ALTR

EMC

             Foreign ETFs are the strongest sector, as hot money flees the weakening Dollar. Their strength
          begs the question of how much a tax cut for the very wealthy will help American businesses.
          With all the political backbone of a one-celled protazoa, the Democrats have postponed           
          a vote on this important issue until after the Election.

           CHN - China Fund shows intense insider buying in July and August and displays
          a Closing Power maming 12 months highs.  GCH - Greater China looks equally impressive.
          IFN recovered nicely on Friday.   You can see in its chart how a Closing Power new high
          in June was the tip-off that there would be a substantial run here.

====================================================================================            
              9/23/2010   Peerless Remains on A Buy. 
                     THE CUMUL. NYSE A/D LINE HAS NOT REGISTERED A BEARISH DIVERGENCE
                      ON THIS ADVANCE.  IN 23 MARKET TOPS SINCE 1929 A BEARISH A/D LINE
                      NON-CONFIRMATION (NC) OCCURRED ALONG WITH A PEERLESS SELL.  IN ONLY
                      FOUR CASES, WERE THERE IMPORTANT TOPS WITHOUT AN A/D LINE
                      NC AT THE TOP.  AND EACH OF THESE HAD A PEERLESS SELL.  SO, THE
                      ABSENCE OF A PEERLESS SELL AND AN A/D LINE NC SHOULD MAKE US
                      DOUBT THAT A SEVERE DECLINE IS ABOUT TO OCCUR.                     

                               IF THE CLOSING POWER UPTREND-LINES ARE BROKEN, WE WOULD
                    HAVE TO BELIEVE THAT THE DJI'S  MARGINAL BREAKOUT AT 10800  WOULD
                    THEN SEEM TO HAVE FAILED.  IN THAT CASE, HAVING TESTED AND SUCCUMBED
                    TO THE CLEAR RESISTANCE AT 10750,  GIVEN THE FLAT TRADING RANGE,
                    THE DJI WOULD THEN PROBABLY NOT TO FIND MANY BIDS UNTIL IT HAS
                    AGAIN TESTED THE BASIC SUPPORT AT 10000.  SUCH ARE THE DICTATES OF
                    CLEAR, FLAT TRADING RANGES.  THE MIDDLE OF THE RANGE AT THE 21-DAY MA
                    OR THE  65-DAY MA TYPICALLY HAS MUCH  LESS SIGNIFICANCE IN A FLAT
                    TRADING RANGE.   THEY WORK BETTER IN TRENDING MARKETS.

                                THE STEEP A/D LINE UPTREND HAS NOW BEEN VIOLATED.  THE LESS
                     STEEP SECONDARY A/D LINE UPTREND WILL PROBABLY BE VIOLATED IF
                     WE CONSIDER THE SIMILAR EARLIER A/D LINE UPTREND-BREAKS THIS
                     PAST YEAR.

         It's pretty easy now to paint the bearish case: 1) October often brings the scariest declines
         and that month's trading lies little more than a week ahead; 2) the Dollar is in big trouble
         and there could be a rush to sell American Treasury instruments, whixh would drive up
         interest rates; 3) US unemployment is already starting to double-dip.  4) The massive
         head and shoulders pattern will surely bring a big break downwards, 5) Gold's steep rise
         always brings a bear market, just to name a few points.

         The solid case can be made, no doubt, for a bad market break.  However, from my vantage point,
         we would normally expect a major Peerless Sell before such a decline. And there just has not
         been one.  Breadth, the ratio of advances to declines on the NYSE, has been too bullish.
         Very low interest rates has done what it's supposed to do. 

          Bear markets almost always begin after there has been a significant bearish divergence
          between the DJI and the NYSE A/D Line.  In other words, market tops since 1928 - which
          is when the breadth data starts - almost always occur when the DJI makes a new high that
          is not confirmed by the NYSE A/D Line mking a new high.  And making it still easier for us,
          major Peerless Sells and bearish A/D Line divergences call all the other major tops:

          1929, 1930, 1937, 1939, 1946, 1948, 1957, 1959, 1961-1962, 1966, 1968-69, 1973, 1978, 1979,
          1980, 1981, 1984, 1987, 1989, 1990, 1998, 2000 and 2007.  There were 23 such cases.
          See the 23 charts here.
.
           By contrast, there are only 4 exceptions:
           1)  Jan 1977 (We do see an S8),
           2) Jan 1994 (Here there was an S4.)  10% decline
           3) Sept 1997 (An S12 here.)
           4) March 2002 (Earlier S9)
           See the 4 charts here.
          
                                               STOCKS TO BUY AND SELL SHORT

          There were 183 MAXCP stocks tonight, showing that professionals were still very bullish on them.
          The most bullish of these with both Opening and Closing Power rising (UU) were:
           AAP, MNRO (Munro Muffler), EMC. AZO (AutoZone), NXTM, VIT, TCLP, TTF (Thai Fund)

        




          There were 54 MINCP stocks tonight, showing that professionals were still very bearish on them.
          The most bearish of these with both Opening and Closing Power falling (DD) were:
          AMAG 18.89 -1.17 and CGA (8.36 -.26). A rising Opening Power will most likely not prevent
          the other "bearish" heavy distribution MINCP stocks from declining further:
          BAC,  MPWR, ECA, CFFN, PBCT, PNFP, BYD,
         
                         GOLD AND SILVER NEW HIGHS ARE BULLISH FOR PRECIOUS METALS


====================================================================================        
         9/22/2010   Peerless Remains on A Buy. 

          There were some shifts today in the markets but the DJI's trend is still up.  Both the Opening
          and Closing Power are still rising for each of the major market ETFs.  This shows a strong uptrend.

                     Supplemental, added an hour into trading as a response to an email:  

                     A market collapse in October some think is a possiibiity.  I do not
                     see it without a major Peerless Sell. That would take everything down.
                     In a Congressional Election year that only happened in 1930, 1978, 1994
                     and those were after clear major Peerless sell signals.  The high unemployment
                     released today still means the FED will keep interest rates low and so the cost of owning gold
                     (where no dividend is paid) is low.  Central banks raise interest rates to protect
                     their country's currency. The FED cannot safely do that now with such high unemployment.

                                               GOLD STOCKS ARE RUNNING

          Gold stocks were the biggest gainers today.  The biggest, NEM, has broken out above very well-tested
          resistance that goes back to 2005.   This must be assumed to be very bullish.




          NEM is the mother ship. http://www.newmont.com It has gold mines in United States, Australia,
          Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico.  The Closing Power for NEM is
          lagging, but the all-time high breakout is technically more important AND both its Opening
          and Closing Power are now rising.


      

          A steep rise in NEM and Gold usually spell trouble for the equity markets because
          the weakness they signify for the Dollar usually bringa the Fed to raise interest rates.
          Presently interest rates are falling and so is the Dollar.  Volcker raised rates to 20% in 1980.
          The result was the 1981-1982 bear market.  The Fed and Treasury have not agreed to
          a public inventory of US Gold supplies.  This does not inspire confidence.  On the other hand,
          a weak Dollar helps creditors (pay back loans in cheaper Dollars) and might help US manufacturing
          get started again as imports become more expensive.  The big banks want a stable Dollar
          because they want foreigners to keep their deposits here and in dollar denominated assets.
          The declining Dollar has also caused US investors to put their money in overseas ETFs.

                                                                     GOLD



          Gold and silver stocks are following NEM's lead.  The most bullish Gold stocks with a Closing Power
          making new highs are TRE and IVN.   As long as their Closing Powers are rising, they can still be
          bought and held.  Of course, these are not new recommendations, but this is probably the best
          group to own now.  Silver, being used so much more for industrial purposes, is probably going to
          lag gold for a while longer, until there is more of an economic recovery.

          TRE 7.33 -.15 and up nearly 50% since we first recommended it here in July when it crossed back
          above $5 with a Closing Power making new highs and showing heavy insider buying.
          Tanzanian Royalty Exploration Corporation, an exploration stage company, engages in the acquisition
          and exploration of natural resource properties. It primarily involves in the exploration of gold properties,
          with a focus on exploring for gold properties in Tanzania  Though up a lot, TRE's internals are
          superb: heavy insider and steady Professional buying.



          IVN  22.04
          Ivanhoe Mines Ltd., through its subsidiaries, operates as a mineral exploration and development company.
          The company?s principal mineral resource property is the Oyu Tolgoi copper and gold mine development
          project located in southern Mongolia. It also holds interests in the Ovoot Tolgoi Coal project located in
          Mongolia; the Cloncurry project in Queensland, Australia for the exploration and development of
          molybdenum, rhenium, copper, gold, and uranium; and the Kyzyl gold project located in Kazakhstan.

        
         ANV  27.49 - runs only US gold mines.
         Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration,
         and advancement of gold exploration and development projects in the State of Nevada. It principally
         operates the Hycroft Mine, an open pit, heap leach gold mine containing silver as a byproduct of the gold recovery
          process located in Nevada.

        
         A handful  of QQQQ stocks were sold off today on high volume.  We will watch to see if the NASDAQ
         fails its recent breakout above the 2300 resistance.  That would confirm an intermediate-term retreat
         to its rising 65-day ma.
       
          ADBE 26.67 -6.27    ADSK  31.66 -1.41   ALTR  27.25 -1.15  BIIB  54.86 -3.37

         The QQQQ's Closing Power is still rising.   So, too, is its A/D Line/  Violation of these would
         likely bring a decline back to 47 on the QQQQ



         To hedge with some short sales consider, as usual, the most "bearish" MINCP stocks.
         A handful of Finance stocks also would seem to be candidates for short sale trades.

---------------------------------------------------------------------------------------------------------------------------
      9/21/2010   Peerless Remains on A Buy. 

        Breadth did weaken today.  There were a whopping 863 more down than up on the NYSE despite
        the DJI's 7 point advance. This is a big daily divergence.  It is clearly bearish.  It is the second daily A/D
        divergence on the current advance, where the DJI rose from the previous day but there were more
        stocks down than up.  On September 16th, the DJI rose 22 but there were 465 more down than up. 
        Weakening breadth is often based on a sense that interest rates may go back up.  Today, the
        FED put on hold any further lowering of rates despite the continuing high unemployment.

        Bearish daily A/D divergences from the DJI not on successive days tend to accumulate to the point
        where there sufficient bearishness has accumulated and an intermediate-term decline starts.  This
        can take some time.  In 1929, 1937 and 1959, 1972-73 and 1999-2000, the A/D Line lagged a rising DJI
        for more than 6 months.  The divergence here seems significant by comparison.  Usually we get a
        Sell S9 as the top is made.  Often multiple sets of S9s. 

        Minor breadth divergences do bring short-term and intermediare-term declines.  To this end,
        in the original Peerless book of 1981, I talked of minor divergences between the DJI and the
        P-Indicator.  I suggested watching for minor non-confirmations.  A practical rule of thumb is
        to take as significant for trading purposes the following.   Watch for 50-day new highs by the DJI
        where the P-Indicator is less than half of what it was on the previous peak.  A decline back to the
        just below the 21-day ma is called for when this happens.  In this vein, on 8/4/2010 the P-Indicator
        peaked at 714. Today on a new DJI high, it stood only at 362.  This is still more than half of its
        previous peak, but not by much. 

        Another way to see a top coming is to watch volume indicators, especially the V-Indicator.
        The old Peerless S13s are useful here.   S13s are based on the V-Indicator being negative with
         the DJI above the 2.7% band.  These Sell S13s have been classified simply as warning signals. 

        But we can count the daily A/D Line non-confirmations coupled with multiple old Sell S13s
        (warning signals).  Four of these proved to be correctly bearish signs of the tops in April, June
        and July-August.  We have had 3 so far on this rally.  So, I would still give the market more chance to
        advance.  
                   
                   APRIL (4)
                          2/22/2010 10383.38  Old Sell S13
                          3/25/2010 10841.21 DJI up 5 but 1828 decliners and only 1269 advancers
                          4/15/2010 11144.57  (TOP) DJI up 21 but 1549 decliners and 1449 advancers
                          4/19/2010 11092.05  DJI up  74 but 1735 decliners and 1343 advancers.

                   JUNE (5)
                          6/16/2010 10409.46  Old Sell S13
                          6/16/2010 10409.46 DJI up 5 but 1825 decliners and only 1270 advancers
                          6/17/2010 11434.17  Old Sell S13
                          6/17/2010 11434.17 DJI up 25 but 1545 decliners and 1525 advancers
                          6/18/2010 10450.64   (TOP)

                   JULY-AUGUST (4)
                          7/13/2010   10363.02  Old Sell S13
                          7/14/2010 10366.72  DJI up 4 but 1666 decliners and only 1366 advancers
                          7/22/2010   10322.30  Old Sell S13
                           8/9/2010   10698.75  (TOP)  Old Sell S13

                   SEPTEMBER (3)
                           9/16/2010   10594.83 Old Sell S13
                           9/16/2010   10594.83 DJI up 22 but 1828 decliners and only 1269 advancers
                           9/21/2010   10761.03 DJI up 7 but 1942 decliners and only 1079 advancers.

        The Closing Powers for the major market ETFs are all still rising.  In fact, the Opening Powers
        are, too. This is a bullish combination.   The NASDAQ has broken clearly out above the right
        shoulder resistance.  The DJI has marginally. The SP-500 has also made a 3 month high, but is
        still below the apex (1149) of its left shoulder in December.  That still may pose some resistence,
        but with the breakouts, the path of least resistance should be up for more stocks. 

        MAXCP stocks numbered 249 while MINCP stocks showed only 39.  The very strongest stocks
        tend to go up the most in the last stages of their rally.  Here is a sample of the BULLISH
        MAXCP stocks

         Some of the BEARISH MINCP stocks are getting much weaker.  Hedging with short sales in
         these is safe, as long as you are willing to cover a short if the CLosing Power breaks its downtrend.

===============================================================

      9/20/2010   Peerless Remains on A Buy. 

        The Closing Powers for the major market ETFs are all still rising.  In fact, the Opening Powers
        are, too. This is a bullish combination.   The NASDAQ has broken clearly out above the right
        shoulder resistance.  The DJI has marginally. The SP-500 has also made a 3 month high, but is
        still below the apex (1149) of its left shoulder in December.  That still may pose some resistence,
        but with the breakouts, the path of least resistance should be up for more stocks.  I would
        cover most short sales if the Closing Power downtrends are broken.

                                                             NASDAQ Buy B10



        At the bottom of this section is updated research on the type of breakout we saw today
        with the NASDAQ.  It shows that 11 of 13 old Peerless NASDAQ-Buy B10s - as occurred today -
        would have been profitably traded using current Peerless Sells, penetrations of extended
        21 and 65-day ma and head and shoulders patterns.  The gain would for such NASDAQ B10s
        with the current Accumulation Index (IP21) above +.15 would have been +7.6%.  The next version
       of Peerless to be released will have these and some other NASDAQ signals in it.  We  do have to
       be wary of false breakouts. But the history of these signals is clearly bullish.

        Internet security stocks remain the leaders.   Today IBM offered $28 for NZ, but stock
        traded significantly above that level, as though there would be a higher offer forthcoming.


        The advance has taken up a number of more speculative stocks, as well as the usual dividend plays.
        There were 319 MAXCP stocks.  These are stocks with their C;osing Power making new highs,
         thereby showing very strong professional buying.  By contrast, the number of MINCP stocks
         has dropped to 45.  On the NYSE, there were 204 more New Highs and only 2 New Lows.
         Bullishly, there were 118 NASDAQ New Highs and only 10 New Lows.  As long as their Closing
         powers are rising, the BULLISH CP stocks should do very well. 

         BULLISH MAXCP STOCKS (not dividend plays):

         PSMT 29.08 +.35 AI/200=189.   consumer warehouse clubs i
         VOD 25.77 +.49 AI/200=195    mobile communications
         VMW  87.43 +2.62   virtualization infrastructure software
         ADVS  53.58 +.98  AI/200=197   software and services that automate work flows
         TRE  7.16 +.17  AI/200=182   gold/copper
         FFIV  104.64 +3.66  AI/200=169 technology that optimizes the delivery of network-based applications, incl. security
         AAP  59.16 + 1.01  AI/200=180 retailer of automotive aftermarket parts
         VRNT  25.05   AI/200=194 actionable intelligence solutions and value-added services worldwide
         INTU  45.52 +.64  AI/200=169   raxes and financial management software
         NR  9.42 +.44  AI/200=173 waste disposal, and well site preparation products and services
         WTR  20.78 +.30  AI/200=168   operates regulated utilities that provide water or wastewater services i
         NZ  28.27 +3.67  AI/200 = 181   analytic and monitoring appliances to enterprises, etc.
         NTCT 19.58 + 1.12   network performance management solutions worldwide



                           GOLD Should Go Higher.  Minimum Upside Target Remains 1300

         See  GOLD's Breakout Past 1000/ounce into All-Time High Territory Invites Comparisons
         with 1970s.    October 6, 2009     



       Low Priced Gold Stocks are getting lots of hot money interest, even though some of the biggest Gold
        stocks have not achieved breakouts and others like ASA and GOLD show heavy distribution on their
        new highs.   Let's watch the higher priced stocks for bullish breakouts, ABX 46.45  (Nov high of  48),
        AU 44.07(Nov high of 48) and NEM 63.27 (64 recently).  

       Below are the strongest Gold stocks.  As long as their CLosing Powers are rising,
       they will be good speculations in this market environment with Gold having a
       high minimum target and the last quarter of the year tending to be bullish for it.

                                             Why The Shorts Are Covering...

         When a bearish-looking head and shoulders' pattern is aborted by a close clearly above the
         right shoulder's apex's resistance, the market usually spurts forward as shorts cover.  That started
         today, set off, as it was, by the government's accouncement that "the recession has ended"/
         For whom, one might ask.  This is a jobless recovery, if ever there was one in the US.  And
         the market's decline ended 17 months ago.   Still, there is no question that overseas stock
         markets are doing very well.  Another internet/security stock, NZ, was bid for today by a
         Dow-30 stock. (IBM).  I mentioned UNP last night as a wellwether.  It moved up, but has not made
         a confirmed breakout.  Other railroads are also approaching breakouts, but have not succeeded
         yet. (CP, CSX, KSU, NSC).  The old Dow Theory would say that today's breakout was not
         confirmed by the rails.


         i

                NASDAQ Strength Usually Shows Healthy Speculative Interest and Is Bullish
                                      This will have be finished tomorrow.

          The old Peerless (pre-2008) have a Buy B10 on the NASDAQ breakout today,.  Even though
           this is not part of the present Peerless programs we can see usefully look back at all the cases
           of such Buy B10s and get a sense of the importance of the breakout today.

           Old Peerless NASDAQ B10's are breakouts above 4x tested resistance.  The average
           gain on 9 trades between 1986 and 2002 was 7.8% at time of next NASDAQ Sell.
           7 of these 8 trades were profitable.  The gains from these B10s between 2002 and 2006
           will be posted tomorrow.   Below are the gains in the last 4 years.

                                         Gains of B10s with Old Peerless on NASDAQ.

                                                     CL/MA    NASDJI     IP21  Gain
           --------------------------------------------------------------------------------------------------------------------------------------
           7/16/1987                     1.015     Negative     0     +3.5%                   
                                            Reversed by Peerless S9 on DJI on 10/1/87.
           Note NASDAQ Sell Signals in Old Peerless that will have to be incorporated in a new Peerless for NASDAQ.
                     Sell S2 - Penetration of 65-dma by -.5% for first time in 65-days.Not a short sale.
                     Sell S6 - Penetration of 21-dma by -.5% for first time in 46-days.Not a short sale.

           Date         NASDAQ  CL/MA  NASDJI     IP21   Gain        Next Sell
           ----------- -------------    ----------  ------------    -------  -------         ----------------------------------------------------------------------------
 1.       6/9/88     384.60       1.034      Negative    .322  +2.8%      Peerless Sell S1 on 7/6/88 with NASDAQ at 395.45

 2.       8/3/89     456.93        1.018     Negative    .412    +4.9%     Peerless Sell S9 on 10/4/89 with NASDAQ at 479.32
                                                                                                                
 3.       5/17/90   445.74        1.039    Negative     .198     +3.7%     Peerless Sell S9 on 7/2/90 with NASDAQ at   462.04
                                                                                                               
 4.       9/14/92   594.21      1.043    Positive         .309    +12.-% Old NASDAQ Sell S2 on 2/16/83 with NASDAQ at 665.39. 
                                                                                                +33%   Peerless Sell S9 on 2/3/94 with NASDAQ at  797.79
                                                            NASDAQ fell to 565.21 right after this Buy signal and then revered powerfully up
                                                            after completing a 5-month lomg inverted head/shoulders bottom.

5.      10/22/92   597.12     1.031    Positive       .299    +11.4% Old NASDAQ Sell S2 on 2/16/83 with NASDAQ at 665.39.
                                                                                             +32%   Peerless Sell S9 on 2/3/94 with NASDAQ at  797.79                                                          

 6.      11/27/96  1287.32  1.027       Negative     .358     -5.8%       Peerless Sell S9 on 4/22/97 with NASDAQ at  797.79
                                                                                    Much better would not to have a gain turn into a loss and to have sold
                                                                                    on simultaneous penetration of 4x tested uptrendline - pentration of  65-dma
                                                                                    with NASDJI negative and IP21= -.056.  This would have meant a gain of
                                                                                    +2.0%.

 7.    6/30/99   2685.64  1.063     Positive       .255        -0.5%     Peerless Sell S12 on 6/18/99 with NASDAQ at   2671.24

8.    11/1/99   2967.64  1.05        Positive       .185       +33.8%   Peerless Sell S9 on 12/28/99 with NASDAQ at   3972.11

9.       12/29/2003  2006.48   1.042  Negative   .233    +4.1%    Peerless Sell S15 on 2/11/04 with NASDAQ at   2089.66.

 10      11/10/05   2196.68       1.032  Positive   .282   +6.6%    Peerless Sell S15 on 5/5/06 with NASDAQ at   2342.57
11.      3/29/2006  2337.78     1.018   Negative .091 +0.2%     Peerless Sell S15 on 5/5/06 with NASDAQ at   2342.57
                                                                 NASDAQ completed head/shoulders on 5/11/2006 at 2276.70)

 12       9/12/2006 2215.82      1.026  Positive   .271   +9.9%   Peerless Sell S9 on 1/5/07 with NASDAQ at   2435.

 13       1/11/2007 2485.85      1.02   Negative   .068    +8.0%   Peerless Sell S9 on DJIA at 2712.29 on 7/17/2007
                                                               This was initially a false breakout as NASDAQ fell back to 2350 before advancing.

14      4/25/2007  2547.89     1.028  Negative  .30      +6.5%    Peerless Sell S9 on DJIA at 2712.29 on 7/17/2007
              
15       4/24/2008  2428.92     1.031  Negative  .15    +2.1%   Peerless Sell S15 on DJIA at 2480.71  on 5/1/2008
                                                                                          NASDAQ H/S neckline violation at 2394.01 on 7/17/2007.
                                                                                         Two warnings here: IP21 (Current AI) was under.151 and NASDAQ B10 was trying
                                                                                          to reverse operative S9s.)

>          11/16/2009  - There was a simultaneous B10/S8 from old NASDAQ system here.  So signals are nullified.

16        12/21/2009  2237.66   1.025                    .194    +10.0%    Reversed on 4/30/2010 by NASDAQ-Sell S6
                                                                                             Completed NASDAQ Head/Shoulders pattern

           9/20/2010  2355.83   1.064   Positive    .273    Open
------------------------------------------------------------------------------------------------------------------------------------------------
         13 CASES of NASDAQ B10s with IP21>,15.
                 Avg. Gain - 7.6% using Peerless Sells, NASDAQ S2s, S6s
                 and completed head and shouldrs patterns.
         11 of 13 were profitable since 1987 when data starts being available. .

===================================================================================
        9/17/2010   Peerless Remains on A Buy.   Short-Term Red Sells appeared
         on Friday's QQQQ and SPY charts.   The Closing Powers for these are still rising.  Until
         the CLosing Power uptrends are broken or we get a Peerless Sell, I would not sell these
         or the DIA short.  I would take more profits in some of the most bullish stocks (Bullish MAXCP)
         when their CLosing Power uptrends are violated.

        Indian, Chinese and Emerging Markets remain strong, as do the internet-security stocks.
     .  Watch bellwether Union Pacific for a bullish breakout above a piggy back flat resistance.  The
        overseas markets are now lifting the US market and economy, even if big banks won't make
        loans to lots of American companies and individuals. 



        The ratios of new highs to new lows on the NYSE is still bullish, greater than 10:1.  It is 141:11.
        The NASDAQ's is much less bullish or problematic.  On Friday there were 57 new highs
        but also 21 new lows.  The quality of the new highs is of concern here.  Our Tiger Data page shows
        205 new highs, but only 60 are in the confirmed new highs (NHCONF) set.  Among the stocks
        traded best with short-term stochastics (STOCH5), there are 73 still on buys and buy 173  on sells.
        A short-term pullback from resistance seems likely.  We will watch the internals of the market
        if it pulls back to its 21-day ma to see if this will be support. Usually without a Peerless Sell or
        a head and shoulders top, declines are shallow and brief.

                                                             BIOTECHS

        The biotechs making new highs are of interest as trades, as I explain below, even though their
        strength may show traders are favoring biotechs selectively.  Only 3 of the 6 biotechs are making
        confirmed new highs.  That is a bearish sign.  We want to see a higher percentage of confirmed new highs.
              ALKS  Looks like a Sell. Red Sell, Negative current AI (IP21), CP nearer new lows than new highs.
              ATRC - thin but B10 B12 B20 and B24
              CBLI  - looks like a Sell. Red Sell, Negative current AI (IP21), CP nearer new lows than new highs.
              EXAS - high volume NH is not confirmed by IP21>.25 or Closing Power making a new high.
              ISLN - a runaway super stock. Illustrates TigerSoft's ideal in many ways.
              SVNT - Recent B10 B12 B20.  CP is not yet at a new high.
                           Professionals mau have been surprised here.  
      
                           MERGER MANIAs - A SIGN OF CORPORATE EXCESS AT A TOP?

          The NASDAQ and QQQQ have been out-performing the DJI since 9/3/2010.  This is the
          same day that the QQQQ closed back above its 65-day ma and its Rel Strength Quotient Line
          (QQQQ/DJI) broke its downtrend.   Where dividend plays were dominant, there has developed
          among traders a keen sense of the potential in take-over plays, especially in internet security
         stocks.  It is said that the big corporations are gobbling up smaller companies with earnings
         to make up for their own limited growth and lack of willingness to invest directly in or expland their
         core businesses.  Perhaps.  A merger mania of sorts has clearly developed in a narrow group of
         technology stocks.  It really started with the buy-out of McAfee (MFE) on August 19.
         Tiger Insider Trading charts show when such talk is heating up.  There is some evidence
         this takeover mania may spread to biotechs. European CRXL jumped 55% on Friday on
         Johnson and Johnson's bid.
                How To Spot A Stock about To Get A Takeover Bid
                Will Biotechs Be The Next Big Play for Take-Overs?

                                              PENNY STOCK ACEL IS MOST INTERESTING.
      
         I searched our Biotechs for the stock that most looks like the CRXL chart above, a classic
        case of a buyout.  ACEL seems the closest parallel.   I have multiplied the price data for ACEL
         by 100 using the old Tiger program's EDIT feature to let you better see its chart.  I will
        do this each night in the BIOTECH data.   As you can see, everything is great about ACEL,
        except the fact that it is a penny stock that is moving up late in the stock market's bullish cycle.
        ACEL is now known as Tamir.  Its website's announcements do look interesting. (I do not
        own any of this stock.  I do not know anyone personally who owns it. And no one has paid
        me to promote this stock.)  This is apparently a pink sheet's stock.   Yahoo Finance
        does not cover it yet.  You can get quotes here:        
             http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACEL&selected=ACEL

                                         ACEL's Prices below are Pennies/Share.


                                                        NASDAQ. "NASDJI" and Peerless
        
         A NASDAQ move past 2350 would be very bullish.  It would destroy the head and shoulders
         pattern even more conclusively than the last rally.  While the last two week's rally is inconsistent
         with a symmetrical head and shoulders pattern, there are many cases where there is not equality
        in size or duration between the trading on left side of the head with that on the right.  So, the
        NASDAQ's asymmetrical chart does not preclude a decline.  NASDAQ head/shoulders patterns
        are actually uncommon.   Tops in the NASDAQ are best spotted with Peerless
        Sell signals on the DJI and a NASDAQ "NASDJI" reading  that is negative at the time of the
        Peerless Sell or down at least 70% from its recent highs. More on this tomorrow.

NASDAQ                      NASDAQ Tops since 1988     (Users choose: Peercomm + Charts + Short-Term Indexes + User Choice + NASD89 -example) 10/10/1989  top before 15% decline. Perfect Peerless S9 on DJIA.  NH but NASDJI was negative. 7/16/1990    top before 30% decline.  Perfect Peerless S9 on DJIA.  NH but NASDJI was negative. 2/12/1990   top before 15% decline. Perfect Peerless S9 on DJIA.  NH but NASDJI was negative. 2/3/1994   top before 13% decline.  Perfect Peerless S4 on DJIA.  NH but NASDJI was negative. 5/29/1994   top before 18% decline.  Perfect Peerless S1 on DJIA.  NH but NASDJI down 75% from high. 10/7/1997   top before 13% decline.  Peerless S12s on DJIA.  NH but NASDJI down 75% from high. 7/21/1998   top before 32% decline.  Peerless S9 on DJIA a week before.                    Waiting for NASDJI to fall 75% from its high would have meant selling at 1881.  NASDAQ                   did not bottom out until 1400. 7/16/1999   top before 13% decline. A Peerless S12 a month earlier but prices rose from 2600 to 2864,                    Waiting for NASDJI to fall 75% from its high would have meant selling at 2684.  NASDAQ                   did not bottom out until 2490 two weeks later. 3/10/2000   top before 37% 2 mo. decline.  No Peerless SELLon DJIA.   NH but NASDJI down 20% from high.                   Waiting for NASDJI to fall 75% from its high would have meant selling at 4798.  NASDAQ                   did not bottom out until 3100. In the 2000-2003 NASDAQ bear market, selling short when NASDJI turned negative would have worked fine.                   Confirming this with negative readings from AI would have given more confidence in short-selling.                   >6/14/2001   NASDAQ Continuation Head/Shoulders at 2044. NASDAQ fell to 1420 low in September. 1/21/2004   top before 13% decline. Peerless S9 on DJIA came two weeks later.   Waiting for NASDJI to fall 75%                   from its high would have meant selling at 2014.  NASDAQ did not bottom out until 1877 in May.  6/30/2004   top before 14% decline. No Peerless Sell on DJIA.  Waiting for NASDJI to fall 75% from its high                  would have meant selling earlier on 6/14/2004 at 1970.  NASDAQ did not bottom out until 1752 in August. 1/3/2005    top before 13% decline. Perfect Peerless Sell S8 on DJIA.  NASDJI and NASDAQ AI were negative. 4/20/2006   top before 14% decline. Peerless Sell S9 on DJIA two weeks later. NASDJI was negative with S9.                  Selling when NASDJI fell 75% from its recent high would have meant selling at 2330 on April 25.                  NASDAQ fell to 2100 in July. 7/19/2007   top before 12% decline. Perfect Peerless Sell S9 on DJIA.  NASDJI was down 70% from its high. 10/5/2007   top before SEVERE decline. Peerless Sell S4 on DJIA on 10/5/2007.  NASDJI was negative when                  S4 occurred. NASDAQ did rise 3 weeks long and show very positive NASDJI, as it had in 2000.

==================================================================================
          9/16/2010   Peerless Remains on A Buy. Short-term Buys out-number Sells
           above 7 to 4.  MAXCP Stocks Outnumber MINCP Syocks 5:1. 

           The Closing Powers and A/D Lines for the DJI, SP-500 and QQQQ are still rising.  This is
           impressive since these indexes have reached their resistance levels and seasonality
           since 1965 is 67% bearish for the DJIA over the next two weeks.

           But, I have to note that   the A/D Line for the DJI failed to confirm the present advance today. 
           Though the  DJI rose 22, there were 475 more down than up on the NYSE.  A/D Line
           Non-Confirmations (NC) are one of the most common characteristics seen at major tops. 
           In 20 of 25 cases of major tops,   This type of  divergence nearly always sets up over a week
           or more and is visually very apparent if a big sell-off is in the offing.  Look at my
           study of all the major tops since 1928,
                          http://www.tigersoftware.com/TigerBlogs/Sept-11-2010/index.html

           The old Peerless did generate a Sell S13 today.  It works only 56% of the time
           profitably from 1966 to 2000.   It occurs anytime the  A/D Line did not
           confirm a DJI new high.    This is designated as a AD-NC.  I have tested this condition
           tonight coupled with the DJI being at least 2.85% over the 21-day ma, with the
           IP21 at least -.072 and the P-Indicator above +100 - which are all true conditions now. 
           The results show such a signal is problematic since 1987.  This is as far back as I
           have tested it tonight.  While it improves the present 2010 Peerless system in 6 cases,
           it is not as good in 7 cases.  In 6 cases, it was significantly premature as a Sell.
           As a result, these trades were graded as "BAD" in the listing of its signals at the bottom
           of today's hotline. 

                                            NYSE A/D Line NCs as MARKET PREDICTORS
                                                                       WHAT TO DO.

           If the A/D Line continues to not confirm DJI advances it will certainly eventually set up a
           bearish divergence.  But anyone looking at our back data will see that the A/D Line
           can diverge for some time before there is a big decline.  The longer the divergence
           lasts, usually the bigger the subsequent decline.   In such an advance, the
           stocks that are still rising, often go up the most in this environment.   Hot performance
           money is focusing on fewer and fewer stocks.  

           In sum, I think intermediate-term Peerless users should be long the major ETFs,
           especially since both their Opening and Closing Powers are now rising (a blow-off
           bullish condition)   Short-term traders should probably be out of the DIA because
           it gave a short-term red Sell.  The BOTHUP condition for QQQQ and SPY can be traded
           on the long side, provided you are quick and will sell if the CLosing Power uptrendlines
           are broken. 

                                                      BULLISH, BOTHUP MAXCP STOCKS

           My preferred way to trade this market, however, remains being long some of the
           "BULLISH" MAXCP stocks.  These will have their Closing Powers making new highs
           and show lots of blue Accumulation.  To hedge sell short some of the "BEARISH"
           MINCP stocks.     

                        BULLISH MAXCP STOCKS (205) on Red Buys with Current AI>.25
            Traders should also be working with BOTHUP MAXCP stocks
                                                  like AKAM 52.26+.72 and TMRK 10.13 + .12.

           CPV 25.68 +.43 dividend play.
           AET  24.91 +.17 dividend play.
           TRE - Tanzanian Royalty   6.92 +.27 Above upper band and running as Gold/Copper stock.
            FFIV - FS Networks.   This has not fallen below 65-da ma  since February.
                        In hot internet security field.
            GED - 25.56 +.24 dividend play.
            NZ - 24.47 +.52    In hot internet security field.
            DXB - 24.6 +.17 dividend play.
            NTR - 9.47 +.17
            NTCT  18.09   -.08   In hot internet security field.
          
           
                        BEARISH MINCP STOCKS (40) on Red Sells
   
            ALJ  5.37 -.07
            ECA  29.26 -.06
            CFFN  24.99 -.20
            PBCT  13.03 -.11
            MGM  10.24 -.22
            MKKD  5.93 -.13
            AMAG  23.37 -.62
       

SHOULD A NEW A/D NC SELL BE USED?                      HERE ARE RESULTS SINCE 1987          In 6 cases, it was significantly premature as a Sell and has been graded as         "BAD" in red.  In only one case, would this signal have given a profitable new        set of trades. BAD 6/25/1987 2451.05 DJI rose to 2621 in August. There was a B4 that could have cancelled this signal. No present signal here. BAD 8/18/1989 2712.63 immediate pullback to 21-day ma and then rally to upper band at 2799 in early October where a better S0 occurred. BAD 7/13/1995 4727.48 immedate pullback to 21-day ma and then rally above upper band. No present signal here. SLIGHT IMPROVEMENT 2/23/1996 5630.49 immedate pullback to 21-day ma and then rally above upper band in second half of 1996. Present system gave Sell on 2/27/96 at 5549. GOOD, NEW 7/24/1997 8116.93 immediate rally to 8220 and then DJI decline below lower band to 7803. NOTE: There was no sell signal presently. SLIGHT IMPROVEMENT 7/14/1998 9245.54 immediate decline of 20%. NOTE: There was an earlier sell S9/S12 signal presently at 9085. GOOD,NEW 11/19/1998 9056.05 immediate rally to 9374.26 and then decline to 8695.60 a month later. There was no sell signal presently. BETTER 7/12/1999 11200.98 immediate decline to 10655 and lower band in 3 weeks. Current system gives a Sell S12 on 10856. BAD 11/16/1999 10932 immediate rally to 11722.87 and then decline to 9800. Present signals did better here giving a Sell S9 at 11476. SIMILAR 1/9/2003 8776 immediate decline to 7600 in two months. Present program gave S12 at same top. BAD 12/16/2004 10130 immediate rally to 10694 amd then decline to 10063. Present Peerless signals did a better job here giving S8 at 10854 on 12/28/2004. BAD 4/26/2007 13105 immediate rally to 14000 three months later. Present Peerless signals did a better job here giving S9 at 13972 on 7/17/2007. NOT AS GOOD 9/21/2007 13820 immediate rally to 14165 and then decline to 12600. Present Peerless signals did a better job here giving S4 at 14066 on 10/5/2007. SIMILAR 6/5/2009 8763 immediate decline to lower band at 6323 in 3 weeks. Present program gave a simultaneous S8. BETTER 10/15/2009 10063 immediate decline to rising 21-day ma and then rally. Present program gave a Sell S8 at 9949. -------------------------------------------------------------------------------- 15 cases 7 instances gave bad trading results,

==============================================================
        9/15/2010   Peerless Remains on A Buy but DJI and other indexes
        are at resistance.  With volume low, the DIA on a Sell and the
        bearish seasonaility ahead for the next two weeks, take some
        profits.  Because the Closing Powers are in uptrends for the
        ETFs, no short-term short-sales are recommended.  Intermediate-
        term investors should wait for a Peerless Sell of a break in the
        NYSE uptrendline.  

            Reviewing the "BULLISH" MAXCP (205) stocks comes up with these
        stocks showing heavy BLUE Accumulation and a CLosing Power
        that is leading prices to new highs. 






        Reviewing the "BEARISH" MINCP (43) stocks comes up with these
        stocks showing heavy RED distribution and a CLosing Power
        that is leading prices towards new lows.  





=============================================================
        9/14/2010   Peerless Remains on A Buy.

           The DIA has given a 20-day Stochastic Sell today.  This is the optimum trading system
        for the last year for the DIA.  As it has gained +52.5% buying and selling short, it should
        respected I think by traders.  Peerless is intermediate-term.  The Red Down-Arrow represents
        a short-term Sell.  In this situation,   I would look for the DIA to retreat only a little.  BOTH
        Opening and CLosing Powers are still rising.   Shorter-term, traders who want to go short the
        DIA should wait, at least for the Red 20-day Stochastic Down-Arrow Sell to be clinched by
        having the Closing Power uptrend be violated.   This sacrifices little usually and makes for a
        higher rate of successful trades. See rules for this here.

        If the DJI moves past 10700, the head and shoulders pattern will be largely destroyed and
        that will force considerable short-covering.   The rising A/D Line is certainly bullish, but the low
        trading volume, low level of the Tiger Accumulation Index on the rally and the September-
        October seasonality remains bearish.    The DJI has risen only 33% of the time since 1965
        over the next two weeks.  It rises only 48.7% of the time over the next month in this period.

        If Gold keeps rallying, it will put pressure on the Dollar and thereby add to inflationary fears that
        central bankers and the FED always have.   The Dollar fell sharply today and completed a
        bearish continuation head and shoulders.   Its Closing Power has bearishly broken its uptrend.
        For now interest rates are falling.  But continued eakness in the Dollar and strength in Gold
        and Japanese Yen will pose problems for the FED, low interest rates and the stock market rally..


          See notes above.  DIA is now on a short-term Sell.  Although
          Peerless is still on a Buy, we have to be concerned about Gold
          rising steeply, as this is usually bearish for the general market
          AND the big splashy jumps in some of the internet security stocks.
          This shows an emotional extreme and an over-bought condition
          developing.

                               Gold and Silver - Important New Highs
                  Gold Shows More Accumulation and Professional Buying.

          GLD, SLV, TRE, NEM, IVN and AXU are likely to move much higher.
          The minimum upside target for GLD is 130.  Precious metals
          often become hyperbolic as the public starts buying.  Each of
          these and the silver stocks (PAAS and SSRI) have BOTH
          a rising OPENING and CLOSING Power.   This often leads to
          big advances.

 



                                 






                                Make Money from Merger Manias

         http://www.tigersoft.com/HOW-TO-SPOT-A-BUYOUT/index.htm

       9/14/2010 Example -  
       IBM or HP to Buy Radware: Report at TheStreet.com(Tues, Sep 14)

                             Previously Recommended RDWR + 25% Today.
      

===============================================================


         9/13/2010   Peerless Remains on A Buy.  CLosing Powers Are Still
         Rising and the QQQQ, SPY, DIA and IWM Are on Still on Buys.  With
         their OPening Powers still rising, too, the strength shown has
         to be respected.  Tiger's NASDAQ's relative strength "NASDJI"
         Indicator has turned positive, showing the NASDAQ is outperforming
         the DJI.  IWM is too strong to hold short, even as a hedge.
         Watch to see if more of the High Techs   we mentioned are bid
         for as a buy-out, like ARST was today by HPQ...The bearish head and
         shoulders pattern appears to breaking down as the A/D Line
         lifts prices to the edge of a breakout past 10650.

         The DJI is approaching the 10650 resistance we have mentioned.
         Will there be a reversal?  The DJI closed 2.7% over the 21-day ma
         with the current Accumulation Index (IP21) only standing at  +.041.  
         This shows distribution.  In a rising market, this combination would
         have only minor significance.  But if we are still in a trading range,
         and that is what the multiple head and shoulders patterns warn,
         and the low volume and bearish seasonality also suggest, then we
         should soon see a regular Peerless Sell signal and a reversal
         downwards.  But we have no Peerless sell yet.

         The lastest statistics on Insider Buying and Selling show this
         is not a rally for long-term investors:
                  "According to Bloomberg, for the week ended September 10,
                   corporate insiders bought $0.5MM in shares in 4 different companies. This was
                   offset by sales of $332MM in 72 different companies, a ratio of 651 of sellers to buyers."
                   (Source.)

              The rallly today has been attributed to
              (1) Warren Buffet's bullishness (which cynics would say is what one would expect him to say
              on behalf of his own investments),
               (2) HP's bid for ArcSight and
               (3) bankers giving themselves 9 years to get financially sound.  Finance Stocks Chart
               This ignores the new 12-month low made today by weak-looking Visa (V)



              What is missing most in the discussion is the evidence that many of the world market's are
              advancing strongly and multinationals are going along for the ride.  As investors, we have to see
              that we are in a global market now.  American jobs and prosperity are not synonymous with a
              rising stock market.  Average Americans are not superfluous yet, but that's the trend.  The ease
              with which American investors can now bet on the strong Indian market, for example, shows how
              global the markets have become and how and how and why hot money has come to consider America
              a "backwater"now.  This is the inevitable result of "free" international trade, something
              which Clinton, Rubin and now Obama and the University of Chicago "free traders" have brought
              to pass.   A part of me - my stomach - is very happy about globalization.  Having grown
              up in Ohio when manufacturing was very big, I lament these loss of jobs now and wish Obama
              was not so dependent upon the thinking of the University of Chicago amd that he would
              show some originality courage, pugnacity and do more to promote jobs here. 

              Internationalism does bring some real benefits to American consumers, of course, just like
              immigration does.  For example, have any of you tried the spicy chicken at Chipotle's Mexican
              Restaurant (XMG)?  Gourmet at fast-food prices. The stock is cooking!

                    Chipotle's (CMG) Great Food and Modest Prices.   
             11/23/2008  An unsolicited testimonial from a hungry Tiger

   
             

TIGER TRANSPORTATION INDEX                and KEY TRANSORTATION STOCKS                                                 BNI's ONLY RR COMPETITOR - UNP                     --------------------------------------------------------------------------------------------------------------------------           ATTRACTIVE TRANSPORTATION-INDUSTRY, CONFIRMED BREAKOUT - BEAV

INTERNET SECURITY STOCK #2 BUYOUT (#1 was MFE) HP's BID FOR ARST WAS BEHIND ITS RECENT MAJOR TIGER BUYS.                         Others in the general area are now distinct takeover possibilities:                  ARST, BMC, CTXS, FFIV, MIPS, NTAP, NTCT, RDWR, RHT and RVBD.                  Deal-makers are being fed lots of ammunition now to promote these stocks.                  These were picked out here two weeks ago using the "Bullish" screen                  of MAXCP stocks.

"BULLISH" COUNTRY FUNDS: INDIA CHILE

                                                   

============================================================
         9/10/2010   Peerless Remains on A Buy.  CLosing Powers Are Still
         Rising and the QQQQ, SPY and DIA Are on Still on Buys.  Breadth
         Improved Friday.  Both the Opening and CLosing Powers Are
         Rising for SPY.  This is normally bullish.

              So far on the rally since March 2009, the NYSE A/D Line has hardly lagged the DJI
              at any time and actually made a new high ahead of prices.  In rising this week,
              it is shrugging off the rise in interest rates that has started,

              In all this, the NYSE A/D Line has correctly presaged higher prices, while the lagging
              trading volume has not had its usual bearish effect.   Will the DJI and the other indexes
              continue to follow the A/D Line and themselves make new highs?   It is highly unusual
              for a major top to occur in these circumstances.  Look at the study I have just completed
              of all the major tops since 1928,
                          http://www.tigersoftware.com/TigerBlogs/Sept-11-2010/index.html

              In 20 of the 24 cases when a major DJIA top was made, the NYSE A/D Line failed to
              confirm the final high.  Many times, the divergence was a small one, in that it developed
              only in the last month of the DJI's final rise.  Unfortunately, we can't build a Sell
              based on A/D Line NCs.  Such non-confirmations are too common to use them alone
              to predict a bear market.  But their absence is generally reliably bullish.  Looking at
              the 4 cases when the A/D Line confirmed what turned out to be a major final top,
              we see head and shoulders patterns were warnings in 2 two cases. In the third
              case, 1969, Sell S9s were produced on the first rally back towards the final highs.
              In the fourth case, only when the DJI fell more than 12% from its highs, did the
              NYSE A/D Line break down.

              The cases where the A/D Line remained strong   were:
       
                                                          5/29/46   Earlier S9 and H&S
                                                          12/2/69    S1...later S9
                                                          9/21/76    Later S8
                                                          5/21/01    Earlier S9 and earlier S12. H&S

              I think this means that we just have to wait for a Peerless Sell at this juncture.
              We are long DIA and some bullish MAXCP stocks and short IWM as well a
              handful of bearish MINCP stocks.  That seems to be working.  So, stick with
              this scheme.

              Tonight's review of all stocks for the Elite Stock Professional Page could
              not find much to recommend buying.  Most of the bullish stocks were dividend
              plays which I fear are very overbought now.   VRNT, TRE and RDWR, which
              have been recommended here, do still like holds.  Foreign stocks are also
              leaders.

                          New highs with IP21>.25, AI/200>140 and CP at new highs.
                                   ABV - Comp. de Beba - 115.34
                                   ARMH - Arm Holdings ADS - 18.55
                                   ECH - Ishares Chile  71.53

              It is on the short side that I can find a number of new trades from the new bearish
              MINCP stocks:

              BEARISH MINCP STOCKS TO CONSIDER FOR NEW SHORTING:

                                           CFFN 25.25 -.08
                                           COMV 6.2 -.27
                                           CSKI 6.57 -.23
                                           UNTD 5.15 +.10
                                           CRK 20.9 -.03
                                           CHBT 10.57 +.50
                                           SYUT 9.15 -.16
                                           PNEP 8.67 -.17
                                           SWN 33.37 -.43
                                           AMAG 25.19 -.04 

                                               

9/10/2010   The major market indexes are close to resistance, especially the SPY and the                Tiger Index of SP-500 stocks.  See their charts just below.  This means they are close to a                high inflection point, where after an upside breakout, a spirited advance is possible, OR if there                is a downward reversal, there will be a sharp sell-off.

 
============================================================
          9/9/2010   Peerless Remains on A Buy.  CLosing Powers Are Still
            Rising and the QQQQ, SPY and DIA Are on Still on Buys.

           But,  IWM - the Russell-2000 - has given a new Sell, its
            Accumulation Index is negative and another down day will
            likely break the uptrend of its rising Closing Power.

                 More dangerously, if the DJI were to have its theoretical high spike
            up another 100 points with the internal readings we see today,
            we would get a Sell S12. And now that the K-Lines of the Stochastic-
            20 are above 80, we may get an automatic red sell in the DIA
            in the next day or two.  

               It has to be bearish that Master Card (MA) and Visa (V) broke to
             confirmed 12 month lows today.  MA's chart is shown below and
             and V's is at the bottom of this date's hotline further below.

                                   Master Card (MA) Is Breaking Down.


               Rising interest rates may be the trigger  that sets this off.  See the new
            red Up-Arrow in the chart of the 10-Year Treasuries below.

                                 - TNA  Ten Year Treasury


           
                 Watch to see how the SP-500 stocks behave over the
          next few trading days.  They are just below well-tested resistance.
          At the same time, we now see a red Stochastic Sell from the
          optimum trading system.

                    Tiger Index of SP-500 Stocks with A/ D Line




           Princeton's Paul Krugman now believes a new Depression is
            all but unavoidable because Obama will not support a massive
            public works program and by talking about budget balancing
            in the middle of a deep recession he is making the same mistake
            that FDR did in 1937.   The A/D Line is much stronger now.
            Interest rates are much lower.  But since banks are not making
            more loans, will monetary policy make the difference as
            Bernanke and Obama think and Friedman thought.
            Monetary policy is not only limited by business and consumer
            demand, it is also subject to international forces outside its
            control.  What would happen if China starts selling some of its
            Treasury bonds to remind the US that it (China) has the
            upper hand when it comes to its trade and currency policies?
            See - my 9/9/2010 comments at
                                                  http://www.tigersoftware.com/news_updates_to_tigersoft_blogs_.htm  

            In the past, Krugman has also been very critical of the hold the
            University of Chicago's laissez-faire economic thinking has
            over Obama, Axelrod and Emmanuel.  This influence lies behind,
            for example, Obama's pointed refusal to say he would veto extension of
            Bush tax cuts for   the wealthy.  Obama wants to keep the stock market
            moving higher.  If the very wealthy are taxed, they will sell stocks.

                  Unlike FDR who savored advisers with different viewpoints, Obama
            has surrounded himself with very like-minded Chicago school economists. 
            They all celebrate and protect the general status quo.  They blame government
            for the Crashes of 1929-1932, 1937-1938 and 2007-2009.  Progressive and
            populist critics of Obama's economic policies do not understand this source
            for Obama's rigid adherence to laissez-faire views on health care, Wall Street banking,
            social inequalities and exorbitant CEO pay. They do not detect the U of Chicago's
            dogmatic anti-Keynesian resistance to the potential role government could play
            in creating jobs and promoting a business revival...

            BEARISH MINCP STOCKS
                       HAWK 7.61 still on a Red Buy.
                       ALNY   14.16 Distribution, on red Sell...Declining Closing Power. (looks like a short sale to me.)
                       KNDL 8.36 On Red Buy, but heavy Distribution and falling CLosing Power.
                       CFFN   25.33 -.15 Very weak but thin...
                       COMV 6.47 +.02   Distribution, on red Sell...Declining Closing Power.
                      Visa (V) 93.61 Serious breakdown. Sell Short.


==============================================================
           






            HOTLINE
            9/8/2010   Peerless Remains on A Buy.  CLosing Powers Are Still
            Rising.  The QQQQ, SPY and DIA Are on Still on Buys.

            You can see the internals of the market are weakening, other
             than the NYSE A/D Line, whose strength owes to the very low
            interest rares.   The NASDAQ shows only 40 new highs and 20
            new lows, while the same numbers are 113 and 7.

            The DJI is 1.2% over the 21-day ma with the P-Indicator at -16 and
            Accum. Index is only +.01.  The V-Indicator is -128 and the
            OPct is -.104.   Right shoulder apexes in head and shoulders
            patterns ordinarily have low volume.  The last two days' volume
            is the lowest since last December.  Breadth  was good today,
            but it did not make up for Monday's weakness.    If the DJI's
            hypothetical high was to jump by 200 points, with no changes
            in the internals, we would get a major Sell.  Of course, that
            has not occurred yet and may not, but we should be ready to
            reverse to a Sell.   Hedging by being long DIA and and some
            of the bullish MAXCP stocks and short IWM and some of the
            bearish MINCP stocks is recommended.

            The multiple head and shoulders patterns are worrisome,
            as is the bearish September seasonality and Gold's strength
            now.   A rally in Gold and Silver often warn of a coming general
            market decline.   Both close to making new highs. 

            Perpetual Contract of Gold

            Perpetual Contract of Silver

         
            Bullish MAXCP Stocks

                  VMW +1.3 FFIV +3.59 VRNT +.88  NZ +2.63

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide.
Its solutions capture, distill, and analyze underused information sources, such as voice, video, and unstructured text.
42 is all-time high.


Netezza Corporation provides data warehouse, analytic, and monitoring appliances
to enterprises, mid-market companies, and government agencies in the United States
and internationally. It offers TwinFintm and Skimmertm data warehouse products, which
integrate database, server, and storage platforms in purpose-built units to enable queries
and analyses on stored data. 17 was an all-time high.

              Bearish MINCP Stocks
COMV

MPWR

SYUT

============================================================
             9/7/2010    Peerless Remains on A Buy.  CLosing Powers Are Still
            Rising.  The QQQQ, SPY and DIA Are on Still on Buys.

            The DJI rallies only 43.6% of the time since 1965 over the
            next 21 trading days and in bi-elections years since 1918, the
            DJI has risen in 8 Septembers but falled in 23 cases. 

            It still seems a good time to be hedged.  The IWM (Russell-2000)
            has given a Sell.   Sell it short while holding long the DIA, which
            remains on a Buy.   The bullish MAXCP stocks that are not dividend
            plays should out-perform the bearish MINCP stocks.  A number of
            short sale candidates are shown below from the "bearish" MINCP
            stocks

            Bullish MAXCP (149)
                VMW, VOD, VGR, NZ, EZCH, EW, VRX, TRE, CRM, FFIV and AZO
                        Stocks that have not broken their 65-day ma for 7 months have trapped a lot of
                        shorts and tend to jump with each new high as many are forced to quickly cover.



          

           Bearish MINCP
               HAWK, BAMM, WINN, CFFN, KNDL, COMV, TKLC, CSKI, CHBT, ROCM, MPWR, and IVAC

  

       

            Stochastic Red Sells among Stochastic-5 Stocks
            with Negative Accumulation and Below 65-dma:
              AAON, ATI, ATSG, BCRX, BOOM, CIR, STP. UEPI and NWPX
                     


===============================================================
            9/3/2010    Rally within Trading Range Towards Resistance
            at Upper Band at 10650.   But Volume was pathetic on the rally. 
            This and Bearishness of Septembers Are Warnings. Watch
            for Breaks in Closing Powers' Uptrends and A/D Lines' Uptrends.
 
                                  Hedge with New Short Sales?
            Weakness Tuesday Would Likely Bring Automatic Red Sells
            from Many Stocks Traded Best with 5-Day Stochastics.
            New Red Sells in this group from stocks below their
            65-day ma with negative Accum. Index are: ACOR and HMA.
            For potential short sales, we will be looking at Sell S9s in
            individual stocks where the CLosing Power uptrend is violated. 
                                     
                                               Rising Rates?

            The very good breadth has again saved the market from
            medicore up-day volume and the bearish head and shoulders
            patterns.  Since the good breadth has been based on the
            very low interest rates, we have to ask what would happen if
            interest rates start to rise.  Would the Fed do that before
            the November Elections?   Volcker raised rates in 1978 and
            caused a mini-panic.   Watch rates. 

            Septembers were bearish in 15 of the 23 years when there
            was a Congressional Election but no Presidential Election.
            Octobers are the months most often to bring a turn-around.
            Only 9 of these Octobers were down.  Decembers in these
            years bring automatic Buys on weakness because of the
            overwhelming tendency for a rally from December lows
            after mid-term Elections.

MID-TERM ELECTION YEARS DJIA Performances in September, October, November and December in Even Numbered Years between Presidential Elections last day Last day last day last day last day Change in in Aug in Sept in Oct. in Nov. in Dec. Last 4 Months --------------------------------------------------------------------------------------------------- 1918 82.70 84.70 85.50 80.90 82.20 DOWN 1922 100.80 97.10 96.10 94.70 98.20 DOWN 1926 162.50 158.20 150.80 156.60 157.20 DOWN 1930 240.40 204.90 188.10 180.90 164.60 DOWN 1934 92.90 92.50 93.10 102.90 104.00 UP 1938 138.30 141.50 151.70 146.10 154.49 UP 1942 106.20 109.10 113.10 114.50 119.40 UP 1946 189.20 172.40 169.29 169.80 177.20 DOWN low was on 10/9/1943 at 163 1950 216.90 226.40 225.00 227.60 235.40 UP 1954 335.90 336.50 352.10 386.80 404.40 UP 1958 507.70 532.10 543.20 557.50 583.70 UP 1962 602.90 578.90 589.80 652.60 652.10 UP low was on 10/23/1962 at 558 1966 788.40 774.20 807.10 791.60 785.70 DOWN low was on 10/7/1966 at 744 1970 765.80 760.70 755.60 794.10 838.50 UP low was on 9/22/1970 at 748 1974 656.80 607.90 665.50 618.70 616.20 DOWN low was on 10/3/1974 at 588 1978 876.62 865.82 792.45 799.03 816.10 UP low was on 11/14/1978 at 785 1982 901.31 896.25 990.99 1039 1059 UP 1986 1898 1768 1878 1914 1896 DOWN 1990 2593 2452 2442 2560 2634 UP low was on 10/11/1990 at 2365 1994 3913 3843 3908 3739 3834 DOWN low was on 11/23/1994 at 3675 1998 7539 8081 8495 9117 9181 UP low was on 10/1/1998 at 7633 2002 8737 8664 7592 8397 8896 UP low was on 10/9/2002 at 7286 2006 11381 11679 12081 12222 12463 UP ------------------------------------------------------------------------------------ 8 up 14 15 17 14 23 down 9 8 6 9

           The market will face resistance this coming week
            as it rallied towards its upper band, at 10650 from:
                 1) now rising interest rates,
                 2) bearish post Labor Day 21-trading day seasonality (where the
            DJIA is up only 43.6% of the time since 1965),
                 3) the just barely positive internals (P=+50), IP21=+.066)
            and negative volume readings (V=-119) and (OPct=-.106).

            Tagging the upper band with the present internals would NOT
            bring a Peerless Sell, however.  But breadth is likely to weaken
            if interest rates continue to rise.   The CLosing Power downtrend
            for Interest Rates has been broken.   Of course, interest rates
            are still very low.   CDs are under one percent.  This forces a lot
            of investors to put money into the market.   Bond funds are still
            rising, but the long uptrend is weakening.   Utility Stocks, a
            beneficiary of low rates have reached resistance, but 78.5%
            of them are above their 65-dma.

  




             B8s, B9s, S8s and S9s on ETFs Work Well in Trading Ranges.
                  Use CLosing Power Trends to Clinch These Signals.

                           Watch Gold's Rising CLosing Power Lines.



         I wrote up instructions recently on how to trade with an emphasis
         on the these signals being clinched by trend-breaks of the Closing
         Power.  The B8s and S8s occur when a price move is not confirmed
         by OBV, Stochastic-20 and IPA near the bands.  The B9s and S9s
         show that there is a positive non-confirmation or a negative
         non-confirmation by the Accumulation Index.  See the write-up
         I did at http://tigersoft.com/TigerSoft-Simple-Very-Profitable/Part-2.htm
         Look a little later at these signals on the SPY since 1993 here.
         Roaring bull markets with the DJI moving into new all-time high
         territory do not let them work well.   But when multiple head and
         shoulders patterns develop as in 2000-2001 and 2007-2008, the
         S8s and S9s are very valuable aids to tell you when uptrends
         are over and bigger declines will start.




=============================================================
            9/2/2010    Happy Labor Day Weekend. 

                 NYSE A/D Line Downtrend-Break.  There were more than
            1200 up then down on the NYSE.  With this downtrend-break,
            The DJIA should Rally.   There are three levels of resistance:
            10400, 10600 and 10800.   My guess is that the upper 
            3.5% Band at 10661 seem the best future target. 3.7% is the
            optimized upper band.   The Head and Shoulders pattern is
            losing its symmetry.   A close above 10400 would destroy
            the most recent DJI H/S pattern.  The short-covering that causes
            should make the DJI reach 10600-10750.

               Cover the QQQQ Short sale unless the NASDAQ is very weak at the
                      opening and hold long DIA.  The QQQQ has broken its downtrend. 
                     That usually means the QQQQ will get past the falling 65-day ma
                      if the Accumulation Index is positive.  The current AI is +.053. 

                   FLASH -  The economy lost 54,000 jobs as 114,000
             temporary census positions came to an end. State and local
             governments shed 10,000 positions. The jobless rate rose
             to 9.6 percent from 9.5 percent in July.  Significance:  There
             will most likely NOT be any change in the FED's very low
             interest rates if they can hold back Gold and the Dollar
             does not fall apart.  The Tiger chart of the Dollar, shows it
             may weaken.   So, the FED and Treasury may try to make Gold fall.

             FLASH -  Kabul Bank run may pose more immediate threat than Afghan Taliban?
                                                                            (Christian Science Monitor)   
                   "The Kabul Bank is a bedrock for a stable Afghan society. Its collapse could
                    spell disaster for the country already battling a resurgent Afghan Taliban."

                   ---> Watch Gold to see if it turns down from here,
             which would be bullish for the market, or breaks above
             resistance - which would be bearish for the market.


                                     Next Week and Bush Tax Cuts

             ---> Watch the news on the Bush tax cuts as they apply to the very wealthy. 

                    After Labor Day, it will be harder for the DJI to make
                    gains.   The bearish seasonality kicks in then.  Tuitions seem to take
                    a lot of money off the table.  The longer days bring less optimism.  But
                    it does look like the Senate and House will back away from their talk
                    about letting the Bush tax cuts on on the very rich lapse. As the rich
                    own the vast amount of stock, this would be bullish for the stock market
                    in the short run. Longer term, it would also mean a more unbalanced budget.
                    That would probably boost Gold. 

                    The NYSE seems to be back on solid ground.  It is
                    back above its 65-day ma and the ratio of new highs
                    to new lows today is 97 to 8.  On the NASDAQ, the ratio
                    is a much less robust 37 to 10.   The NASDAQ is still below
                    its falling 65-day ma.  The Tiger RELDJI indicator is in
                    red (bearish) territory.

                         Work with the rising Closing Power Lines and Short-Term
                    Buys now.  A much bigger move could be started by a
                    DJI Advance Past 10800.  Close out Short Sale Hedges
                    if CLosing Power Downtrend-Lines Are Broken.  That means
                    closing out the QQQQ short now and hold long DIA. I am
                    impressed that there are 281 MAXCP stocks on Buy and
                    30 MINCP stocks.

                                             MOST BULLISH MAXCP STOCKS

                    Dividend Plays: BTZ, LNT, NIO, EDD, EPD, BLW, TEG, MWO, FCFS,
                    Others: VMW 82.74 +1.17, AAP 56.29 +.81, CRM 119.12 +2.72, ADVS 51.63 +.48
                    NZ 20.84 + .68,  EW 60.42 + 1.48 and EZCH 24.04 +1.44
                    and   TRE 6.08 +.52  TANZANIAN ROYALTY   (recommended here recently)



                                              GOLD Knocking on New Highs?
                    Gold Stocks (below) and Foreign ETFs have been the leaders.
                    Gold is now at resistance, a high inflection point. 


                   
                    Gold stocks are at their key A/D Line resistance.  Often gold stocks
                    are negatively correlated with the market.  If they breakout
                    it will be bearish for the market, because it means inflation
                    will be feared by Central Bankers.  And that will cause them
                    to start raising interest rates.   If the Gold stocks fall back,
                    it will be a positive sign for the market as a whole.  Gold
                    stocks declined very significantly between 1995 and 2000
                    while the stock market was red hot.  Importantly, home-builders
                    rebounded up quite strongly.  More than half (63%) of their
                    number are above their key 65-day ma.  As they led the
                    market down, a rise by them would give boost to confidence.

                        POLITICAL ECONOMY: The Important of Obama's Choice
                         to Head The Consumer Protection Financial Agency.

                    Finance stocks are holding at support.  But only 37% are
                    above their 65-day ma.  That shows weakness still.  They
                    are waiting to see if Elizabeth Warren is made the head of
                    consumer oversight of banks.  Predictably, the bankers' friends in the
                    Obama Administration (Summers and Geithner) are opposed.  Obama
                    usually listens to them, but we need to wait and see.

                   
                      Elizabeth Warren Banks on Reform
                    Read this and you will see why Wall Street banks are afraid of this lady.
                    Obama will make a lot of his backers very upset if he does not make this
                    appointment.   As much as he might wish, he cannot avoid making a decision
                    here.   There will be ripples.
               
                                         DJIA's A/D Line Down-Trend Is Broken.
            See how the A/D Line has risen on NYSE this year as the DJI
             has gone sidewise.  This is normally bullish, though 1977 and
             2001 are two glaring exceptions.    

                                                   DJI's HEAD AND SHOULDERS
                                                      versus RISING A/D LINE.



==============================================================
   9/1/2010     CURRENT DJIA CHART and PEERLESS SIGNALS  

                                                       STAY HEDGED ANOTHER DAY.

     Good day for the bulls.  New Buy B14 because up volume swamped down volume.  The steeper
     Closing Power downtrendlines ware all violated to the upside.   We see automatic Buys on the DJIA,
     SPY and QQQQ.  the symmetry for the DJIA and NASDAQ's bearish head and shoulders patterns
     is starting to be strained.  One more good day of good breadth will void the key NYSE A/D Line's
     intermediate-term downtrend and move the DJIA, NASDAQ, SPY, QQQQ and DIA above their 65-day
     ma.  Certainly, it is bullish, too, that the Closiing Powers (representing Professionals) are above
     their rising 21-day ma while the Opening Powers (representing overseas and public buying) are
     bearishly below their 21-day ma.  Volume also has picked up as the markets rallied these last two days,
     Bullishly, there were 241 stocks in the MAXCP condition, where the Closing Power is making new 12 month
     highs and only 46 in MINCPs where the CLosing Power was making a 12 month low in the last two
     days.  NHCONF - where the new 12 month highs show a current Accum Level above +.25 number
     60.  A week ago, this data file was too few to build.

     Foreign ETFs led the rally.  Can they sustain a US recovery with unemployment so high?
     Some heavily shorted oversold stocks like BAC. MEE (Massee Energy) and SCHW (Scwab) did well today..
     CAT, the highest AI/200 stock in the DJIA, was the second biggest gainer, rising 4%.

     Rallies are to be expected just before Labor Day.  But what happens afterward is often much more bearish.
     Since 1965, the DJI has risen only 43.6% of the time in the month after September 6th. The
     key NYSE A/D Line downtrend has not yet been broken.  So, intermediate-term traders should,
     I think, stay hedged another day, long DIA and short QQQQ or, preferably long some of the most bullish
     MAXCP stocks and short the most bearish MINCPs. Do watch the trendlines of the Closing Power.
     Violations of these trendlines justify covering short sales and closing out long positions, most especially
     when they are over-extended.

     As long as you watch for breaks in the CLosign Power uptrends, there is not too much risk buying the high
     Accumulation/Strong CLosing Power stocks.

      The most bullish NHCONF stocks today are
      BTZ  13.28  +.12    BlackRock Credit Allocation Income Trust IV
       NIO  15.09 +.05  Nuveen Insured Municipal Opportunity Fund
       WEC 56.95 +1.21 Wisconsin Energy  dividend +2.95%
       CRM  116.4 +6.52 Salesforce.com  http://www.salesforce.com   Serves intern. mkt.
       NZ  20.16 +.70  Netezza  http://www.netezza.com  Serves intern. mkt.
       MWO  23.83 +.03   Morgan Stanley Cap Tr V Gtd Cap
       BLW  16.93  BlackRock Limited Duration Income Trust
       XEL 22.79 + .48  Xcel Energy  Dividend +4.5%
       EW  58.94 +1.37  Edwards Lifesciences
       NAD  15.15 +.10   Nuveen Dividend Advantage Municipal Fund
       ECH  69.04 +2.19  Chile
       ...
       Recently mentioned here:
              MIPS   6.89 +.30  Mips Techn.
              RADS 18.83 +.92  Radiant Systems.  See 8/30/2010 Hotline below.
              RHAT   35.65 +1.1  Red Hat
      
        There are always special situations, too:
         BVF - Biovail keeps rising with new B24s.   23.85 +.90
         CTRX  60.15 +2.1
         VMED 21.91 +1.11

         Big CLosing Power Bullish Divergences: COST and VRNT 
   
DIA is at key 65-dma and approaching 4 month downtrendline of CLosing Power.



          
 






                                                 NASDAQ


==============================================================
   8/31/2010     CURRENT DJIA CHART and PEERLESS SIGNALS

        We Remained Hedged: Long DIA and short QQQQ or as I prefer,  long some "Bullish"
        MAXCP stocks and short some "Bearish" MINCP stocks.  NEM and TRE should be bought
        among the strongest Gold Stocks.

      The bearish head and shoulders patterns have not appeared for nothing.  They are bearish omens.
        If their necklines give way, a very big decline seems likely, based on lots of historical parallels.
        The levels of Accumulation are dimminishing.   This is a warning that the big buyers are dwindling
        and may not be able to hold the marke up if the necklines are tested.  The favorable NYSE advances
        and declines data are normally bullish.    But they do not always save the day.  I have pointed out
        early 1977 and early 2001 as such cases. New high/low data shows how much weaker the NASDAQ
        is now than the NYSE.  On the NASDAQ, the ratio of 12-month highs to lows was a bearish 14 to 85,
        but on the NYSE, it was a positive 77 to 45.   

        I have suggested shorting some of the stocks whose Closing Power is making new lows that also
        show heavy Red distribution.  Click here to see some of the stocks making actual new lows now that
        show great internal weakness, too. Hedging at its best means making money on both ends, as the
        stocks below show.

        Recent BULLISH MAXCP Stock

                                           
                        Recent BEARISH MINCP Stock


         With September, the most bearish month of the year coming up, it is not, at all clear that the Fed can
         hold the market up with low interest rates in the next few months.  Perhaps, internal dissension inside
         the FED will force a change in the policy of very low rates.  Perhaps, the Dollar will turn so weak,
         the Fed will have to try to protect it by raising rates back up.  These factors are not evident yet, but
         Gold is challenging its June highs.    A breakout by it would not be good for the Dollar or the policy
         of low interest rates.

                                              GOLD STOCKS TO BUY NOW

          I have already recommended TRE here as it went over $5, a month or so ago,  Clearly it is
         a very specualtive gold play.  But look how much such stocks can rise. 



        Speculative ANV has almost tripled in the 18 months since I recommended it here.
        (Unfortunately we sold it way too soon at 16.)



       BUY NEM.. Since both Opening and CLosing Power are rising now for NEM, I would
           buy it now for this breakout play and sell it if the Closing Power uptrend is violated. 
           Watch NEM to see if it can make a historicclosing breakout over 63.2  It would
           defintely be a buy if this happens. See the weekly and daily charts below.  Earnings at
           Newmont Mining Corp., the largest U.S. gold producer, may increase 47 percent to $1.93
           billion in 2010, according to the mean estimate of seven analysts’ forecasts compiled by Bloomberg.

          Unfortunately, I have to add that big advances by NEM have historically been bad signs for the
          stock market. See Tiger Blog of 2/1/2008 - http://www.tigersoftware.com/TigerBlogs/02-21-2008/index.html
          "Spot General Market Tops by Noting Newmont Mine's Run-ups."

Newmont Weekly  - NEM

Newmont Daily - NEM

                                               DJIA and NASDAQ