Below you will see the typical sequence of activities followed by most TIGERSOFT users
as they run our software. Soon they will become easy and routine. Note that you may change
these to suit your own needs. Tiger’s POWER-RANKINGS will save you an enormous amount of time.
They let you find the stocks that our techniques consider the most bullish and bearish over the
next three to six months. If you are bullish, because of a Peerless major Buy or even for short-term
trading Buys, look at the “Bullish” stocks in the directories of data that you maintain. If you are bearish,
look at the “Bearish” stocks. If you use our data, don’t forget to look at the “Bullish” stocks in the
“HOTSTKS” data, and the “Bearish” stocks in the “NEWLOWS” data. This should be right at the top
of the list of things to do.

                         Viewing the Power Ranking Results.

            Peercomm + View + Check off the Tiger Power Ranking circle.
Note the results that appear. The stocks are ranked by “POWER” as we define it.
At its extremes,  it is a fine predictor of where a stock will go in the next few months.
Favor the top 10 of 500 or more. Those that are rising fast in rank are also attractive.
Remember the top Power Ranked stocks and those that have the highest IP21/200
scores generally do much better than average. The highest ranked stocks using
Accumulation or Power Ranking will almost always be the top performers
over 3-6 months. The only exception is at the start of a bull market when beaten
down and heavily shorted stocks get big plays for a couple of months.

Long Term Investors, Buy The Stock with The Highest “IP21/200” (also called “AI/200”)

The very highest “IP21/200” stocks are those we buy using the TIGER blue chip system
that has gained 25% per year on average since 1970. This we call the Tahiti system because
of its simplicity. Do not use this approach with non-blue chips if they are below their 200-day ma. 
Low priced stocks with high Accumulation shouold be making new highs or, at least,
be above their 50-day ma to be considered good long speculations.

Note now that “OBV%-Pr%” measures how much stronger the OBV (aggressive buying)
Line is than price. We suggest that the OBV%-Pr% should generally not be much below 0
in a stock that is being bought. A reading below -.30 is bearish and a distinct warning.
OBV shows aggressive buying or selling pressure. When a stock has overhead supply
created by earlier peaks, it usually takes aggressive buying to eat up that supply of stock
and let the stock rally.

“IPA%-Pr%” measures how much better the IPA (patient buying) Line is compared to
the line of price over 100 days. IPA%-Pr% values greater than +.40 typically show the stock
has ample support to make buying it on weakness near price support advisable. Later you
can study Dr. Schmidt’s manuals and inspect the HELP routines for more explanation of
these concepts and how best to use them as trading and investing tools.

Now close the screen and go back to the PEERCOMM menu.

                                                             GRAPHS

With the Analysis completed, let’s graph the highest POWER Ranked stock. From the
PEERCOMM screen click the grey button that says CHART. This takes you to the
“Main Tiger Menu”. On this screen our logo, a tiger menacing a bull and a bear, appears.
Use the Pull-down menu at the top that is labeled “Ranking Results”.

Now choose “Tiger Power Ranking”. This shows the same table you saw before except
that there are some new columns of key data.

“Current IP21” is the current value of the TIGER Accumulation Index, as opposed to how
consistently the indicator has been positive for the last 200 days, which is what “AI/200” or
“IP21/200” measure. Experience teaches us that the best stocks to Buy have an IP21 greater
than .20. Stocks making new highs near their upper band with an IP21 less than zero (red) are
vulnerable and frequently are excellent shorts.

“TISI” is the 21-day moving average of IP21. We teach traders to buy stocks whose IP21
is above a rising TISI and to sell short stocks that have an IP21 below their falling TISI.
Short-sellers will discover that they can capture the biggest gains by holding a stock short
only while its IP21 is below its TISI Line.

The direction of the 50-day mvg. avg. is also shown. This is important for
intermediate-term traders. We generally recommed buying stocks that are “AR”, above a
rising 30-week mvg. avg. (“BF” would signify that the stock is bearishly below its falling
50-day mvg. avg.). If a stock’s 50 day moving average is relatively flat, take the red Buy
signals as a sign to take “long” positions and the red Sell signals to initiate “short positions.”

“Cl/21dma” tells you by how much percent the stock is above or below its 21-day mvg.
avg. Since strong stocks typically bounce up from their rising 21-day mvg. avg, this is
a useful measure as to how close the stock is to being a BUY. You will want to inspect
the chart to see more information.

Click on the row of the top ranked stock (or any other you may like) and then click
on the Graph button. A chart of this stock appear. It will show the optimized signals
automatically.

Before showing what this graph means, we want to show you how you can graph any stock..

                            GRAPHING ANY STOCK OR ALL STOCKS
                           IN A USER-SELECTED GROUP OF STOCKS

Close the screen until you return to the main TIGER Menu (the tiger is meancing the bull
and bear.)  At the lower left of this screen click on the button that says “Graph Daily
Individual Stock”.  Find the stock’s symbol in the list on the left side of the screen
and double-click on it. For example, enter MSFT (Microsoft). A price chart appears
on the top part of your screen. It shows the the last year’s daily price ranges as vertical
bars. A horizontal bar shows each day’s closing price.

                             GRAPHING A SPECIFIED GROUP OF STOCKS
                                  AND BUILDING A LIST FOR AN INDEX

Instead of choosing an individual stock to graph, you may also graph all the stocks that
are in a particular group. These groups represent all the stocks that have met certain flagged
conditions. These flagged stocks are discussed at more length below. In addition, you may
also graph all the stocks that you pick to be in a particular watch list. Watch lists always
begin with the prefix “$$”.

To create a watch list go back to the PEERCOMM 8-button display.

Pick the “Tiger Stocks” pull-down menu.

Then choose “Edit Watch Lists”.

Next choose “Add New List”.

Enter the name with the first two letters being “$$”. For testing purposes enter “$$ALLSTK”.
Do not enter a name with more than 6 additional characters.

Next click on “Select All Symbols”. (Alternatively you might have clicked on just a few stocks.)

Then click “Close” and “Close”.

Now from the 8-button PEERCOMM screen click the “CHART” button.

Then click “Graph Daily Individual Stock”.

Then choose “$$ALLSTOCK”.

                                               GRAPHS IN SERIES

After a graph appears you can go to the next stock in the list simply by hitting the down-arrow
key on the right side of your key-board. To go back to the previous one click on the up-arrow key.

                                                 THE GRAPHS
                     See also the instructions for the TigerSoft Graphing Program.

Moving Averages as Measures of Momentum and Trend

Various colored moving averages of price are shown on the same graph. For an explanation,
pull-down the Help sub-menu at the top right and inspect the first few items there. Suffice
it to say here that there is a red 21-day mvg. avg. with fixed interval bands above and
below the 21-day mvg. avg. by a fixed amount. A stock normally (93% of the time) stays
within the confines of its bands. When it exceeds the bands, it often means that it will be moving
much further in that direction. On the other hand, when a rally fails to cause prices to reach
the upper band, it often means the stock will be weak.

The blue-50-day moving average is vital for traders. It defines the intermediate-term trend.
When prices drop below the 50-day mvg. avg., there is often a rush to the exits in high tech
stocks, especially if the 50-day mvg. avg. then turns down and the Accumulation Index is negative.
The same is true on moves above the 50-day mvg. avg.

The pink-30 week mvg. avg. is a longer term measure. When prices drop below it on a
closing basis with the Accumulation Index negative, it is long-term bearish. Similarly when prices
rise back above the 30-week (also treated as 149-day) mvg. avg, it is bullish, provided the
Accumulation Index is positive.

Red vertical bars shows unusual trading volume. As you read more and inspect a growing
number of charts, you will notice that unusual trading volume often caps a price move unless
there has been a price breakout or breakdown beyond well-tested resistance or support.
Breakouts in RED are much more reliable.

                               INTERNAL STRENGTH INDICATORS

                 Our main Internal strength measures are:
                 (1) the volume characteristics of the stock
                              (Volume and Spilt Volume)  
                 (2) how well the stock has performed compared to other stocks or to an
index like the  Dow Jones Industrial Average . (RSQ and ITRS)
                 (3) how well the stock closes near the high for the day
                             (bullish, when occurring regularly or on high volume.)
                             or at low for the day (bearish, when on high volume or regularly.)
                             (Accum. Index, AI/200, IP21, IPA, IDOSC, Larry Williams Index)
                 (4) how far the stock closes away from the opening.  (down in bearish and up is bullish.)
                            (Closing Power, Opening Power, Closign Power Pct.)
                 (5) how far up from the opening is the daily high and compared with
                            how far down fromthe opening is the daily low. (Tiger Day traders' Tool)


                       Initial Choice of Internal Strength Indicators To Be Displayed.

TIGER gives you two initial type of charts. One shows an OBV Line (aggressive buying),
the Accumulation Index (patient big-money buying, often by insiders) and ITRS
(Intermediate-term Relative Strength) Indicator. The other shows only the Accumulation Index
and gives you written formulations regarding the stock’s OBV strength and its Relative Strength
(how it is doing compared to the Dow Jones Industrial Average. It also reaches a Technical
Conclusion.

You can pick which of these inital graphic displays you want to appear. Go back to the
Main Tiger Menu and click on the the sub-menu “Files” at the upper left. Choose “Initial
Graph Choice” and then enter N and N at the two queries that follow. This produces a
simpler chart with a written technical conclusion. When you become more skilled you will
probably want to see the display that initially shows you the OBV and ITRS indicators
as well as the Accumulation Index.

                                            Internal Strength Indicators.

Subsequent Displays of Internal Strength Indicators. Once a chart is displayed you can pick
from numerous internal strength, volume, momentum and relative strength indicators. These
always appear at the bottom of the screen. They are placed on the screen using Indicators(1),
Indicators(2) or Indicators(3). Our HELP routines on the top right give quick guidance.
Reading about these sub-surface measures of a stock’s strength in our manuals is the next step.
Most important, however, is experience. The more you put into the manuals, the more you will
get out of of our software and the more the predictive patterns of price and volume will take on
real meaning. Look at lots of graphs. In particular, start noticing what the internal strength readings
were on a stock just before it made a big move up or down.

Don’t be afraid to experiment. You can’t hurt anything that can’t be replaced with a new
installation Please notice that you can always go to Operations and use one of the choices
there to redraw your chart.

Drawing a line between two spots on the price chart will come in handy. Place a chart on the
screen and draw a line through the stocks recent tops and bottoms without having the line go
through any intra-day prices. This is done by using the pull-down menu “Lines” at the top
of the screen. Pick “Rubber-Band Lines”. Now point the mouse at one of the stocks recent
price highs and drag the resulting line across so that it goes through another high without
going through any other price action. This is said to be a “resistance line”. Do the same
thing with bottoms. This is said to be a “support line”. To be reliable support and resistance
lines should go through 3 or more separate points each separated by at least a few days.
You may also draw lines between two points using the “Diagonal Lines” feature. In this
case just point the mouse at two different points on the screen and click the left-mouse key
once at each point. This should cause a diagonal line to appear. Where the line extended to
the right now crosses is shown on the screen. You may also want to experiemnt with
“Vertical” and “Horizontal” Lines.

There are many chart patterns that books on technical analysis set out as predictive. You will
do well to read one or two. The basic ideas in all of them are simple: try to spot a trend
early, buy at support and sell at resistance. However, know that broken resistance
becomes support and broken resistance will probably be resistance. Our software has
tried to encapsulate these concepts into automatic buy and sell signals. As much as we have
tried, there are still may times when a close inspection of the chart is necessary. The computer
just can’t be trained very satisfactorily to recognize well-tested diagonal support and resistance
lines, nor can it replace the actual search for “head and shoulders” tops.

                 APPLYING TIGER BUY AND SELL SIGNALS - BASICS

Using Automatic Signals To Spot Important Technical Developments in Your Stocks.
Any TigerSoft chart you choose should show OPTIMIZED RED Buys and Sells. These are
discussed at length in the instructions for TigerSoft. Market conditions change and that can
change the Buys and Sells from day to day. So it is necessary to note the technical condition
of the stock. Besides looking at the internal strength indicators and the chart patterns present
by the stock, we suggest using the fixed rule Buys and Sells. When you have a chart on the screen,
these signals may be placed on the chart using the choices under Signals-1. These fixed rule
automatic buy and sell signals may be used for automatic trading, but it is better to use most
of them as advisory and note
them as warnings of changing technical conditions.

The signals can be applied to commodities but not to open-end (mutual) funds, because they
have no daily price range or volume figures.

Not all signals are equally important. The major BUY signals (B4, B10, B12 and B24) typically
have much more power than other buy signals. They are relatively uncommon. However,
you can easily learn of new cases by using our flagging program or by subscribing to our
Elite Stock Professional (ESP) service.

The major sell signals are more varied. I classify the following as major sell

signals: SELL S4, S9, S14, S24, S25, S26, S27 and S29. Of these I believe the S4 is most
important. This sell signal, however, does not occur until the stock violates its 30-week mvg. avg.
Traders should make liberal use of the S29 as a way to lock in profits in over-extended stocks.
With low-priced stocks that enjoy a meteoric rise over $20 (These we call "piffle" stocks),
the best signals for catching their peaks are the SELL S9, S14, S24, S25, S26, S27 and S34.

Placing buy and sell signals on the screen is easy.

First, place a chart of a stock on the screen. Next simplify the display. Under “Operations”
pick “Restore Simple Bar Chart”, Now go to the sub-menu “Signals”. Notice the way the
signals are organized. Signals “1”-”9” should be used for a stock in a rising trend. You can
use your own judgement here, if you wish. You can also use the “Technical Conclusion”
our software offers. This appears at the bottom of the screen using one of the initial graph choices
mentioned above.

The highest Power-Ranked stocks, certainly those above the 85%ile, should be considered
uptrending unless they violate their pink 30-week mvg. avg. or unless they violate major support.
See HELP routines, particularly those “The Trend is Our Friend” to “Tiger Stock Trading Signals”.

There is another easy way to assess the stock’s direction. Use our regression channel tool.
With a stock’s chart on the screen, go to the “Lines” pull-down menu and pick the “Least
Squares Regression Channel” and “Regression Channel Statistics”. A stocks whose
regression line percent gain is more than .25 must be considered uptrending, unless it has just
fallen below the lower regression band.

Now place the major signals on the screen for a riising or falling trend stock.
If none appear work down the list, until some minor signals appear.

Start learning what the signals mean. Use the HELP routine on the right of the screen. Pick the
sub-menu choice: “Tiger Stock Trading Signals”. Look up the meaning of the last signal on
your screen. Next go back to the chart and make a listing of all the signals. Use the “Operations”
sub-menu and pick “Trading Results: All Signals” .

                              USER CHOSEN SIGNALS

You may readily see a listing of all the TIGER buy and sell signals by pulling down the “File”
sub-menu at the top left when a chart of a stock is on the screen and then by and choosing
“Build/Run User Defined Signals’ Set”. You might want to print this out. Highlight some
of the signals that seem interesting. For example, if you like to sell on strength and buy on
weakness, you might highlight “B6” and “S6”. These are common. And near the upper bands
they are usually reliable. Enter a name like “TEST” in the box at the upper right of the screen.
Click the “Save Name” button. Do not use any prefixes (like “C:\stocks” ) or suffixes (like “.txt”).
Now click the button “Apply Selections Now”. The graph with the appropriate signals appears.
You may clear the screen and redraw the chart by using the first option under the “Operations”
sub-menu. Now place the set of signals you have just built a name for on the new screen. Pull
down the sub-menu entitled “Signals” and choose the third item “Display User Defined Signals’
Set”. Enter “Test” or whatever name you have assigned to a set of signals. The approriate signals
appear on the price chart.

TIGER automatic buy and sell signals. With a chart of the screen, you can place them on the
screen, one by one, simply by using the “Signals” pull-down menu and selecting
“Display User-Set Signals”. Enter a signal among these possibilities: “B1”...”B37” and “S1” ...
”S37”.

HELPFUL INT: Note that you can switch to another stock by simply hitting the
down-arrow key on the right side of your key board, provided the NumLock key is
toggled to the off position.

We have constructed the HELP routines to reinforce the most important lessons and images.
Please study these charts carefully and then look for new examples of the same phenomenon,
the same price and internal strength characteristics. In time you will see how helpful and how
profitable recognizing these key technical signatures can be,

For Convenience I list the HELP sections here.

Stock Graph explanation.

Stock Price bands.

“The trend is Our friend”.

“Bullish Aspects in A Chart”

“ Negative Non-Confirmations”

“Bearish Aspects in A Chart”

“High Tech Stock Trend Switch to Down”

“High tech Stock Trend Switch to Neutral”

High tech Stock Trend Switch To Rising

Indicators, Terms, Concepts

Tiger Stock Trading Signals

Evaluating Stocks Already Owned

Over-Extended Speculative Stocks

Short Selling Techniques

                                             Back-Testing The TIGER Signals

Display a stock that has been uptrending for some time, the technical conclusion should be
wither “Bullish” or else the screen should say “Long term price trend is Bullish” . By “bullish
rating” we mean that the stock was above its 30-wk. mvg. avg. (long-term trend was up) ,
its 50-day mvg. avg. was rising (intermediate-term trend was up) and the stock’s Internal
Strength rating was positive and bullish.

Using the “Signals” pull-down menu, place the bullish signals on the screen. Know that
they most clearly apply to the period of time that the stock was above its rising 50-day mvg.
avg. To see how well the signals did in the past pull down the “Operations” sub-menu.
Choose “What Happens to $10,000 (buys and sells -includes short sales-) or (buys only)”..

There are times when you might want to place buy and sell signals on the screen where
you believe you would have taken the signals. You may add or suppress a signal by
using the pull-down menu “Lines”. Choose the first item in the sub-menu. Next point
the mouse at the signal to be cancelled or the place where it is to be added. Enter either “X”
(for cancel) “B” (to add a buy signal - a BUY B28) or “S” (to add a “SELL S28”).
As a result a vertical line appears at the point you have specified. Move the mouse pointer
to the far right and left-click it. The signal still appears but not when you display the results or
calculate what would have happened to $10,000, allowing $40 for each reversing BUY or SELL
to cover commissions and slippage (the difference between the bid and the ask.)
You might want to place a judged “B” at the point where there is a diagonal trend-break to the
upside, or on an upside breakout over the 50-day mvg. avg. or the rising 21-day mvg. avg.
You may also want to place it after 5 tests of a support level. And you may want to use the judged “B”
when a breakout takes place past well-tested resistance which is not signalled automatically by a
BUY B5 or BUY B10. Use some of the ideas in our Explosive Super Stocks and
Short Selling: Killer Profits in Any Market.

You may also exclude an area of the screen for signals. This would be correct where the main
signals do not apply. This would be proper where the stock shifts from uptrending to neutral
because it violates a long-uptrendline or violates its 50-day mvg. avg.

This off-limits area for signals is set up as follows:

Pull the “Lines” sub-menu down from the top of the screen.

Pick the first item in the resulting sub-menu.

Then point the mouse at the line you have just drawn showing where the trend changed from bullish
to bearish. Click the mouse once.

Then point the mouse to the far right of the screen and click again.

You will see a horizontal line under the dates. This marks the area in which no

signals will appear when they are next drawn.

Now put on the screen signals appropriate for a different trend.

Check the trading results as shown above.

To start again with the same stock and have all the signals wiped out, simply

pull down the sub-menu “Operations” and click on Restore Original Stock

Chart. The earlier signals and exclusionary zone are blanked by picking any of the Restore
Original Chart options under “Operations”.

You will have the greatest success, we believe, applying the automatic TIGER BUY
signals to the very highest accumulation and highest POWER ranked stocks.
A stock whose %ile is above 85% should certainly be considered uptrending until there
is a major SELL S4 or S9. You can determine the POWER ranking percentile by selecting
this under the OPERATIONS sub-menu after a chart is on the screen. The HELP routines
illustrate the importance of finding and buying stocks that have persistent and massive accumulation
and are in uptrends or are breaking out to the upside.

You will generally have much better than average success applying these BUY signals
to strongly uptrending stocks, ones that show a major B20, so long as they stay above
a rising 50-day or 30-week mvg.avg. and thus do not show an S4 or S29.

In most cases a simple visual inspection will tell you if the stock is uptrending.

Using the least squares line and getting the least squares statistic will tell you

The B8's tell us that the stock's new low was not confirmed by any of the 3 classic measures
of internal strength, OBV, IPA and Stochastic20. Also use the B30. This signal tells you there
is an extreme 100-day divergence between either OBV% and Price% or between IPA% and
Price%. Since a stock's trend is more apt to continue than suddenly change, especially if there
are ample signs that the stock is still under big-money accumulation, use the individual minor
OBV, IPA and Stochastic-20 non-confirmations as BUYS.

In thinner, less seasoned stocks that have risen 50% or more from their base,

take profits when you get an S20 - S13 combination sell signal or an S31 MACD SELL. These
tell you the short-term direction is now down. In an over-extended "piffle" stock this is can be a
dangerous situation. Even before the

intermediate-term price trend (based on a 21-day mvg. avg.) has turned down, you often get
excellent sell signals based on S21, S22, S23 using defaults, as well as the major S9, S14, S24,
S25, S26, S27 and S28.

With uptrending stocks, I suggest placing preset signal-bunches on the screen using the
sequence (1), (2), (3) and (9). You can clear the screen at any time by re-drawing the original graph
(under OPERATIONS). Note that you can place these signals on the screen individually.

The MACD - B31 (and S31) are particularly valuable trigger signals. Act on them when there previously
has been another recent major buy (or sell) signal. Be on the look out for such combinations as
a B8-B31 or an S9-S31 over a week.

Mixed or neutral trend stocks are "YO-YOs". They should be considered short-term trading
vehicles only. This is not to say that they make better short-term trades than purchased
UPTRENDING stocks.  The optimized Buys and Sells will probably be based on a Stochastic. 
Use these signals until the stock breaks below the best support line or above the best resistance line.  
Those lines may be flat or converging.

To establish that a stock is in a mixed or neutral trend, check the Least Squares. Line to be sure
that the line is not rising faster than 25% or falling 25% on an annualized basis. Inspect a stock,
too. Is it holding above easier support but not making new highs? Be on the alert for the end
of a trading range. Be able to spot points of serious price deterioration and breakdown or
strength and breakout to the upside.

The best automatic sell signals to first display show volume and momentum non-confirmation.
"warnings". These probably should not be taken as signals to buy or sell, rather they should
be used as warnings of an impending reversal. With mixed trend stocks apply the automatic
TIGER counter-trend signals. On the buy side these are the B1, B2, B7, B8, B9 and the B30,
B32, B35 and B36.

On the sell side, the counter-trend signals are an S1, S2, S8, S9, S30, S32, S35 and S36.
Note than the B30 and S30 register extreme divergences between the 100-day price action (Pr%)
and its OBV% and IPA%. Treat all S9 (negative non-confirmations by the IP21) as important.
The B8's and S8's are also very useful. Of less importance are the B34's and S34's, which register
that a 50-day high or low was not confirmed by the RSI.

Most of these counter-trend signals will work well with neutral trend stocks provided that that
they are not above their upper band or below their lower band or are breaking out to the upside
or breaking down below well-tested support.

The trend-change signals (B5, B10, B12, B24 and B37) will tell you when a neutral trend is
turning upwards. Similarly, the S4, S5, S10, S12 and S37 signals will tell you when a neutral-trend
stock is turning down.

These trend-change signals work reasonably well with stocks that have had relatively limited volatility.
They work less well with stocks that are swinging back and forth in a broad trading range. I have
suggested considering any stock that has a regression channel volatility greater than 40% to be a higher volatility.

When the regression channel for a stock is more than 40% wide, say, we would classify it as being
highly volatile. In these cases if the stock's regression line is flat for the past year, you will probably
have limited success with the counter-trend signals. These stocks have a habit of exceeding their first OBV,
IPA and

Apply the trend-change signals with some care with these stocks. They tend to make bigger swings
because their old highs and lows are farther apart. The B29 and S29 are still very reliable.

With these more volatile stocks, traders should be aware of when they may be starting a bigger move.
To see this try the B16 and S16. These will tell you when the 21-day moving avg. crosses the 30-wk mvg.
avg. upwards or downwards, respectively. The B32 and S32 anticipate the B16 and S16. They tell you
that the 21-day mvg. avg. is crossing above or below the 50-day mvg. avg. In a rising general market, the B32
and then the B16 signify institutional buying is beginning in what will probably be a trend that should last for
more than a month. Similarly, the S32 and S16 tell you that institutions are backing away from or selling
the stock outright and it should move lower for the next month or two. Such observations should be
confirmed by a widening movement of the Accumulation Index in the same direction.

With these broad-swinging neutral trend stocks, I would use the MACD BUY and SELLs if the B31 and S31,
especially if there case of the B31) or distribution in the case of the S31. B31's should also work well when a
stock is coming off a successful test of its major support. S31's should be used when a rally fails at well-tested
resistance. Lastly, use the B31s and S31's when the longer term regression channels have been reached.

Use the declining trend signals whan a stock is blow its 65-day ma.

The Least squares line should be falling at a -.25% rate.

Use it also if there has been a decisive support failure, an S4 and an S10 or S12
without a major B4, B10, B12, B20 or B29 augmented with a positive Accumulation Index a the same time.

First, place the major BUY signals on the screen.

Secondly, place the minor sell signals from those listed under declining trend stocks' signals
on the screen. This will show minor new highs which are not confirmed by OBV, IPA and the
Stochastic-20. It will also show the S6 reversal days and mechanical Stochastic-S20 S11 and MACD S31
sell signals. The mechanical signals should work best when they follow down-arrows indicating OBV (red),
IPA (blue) and Stochastic (white) non-confirmations of minor new highs. I particularly like S6's in this
environment. They show high volume reversal days downward.

Thirdly, put the trend-continuation sell signals for down-trending stocks on your screen. These are
the S4, S5, S10, S12, S13, S14, S16, S18 and S37.

Fourthly, put the sell on-a-rally sell signals for downtrending stocks. These are the S1, S2, S3, S7,
S8, S9, S15, S30, S32 and S35.

Last, place the minor buy signals on the screen. If the internal weakness in a stock as measured
by OBV and the Accumulation Index is not too weak, the minor buy signals for down-rending
stocks take on more importance. The minor buy signals may be used for covering a short sale once its
downside objective has been obtained (see my short selling manual) or the lower band of the least squares
line has been reached.

                                     A Word about Insider Buying and Selling.

In most cases, we can't easily identify who is buying or selling big blocks in stock. SEC filings
are delayed and the release of these filings represents a further delay and loss of timeliness.

Nevertheless, I have theorized the way in which a large block of stock might be accumulated by someone
who has insider information or his pals.

"BIG MONEY ACCUMULATION" is seldom spoken of with precision and on;y infrequently given a
working definition that lends itself to mathematical precision.

A stock would be under accumulation if it stayed in a flat-topped trading range, below its old highs,
but still regularly closed near its highs, especially on days when volume is high. From this behavior
we deduce that someone is watching the stock. They are stalking it. They are buying it in a stealthy,
unhurried fashion. This is very different from the behavior of a stock behaving randomly or being whipped
about erratically by wild public swings of greed and fear.

Stocks showing steadily positive TIGER accumulation readings are those that are likely to have a
buying cushion underneath them and are likely also to be "TIGHTLY HELD", that is, owned by
investors who can not easily be induced to sell their stock even on a rally of say, 25% or even 50%.
High accumulation stocks are thus safer than most, to buy, as a general rule, but they also are more
likely to rise swiftly, if aggressive buying is introduced into the picture, because the stock starts to rise
quickly, thereby attracting performance-minded traders and institutions.

As I use the term "accumulation", it means that the stock's shares are moving from the
"WEAK HOLDERS", who are more:

"emotional" (Greed, fear and impatience are money killers.), whose stock ownership is "weaker"
(less tenacious and determined), "poorer" (less deep-pocketed and more subject to selling from fear),
"manipulatable" (less experienced in the ways of the market), "uninformed" (less knowledgeable about
the particular company)", and more the "impatient".

to "STRONG HOLDERS", whose stock holdings are acquired over a longer

period of time, because they do not wish to disturb prices as they build up really big positions, whose
holdings, moreover, are based on careful planning and serious study. These are the "strong" hands.
Note, in particular, that they have much more money and can not so easily be scared into panic selling.
In many cases these are the very people that make the news or start the rumors. They are the insiders.

For further discussion of “big-money accumulation” and the role of insiders, please see my
Explosive Super Stocks, especially page 54.

                 Lengthy Positive readings from the TIGER Accumulation Index.

If the stock is gradually rising, this probably represents steady buying on weakness by institutional buyers
who are purchasing big blocks of the stock regularly on nearly all intra-day dips. Here we use the TIGER's
AI/200 score. This is simply the number of days the Accumulation Index has been positive of the last 200.
Finding the stocks in the DJI-30 that have the highest AI/200 scores has

regularly found fine blue chip gainers for us. See my Twenty-Five Percent A Year Can Make You
Rich. DJI stocks that have an AI/200 score greater than 194, have an average gain of 74% over 21 months.
EXAMPLES - KO in 1989 or UK in 1994.

                                          BUYING  TACTICS

                                                    Tactic #1

Short-term traders should consider selling puts on the highest Accumulation

Stocks in the DJI-30 or SP-500 or NASDAQ-100 on every three or four day dip.

Then when the stock rebounds, which is expected because of the high accumulation's cushion
of support, close out the put positions. Repeat this operation until you are put the stock. Because
of the superb long-term track-record of buying the most accumulated DJI-30 stock or stock in the
SP-500, the ownership of the stock will probably soon prove to be profitable. Only a CRASH like
in 1987 would upset this plan.

                                                   TACTIC #2

Buy on MARGIN the top DJI-30 stock as soon as it becomes #1. Don't wait for the end of the quarter.
Assume that other TIGER users and big institutions will push the stock up higher over the short-term.
The average gain for a top AI/200 DJI stock over the first quarter was 5.99% from 1970-1994. Using
margin, this would have been about 12% a quarter or 48% a year.

Lengthy periods of Accumulation and Rising Uptrends even as the DJI is going down for several months,
can provide you a great way to find explosive super stocks that are not in the DJI. EXAMPLE AMGN 1990.
In Amgen's case doctors, we believe, were accumulating AMGN in 1990 before the FDA gave approval
for two new block-buster drugs. They could se the efficacy of AMGN's drugs in clinical trials.

                                                     TACTIC#3

After the DJI has fallen 10%, look for a PEERLESS MAJOR BUY signal. After that occurs,
buy the highest AI/200 or POWER-RANKED Stock in the NASDAQ-100 or among smaller companies,
provided its AI/200 score is above 190 and is above its 50-day mvg. avg.

After that, buy such stocks on temporary pullbacks to their rising 21-day mvg. avg. or on breakouts
above their flat horizontal tops. TIGER B21 and B10 signals will help.

FLAT-TOPPED TRADING RANGES suggest simple profit-taking by traderswho have simply
placed their SELL ORDERS at the old highs. FLAT-TOPPED patterns are seldom major tops.
They usually are broken above with big price surge soon afterward. Flat-topped patterns may
represent the signature of big-money accumulators trying to hold the stock back so that it will not
look too good, too soon. If successful, yhey can buy more or stock, so long as the float is not
exhausted. B5’s and B10’s signal breakouts. Check these to see if the patterns that are being broken
out can be considered truly flat. If so, they are very bullish.

SHALLOW-PULLBACKS ARE BULLISH. If a stock does not retreat much below its rising
21-day moving avgerave and then begins another run to new highs, it signifies that profit-taking
is easily being overcome by new aggressive buying. Tiger’s “B19’s” flag and signal such relentless
upward momentum.

                                                  TACTIC#4

Buy flat topped breakouts just after the breakout on a closing basis, if the stocks show recent
high accumulation. The Accumulation may dip slightly negative territory if the stock's relative strength
is good (ITRS >+.25) and aggressive buying is evident from an up-sloping OBV Line (OBV%-Price%>-5.
These are BUY B5's and BUY B10's.

                                                  TACTIC#5

Find potential breakouts above flat topped patterns with good accompanying internal strength using
the TIGER Spread Sheet Program using the 100-day Price Pct. column, clicking on the top of the
column and then inspecting the stocks from 99 to 90 to see if they have flat tops. Those with high
accumulation should then be bought by day-traders on their intra-day price breakouts. Note that this
tactic takes time. I prefer to follow each night all the stocks that are at the top of the POWER RANKING,
50-day Pct.Change Rankings and are in such lists as TOPREL.

Regarding breakout buying, do not use these tactics unless you are willing to work with stops
8% or 10% below the point of breakout. Do not use them when the number of new lows on the
NYSE or NASDAQ exceeds the number of new highs. This approach is exciting. But it also
takes patience. Anticipating breakouts can be very costly. It is also frustrating. Many stocks do
not price breakouts at convenient times. Often they seem to occur late on Friday afternoons
or in after hours trading.

                                          SMALL CAPS and THINNER STOCKS

Small stocks often can not easily be accumulated over a long period of time. Their floats are too thin.
Sometimes, too, the breakthrough that permits a stock to go up significantly, occurs in a way that too
many big institutions learn about it all at once. In these cases, it is not practical to quietly accumulate
a big position in a stock while it is still sitting in a trading range. Big-smart-money will show its hand
in these cases by increasing their activity quickly. This frequently causes the Tiger Accumulation Bulge
to spike upwards. Accumulation Index Spikes above +.40 signify such buying. If at the same time or
within a few months after, the small stock starts making a series of new highs, BUY it.

                                                      Tactic#6

BUY smaller technology and other exciting stocks when they show fresh BUY B12's or B24's. These
major TIGER BUY signals also factor in relative strength. If we are going to buy an unknown smaller
stock, we want to see it behaving much better than the overall-market as measured by the DJI-30. Not
only does this factor give us some compensation for the added risk we are assuming, it also suggests
that others will be attracted to the stock because of its superior price performance. Not all of these
will work out. However, selling the poorer performers and adding to the best performing is a well-tested
proven system. 

                                               Insider Distribution and Selling

Believe the evidence of red distribution when you see.  When the stocks then breaks down
below key support, even in a bull market, expect it to decline further, usually by at least
height of the price pattern above the point of breakdown.  Disregard the automatic Buys
just after a breakdown.




                                                 PERFORMANCE TRADING

When a stock's price looks cheap, it usually is no bargain - unless there has been a bear
market in it for a year or more. Buying stocks just because they are down 50% from their highs
is usually unwise. Either buy at long-term support or on price breakouts that occur as the
stock makes all-time highs. There's little reason to buy a stock that has a large supply of stock
offered just overhead, and that's exactly what you'll be getting if you buy a stock that has pulled
back 50% , or so, from its yearly high.

In an on-going bull market traders in growth stocks should look for stocks that are making
new all-time highs. They should have doubled in the last year. They should have polite, shallow
corrections. One of the best ways to find such stocks is using the concept of Relative Strength.
This shows how the stock is doing against the DJI or other stocks.

RSQ (Relative Strength Quotient)

TIGER's Relative Strength Quotient is simply the stock's closing prices divided by the DJI's
closing prices on the same day. This we call 'RSQ'. We then smooth this data with a 21-day
moving average. You will see how a trending stock will frequently make minor retreats in which
its RSQ falls back just to its rising RSQ-21-day mvg. avg. When the RSQ is then deflected
back up from that rising mvg. avg. the stock usually starts another advance. When the RSQ
is decisively violated and the RSQ moving avg. turns down, the stock is apt to either retreat
or go into a consolidation for at least a month or more. We believe that turns downward by
the 21-day mvg. avg. of RSQ are a good sell point in a stock that has made a big advance.
That is the basis of our Sell S23. You will later see that we have a full set of

I would be more cautious about using turns upward of the RSQ 21-day moving avg. as a buy point.
To be taken as a buy the stock should show good accumulation and rising up-volume. Keep in
mind that it almost always takes rising volume to make a stock rise significantly."

ITRS (Intermediate-Term Relative Strength)

ITRS is TIGER's Intermediate-Term Relative Strength indicator. It shows how much better or
worse the stock is doing than the DJI over the last 50 days. A reading above +.3 would mean
the stock has outperformed the DJI by 30% or more over the 50 days. We have found that
new readings above +.3 are often associated with big advances when speculative sentiment
is generally strong.  We believe that a stock that has its ITRS fall below -.1 probably should
be sold or avoided.

However, cross-overs by the ITRS back above the 0-line are bullish if the stock has not recently
had a play. This indicator is best used with our Accumulation Index to gauge how tightly the stock
is held. When the Accumulation Index has been consistently positive for a long time, a stock that
has its ITRS cross above +.3 can often run a long ways.

You can find all the stocks that have just had their ITRS cross above +.3
by using the reserved symbols' list-name 'ITRSA30', or 'B12' for the stocks that simultaneously
have an IP21 (current AI) greater than .40

                 Percent-Change Rankings: 21-day, 50-day, 100-day, 250-day:

TIGER’s Pct-Change Ranking program shows you stocks ranked for their percent change over
4 different time periods. Us the 21-day, 50-day and 100-day if the market has recently reversed
and turned up or down for approximately 21, 50 or 100 days. In this way you can see the stocks
that are “first-out-of-the-gate”. 200-days is preferred once a market advance lasts longer than
six months. If there are 800 stocks, a Price Change rank of 800 would be tops in this universe.

We believe that most On-Balance-Volume and Accumulation Index divergences

from price are usually reconciled with price following the TIGER internal strength indices.
The TIGER Pct-Change Ranking program lets you quickly compare a stock’s price change ranking
with its OBV ranking and its IPA (similar to the Accumulation Index ranking). A stock’s OBV and
Accumulation Index (aka: “IP21” rankings are also shown.

The TIGER ranking programs show you the difference in rank order between a stock’s
price percent change and its OBV. They also show the “rank difference” between a
stock’s pct.change rank and its Accumulation Index.

Using the TIGER ranking program you can not only spot the stocks that are
first out of the gate, or strongest for a substantial period of time, you can also
readily spot those that have the highest ranked supporting internal strength.
These are the stocks that have the highest “Across-the-board” strength”.

Strong stocks are expected to stay strong. However, our rankings do not predict the expected
order of subsequent performance. Work with the strongest of the strong.

                                                         HINTS

HINT: Cherry-pick. High-grade. Traders should buy the stocks that are
very highest ranked in pct. change, not the 30th or 50th, provided it is over, say,
$20, or better, $50.

HINT: Buy the highest pct. change ranked stocks that also have a positive
rank divergence, external price change rank minus internal (OBV or
Accumulation Index) rank. Work from the top downwards. Such a stock would be
tops in “across-the-board strength”.

HINT: Look at the top ten performing stocks and among them, those that are above $50.
Then buy the highest AI/200 stock among them; or the stock that has the highest current
Accumulation Index (IP21); or that has the highest Up Pct. value. (Up Pct. shows the
percentage of days of the last 200 that the strong closes higher on the following days.)

HINT: Notice any industry whose stocks are appearing frequently at the top of the list.
This is telling you there is a powerful trend in an industry as a whole. These last for long periods
of time usually.

HINT: Use dips by the 5-day and 14-day Stochastic to buy the highest Accumulation stocks,
those with an AI/200 score above 195.

HINT: Traders should make use of the short-term swings in volatile high techs and emply
the 5-day Stochastic if its optimized results are good.

Short-sellers: Short-term traders should look for stocks with very big negative divergences
between their price action and their internal strength rankings. In my short-selling book, I
suggested building a directory of stocks that are those that are most heavily shorted. I suggested
taking al the NASDAQ stocks with more than 800,00 shares shorted. This will usually give you a
good universe of stocks which professionals think are over-priced. Then closely inspect for
timeliness those stocks that have the most bearish divergences. I call this “low-grading”.

             POWER RANKINGS AND FUTURE PRICE PERFORMANCE

The nightly analysis TIGER programs produce a ranking of stocks based on TIGERSOFT’s
concept of “power”. Six factors are weighted:

1) The number of days of the last 60 that the Relative Strength Quotient’s 21 day- mvg. avg.
is rising minus 30. I have given this a weight of 4.

2) IP21/200 or AI/200. This is the number of days in the last 200 that the Accumulation Index
has been positive. I have given this a weight of 5.

3) OBV%-Pr% (how much is the 100 day OBV% above the 100 day price Pct.
I have given this a weight of 2.)

4) IPA%—Pr% (how much is the 100 day IPA% above the 100 day price Pct. I have given this
a weight of 1.)

5) If the stock is below its 50-day mvg. avg. subtract 50 from the Power Ranking.

6) If the stock is below its 30-wk mvg. avg. subtract 150 from the Power Ranking.