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9/18/2015 125+
TigerSoft Charts -
Go to www.tigersoftware.com/HH/index.html
9/18/2015
New Highs: NASD 31 NYSE 7
New Lows: NASD
42 NYSE 70
9/18/2015 Bullish MAXCP
Stocks over $5
These
will be posted later tonight.
156 ----> http://tigersoftware.com/HH/9-18-2015/BULLISH.HTML
Bearish MINCP Stocks over $5
79
--> http://tigersoftware.com/HH/9-18-2015/BEARISH.HTML
------------------------------------------------------------------------------------------------------------------
9/18/2015 The
Fed has little left to support the market with. The news that rates would
be left unchanged was, of course, anticipated by many traders with connections
to the big banks represented on the FED. They sold and sold short
on the
news. In doing so, the DJI closed Thursday within 100 points of a Sell
S9,
but did not issue a new sell.
The operative Peerless signal is a
profit-taking Sell S14. But note how weak
the Peerless key values are. Understand, too, that has been a growing
tendency
since 2011 for the DJI not to reach the "normal" upper band. I
think that it's fair to
assume that all the computerized trading has caused this.
Short-term, the DJI has
peaked in a rising wedge price pattern. This pattern is usually
bearish. So,
was Thursday's high volume (a red reversal day.)
We also have to be worried
that the DJI did not have enough strength even to tag its falling 65-dma.
And, of course, the bull market is old and its 200-day ma has been violated.
When we stir in the bearish seasonality, especially in the weeks following
September's Triple Witching Fridays, it seems unavoidable that the DJI
must retest 15700 in the next two weeks.
Traders should use any break in the DJI's hourly uptrend to short DIA.
See the
charts here: www.tigersoftware.com/HH/index.html
Tiger users should hold LONG NUGT (Gold is now back above its 65-dma)
and most of the biotechs we've been placing on the
Bullish MAXCP lists each
night. I would only hold these long positions, if I was short many of
the Bearish MINCPs.
The Bearish Aftermath of
September's Triple Witching Day
Friday's "Triple witching" played a big role in the DJI 290 points'
drop
on very high volume. One might hope that all this options' trading
distorted
the market and that we might see a recovery back upwards. Unfortunately,
that is not what usually occurs, at least, going back 15 years. Examine
below
what happens to the DJI after the peak at the end of the third week of trading
in September each year since 1999. It fell significantly in 13 of these
16 years.
This suggests the odds are 81% of the time of more weakness for the next
two to three weeks.
DJI's Price Movement after Triple Witching Friday
9/20/1999 10823.89 DJI
fell to 10019.71 low on 10/15/1999
9/22/2000 10847.37 DJI
fell to 9975.02 low on 10/18/2000
9/21/2001 8235.81
DJI rose strongly afterwards.
(Peerless B16 called bottom after 9/11 sell-off.)
9/19/2002 7942.39
DJI fell to 7286.27 on 10/9/2002
9/19/2003 9644.82
DJI fell to 9275.06 on 9/30/2003
9/17/2004 10204.75 DJI fell to
9749.99 on 10/25/2004
9/16/2005 10641.94 DJI fell to
10216.59 on 10/13/2005
9/22/2006 11508.50 DJI rose
to 12316.54 on 11/20/2006
9/21/2007 13820.19 DJI fell to
12743.44 on 11/26/2007.
9/19/2008 11388.44 DJI fell to 8451.19 on 10/5/2008
9/18/2009 9820.70
DJI fell to 9487.67 on 10/2/2009
9/17/2010 10607.85 DI rallied
strongly courtesy of Quantitative Easing.
9/16/2011 11509.09 DJI fell to
10655.33 on 10/3/2011
9/21/2012 13579.47 DJI fell to
12542.38 on 11/15/2012
9/20/2013 15451.09 DJI fell to
14776.53 on 10/8/2013
9/19/2014 17279.74 DJI fell to
16141.74 on 10/15/20
Track Record of Experimental S9
I mentioned Thursday night that the 2006 version of Peerless gave
a Sell S12. This
caused a lot if interest in what parameters we should
be using now. To help test different band width parameters, I put
into
the latest (9/20/2015) version of Peerless (now on the ESP Page) a way
for you to test various band width parameters and the 65-dma criteria
in getting a Sell S9s when the P-I is negative, the IP21 is below +.02 and
the 65-dma is falling. Using these conditions, I went back to 1929 to see
how well such an experimental S9 would have worked. In doing this,
I considered any subsequent DJI move up by more than 5% to be a loss
and counted any subsequent DJI decline to the lower band or lower to be a
success.
To make this more interesting, I have broken the data down a little
by periods of time:
1929-1933 Bear Market: 8 successes and
6 failures (5% losses)
No cases in September
1934-1937 Bull Market: 1 success and 3
failures
1937-1938 Bear Market 5 successes and
5 failures
1940-1942 Bear Market 3 successes and
2 failures
1946 Bear Market: 1 success
1956 Bull Market: 1 success
1960 Correction:
1 failure
1962 Bear Market:
1 failure
1966 Bear Market: 1 success
1 failure
1968 Correction: 1 success
1 failure
1970 Bear Market 3 successes
1971 Correction: 1 success
1 failure
1973-1974 Bear Market 3 successes
------------------------------------------------------------------------------------------------------------------------
From last Thursday night....
When Does A
Decline Become Really Dangerous?
We have seen how the DJI recently did find support at the lowest possible level
consistent
with it making only a corrective decline. There were 30
"corrections", each producing
a decline of less than 14%. This was more than two and a half times the
number of bear
markets that brought a decline of more than 20%.
But now look at what happens when there is a DJI decline more than 14%.
There
were 15 cases where the decline was at least 19%. These are highlighted
in red: 1929, 1937, 1940, 1946, 1957, 1962, 1966, 1973-4, 1977, 1981-2,
1987, 1990, 1998, 2000-3, 2007-9. There were only four declines of 15%
and 18%.
(1948, 1971, 1980 and 2017) and there were three declines of 19% to 21%:
1957, 1980 and 1998. By contrast, there were 12 bear markets where DJI
fell
more than 21%. So, the odds are are almost 2:1
that any DJI decline of more
than 14% will see the DJI fall more than 20% from its highs.
Declines in Bull Market That Were Corrections |
=============== Previous Comments Here
====================
Trouble Lies Ahead
Somehow, it is the DJI and SP-500 which will have to lead ALL other
markets higher.
The broader US market remains quite weak. 90% of all stocks are below their
65-dma.
Somehow the US now must also lead the world markets out of their Deflationary
spiral.
This won't be easy. The de-Industrialization
of America and the 35 year decline
in its middle class have gravely weakened Consumer Demand just when Foreign
demand is in the tank, too. This is why we watch the Four Horses of the
Deflation
Apocalypse. Many overseas markets are in a steep
declines, as are Commodities,
Oil/Gas and the Chinese market.
Friday watch the Jobs numbers closely. It's true that +200,00 new Jobs have
been added in each of the last 3 months, but it is also true that the
recent June and July
numbers do show a deterioration both from a year ago and from the previous
month.
I think we have to get past simply relying on the standard media's write-ups of
these numbers.
NEW NON-FARM EMPLOYEES IN US
8/8/2015 (in 1000s)
Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Annual |
2004 |
161 |
44 |
332 |
249 |
307 |
74 |
32 |
132 |
162 |
346 |
65 |
129 |
|
2005 |
134 |
239 |
134 |
363 |
175 |
245 |
373 |
196 |
67 |
84 |
337 |
159 |
|
2006 |
277 |
315 |
280 |
182 |
23 |
77 |
207 |
184 |
157 |
2 |
210 |
171 |
|
2007 |
238 |
88 |
188 |
78 |
144 |
71 |
-33 |
-16 |
85 |
82 |
118 |
97 |
|
2008 |
15 |
-86 |
-80 |
-214 |
-182 |
-172 |
-210 |
-259 |
-452 |
-474 |
-765 |
-697 |
|
2009 |
-798 |
-701 |
-826 |
-684 |
-354 |
-467 |
-327 |
-216 |
-227 |
-198 |
-6 |
-283 |
|
2010 |
18 |
-50 |
156 |
251 |
516 |
-122 |
-61 |
-42 |
-57 |
241 |
137 |
71 |
|
2011 |
70 |
168 |
212 |
322 |
102 |
217 |
106 |
122 |
221 |
183 |
164 |
196 |
|
2012 |
360 |
226 |
243 |
96 |
110 |
88 |
160 |
150 |
161 |
225 |
203 |
214 |
|
2013 |
197 |
280 |
141 |
203 |
199 |
201 |
149 |
202 |
164 |
237 |
274 |
84 |
|
2014 |
144 |
222 |
203 |
304 |
229 |
267 |
243 |
203 |
271 |
243 |
353 |
249
|
|
2015 |
201 |
266 |
119 |
187
|
260 |
231 |
215 |
|
|
|
|
|
I consider Peerless not to be offering a
current reversing Buy or Sell now. This
is highly unusual, but so is the market. The nearly 1000 point advance
in only two days did not even take the DJI above its falling 65-day ma.
This gives the appearance of a DJI only making a bear market rally up to
resistance last week. In the next Peerless update (expected to be
released
on Friday), the characteristics mentioned above will give an automatic Sell
S14.
In an on-going bear market the S14 would call for selling and selling short.
But currently we are not officially in a bear market. A DJI decline of more
than 18% from its high is the standard used by Peerless). As such the Sell S14
is only a "take profits" signal;. In
fact, the DJI has still not fallen more than
14% from its highs so far. You will recall that I have shown here recently that
since 1928 77% of the numerous DJI declines of 10% to 13.5% were
"corrections" in an on-going bull market and soon brought recoveries back
to their old highs, at least. . So, the new Sell S14 in our market environment
only says what I have already said here, namely to mostly go to cash
unless you are a very short-trader and can watch the Hourly DJI during the
day and want to play the typical recovery that should develop between
15700-16000 and sell when the Hourly DJI's uptrend is violated or the
DJI again reaches 16700.
The FED Is The Key Now.
|
There is just too much uncertainty that the Fed will start raising rates for
the market
to move much higher and this is complicated by the next Jobs' Report coming
out of Friday. What the FED has artificially created in the way of
a long bull market
built on free money to big banks, it could quickly take away,
if the recent 13.5% DJI
decline is any indication. There are those who tell us the short term bonds
show only
a 22% chance that September will bring a rate hike.
(See http://www.nytimes.com/2015/08/27/upshot/jobs-forecast-is-another-reason-for-the-fed-not-to-raise-rates.html?action=click&contentCollection=Economy&module=RelatedCoverage®ion=Marginalia&pgtype=article
)
I am not so sure the odds are not closer to 50%. I believe the meeting
will be
quite contentious. The outspoken "hawks" and the "doves"
are about equal in number.
Janet Yellen, the supposedly dovish Chairwoman, has
been mysteriously quiet recently
and out of sight. She did not go to their annual Wyoming meeting to talk with
the other
Fed Governors. Has there been a rebellion against her? Is she
becoming more hawkish
so that she can remain in control. She
apparently sees herself as the
impartial chairwoman who states the "consensus" of views at the end
of the
FOMC meeting. She is cautious. And a cautious person would probably
wait until the evidence is stronger and the opinions more conclusively in favor
of a rate hike.
Still, only the New York FED Governor, Dudley, has spoken out recently
to advocate caution in the face of the extreme bear market in developing
countries,
the Chinese market's meltdown, falling oil prices and falling commodity prices.
Several other Fed Governors are on record recently as favoring a rate hike
soon,
despite the signs of world-wide Deflation and the economic downturns
overseas.
Once upon a time, I was interviewed by the CIA to be a Kremlinologist, one who
studied the divergent interests and pronouncements of the dozen or so members
of the Soviet Union's Presidium. I think I still have an interest in the
politics of
secretive power-elites. So, today I made a list of all the FED members of
the
Open Market Committee, those who will decide on September 17th, whether
to raise short-term rates and tried to find on the internet what exactly they
had last
said on the subject. Let me show you what I found. The conclusion I
draw from
this exercise is that there may well now be a majority for a rate hike, even
though
a majority of the Open Market Committee are considered more dovish than
hawkish.
I plan to keep this list of t he key Fed policy-makers handy. I will try to refer to it
each time one of these FED members makes a public statement. We will want
to
see how they may be shifting their position and their intra-committee
alliances.
Members of Fed's Open Market Committee:
(They decide "by consensus" whether to raise short-term rates.)
5 Doves: Dudley, Evans, Rosengren,
Brainard, Tarullo
3 Doves shifting in favor of a rate hike: Yellen, Williams, Lockhart
6 Hawks: Fischer, Lacker, Powell, Bullard, Mester, George
( What is a hawk? What is a
dove? https://en.wikipedia.org/wiki/Monetary_hawk_and_dove
)
In 2013, Business Week made the same break-down that I
am attempting here.
http://www.businessinsider.com/the-2013-fomc-member-profiles-2013-1?op=1
Deutche Bank offered an assessment of the two camps
within the Fed at the end of 2015.
http://snbchf.com/monetary-fiscal-policy/fed-its-fomc-composition/
Janet
Yellen -
Board of Governors, Chairman |
William
C. Dudley, New York, Vice Chairman |
Charles
L. Evans,
Chicago |
Lael Brainard, Board of Governors |
Daniel
K. Tarullo, Board of Governors |
Eric
Rosengren - Boston |
John
C. Williams, San Francisco |
Dennis P. Lockhart,
Atlanta |
Hawks: |
Stanley
Fischer,
Board of Governors |
Jeffrey
M. Lacker, Richmond |
Jerome H. Powell, Board of Governors |
James Bullard - Board of Governors |
Loretta J. Mester - Board of
Governors - Cleveland |
Esther L. George - Alternate FOMC member |
===============================================
Notes from last night.
===============================================
Temporary Sharp Declines
and Extreme Artificial Sell-Offs.
Looking at the Peerless charts for 1987, 1997,
2011 and 2010
show us that the odds favor a retest of the 16000. Only the 1997
case would suggest that there will only be a
shallow one- or two-day
retreat.
1987 Crash (Caused by Reckless Computerized Trading in Index
Options.)
1997 Parallel:
Only
two very shallow retreats here before old high was challenged,
2010 Flash Crash
2011 Republican Shut-Down of Federal
Government
(Boehner says that this will not occur in 2015.)
From Wednesday night:
Other Sharp DJI Declines to The 13.5%-Down Level
When one studies other DJI recoveries in the past after sharp declines
to the 13.5%-14% support- level below the bull market peak, we see that
the falling 21-day ma does act as resistance for a week before prices
penetrate it and resume their rally. See the study here.
../../MAXMIN/8-28-2015/big_declines_and_the_importance.htm
Look especially at the charts of 1941 (months before Pearl Harbor),
1950 (a month after North Korea invaded South Korea) and
in 1997. Especially note the 1997 Panic. It occurred because of a
panic
in Asia with the DJI up very considerably over the prior 6 years.
Computerized trading then also drove the decline down excessively.
Wikopedia writes:
"The October 27, 1997, mini-crash is the name of a global stock market crash
that was caused by an economic crisis in Asia. The point loss that
the
Dow Jones Industrial Average suffered
on this day still ranks as the eighth biggest
point loss and 15th biggest percentage loss since its creation in 1896. This
crash is
considered a "mini-crash" because the percentage loss was relatively
small compared
to some other notable crashes. But after the crash, the markets still remained
positive
for 1997. " (See October
27, 1997, mini-crash - Wikipedia)
|
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2) After Red high volume reversal days use CP uptrend-breaks.
3) Buy the stocks the Federal Govt wants you to
buy.
4) 100-Day Power Rankings...
5) Using Closing Power Hooks after Buy B26s and B20s.
6) How A Stock Reacts to Its Earnings Report Is Very important.
7) TigerSoft Major Buy Signals' Combinations
Which are most Powerful? Reliable?
8) Augmented Buy B20s' Independent Success Rate.
9) What factors warn a rising 65-dma will not hold?
10) The classic cluster of technical
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in the 23 stocks falling 70% or more in the deep pullback of 2011.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PEERLESS STOCK MARKET TIMING:
A Guide To Profitably
Using The Tiger Nightly HOTLINE
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
2013 2013-4
2014
Introduction to Tiger/Peerless
Buys and Sells.
Different
Types of TigerSoft/Peerless CHARTS, Signals and Indicators
How reliable
support is the DJI's rising 200-day ma?
-------------------------------------------------------------------------------------------------------------------
TIGERSOFT
SIGNALS AND INDICATORS:
Documentation for TigerSoft
Automatic and Optimized Signals.
SPY Charts
since 1994: Advisory Closing Power S7s, Accum. Index, 65-dma, Optimized
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1994
1996 1997 1998 1999
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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.
1/15/2015 - Tiger Day
Traders' Tool Explained.
http://www.tigersoft.com/day-traders/index.html
http://www.tigersoft.com/Indicators/index.htm
http://www.tigersoftware.com/TigerBlogs/Aug-31-2009/index.html
NEW 2/16/2015
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Charts showing UP%, Opening-Up%, Closing-Up%
Note differences between bullish and bearish stocks...
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====================================================================================
Earlier Hotlines 2-7-2014 to 3/19/2014
11-22-2014 to 2-6-2014
http://tigersoftware.com/555HL555/index.htm
10/9/2014 - 11/21/2014
http://tigersoftware.com/9933Hot/
9/2/2014 -
10/8/2014-
http://tigersoftware.com/2233HL/index.html
6/25/2013-9/1/2014
http://tigersoftware.com/112211-H/index.htm 11/22/2013-3/20/2014
http://tigersoft.com/1111-HL/index.html
10/22/2013-11/21/2013
Past Hotline
Predictions http://tigersoft.com/-HL42013/index.html
http://www.tigersoft.com/-2GBL13HL/index.htm
==============================================================================================================================