TigerSoft's NET IDOSC
             on DJI-30, QQQ, SP-500 and Russell-1000
                            (C) 2014 William Schmidt, Ph.D.
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                                     10/8/2014

              Prediction for tomorrow, based soly on NID:

             NID stayed positive but turned flat despite
                    DJI's big decline.    This predicts the next day will be slightly
                    up.

                    The NID for QQQ, SP-500 anf RSX-1000 fell in
                    negative territory today despite the rally. 
                    This is bearish for them tomorrow.

 

                    Interpreting the Net IDOSC as A Day-to-Day Predictor of DJIA      

             The Tiger Net Idosc for the DJI only predicts the next day or two in the DJI.
             It can be applied to any directory of stocks, however.  Further below are the
             NID charts for the QQQ, SP-500 and Russell-1000.

             We follow the simple rules below.  They work best when the DJI appears to be
             in a trading range or locked inside its normal 3.5% bands.  Breakouts up or
             down can invalidate these rules.

             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 10/7/2014
                                                    13 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
                                 10/7/2014         16719       +18 DJI rally predicted because  NID positive on decline.  Rule #3  
                                 ---
                         10/8/2014         16994       +18 Flat NID but still positive on DJI rally is pos-neutral.  No rule for this.
    

Net IDOSC for QQQ

Net IDOSC for SP-500

Net IDOSC for Russell-1000