Trading Gold and Silver Stocks
      with TigerSoft's Closing Power

                                    by William Schmidt, Ph.D. (Columbia University)


           Most of the time, we don't know exactly why Professionals are net buyers of sellers of a stock.
           To make money we don't have to.  We just trade the direction of the trend of TigerSoft's
           Closing Power, while being mindful of:
              1) whether the general market is on a Buy or Sell from our Peerless Stock Market Timing.
           Peerless was on a Buy for the last 6 months of 2010 and most of the time from March to December
           in 2009.
              2) what is the direction of the stock's 65-day ma
           The 65-day ma appears as a bright purple line on the Tiger bar chart.
              3) whether the stock or ETF shows an important chart pattern.
              4) whether or not the stock or ETF shows heavy Accumulation (insider buying) or
            heavy distribution (insider selling).    Bulges of Accumulation at the bottom of the Tiger
            chart that surpass a key threshold are considered as "insider buying".  New highs at the
            upper price band with a negative (red) Accumulation Index are considered "Sell S9s" and
            "key distribution" that foretells many declines.  

           The rules for trading the Closing Power trends are simple.  Buy on a break to the upside when
           the Closing Power (CP) downtrend is broken.  Sell when the CP uptrend is broken.  Use the steeper
           CP trendlines when the stock has made an extended run.  Three tests of a CP trendline make it
           more reliable.  And we watch for divergences between CP and prices.  Bigger moves and reversals
           are set up when Closing Power fails to confirm a new price high or low by making a corresponding
           new high or low.  Lots of times excellent trades are made when the stock falls back to (or rises back to)
           the 65-day ma and the CP trend is then broken.  Seeing the usage here will make these rules clearer.

           Buys and Sells can be placed on the chart by the user where Closing Power breaks its trendline. 
           TigerSoft computes the percentage gains a trader would make on an initial position of $10000 where
           the costs of commission and slippage are $20 per trade.  The results assume trades are entered at the
           opening the next day after the Buy or Sell.

           The rules can be profitably applied to most stocks, most of the time.  The exceptions occur when
           the Public is heavily in the market and the stock is running out of control of the Professionals for
           a period.  This occurred briefly in 2000, for example, at the end of the Internet Bubble.




                                                                     IMPORTANT
         BUY ON TIGERSOFT CP TREND BREAKS FOLLOWING AN ACCUMULATION BULGE
                                                              SHOWING INSIDER BUYING

           By far, the biggest gains are made if one buys a stock soon after it has shown heavy insider
           buying when the Closing Power breaks above its downtrend or horizontal trendline.  TigerSoft
           shows such insider buying as spikes by the Accumulation Index above the key "insider buying"
           threshold.  Each of the next 6 charts show such insider buying just before the Closing Power
           Buys occurring after its downtrend is broken.

          Selling is best done after the stock has made a significant advance and it makes a new price high
          which  is not confirmed by its Closing Power making a corresponding new high.  Note that a negative
          non-confirmation of a price new high by the Tiger Accumulation Index (Tiger "S9") also works here. 
          After either of these occurrences, Sell when the Closing Power breaks its uptrend.

ANV 2009-2010

TRE

GPL   2010-2011

GORO  2010-2011

BVN 2010-2011

AXU 2010-2011

                                                                       MORE TYPICAL CHARTS

           Here are GLD (gold ETF), SLV (silver ETF) and three stocks: NEM, PAAS and SSRI.  Simply
           trading the trends of Closing Power is consistently profitable.  The gains were generally less
           because insider buying was not present.

GLD 2010-2011  GOLD ETF

SLV 2010-2011   Silver ETF

NEM 2010-2011

PAAS 2010-2011

SSRI 2010-2011

           

           

           

                                      

                                     

        
     

        
           +