rose immediately bad
(rose on successful testing of 65-dma)
5/4/2010 .988 +.045 10926.77 to 9816.49 good

6/1/2011 .979 -.033 12290.14 to 11897.27 good
9/28/2011 .981 -.002 11010.9 to 10655.3 good



                              

-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          OLDER HOTLINES

        9/24/2014          A Tale of Two Markets and Two Programs. Peerless predicts the DJI,
                                  but can warn of the troubles we now see  in the broader market.  TigerSoft
                                  can focus on finding the weakest stocks to short now, just as
                                  it picked the strongest not too long ago.

                                  Internals remain weak, despite the DJI rally.  Keen resistance should
                                  be expected at 17300-17350 unless breadth and volume improve
                                  markedly.   ETF traders may want to consider the operative Peerless
                                  signal to be the new Sell S17, but with only 3 previous cases, I
                                  would not be surprised if the leading ETFs rallies continue somewhat
                                  higher.   That is why I would watch the Closing Powers.

                                  My general suggestion is for ETF traders to pick the strongest/weakest
                                  ETF for longs/shorts with the highest volatility they are comfortable with and
                                  use the Closing Power trends.  The gains with FAS and IBB for the last
                                  year are about 50%!   Right now, only IBB has made a Closing Power
                                  new high.  IWM is still in a downtrend.  The Closing Powers for DIA, SPY
                                  and FAS remain locked in narrowing triangles.  

                                                The Broader Market Remains Very Weak

                                  The Bearish MINCP stocks far outnumber the Bullish MAXCP stocks.
                                  Professionals did not rush to cover these heavily shorted
                                  stocks.   Less than 35% of all stocks are above their 65-dma.  More
                                  and more stocks are being "dumped" by institutions.  We can
                                  define dumping as having a series of Tiger Sell S14s.  This signifies
                                  a big jump in down-day volume.  More and more stocks show
                                  steady red distribution, as defined by an AI/200 score below 70.

                                  More and more lesser known stocks look GTI below.   Here's
                                  how we found this stock to short a few days ago.


                           
                       -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->24  +12      MAXCP stocks  Bullish MAXCP Stocks  (9/24/2014)  
                         This is a a market environment in which professionals remain very nervous.
            --> 217 -125    MINCP stocks  Bearish MINCP Stocks   (9/24/2014)    Bearish plurality       
                                                                  
              --> 14 +2  New Highs on NASDAQ 58    new lows.     Bearish plurality       
                  --> 16 +7    New Highs on NYSE 59 -58    new lows.   Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------                   

                                                                DJI's Technicals

                                  Today's relief rally has take the DJI up to within 101 points of its
                                  previous hourly DJI high.  Expect resistance to become significant
                                  at the DJI's 1.75% band.  We've seen the DJI's upside volatility
                                  narrow in the last year or two.  When the 21-day ma ROC (annualized
                                  rate of change has been below 52%, there is a strong likelihood that
                                  computerized programmed Sell programs will kick in and stop the
                                  DJI's rally when its hypothetical reaches 1.75%.  See the chart
                                  below.




                                  The narrowing upside volatility away from the 21-day ma
                                  prevents Peerless from giving its usual good sell signals
                                  at the 2.2%-3.5% upper bands when the P-I, IP21 or V-I
                                  are negative or nearly so. 

                                  This is an important reason why trading ETFs with the
                                  Peerless Sell signals has become much less profitable
                                  than in the past.  We can remedy this by:

                                  (1) carefully choosing the best ETFs for the trend we expect,
                                  (2) using Closing Power trend changes,
                                  (3) watching for big "red popsicles" on the ETFs' Tiger candle-stick charts,
                                  (4) using bands about half the width we would ordinarily use and
                                  (5) watching the 6-day Tiger Inverted Traders' Index for turns upward
                                  when it is below 0 for good short-term buys on tests of support,
                                  the 21-day ma and the normal lower bands.
                                  See a new study today:
                                  Trading ETFs with Peerless and Tiger in The Current Market Environment.

                                               On sell-offs, watch the Peerless 6-day Traders' Index (MKDS)
                                               for turns up at the 21-day ma and at other support
                                               levels from a negative (oversold) condition.  Interestingly,
                                               today's rally did not come with any improvement in the
                                               inverted MKDS.   Down volume did not decrease today
                                               relative to the ratio of declines to advances on the NYSE.
                                 


====================================================================================
                                                                     OLDER HOTLINES

       9/23/2014          After a brief relief rally, another 3% to 4% DJI decline is likely.   It is not
                                 clear that the DJI will be able to stay above its rising 65-dma at 16950, about
                                 105 points lower.  Secondary stocks continue to sell off.  Stay hedged,
                                 with some of the Bearish MINCPs and avoid holding long positions that
                                 break their 65-dma after forming head/shoulders, or show accompanying
                                 negative IP21s or negative Closing Power% - Price%.  Be particularly
                                 wary of breakdowns when the stock shows big red popsicles using
                                 Tiger's candle-stick charts, ones that are larger than any blue bar
                                 for a long time.  (See yesterday's hotline for examples.)

                                   -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->12  -6      MAXCP stocks  Bullish MAXCP Stocks  (9/23/2014)   This is a a market environment
                         that professionals are very nervous in.  Their buying is much curtailed despite the weakness..  
            --> 342 +24    MINCP stocks  Bearish MINCP Stocks   (9/23/2014)    Bearish plurality       
                                                                  
              --> 12  New Highs on NASDAQ 92   new lows.     Bearish plurality       
                  --> 9    New Highs on NYSE 117    new lows.   Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                 DIA's Closing Power's uptrend has been violated following a non-confirmation.  We may  
                                 see the DIA rally up to a potential right shoulder in a new head/shoulders pattern. 
                                 IWM is much weaker.  Its Closing Power has made new lows and must plumb,
                                 I think, lower for support. 
 




                                                                  The DJI's Technicals

                                 The DJI has failed the 17200 breakout.   This does not come as much
                                 of a surprise.  There are no previous cases where a Buy B10 has occurred with
                                 both the P-I and V-I negative on the breakout.   Probably the Buy B10
                                 should be changed to disallow such cases. 

                                 With or without a Buy B10. false breakouts above well-tested flat tops
                                 are relatively rare.  Usually there is a Peerless Sell signal before the decline.
                                 I studied this phenomenon a year ago  Below are the false breakouts
                                 above flat and well-tested resistance with Buy B10s. 

                                      False Breakouts       Warnings                              Subsequent Action
                                      --------------------------------------------------------------------------------------------------
                                      July 1929        S9, S12 A/D Line NC, P<0, VI<0       10% decline
                                      Nov   1940      earlier S4  very high red volume      Bear Market follows
                        --->        Nov 1950                                                                          6% decline
                                      Sept 1955      S7, S8, S4, A/D Line NC, VI<0            10% decline
                                                              very high red volume warning
                                     April 1965       S7, IP21<0, VI<0 on breakout           11% decline
                         --->       Dec  1986      A/D Line NC, IP21<0, VI<0                     3% decline
                                     July 1998       S9, S12 A/D Line                                     19% decline
                                     Dec   1999      S9, S12 A/D Line NC, P<0, VI<0           17% decline
                         --->       May  2014      DJI did not close above rising resistance    2% decline  
                         --->       Sept 2014      P<0, AD Line NC, V<0, IP21 only +.014  ?????

                                                                 A New Peerless Sell S17
                                             Based on A Sharp Drop in IP21 in September?

                               If we can say that Peerless gave no Sell signal a few days ago, then the
                               cases above strongly suggest that any decline now should not take the
                               DJI down more than 6%.  But can we really say that?  On the day after
                               the breakout, on Friday, the 19th, the DJI tagged its 1.9% band with
                               miserable internals.  The P-I was a negative -69.  The V-I was -54 and
                               the IP21 was only .014, having fallen sharply in one day from +.103.  All this
                               took place on exceptionally high (red) volume, suggesting churning.  Since the DJI
                               and the other indexes and key ETFs closed near their lows, this was also
                               a   "dumping day" by professionals as well as a bearish "red popsicle" day.
                              While it's true that the DJI did not quite rally high enough for Peerless to give a
                               Sell S9, S9V or S12, I noted that in all three previous September cases when the
                               DJI's IP21 fell so sharply (by .085 or more) from the previous day with the
                                DJI still above its 21-day ma,  there were immediate declines.  

                               In light of the broad market weakness now, we should look at the internals
                               in these three earlier September cases of sharp IP21 drops of .085 or
                               more and compare them with our own.   Cases #2 and #3 are the closest
                               parallels.   The first instance followed soon after the terrible bear market of
                               1929-1933.   There were no paper losses in any of these cases. The average drop
                               for cases #2 and #3 was only 3.7%.  Such a decline from last Friday's close would
                               bring a drop to only 16639, about  416 points lower.  But because of how
                               poorly the broad market has behaved, it would probably have been much
                               better if Peerless has given a Sell. 
                             
                               #1     9/18/1933      105.3 to 84.4  18% decline        Good Short Sale     no paper loss
                        la/ma    21-day ma  P-I   Pchange  Adjusted    IP21      IP21        V-I       OPct      65-pct
                                                ROC                                  PI                         drop                               change
                        1.03            .689         -17       -29        -121          .097       .089       -163      .202       .187  
                                                                                                                   ------
 
                        (     9/9/1940       127.4 to 129.3 to 106.3        Early   6% paper loss.
                        1.025           .433         -63       -25      +317         .129      .081          43      .037        .132 
                                                                                                                    low                                           )

                         #2   9/22/1982       923.76 to 896.25 3 1/2%  2.9% decline      Good  Short Sale   no paper loss
                       1.02             .478       +190      -41        +366         -.035        .114          6        .100        .174   
                                                                                            ------
                         #3   9/20/2013  15451.09 to 14776.53       4.4% decline...   Good Short Sale  no paper loss
                        1.021            .436      +379       +2       +379        -.048       .095         -3       .200         .022  
                                                                                                                  -------  
                        #4    9/19/2014  17279.74 to ?
                             1.011            .210     -69          -34        -69          -.014       .089         -54       .308        .022
                                                                                                                  -------     

                                While no other month reliably works well with such a signal, Septembers are
                                the most bearish month of the year.  While we have buy signals based
                                on the bullish seasonality of November and December, we have no
                                Sell signals now that are generated only in the bearish month of September. 
                                I will put this in as a Sell S17 in the next week or so along with some
                                other improvements in the flagging programs and the Tiger Buys and Sells.

                                           September Cases of Big One-Day IP21 Declines:
                                                                    1982 and 2013

                                                       Broad Market Weakness Worsens

                                 The gap between the DJI-30 and big banks on the upside and
                                 average stocks and those in the Russell-2000 representing the
                                 broader market widened today.  We see this most clearly in the
                                 percentage of stocks above their 65-dma in each group.  See here
                                 and below. If this is going to be a decline like we saw in January or
                                 July, the percentage of DJI stocks over the 65-dma could still
                                 fall to a point where only 25% are over the 65-dma.  This is not
                                 comforting.   It is also not good that our TigerSoft chart of these 30-DJI
                                 stocks shows the DJI is clearly below its falling 65-dma.  See below.
                                 We factor in the volume of trading as well as price in weighting each DJI
                                 stock, Dow Jones in its computation weights each DJI stock by price  alone. 
                                 This tends to hold up this venerable blue-chip index because its gives
                                 greater weight to the highest priced DJI stocks, exactly those that are
                                 holding up the best.   But out chart shows that 70% of all the DJI stocks
                                 are holding up well and have not broken their key 65-dma.  It also shows
                                 that the DJI-30s A/D Line is still uptrending.
    
                  Group                              Pct. of Stocks
                                                          above 65-dma
                                                        9/22/2014     9/23/2014
            ----------------------------------------------------------------
            Biggest 7 Banks                    100%            100%
            DJI-30                                    70%               70%
            Russell-1000                          45.5%            38.2% - 7.3% (approx. 73 more stocks here fell below 65-dma)
            All 4949 A-Z Stocks              34.6%             29.8% - 4.8% (approx. 237 more stocks here fell below 65-dma)
            Home Building                      27.3%             22.7% - 4.6%   (rates not expected to go down.)      
            Reits                                        6.3%              5.0% - 1.3%    (rates not expected to go down.)    
            Utilities                                  19.0%             16.7% - 2.3%   (rates not expected to go down.)    
            Bonds                                     26.6%             28.1% + 1.5% (money seeking safety?        

                                                   



-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        OLDER  HOTLINES

        9/22/2014        With no new Peerless Sell signal, the DJI is not expected to fall
                                below 16500 and the lower band.  Just maybe, it will not even fall
                                below its rising 65-dma at 16850.   See the examples of 1929,
                                1972-3 and 1999-2000 below to appreciate just how good the DJI
                                is at holding up even though most other stocks are falling.

                                            The Broader Market Is Getting Dangerously Weak.                               

                                70% of the DJI-30 stocks are still above their 65-dma.  The average for
                                the A-Z directories is half of that.  (See the current statistics
                                on this for these directories and the different industries. )  I think that
                                Blue chip and MAXCP investors can afford to wait for a Peerless Sell signal,
                                but owners of most smaller stocks should sell or be hedged, despite
                                the Peerless Buys.  This situation is not unusual late in a bull market.

                                                      Picking Stocks To Sell and Sell Short

                               The weakest smaller stocks will have shown "big red popsicles" (see
                               IWM below) on their  TigerSoft candle-stick charts.  They will have a
                               CP%-Pr% way below 0.  (This mans their Closing Power will be much
                               closer to its 65-day low than is current price is.)  The IP21 will drop below zero
                               before, or soon after, the stock falls below its 65-dma.  These dangerously
                               weakening stocks will often show head/shoulders patterns, increasingly
                               steady red-distribution and broken well-tested supports.  (Get the
                               Killer Short Sales e-book for much more detail).

                                                           Deflation Is The Problem,
                                               But Most Politicians Are Fighting Inflation.

                                There is a rush to cash, especially in many smaller stocks.  Fears that we
                                are in a Deflationary economy are growing.  Cash is king in
                                these environments.  I think there is also a growing fear that the
                                Fed is losing control of the economy.  Monetary policy cannot
                                create enough jobs.  But with Washington stalemated, there can be
                                no massive Public Works program, as in 1925, 1933-1936
                                or 1954-1955, to provide stimulus.  Rather than being bullish, the rapid
                                fall in the prices of commodities, oil, gas, precious metals, steel...
                                signifies a falling world demand.  It is the threat of a  much slower
                                economy, not rising fuel prices, that has caused the Tiger Index of
                                Transportation stocks to form a menacing head/shoulders pattern.
                                We must watch this closely to see if the neckline is bearishly broken here.



                                And with the Dollar on a rampage, US manufacturing will face hard times
                                as competing imports get still cheaper.  Meanwhile, recessionary
                                forces overseas are now reflected in the many bear markets in non-US ETFs. 
                                Where will a future growth in profits come from?  More mergers?

                                          The Bear Market in Foreign ETFs Continues                                                

                           

                                 Smaller stocks such as those that comprise the Russell-2000 are
                                much weaker than our own top-tier blue chips. Compare the
                                chart of the Russell-2000 with our chart of the "Big Fidel" stocks.
                                These are the 27 blue chips that Fidelity's different sector funds
                                have their largest positions in.



                           

                                Peerless remains on its B20/B10.  The hourly DJI chart below shows that
                                today's drop of 100 by the DJI has not yet produced a close below the
                                point of breakout.   But the decline was deep and broad.  The
                                DJI's next support I reckon to be at 16850 and its 65-dma.
                                I mentioned last night that in all four of the cases where the DJI's
                                IP21 fell by .085 in September back to 1928, the DJI subsequently
                                fell, at least, to its lower band.  That support is at 16450.  Without
                                a new Peerless, a deeper DJI decline seems unlikely.    





                                                  
                        -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->18  -21      MAXCP stocks  Bullish MAXCP Stocks  (9/22/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 318 +95    MINCP stocks    Bearish MINCP Stocks   (9/22/2014)    Bearish plurality       
                                                                  
              --> 12        New Highs on NASDAQ 92   new lows.     Bearish plurality       
                  --> 9   New Highs on NYSE 117    new lows.   Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                            How The A/D Line Can Bearishly Diverge
                                               So Lone from The DJI's Price Action.

                                Just as we have the very rich and the poor and we have
                                importing and exporting companies, so do we also
                                have fifty or so blue chip mega-corporations that dominate
                                their markets and, not incidentally, the politicians that make
                                the rules and all the rest of the business world.  The differences
                                are clearest when we contrast the  Bullish MAXCP Stocks and
                                Bearish MINCP Stocks. 
                                                               
                                More and more, the present can be compared to the Fall of 1972
                                when there existed a group of "nifty fifty" big blue chips and growth
                                stocks at the top level.  These were said to  be "one-decision" stocks.   
                                Despite PE's of 50-75:1, they  were the institutional favorites.  They were
                                growth stocks that one simply bought and held tight.  At least, that was
                                the plan.  But in 1973, the DJI fell more than 10% from its January peak
                                high after a fourth set of Peerless Sells in a span of 7 months.
                                This un-nerved the institutions and soon even the nifty-fifty stocks
                                were being dumped, too.  My guess is that 1929 was like this, too.
                                As fewer and fewer other stocks kept rising, those still did so got
                                more and more funds from those playing the performance game.
                                This is what allowed the DJI-30 rocket up so much even though the
                                rest of the market was already very weak by mid-1929.

   DJI: 1972-1973   
                                The DJI held up the longest because of the presence of so many
                                of the nifty-fifty among its components.  In March 1973, the DJI
                                fell away more than 10% from its high.  That was when the real decline
                                commenced.
1929   Note how long the A/D Line diverged from prices.


1999-2000   Note how long the A/D Line diverged from prices.

====================================================================================
                                                              OLDER HOTLINES
====================================================================================
                                                                 

       9/19/2014          Peerless remains on its B20/B10.  But the weakening internals will likely produce
                                a new Sell if the DJI rallies 1.6% from here to, say, 17500.  Expect good support
                                on a quick DJI re-test of 17200 this week.  Smaller stocks are, however,
                                much more vulnerable.   IWM, representing the Russell-1000, shows a falling
                                Closing Power,  has a negative Accumulation Index and is below its 65-dma. 

                                It looks like we have an entered an era of increasing Deflation.
                                The rising Dollar and Deflation (falling precious metals, falling gold and
                                silver and falling fuel prices) hurt Main Street, in general.  Wall Street
                                loves this environment, so long as profits do not turn down because of
                                unsold inventories.  The Fed dares not let the stock market, as represented
                                by the DJI, OEX, SPY and big banks, drop by more than 10% for fear
                                of losing control and starting a much bigger panic. 
  
                                Hedging is fine, but I would not turn bearish.   Keep in mind that there
                                have not been any big September or October declines without first
                                a Peerless Sell.  This is true going all the way back to 1928.  In addition,
                                appreciate that Septembers in bull markets are generally much more
                                bullish than Septembers generally.  For background on this topic see
                                "The Jig Is Up": Calling September and October Tops.   We need to
                                see how the markets behave when there is no triple witching expiration
                                and no huge new public offering.   A sharp IP21 drop in the DJI, such
                                as we saw on Friday, is distinctly bearish in Septembers, not withstanding
                                how reliable Peerless has otherwise been in this month.
                                See this new study of sharp drops in IP21.   

                                                          A Short-Term Retreat Seems Likely

                                Thurday's B10 was greeted badly and bearishly by Friday's trading.
                                Valid Buy B10s in all-time high territory should bring a strong follow-through.
                                Friday's was not.    To avoid a false breakout, the DJI will need to stay
                                above 17200, 79 points lower.  If it fails the breakout, it will still have good
                                support at its 65-dma at 16850.  False breakouts on Peerless B10s have not
                                previously brought any declines below the lower band without a new
                                Peerless Sell.

                                A false breakout would not come as a big surprise.  Our new Peerless Buy B10
                                here occurred with both the P-I and V-I in negative territory.  No other
                                Buy B10  had both these key values in negative territory. 

                                                  A Short-Term Decline Seems Likely

                                Making the breakout look even more suspect was the way the various indexes
                                and key ETFs sold off after a higher  opening on Friday.  This weakened a variety
                                of our technical indicators:

                                       1) The OBV-Pct for the SP-500 and NYSE have turned negative.  But the
                               DJI, OEX and NASDAQ show positive OBV-Pct readings.

                                       2) Numerous bearish "red roller-pins" and "red popsicles" have
                               appeared on the key major  market ETFs. 

                               See DIA-POP,  SPY-POP, QQQ-POP, IWM-POP, FAS-POP, IBB-POP
                                       3) The DJI's current Accumulation Index has dropped from  +.103
                                to only +.014.   This makes  a Sell S12 possible if the DJI continues to rally.
                                By itself, back to 1929, such a big one day drop in the IP21 is about as
                                likely to bring a drop to the lower band as bring a very big loss to a short seller.
                                Septembers are more bearish.  It in the four cases of sharp IP21 drops on the
                                DJI in September, two brought sharp declines below the lower band and
                                two others brought declines to the 3%-3.5%.  All would have been profitable
                                to a short seller.  There were no intervening rallies of more than 2.5%.
                                See this new study of sharp drops in IP21.                     
                              

                                      4) The DJI's P-I is now -35 despite the DJI being 1.1% over the 21-day ma.
                                This makes an S9 possible if the DJI rallies another 1.5%.
                                     5) The negative Closing Power divergences from Price worsened for the
                                key major market ETFs.  In this condition, a drop by these ETFs below their 65-dma
                                with their IP21 also negative, is a reliable short-term Sell. 

                               Bearish negative readings are shown in red. So far, there are bearish
                               Closing Power divergences, but we need more than this to become
                               bearish in an intermediate-term.

        ETF                        IP21                    CP%-Pr%               Price vs.65-dma      CP Trend
                                9/18     9/19                9/18      9/19                                            
        --------------------------------------------------------------------------------------------------------------------------
        DIA                    .191       .10             -.12      -.19            172.45   vs 169.           Up
       QQQ                  .240       .221            -.04       -.13              99.98  vs   96.8           Up.   CP turned down from resistance.
       SPY                    .259      .195              -.21      -.24              200.7 vs 197.0            Up
       IWM                 .159       .089             -.23      -.32            113.97 vs 115.5         Fallling
       FAS                   .151       .064              -.04      -.17            109.76 vs 102.             Up. 
       IBB                   .184       .198             -.02      -.06            275.23 vs 261              Up.   CP turned down from resistance.
                   -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->39  -47      MAXCP stocks  Bullish MAXCP Stocks  (9/19/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 223 +93    MINCP stocks    Bearish MINCP Stocks   (9/19/2014)    Bearish plurality       
                                                                  
              --> 33        New Highs on NASDAQ  73   new lows.     Bearish plurality       
                  --> 39   New Highs on NYSE 76    new lows.   Bearish plurality       
                     -----------------------------------------------------------------------------------------------------------------------------------

                                                                          BABA  BOOM!

                                We might hope that the trading was simply distorted by options' expirations.
                                But the nagging fear I have is that the breakout B10 was artificial
                                and used to guarantee the success of the massive new issue of Alibaba, BABA.
                                BABA's NYSE trading volume was 271 million shares. ("Alibaba is valued at 39 times
                                its estimated earnings per share for its current fiscal year, which ends in March. That is right
                                 in line with Facebook's (FB.O) valuation of 39 times forward earnings but nowhere near
                                 the lofty valuation of Amazon.com's (AMZN.O) multiple of 264." Source.). BABA's trading
                                 volume made up 46% of all NYSE volume.  More and more, the NYSE is
                                 international, not national.  Keep this mind, as we ponder how much Wall Street
                                 is removed from Main Street USA.

          



-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------

       9/18/2014         The 100 point-DJI advance today brought a new Buy B10 to reinforce
                               the earlier Buy B20.  The bullishness of the DJI's breakout past well-tested
                               flat resistance, as now,  into all-time high territory should not be underestimated.  
                               Such a pattern occurred at the start of the 1995-2000 bull market.  Nor should we
                               discount the new Buy B10 because it is now September.  There have
                               been 5 earlier September B10s.  Their gains ranged from +4.0% to
                               +18.8%.   To be valid, prices should move higher on rising volume.
                               A breakout failure would put the DJI back into its sleepy narrow
                               range with support at the rising (purple) 65-dma at 16850.



                               Still, this Buy B10's bullishness is suspect.  See above that  both the
                               P-Indicator (-35) and the V-Indicator (-28) are negative.  In all the 47
                               earlier B10 cases back to 1928, there has been only instance where
                               the P-I was negative, as now, and no cases where the V-I was negative.
                               This is a warning that if the DJI were to jump up to the 2.5% over the 21-day
                               ma level, about 300 points higher than now, with no improvement in
                               the P-I and V-I, we will most likely get a Sell S9.

                               It looks like we will get a big jump at the opening today, partly due to
                               the DJI's breakout and partly due to the expected Scottish vote of "No"
                               to independence from the UK.   I would close out Bearish MINCP short
                               sales if their Closing Power downtrendlines are violated and stay long
                               an assortment of Bullish MAXCP stocks.  The DIA and SPY show
                               greater relative strength currently than QQQ or IWM, so ETF traders
                               should probably stick with the DIA and SPY.   The breakout puts
                               a lot of pressure on short sellers.  This should give us a few more days
                               of price-follow-through.   The old adage of selling on Rosh Hashanah (Sept. 25th)
                               and buying back on Yom Kippur (Oct 4th) may make a good trade this year.
                               If there is a retreat, there should be excellent support on the first test or two
                               of 17200.

                        -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->86      MAXCP stocks  Bullish MAXCP Stocks  (9/18/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 130    MINCP stocks    Bearish MINCP Stocks   (9/18/2014)    Bearish plurality       
                                                                  
              --> 53  +14 New Highs on NASDAQ  28 -2 new lows.   Bullish plurality       
                  --> 76 +25   New Highs on NYSE 46 +11  new lows. Bullish plurality 
                     -----------------------------------------------------------------------------------------------------------------------------------



-------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                OLDER HOTLINES
-------------------------------------------------------------------------------------------------------------------------------------------------------|
        9/17/2014       Several weeks ago the Peerless Buy B20 told us that breadth was
                               too good to allow the markets to collapse this September.  Unfortunately,
                               the B20 signal does not tell us to expect the markets to advance very far. 
                               This is because earlier August and September B20s typically only provide
                               a 2%-3% DJI advance.

                               But the Fed's latest news will help the markets.  The two dissents by the old guard
                               on the FOMC tell me that the FED is still on the right track and not about to
                               raise rates or jolt the markets with an unexpected rate hikes.  This should allow
                               the   DJI to make a flat topped breakout.  Shorts must then be expected to push
                               the DJI up another 100-150 points.  After that, technicians will need to
                               see good breadth (the A/D Line and new highs vs new lows) to stay aboard
                               the rise. 

                                             Let The Market Tell Its Own Story: Be Patient.

                               The next move should be modestly higher as the most astute traders
                               watch to see if the breadth of the market is strong enough to permit big gains
                               or, oppositely,  whether the DJI will rise alone to a significantly
                               unconfirmed major top, as has often happened in the past.  Keep in
                               mind just how normal it is for the DJI to get way ahead of the rest of the
                               market late in a bull market.  The resulting divergences should bring
                               major Sells when the time is right. 
                              



                               So, we are left to watch the progress the DJI makes in eating up the
                               17250 resistance and in bringing along the other averages and the
                               market as a whole.  If the DJI does breakout above the well-tested
                               resistance, we could see a Sell S9.   The P-I and the V-I Indicators
                               are negative now.  Only DJI has made a nominal new closing high
                               and the Hourly DISI (OBV) Line has failed so far to confirm the
                               advance that began two days ago.

                               While we wait for the markets to become unstuck from the unusually
                               narrow range they have are locked in and while we wait for the FED
                               to give us a clearer idea of when rates will go up, I think the  best
                               strategy is to be long some of the Bullish MAXCP stocks and short
                               some of Bearish MINCP stocks.  It often happens that, we can make
                               on both sides of such a hedged position.

               -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->81 +20    MAXCP stocks  Bullish MAXCP Stocks  (9/17/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 127 -10          MINCP stocks    Bearish MINCP Stocks   (9/17/2014)    Bearish plurality       
                                                                  
              --> 37  +21 New Highs on NASDAQ  30 new lows.   Bullish plurality       
                  --> 51 +26   New Highs on NYSE 35 -4  new lows. Bullish plurality 
                     -----------------------------------------------------------------------------------------------------------------------------------


                               Watch the Big Banks and the NYSE A/D Line.  As long as their
                               A/D Lines hold up and as long as the Closing Power of the Banks'
                               leveraged ETF holds up, the odds are very much against the Fed
                               surprising the markets by raising rates, something which would, I think,
                               be very bearish in the present market environment.   In the absence
                               of Congress and the President being able to develop any consistent
                               fiscal approach, monetary policy and the FED are kings.  And if
                               the FED is king, the big banks will get special treatment and
                               show strength until the very end of this bull market. 
   
                          

====================================================================================
                                                                       OLDER HOTLINES
====================================================================================

        9/16/2014       The Peerless Buy B20 has apparently over-powered September fears.
                               Use broken Closing Power downtrends to cover short sales and buy
                               some new Bullish MAXCPs now.  Beaten down oil and gas stocks should
                               bounce back.  See CL1620's high Accumulation and rising Closing Power.
                               This is a perpetual contract representing Crude Oil Futures. 

                               We will be watching to see if the DJI turns back again at its
                               well-tested 17200 resistance or if it can manage a breakout surge,
                               perhaps on a bullish Fed announcement regarding interest rates. 




                               The FED appears to have decided to delay raising rates, at least for
                               a longer time than than many feared.  That seems to have been the sense
                               that pervaded Wall Street's mid-day rally today as Professionals started
                               buying dividend, Bullish MAXCP stocks, key ETFs and many stocks, too. 
                               Today's breadth was as positive as yersterday's was negative.   For traders
                               this sets up yesterday's low as key short-term support for the major indexes.  
                               Bullishly, the Closing Power of DIA and SPY broke their downtrends.  
                       

                                           An Important New Tiger Buy Signal Is To Be Added:
                                                             Closing Power Take-Off

                               I want to show you some new research tonight on the stocks whose Closing Power
                               rose more as a percentage of current price than at any time in the last 50 trading days. 
                               What caused me to spot this was how useful big jumps in the blue Tiger candle stick
                                charts are.  A very simple set of rules seems to bring a success rate well over
                               75%.   The tables below also show that many stocks recently have shown unusual
                              buyiing by Professionals.  I will need to develop and test a corresponding Sell
                               signal.   The charts shown here show Tiger Buy B7s.  But I'm thinking of renaming
                               it a Buy B13.  That signal now can be placed on our charts using a different
                               pull-down choice, so we lose nothing in replacing it with the Closing Power Take-Off
                               Buy Signal.  I will make the change and place the revised Peerless/Tiger program
                               on the Elite Page in a few days.  I want to see if the reverse works as a Sell signal.




                             


                     -----------------------------------------------------------------------------------------------------------------------------------
                     >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->61 +35    MAXCP stocks  Bullish MAXCP Stocks  (9/16/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 137          MINCP stocks    Bearish MINCP Stocks   (9/16/2014)    Bearish plurality       
                                                                  
              --> 16   New Highs on NASDAQ  57  new lows.   Bullish plurality       
                  --> 25   New Highs on NYSE 39 new lows. Bearish plurality  
                     -----------------------------------------------------------------------------------------------------------------------------------

                                     Tables Showing Successes and Failures of
                         New Closing Power Take-Off Buy Signal in 2014
                              
                                                                                New CP Buy
                                                                                Success Rate
                                                                         (Successes/(Successes + Failures)

                                     30 14A Stocks                     40/52       76.9%
                                     30 NASDAQ-100 Stocks    53/61         86.9%
                                     30 DJI Stocks                      51/62        82.3%
                                     8 Big ETFs                           18/20        90%

New Tiger Closing Power Buy Signals
         (Shown in charts as B7s)

    30 14A Stocks    40 successes 12 failures 
                                         76.9% Success Rate (excluding recent signals)

   Successes  Failures   New Signals (Too recent to count)
-----------------------------------------------------------
A     2                   1
AA    1
AAMC  2
AAME  to low priced and thin
AAN   2                   1  (far below 65-dma)

AAON  1                   1  
AAP   3
AAPL  2                   1
AAT   2 
AAU   2

AAV   2                   1
AAWW             2        1
AAXJ  1          1        1 
        (Failure here actually showed a good 
        5-day rally but then fell to new lows.)
AB    2                   1
ABAX  2                   1

ABB              2
ABBV  1 (to UB)  2
ABC   2                   1
ABCB  1                   1
ABCO             1? (Far below 65-dma)

ABG   2
ABIO low priced and thin. <700
ABM   2 (rally to 65-dma)
ABT   1                    1
ABTL             1 (stopped at falling 65dma)

ABX   2
ACAD             1 (big price spike up on day of signal)
ACAS  1                    1
ACAT  1          1         1
     (Good rally but stopped at falling 65-dma)
ACC   2        
----------------------------------------------------- 
     39          11        13 rising but still open.
 
                 

 
     Successes  Failures   New
     -------------------------------
AAPL  2                   1
ADBE  1
ADI   1 (to upper band)
ADP   3
ADSK  2          1 flat for 3 mo.

AKAM  1
ALTR  1                   1
ALXN  2
AMAT  2                   1
AMGN  2

AMZN  1          1 (bad to buy at falling 65-dma)
APOL  1          2
ATVI  1
AVGO  3
BBBY  1          1 flat for 2 months and then up.

BIDU             1        1
BIIB  2                   1
BRCM  3
CA    2          1 (far below falling 65-dma)
CELG  2

CERN  2
CHKP  2
CHRW  2
CMCSA 2
COST  2

CSCO  1          1 (hit falling 65-dma and 5% gain became loss.)
CTRX  3
CTSH  1                   1
CTXS  2
DISCA 1                   1
------------------------------------------
      53         8        7
                    

 
      Successes  Failures   New
     -------------------------------
AXP  1
BA   2           1
CAT  2
CSCO 1           1
CVX  3                      1

DD   1           1
DIS  1
GE   1           1
GS   2
HD   3

IBM  3
INTC 3
JNJ  2           1 
JPM  2           1
KO   2

MCD  1           1
MMM  2
MRK  2           1 (slightly up in 3 months)
MSFT 3
NKE  1

PFE  1           1
PG   2
T                1            1
TRV  1                        1
UNH  2

UTX  2
V    1                        1
VZ   1           1
WMT  2
XOM  1                        1
--------------------------------------------
    51          11            5

                 

 
      Successes  Failures   New
     -------------------------------
DIA  1           1 (only 3 day rally)
FAS  2           1 (obvious head/shoulders pattern)
IBB  3
IWM  3
MDY  3
QQQ  2
SPY  2
TNA  2
--------------------------------------------------
    18           2
                 

====================================================================================
                                                       OLDER HOTLINES
====================================================================================
       9/15/2014        Continue to stay fully hedged by being short some Bearish MINCP stocks. 
                               This week the DJI may violate its 65-dma at 16,800.  The next likely
                               DJI support would then be its lower band near 16400.  


       
              >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->26    MAXCP stocks  Bullish MAXCP Stocks  (9/15/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT   Trading this on long side
                                  using Closing Power trendbreaks has appeal.                       
            --> 177  MINCP stocks    Bearish MINCP Stocks   (9/15/2014)    Bearish plurality       
                                                                  
              --> 14   New Highs on NASDAQ  57  new lows.   Bullish plurality       
                  --> 12   New Highs on NYSE 29 new lows. Bearish plurality  
                     -----------------------------------------------------------------------------------------------------------------------------------

                                             What Is The Significance of Weakening Breadth?

                               Today, even though the DJI rose 33.6 points, the ratio of NYSE decliners
                               to advancers was more than 1.9 to 1.  This is a bearish divergence, but with a
                               55% success rate back to 1957, it is not reliable enough to become a Peerless
                               Sell signal on its own, especially in September or when the DJI is a percent
                               or two above the 65-dma, as now.   See the lengthy study I did tonight of such
                               breadth weakness when the DJI rallies.    As a potential Sell, it is a much
                               better from May to July than it is from Septmber to January.                                                          

                               Be careful what you hold long now. Secondary stocks are probably much
                               more volnerable that the remaining high caps still in uptrends.   Remember that
                               it is the job of the blue-chip DJI to hold up the appearance that all is well on
                               Wall Street and to hold up longer and stronger than more nervous smaller capitalization
                               stocks do.  Repeatedly in the past, we see that before a major top is made, there must
                               first come a point in most bull markets when the A/D Line starts to seriously lag the DJI.  
                               This may  be the beginning of such turning point now.  A little later, when the breadth
                               divergences become even more severe Peerless will give a Sell S9 on a false
                               new high near the upper band. 

                               The problem with the Sell S9 in a low interest rate environment, like now, is that the
                               NYSE A/D Line tends to hold up very well because there are so many dividend stocks
                               and bond funds there.  The usual breadth divergence is more visible now when we
                               look at all stocks, not just those on the NYSE, and compare them to the DJI-30.
                               Tiger lets us do this quite easily.  Below are the percentage of stocks in the
                               A-Z directories above their 65-dma with a mention of the A/D Line status versus
                               its 21-day ma.  We can readily compare these numbers with the same pair of
                               statistics for the DJI-30.

                              Group of Stocks           Pct of Stocks     A/D line relative
                                                                    over 65-dma     to its 21-dma
                              -----------------------------------------------------------------------------
                              DJI-30                            60%                    at the rising 21-dma
                              Russell-1000                 49.8%                  Just broke its 21-dma.
                              14-A                               41.8%                 well below its 21-dma  + A/D Line H/S top.
                              14-C                               39.7%                 well below its 21-dma  + A/D Line H/S top.
                              14-M                              35.6%                 well below its 21-dma
                              14-P                                40.2%                 well below its 21-dma
                              14-S                                41.9%                 well below its 21-dma  + A/D Line H/S top
                              14-T                                44.6%                 well below its 21-dma  + A/D Line H/S top
                              14-U to Z                        42.2%                 well below its 21-dma  + A/D Line H/S top


                                             Professionals Are Now More Bullish
                                                       Than Overseas' Traders.

                              This week the markets are running scared.  Traders, especially overseas, are fearful
                              that their economies will slip into certifiable recessions and that hot international
                              money will rush to American blue chips because of the strong Dollar and the prospects
                              of higher interest rates in the US.

                              The "No" vote on Scottish Independence seems to be slightly ahead.  

                              I would favor the DJI-30 and DIA most now.  As long these hold up above
                              their 65-dma's and the DIA's longer-term Closing Power stays in an uptrend
                              in the chart below,  I would think the DJI may surprise the fearful by advancing
                              to new highs.  Unfortunately, if beadth remains this poor that will bring a
                              Peerless Sell S9 and then we will be in trouble. 

                                                      Watch What The Fed Decides This Week.

                              All bets will be off if the FOMC announces this week an early date when
                              interest rates will be raised.  As I said this weekend, I think that would be a
                              dangerous blunder and could well accelerate us into a deflation spiral.  Primal fear
                              would follow a market panic and we will all discover the meaning of a
                              "liquidity trap".  So\, remain fully hedged.  

                                            "A liquidity trap is a situation, described in Keynesian economics, in which
                                            injections of cash into the private banking system by a central bank fail to
                                            decrease interest rates and hence make monetary policy ineffective. A
                                            liquidity trap is caused when people hoard cash because they expect ...deflation,
                                            insufficient aggregate demand, or war."
                                                      (See   http://en.wikipedia.org/wiki/Liquidity_trap    )

-------------------------------------------------------------------------------------------------------------------------------------------------------

                                            The DJI remains above both its 21-day ma and 65-dma.
                                            IWM, representing the Russell-2000, is below both and
                                            has again completed another bearish head/shoulders pattern.
                                            So many such patterns are fair warning that a significant
                                            top has probably been made.



                              


====================================================================================
                                                       OLDER HOTLINES
====================================================================================
       9/12/2014        Continue to stay fully hedged with Bearish MINCP stocks. 
                               This week the DJI may violate its 65-dma at 16,900.  The next likely
                               DJI support is at its lower band near 16400.

                               The Fed may be on the verge of a collosal mistake.   Tightening money
                               now when the signs of deflation are everywhere and a Europeon recession
                               is so close could be a major monetary blunder.  Since compensating fiscal policy
                               is frozen by political stalemate, there could be no going back and fixing the
                               deflationary spiral that might result from such Fed action. 

              >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->42    MAXCP stocks  Bullish MAXCP Stocks  (9/12/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 118  MINCP stocks    Bearish MINCP Stocks   (9/10/2014)    Bearish plurality       
                                                                  
              --> 24   New Highs on NASDAQ  21    new lows.   Bullish plurality       
                  --> 15   New Highs on NYSE 39 new lows. Bearish plurality  
                     -----------------------------------------------------------------------------------------------------------------------------------

                               Fortunately, US Professionals still have hope that such dire consequences
                               will be avoided.  The blue Closing Powers for the DIA, SPY, QQQ and IWM
                               still have not violated their gradually rising, 6-month uptrends.  Moreover,
                               SPY and QQQ have current Accumulation Indexes above +.25.  These things
                               and the absence of a new Peerless Sell should gives us hope that the
                               DJI will not drop significantly this September.   

DIA

SPY

QQQ

IWM

                                                                    Rising Interest Rates

                                Friday the Hourly DJI broke its  17000 support and breadth was miserable. 
                                There were 1848 more Decliners than advancers on the NYSE and has now
                                set up a convenient short-term downtrend that we can use to judge when the decline
                                is over.  The  weakness owes to a growing sense that the FED will not keep rates
                                low much longer.  And, in fact, the yield on 10-Year notes have advanced from
                                2.334% to 2.614% in two weeks and have moved past their upper band for the
                                first time in more than a year.





                                                  Is The Fed on The Verge of A Collosal Blunder?

                               I would not have thought the FED would be raising rates given
                               the unusual strength of the Dollar and the many other signs of Deflation,
                               falling crude oil and gas,  falling gold and silver  prices, falling food commodity prices
                               and falling non-US general market ETFs (See the Tiger Index of foreign ETFs below.
                               This could be a collossal error!  With 47 million Americans on food stamps, the
                               Job Participation rate at its 10-year low and Money Velocity at a 45-year low
                               and the stock market near its 67-month high, the divergence between Wall
                               Street and Main Street is dangerously wide.  Raising rates now could well
                               break extended price-uptrend lines which will generate a lot of heavy-handed
                               dumping of stocks and, at the same time, drive up the Dollar, thereby hurting US
                               manufacturing exports and inviting the export of more US service jobs.  This
                               would all be done because of seriously misguided fears of a non-existent threat of
                               runaway inflation.  And, if the Fed says it is mainly concerned about the misallocation of
                               funds due to the stock market's runaway advance, they should consider raising
                               margin rates and ending the use of the full range of leveraged vehicles that have
                               encouraged so much short-term speculation.
                               





                                                

====================================================================================
                                                                OLDER HOTLINES
====================================================================================
        9/11/2014        The DJI's nearby resistance at 17150 may intimidate traders.
                               They are apt to wait for more headroom before tying to mount
                               a decent rally.  But today the general market ETFs broke their
                               steep downtrendlines.  This should take some of the selling pressure
                               off the market and keep it within its narrow range for a few more
                               trading days unless we see unexpectedly weak openings.

                               See how in DIA's case below the tightening Closing Power triangle
                               formation sets up a trading range that now matches the narrowing price
                               trading range prices are in.  This is also what SPY, IWM, MDY and
                               QQQ have done.  To become bullish for the general market we will
                               need to see these ETFs' longer term CP downtrends broken.  


                                                The links below have been fixed.
                              
                  >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------
                             The market now is dividing itself into clear winners and losers.  Though
                 this is a sign of an aging market, we can play the trends of Closing Power to
                 advantage now and get out quickly when the CP uptrends are violated, especially
                 if there is red high volume reversal days after big advances.  We have been suggesting
                 shorting the weak natural resource stocks, especially in coal and also the Yen.
                 Though retail stocks have been weak, the stronger Dollar will help them a lot
                 as importers.  Domestic auto makers like Ford will have a hard time. 

                  -->78 +35   MAXCP stocks  Bullish MAXCP Stocks  (9/11/2014)    Bullish plurality       
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 58 -73    MINCP stocks    Bearish MINCP Stocks   (9/11/2014)        
                                                                  
              --> 38  +4         New Highs on NASDAQ  20 -4  new lows.   Bullish plurality       
                  --> 30             New Highs on NYSE 16 -5 new lows. Bullish plurality   
                     -----------------------------------------------------------------------------------------------------------------------------------

                               Caution is still warranted because it's September, because the signs of
                               a bearish deflation are growing and because the DJI's ceiling or resistance
                               level is less than 200 points away.  This does not give much headroom
                               for a rally.

                                August and September Buy B20s are weak Buys.   So any rally now is
                                probably not going to be strong enough now to break the DJI above
                                the well-tested flat resistance at 171650.  So, staying hedged still seems
                                reasonable.  

                                Historically a narrow and flat trading DJI range in a bull market is
                                most likely to bring a 2%-3% retreat, not a big decline.  See the
                                earlier cases of this type of pattern.



====================================================================================
                                                       OLDER HOTLINES
====================================================================================
        9/10/2014      The DJI got back above its 17000 support after an early downside
                              penetration.   Bank, biotech and airline stocks rose nicely but
                              crude oil, coal and oil/gas stocks continued their declines, as did the Yen. 

                              The existing B20 is not a strong signal at this time of the year, but
                              big declines do not usually start without more weakness in the A/D Line.
                              a head/shoulders' top or negative divergences by the IP21, V-I or P-I
                              on a rally closer to the upper band.   Most likely, any DJI decline
                              below 17000 should be shallow, not more than 3%.  There were less than
                              200 up than down today.  So, this was not a convincing reversal. 

                              Hedging is what I have recommended.  The stock market has become
                              divided more and more into rising and falling stocks.  Hedging with
                              some of the "bearish MINCP" stocks remains my preference for trading
                              now out of respect for the frequent weakness September produces and
                              because the ETFs' Closing Powers have broken their uptrends following
                              CP failures to confirm the price-recoveries.

                                                
                              
                  >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->43 -45   MAXCP stocks  Bullish MAXCP Stocks  (9/10/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 133 -15    MINCP stocks    Bearish MINCP Stocks   (9/10/2014)    Bearish plurality       
                                                                  
              --> 34  +19         New Highs on NASDAQ  24 -5   new lows.   Bullish plurality       
                  --> 30 +10          New Highs on NYSE 21 -1 new lows. Bullish plurality   
                     -----------------------------------------------------------------------------------------------------------------------------------
                      
                          How Different Trading Tools Compare on DIA in 2013-2014

         Judged CP trend-breaks + 26.2% are the best with the major market ETFs
         most of the time.  Use them when the CP trend is well tested, when the CP trend
        probably becomes too steep to maintain, after a CP non-confirmation of a price move
        and with stocks after extreme moves and red high volume at the upper bands. 
        Practice placing them on charts.  It quickly becomes much easier to spot likely
        reversals.  You can put Buy and Sell arrows on the trend-breaks using 

                          Lines + Vertical Lines:User Set B28, S29 Signals
                          and then  Operations + What Happens To $10,000
                                   

Judged Tiger Closing Power Trend-Changes Gain = +26.2%

Various Length Stochastics' Results -------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------

Opening Power Trend-Breaks gain 7%

MACD gains 6%

====================================================================================
                                                             OLDER HOTLINES
====================================================================================

         9/9/2014      The DJI's Hourly Well-tested Support is at 17000.  If that
                              level gives way, the DJI should next find some support at
                              its rising 65-dma one hundred points lower.  This is not
                              far away, but I would suggest staying fully hedged like
                              our Stocks' Hotline is.  Bad things often happen to the market
                              in September and the key ETFs' Closing Powers have established
                              steep, minor downtrends with today's sell-off. 

                              New research on breakdowns from narrow and flat DJI trading
                              ranges like the DJI is now in suggests only a 2%-3% additional pullback
                              with a 33% chance that the breakdown will be false.                  

                                                                   Hourly DJI
         
                                The best support for the DJI is probably at 16400.


                    Professionals are now net sellers.   Note Closing Power Downtrend.

                 

                   >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->43 -45   MAXCP stocks  Bullish MAXCP Stocks  (9/9/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 148 +68    MINCP stocks    Bearish MINCP Stocks   (9/9/2014)    Bearish plurality       
                                                                  
              --> 15  -31         New Highs on NASDAQ  29 +9   new lows.   Bearish plurality       
                  --> 20 -31          New Highs on NYSE 22 +9 new lows. Bearish plurality   

                  The DJI's price pattern for the last 10 or so trading days may be
                  described as narrow and flat with well-defined and well-tested
                  support and resistance.  Short-term, a close below 17000 should
                  bring additional weakness.  This would be in accord with typical
                  September weakness and the falling Closing Powers.  I have suggested
                  hedging by shorting some of the bearish MINCP stocks while
                  being long some of the still bullish MAXCP stocks so long as their
                  Closing Powers are intact.

                  How bearish would a DJI drop below the 17000 well-tested hourly
                  support  be? Let's look back and see what has happened in the past when the DJI
                  down from a brief, flat and particularly narrow trading range.  The
                  hourly DJI, I should add can be considered a "cup and handle" pattern,
                  too, though it comes not at a bottom, but far along in a bull market. 
                  At bottoms, such patterns are reliably bullish when there
                  is an upside breakout.  But what are they when the bottom of the handle
                  (or the well tested horrizontal support) breaks and gives way.  I looked for
                  all such pattern in on-going bull markets back to 1929.    The average
                  decline was 2.2%.  In 33% of the cases, the price break-down proved
                  to be a false-breakdown.  See the charts here.
                                            

 






====================================================================================
                                                                  OLDER HOTLINES
====================================================================================
        9/8/2014             Not A Very Convincing Decline So Far!
                           
                             I would think the DJI will try to rally next.  But any advance
                             now will probably be limited. 

                                                   Hedging May Work Better Now
                                                      than Trading Market ETFs

                             The Dollar's take-off has increased the stock market's normal
                             tendency to separate into uptrending and downtrending stocks.
                             The strong Dollar and way performance funds focus their much
                             of their attention on the remaining stocks making new highs late
                             in a bull market are making buying strong stocks and shorting
                             weak stocks now even more lucrative than usual.

                        >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->88 +3   MAXCP stocks  Bullish MAXCP Stocks  (9/8/2014)     Bullish plurality    
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 84 -13    MINCP stocks    Bearish MINCP Stocks   (9/8/2014)    
                                                                  
              --> 46  +4         New Highs on NASDAQ   20 -6   new lows.   Bullish plurality    
                  --> 51  -20          New Highs on NYSE 13 +3 new lows. Bullish plurality 

                     The DJI is trapped in a narrow trading range.  The Hourly DJI below
                     shows just how narrow the trading range is.  Since the resistance and
                     support levels are flat, I would think that there will soon be a quick move
                     following the DJI's escape from this tight range.  Very short-term
                     traders should be able to scalp a few points by trading with the breakout
                     or breakdown.



      



                                                  Which way will the market jump? 

                            The   Buy B20 and exceptionally strong Dollar say that an
                            upside breakout is likely but Septembers have a well-deserved
                            reputation for bring about declines.  The Closing Powers are still in gentle
                            downtrends.   See DIA, SPY, QQQ, IWM and MDY.

                                                              Peerless Is Still Bullish

                            A new Peerless Sell is not likely.  We can go through the list of possible Peerless Sells
                            and see that both the Sell S4 (IP21 drops below its 21-day) and Sell S8 (very low volatility)
                            might occur much later this month since the DJI is up more than 11% since early February
                            and the Peerless code looks closely at the DJI when it has risen this much.  Both Sells
                            require a significant DJI rally first.  For the S4, the IP21 for the DJI is still too far above
                            its 21-day ma.  For the S8, and the daily percent change's volatility for the DJI is
                            now low, but it to get even lower and stay low for five ot six more trading days.
                           
                            We have no Sell signal that targets Septembers. Normally tops at this time of year occur
                            when the DJI rises to the 2.5% upper band or higher but only when we see much lower 
                            P-I, V-I and Accumulation Index readings than are now present.  So, the DJI would
                            next need to breakout past 17200 on very poor breadth and volume. As it now stands,
                            a breakout is more likely to bring a reinforcing Buy B10 than not.

                            -----------------------------------------------------------------------------------------------------------------------
                                                           Peerless: 1928-2014 Materials

                            See the updated complete list of Peerless Buys and Sells and their individual track records
                            since 1928 here.  More materials will be added to these pages until the new Peerless
                            book is done.
                            -----------------------------------------------------------------------------------------------------------------------

                                          Big Banks' Chart Is Bullishly Uptrending Now

                            Just 7 banks dominate the US banking system.  Below is the Tiger index of
                            these stocks, all considered by the Fed and the Obama Administration as
                            much too big too fail.  So, they get still bigger and now dominate much of the
                            shadow trading of US stocks.  Their uptrend is essential for a bull market
                            to continue.
                                  Bank of America: 2,019 subsidiaries, with a total asset value of $2.14 trillion.
                                  JPMorgan Chase: 3,391 subsidiaries, with a total asset value of $2.27 trillion.
                                  Citigroup: 1,645 subsidiaries, with a total asset value of $1.87 trillion.
                                  Wells Fargo: 1,366 subsidiaries, with a total asset value of $1.31 trillion.
                                  Goldman Sachs: 3,115 subsidiaries, with a total asset value of $924 billion.
                                  MetLife: 163 subsidiaries, with a total asset value of $800 billion.
                                  Morgan Stanley: 2,884 subsidiaries, with a total asset value of $750 billion.   
                                  (2012 Statistics.) 



                 ====================================================================================
        9/5/2014|     A Muted Rally is about all the bulls can hope for.  Meanwhile,
                           all the bears have to do to make their case is point to the
                           Calendar.

                           Further research on the Buy B20s shows that its occurrence in
                           August and September is much weaker than at other times of the
                           year.   Instead of averaging 12% per instance, B20s only averaged
                           +2.7% gains at this time of year.

                       >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->85 +33   MAXCP stocks  Bullish MAXCP Stocks  (9/5/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 97 -38    MINCP stocks    Bearish MINCP Stocks   (9/5/2014)    Bearish plurality 
                                                                  
              --> 42  +7         New Highs on NASDAQ   26   new lows.   Bullish plurality    
                  --> 71  +21          New Highs on NYSE 10  new lows. Bullish plurality 


                                             Watch Those Crafty Professionals!

                          Peerless has given no new Sell and Professionals did do a lot of buying
                          a fter the opening on Friday.   However, the Closing Powers for all the
                          key ETFs are in minor downtrends. The good news for bulls is that
                          the biggest ETF's case (SPY below) shows important bullish signs.
                          I would think any decline here will be shallow, too.  :
                                    1)   There is no red or blue optimized Stochastic Sell.
                                    2)   There has been a recent IP21 surge and Buy B17.
                                    3)   Both Opening and Closing Power are rising.
                                    4)   It would not take much higher close than an opening
                                    here to break the CP downtrendline, about +.75 on SPY
                                    on Monday.




                           Seasonality is the key problem now. The DJI has rallied only 44.7% of the time
                           in the month after September 7th.   Why?  Traders worry about another 9/11.  
                           They anticipate the change in market psychology as Summer turns to Autumn
                           and days get shorter and darker.   They know, too, that the market now
                           must absorb vast amounts of stock selling to pay for kids going to college. 

                           If anything, the September effect is made worse now by the huge rise in the
                           cost of going to college.  This alone will likely mute any rally attempt even if the
                           Hourly DJI were to breakout by surpassing 17155, even if the SP-500 could get clearly
                           above its 2000-2020 psychological barrier and even if the NASDAQ made
                           new highs above 4625.

                                                                   The College Tuition Bubble                                      

                           Small wonder the middle class is disappearing.  Annual tuition and room/ board now
                           costs $55.000+ at some private colleges.   It's $20,400 at the Univ. of Michigan and
                           $29,000 at the University of California at San Diego.  Where I went to college, it was
                           only $2000 in 1960.  Now tuition is up 2700% since the early 1960s.  Working in the  
                           Alumni Office for $1.25 (the minimum wage then),  it would have taken me 1600 hours
                           to pay this off each year.  Today, Connecticut boasts about its $10.10 minimum wage.
                           But, the sad truth is it would take a student now more than 5500 hours to pay off a year's
                           room and  board tuition at an Ivy league college if he nothing was upheld, which is
                           hardly the case.

                                                   Weekly DJI Shows Breakout

                      
                           Friday's Jobs' Report showed there was still plenty of need for economic stimulus
                           in the US.  The Euro Zone's bosses now say they will be providing more monetary
                           stimulus there.  The latter news and Europe's recession has boosted the Dollar
                           and made investing in US dividend and some blue chips look more attractive. 
                           The rising Dollar has helped those big DJI-30 stocks that benefit from a strong dollar.
                           For example, WMT and HD sell mostly imported goods.  So they love this strong
                           Dollar because what they buy overseas is that much cheaper.  In general, a strong Dollar
                           is bullish for most US non-manufacturing companies as long as a recession does not
                           develop that hurts profits. Thus, the market's big advance from 1995 to 2000
                           was boosted by the Dollar's upside breakout in 1996.  Wall Street banks also usually
                           like a strong Dollar because it helps set the Dollar up as the most important
                           medium of exhange and there is more need for US banking services.

                                              Professionals definitely like Walmart.

                           See how the Closing Power is catching up with prices and note the Buy B17,
                           that shows a big jump in Accumulation by institutions.  


                            
                           Several DJI-30 stocks recently made attractive breakouts:  MSFT (below),
                           NKE and UNH show new highs and recent bulges of Accumulation.  DIS might
                           soon do the same and MRK's new high could lead biotechs back up.   The
                           first three, MSFT, NKE and UNH should be used as long positions I think
                           nowby those who want to hedge their way past this the most treacherous
                           six weeks of the year.                           

                           On the other hand, bank, exporters BA and UTX fell further below their falling
                           65-dma.    I doubt if we will see a big advance this September.  The bank and
                           credit card stocks,  AXP, MA and MA) do not appear ready to participate in
                           a rally.   The middle class is hurting too much and the rich are more into hoarding
                           now than at any time in 60+ years when the Fed began keeping records on
                           Money Velocity.   Retail spending is slow but retail profits will be helped
                           because imported clothes will be cheaper.                        
                            .







====================================================================================
                                                    OLDER HOTLINES
====================================================================================
        9/4/2014|   Stay Fully Hedged even though Peerless Has Given No New Sell.
            
             The bearish seasonality for the next six weeks should keep
             us on guard. The Fed apparently appreciates the bearish
             seasonality.   Their Quantitative Easing programs have actually
             caused the DJI to rally in 3 of the last five Septembers.
             But this year faces greater challenges, in part because of
             how long the markets have risen without a 10% correction and
             because of how great the disparity is between Wall Street and
             Main Street.   Add to this mix the uncertainties of the weakening
             European economy, September terrorist threats and the new Cold
             War and it's clear caution is warranted.

The DIA chart below shows Peerless buys and sells.  They have the red                          arrows and are numbered in black.   The pink circled S4 and S7s show                          warnings that Closing Power is lagging the price action.  The red popsicle                          S1s warn that prices closed far below a much higher opening.                          If the DIA drops below 168 and the 65-dma, the next support is                          down at 163.

             Yesterday, the Closing Power uptrends were violated for all
             the major market ETFs.  Today, there were 1000 more down than
             up on the NYSE despite the DJI's showing a slight gain for
             the day. The Dollar's big jump today does make US stocks
             more attractive than those in Europe or Japan to the hot
             international money that sloshes around always looking for
             slight advantages.  But unless the FED can find another way
             to stimulate the markets very soon, I would think the DJI and
             SP-500 will have to test their rising 65-dma very soon. 

             I mentioned last night that I thought it was highly significant
             that wealthy Americans are so fearful now that the "velocity"
             of money, as measured by the St. Louis Fed, is at a 50-year low.
             If big money starts to add to their piles of cash by selling
             stocks, a panic could quickly follow.  If that happens we could
             easily see a 10% drop, despite how reliably bullish the
             new Buy B20 has been in the past.

             That is why I would trust the Professionals' behavior now
             to tell us what to do.  Right now the DIA's and SPY's Closing
             Power uptrends have been violated.  And, what is more bearish,
             these CP trend-breaks have occurred after the CPs failed
             to make new highs on their last rallies as prices did.

           >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                         IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->52 -25   MAXCP stocks  Bullish MAXCP Stocks  (9/4/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT                        
            --> 135 +27    MINCP stocks    Bearish MINCP Stocks   (9/4/2014)    Bearish plurality 
                                                                  
              --> 35  -17         New Highs on NASDAQ   26 +5  new lows.   Bullish plurality    
                  --> 49   -28          New Highs on NYSE 19  new lows. Bullish plurality 

                  -------------------------------------------------------------------------------------------------------------------------


====================================================================================
                                                     OLDER HOTLINES
====================================================================================
                                                     
        9/3/2014|   The Markets Look Increasingly Vulnerable. 
             Add more short sales, even though Peerless has not given
             a new Sell.  Our Stocks' Hotline will continue to hold IBB
             and of the remaining Bullish MAXCP stocks that continue
             to move higher.  

       -------------------------------------------------------------------------------------------------------------------------------------
                       >  To Key Index and Leading Stock Charts: DJI, SP-500, etc.
                                                           
                        Peerless DJI Chart       SPY Chart       NASDAQ Chart     QQQ Chart
                       IBB Chart       IWM Chart  
                 Hourly DJI-OBV   Hourly-MVM0735     FAS-3x Financials   IBB-Biotechs
             -----------------------------------------------------------------------------------------------------------------------------------

                  -->77  -36   MAXCP stocks  Bullish MAXCP Stocks  (9/3/2014)     
                          Highest A/I 200 DJI-30 Stock - CAT
                        
            --> 107 +55    MINCP stocks    Bearish MINCP Stocks   (9/3/2014)    Bearish plurality 
                                                                  
              --> 52  -27         New Highs on NASDAQ   26 +5  new lows.   Bullish plurality    
                  --> 77 -11          New Highs on NYSE 14  new lows. Bullish plurality 

                  -------------------------------------------------------------------------------------------------------------------------

                                        Professionals Have Become Net Sellers

               I would shift out of a few more long positions and add some more short sales.  IBB and BBH
               are the only ETFs I would continue to hold long now.  Obama today hinted that he would
               extend NATO membership to the Ukraine. This would be a most provocative move in the
               eyes of the world's #2 nuclear power, Russia.  (Is the White House so inept and ignorant
               that they have forgotten how America reacted when Cuba missiles were pointed at us from
               just 150 miles away in 1962?)

               If that isn't scary enough, the market's hopes are probably way too high that the Europeon
               Central Bank will suddenly end their fixation on the need for more austerity
               despite all the evidence that it has failed miserably and Europe is slipping back into
               a new recession. 

               In the US, I take it as significant that Visa and MC have been unable to rally for months.
               The 74 million Americans on food stamps are certainly not about to increase their
               spending and all reports show that wealthier consumers are saving at record levels.
               Money movement ("velocity") is at all-time lows.  As a class, the wealthy
               are just one step away from selling their stocks, having now decided to sit on the maximum
               amount of cash possible.   All that it may take for a massive selling spree in equities
               to occur is for stocks to hesitate a little longer in here, showing a complete loss of upward
               momentum) and then turn down.  The majority at the Fed, the "doves",   understands how
               precarious market psychology is now.  So, we may see the FED do something more
               to stimuate stock prices, just as they did in the Autumns of 2011, 2012 and 2013.

               Unfortunately, there is more to worry about.  The most bearish 21-day period
               of the year has now arrived.  Since 1965, the DJI has risen only 38.3% of the time.   

               Lastly, Professionals are becoming net sellers.  The DIA's Closing Power uptrend
               has been bearishly broken after seriously failing to confirm the move back to 171.   
               SPY also decisively broke its Closing Power also after a non-confirmation.  This sets up
               a classic Closing Power sell.  A decline back to the rising 65-dma down from the "200"
               price-resistance level is what Professionals seem to be expecting.
              



 

                  Peerless has not produced a new Sell. This should reduce the severity of any decline.
                  That the NYSE's A/D Line rising A/D Line is still rising means that dividend stocks
                  on the NYSE will probably remain strong.


                 

            The QQQ also broke its uptrendline.  Its weakness owed much to AAPL's 4.5% sell-off
            on the highest volume in more than four months. A similar decisive break occurred in IWM's
            chart.  Only IBB's CP uptrend was not violated.