Overnight Market Action:                                                                 
                                 Bloomberg Futures around the world before the US Markets open.    
                                 CNN Futures before the Opening in NY
                                 24-hour Spot Chart - Gold      24-hour Spot Chart - Silver     Dollar and Currencies
                        Daily NYSE and NASDAQ New Highs.  
                             

CURRENT STATUS:      KEY ETFs, Signals. Closing Power and A/D Line Trend            8/31/2010                                     Closing Power:Opening Power                                                        UU = Both up.  (initially reliably bullish)                                                        DD = Both down  (initially reliably bearish)                                                        UD = Opening Power up, Closing Power Down (bearish)                                                        DU = Opening Power Down, Closing Power Up (bullish)                                                         Blue = Bullish       Red = Bearish  Click Index Symbol    Automatic       Closing Power                    Pct of  Stks over     Opening Power   To See Graph               Signal               Trend                                     over 65-dma           Closing Power    ---------------------------------------------------------------------------------------------------------------------------------------                    DIA                                  Red Buy          Closing Power Downtrending            D? Bearish                                             DJIA-TGR-Index           Red Buy           A/D Line  Downtrending                   30% (+10%)    SPY                                 Red Sell          Closing Power Downtrending          D? Bearish                                           SPY-TGR-Index            Red Buy             A/D Line Declining                             31% (no change)    QQQQ                            Red Sell           Closing Power Downtrending             DD  Bearish                                                                 CP head and shoulders is forming   QQQQ-TGR-Index        Red Buy           A/D Line Trend  Downtrending        31% (+2%)   QQQQ-10-TGR-Index   Red Buy          A/D Line Trend Downtrending       10% (no change %)                                         Foreign ETFs                 Red Buy         A/D Line Trend  Downtrending        62%  (+6%)   Home Building              Red Sell           A/D Line downtrending                     19% (+8%)    Finance                         Red Sell   A/D Line downtrending                     17%  (-4%)                              6 buys / 4 sells   0 buys 10sells          1 buys 9 sells

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.          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 =================================================================================            8/30/2010     HOTLINE         Given the H/S patterns, as long as the A/D Lines, especially the NYSE's, are declining,         intermediate-term Peerless traders must wait to buy.  Another test of 9800 seems likely.                                                     Two Day Reversals Are Bearish.               Today's snuffing out of Friday's rally is bearish.  There was no follow-through.  Mutual funds         did not want to even wait one more day to try to get higher prices.  The A/D Lines and         Closing Powers for the major markets are all declining.  The automatic optimized Buys are         secondary.  They cannot take into account the bearishness of the head and shoulders patterns,         the poor seasonality after Labor Day,  the low volume on the rallies, the lack of Presidential         and Congressional leadership and the gridlock imposed by the mere threat of a fillibuster against         a timid, weak-willed and ineffectual Senate majority leader, House Speaker and the entire White House.          Trading range optimized stochastic systems all give way eventually to a sustained move.         So, the red Buy for the DIA looks very doubtful now.  The SPY and QQQQ are on Sells.         A simple way to hedge is to short the more volatile QQQQs outright.  The leveraged ETF shorts look         over-priced.  I would prefer to short a set of five or six stocks with high distribution and         Closing Powers at new lows.  Use the Power Ranker's "Bearish" screen agains the MINCP stocks.         These are shown further below.                                             Leadership?  Where Will It Come from?                 Is our Government up to the challenge?  If Republicans win, they may Hoover look like a visionary.          How can they make government work if they do not believe in it?  Let us hope I am wrong.         If they lose this Fall, nothing will be changed.  So, it's all up to Bernanke and monetary policy.          I wish him all the luck in the world.  We do not want a Depression.  My mother's stories of the         1930s I recall all too clearly.          But there still is hope.  1) Foreign markets are stronger than the US markets. 2) Really         low interest rates may force investors into alternative investments at some point. 3) The DJIA has         not broken its support yet.  The DJIA contains the safest stocks normally.  They pay dividends.          There are not so many DJIA stocks that the FED could not keep buying them, if they wanted to,         and prop up the market.  That may even happen! The DJIA still has a fighting chance not to break down.          But... it does drop below 9600, there will not be much support until 8000 is reached and I am         not optimiztic about the buying there.   Hedging is advisable again.  If there is a breakdown, it probably         will look like a trap-door has opened. It is best not to wait for the breakdown.  There is apt to         be a mad rush for the exits and short sales will be difficult to get executed at reasonable prices.                 Accordingly, here are a number of short sales to take.  As long as their Closing Powers are         declining, stay short.  When the Blue downtrends are exceeded, cover.  ANW  14.92 BAC  12.33 MHS  44.56 GT   9.33 ALJ  5.43 KNDL  8.02 OSK  25.07 STP  7.7 COMV  6.86 ================================================================     8/27/2010     CURRENT DJIA CHART and PEERLESS SIGNALS                                                                            A revovery to the DJI 10400 resistance seems likely.  But will the DJI be able to get            past that?  And after Labor Day?  It will take better upside volume than we have seen            for the market to surpass that.  Where would that boost come from?  More goups of  stocks            will need to start advancing.   The NASDAQ showed 22 new lows and only 16 new highs.            Dividend stocks on the NYSE are the leaders.  As a result, on the NYSE there were 85            new high but only 7 new lows.            The longer-term A/D Line trend is still rising nicely.  With the FED's rates low, it is hard to see            the A/D Line dropping enough to break this uptrendline unless the economy is headed for a            a much deeper recession.   I would like to think those in charge have studied enough economic history            to avoid the fiscal mistakes of the 1930s. Except for Bernanke, I see little evidence of that. Obama            is strangely silent about FDR's approach to the Depression.  Perhaps, the Milton Friedman school            of thought in Chicago has made him not believe in an FDR-New Deal Jobs Creation program            like the massive WPA.   Before WWII, the government WPA was the country's biggest employer.             Like now, ptivate hiring was just not creating enough jobs.                 I would now buy dividend stocks, the best foreign ETFs and the current hot industry group            (security software and corporation network software), but as always, especially right now, work            with the Closing Power uptrends.  Short-term traders of the ETFs, have to be buyers of DIA,            now that the DJIA 10000 support has been tested and held and we see a red Buy on the DIA.              The SPY and QQQQ still show red Sells.                                                              Head/Shoulders    H/S         8/26/2010  HOTLINE         We saw a strong rebound on Friday based on the Fed chairman's         words of determination and ultimate optmism from the edge of         the abyss created by the multiple head and shoulders patterns.         Although we have a Buy B17, based on the bearishness of the         multiple H/S formations, I have said internediate-term traders using         Peerless should wait for the A/D Line downtrend on the NYSE to end.               In the DJIA chart above you can see that breaks of similar A/D Line downtrends         brought nice rallies last October and in February this year.  The same is also true         when a DJIA H/S pattern's neckline was been tested and the A/D Line broke its         downtrend.   See 1951 and 2009, for example.               Another strong day would bring breaks in the declining Closing Power.         We just have to wait for to see what Monday brings.  A strong market should allow        us to buy, because the downtrendline in the A/D Lines will then be violated.        But a weak market will be problematic.  It will suggest Friday was just a rebound        from an oversold condition.  Volume did rise a bit on Friday, but not enough        to show much conviction.  Still, the period just before Labor Day (next Monday)        often brings a good rally.  That should get us to bet on the rally continuing.   Accordingly,        where  the CLosing Power downtrends were violated in some of our short sales we        have covered.  On the long side, one has to be impressed with the strength in dividend plays,        foreign ETFs and internet security and software companies that write corporate software.                     BTZ   7.3% Dividend -   But over-bought.                     Interest Rates Will Need to Keep Falling                     to Advance Many of Dividend Plays.  That                     seems hard to see happenng.                                Foreign ETFS               IFN has very positive intrernals.  But it will need a stable               US market to breakout.  Trade Closinf Power uptrend.       Security and Corpotate Software - RDWR, CVLT and RHT       breakouts look like good trades.  They will likely lead a       rising market... See how CP and AI readings over .25 led prices higher.       See the other examples of software stocks leading the rally       as takeover rumors run around and there is an absence of       other speculative plays: ARST, RVBD, RADS, MIPS, MCRS.       Find these among the MAXCP stocks and NHCONF (new price       highs with current AI above +.25).           --------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------        8/26/2010     CURRENT DJIA CHART and PEERLESS SIGNALS        Wait for The Declining A/D Trends To Be Ended To Buy        unless you are very short-term.  Note that the SPY and QQQQ        switched to red Sells today.        Ben Bernanke will have his work cut out for himself tomorrow.        A misstep in his speech about the faltering economy and FED        monetary policy in the next few months could send the DJI        plunging below the 9700 neckline.  But Bernanke is nothing if        not cautious and also intent on using an ample money supply        to avoid another Depression. His dissertation was about this very        subject.  As a fellow historian, I have to think history offers lessons.         So, with the Tiger Accum. Index still positive and a Buy B17 on        the screen for the DJIA along with short-term red Buys in more        ETFs and Indexes than Sells, I think his words will turn up the        market, if not Friday and Monday.        Besides living in the past, maybe too much, economic historians        have another fault.  They have two arms and so are too find of        saying, "on the one hand...this AND on the other hand, that"...        My way around this criticism is to suggest intermediate-term        traders wait for the A/D Line downtrends to be ended while        we see if the neckline at 9700 holds.         Hedging with long and short positions has also been recommended.        Specifically, the "bullish" MAXCP stocks have held up well.  Those        are recommended.  The "bearish" MINCP stocks continue to be        much weaker.                                   BULLISH MAXCP                                       VRX no change Valeant Pharm                                       BTZ 13.21 +.16 BlackRock Pfd                                       EPD 37.14 +.29 Enterprise E U                                       TEG 49.38 +.04 Integry's Energy                                       MYN 14.07 +.05 Blackrock Muniye                                       NZ 15.55 -.40 Netezza                                       PSY 10.43 -.09 BlackRock Pref.                                       VGR 19.12 +.01 Vector Group                                       AEF 24.13 -.09 Aegon                                       XEL 22.2 +.01 XCEL Ener                                                  BEARISH MINCP                                       ANW 14.96 -.28 Aegean Marine                                       BAC 12.47 -.20 Bank of America                                       SPWRA 10.04 -.23 Sunpower Corp                                       STX 10.15 -.29 Seagate Techn                                       NGZ 14.23 -.42 Nicholas Applegate                                       KNDL 8.31 -.21 Kendle Intern                                       CHNG 5.2 +.02                                       HIG 19.09 -.42 Hartford Fin                                       STP 7.7 -.20 Suntech Power                                       CFFN 25.79 -1.35 Capital Fed.                                       COMV 7.01 -.06 at critical support in falling trend              Take-Over Moves in Security Software Stocks Offer              A Lesson for Traders Using TigerSoft's Closing Power and              Accumulation Index.      Intel's (INTC) sudden $7.7 billion acquisition of McAfee (MFE)      has spotlighted other security stocks and brought in professional      buyers, perhaps because there are so few other speculative      plays now on Wall Street.            We can learn something here.  MFE's leap upward might best      have been anticipated by an astute Tiger user noticing that its      Closing Power was out-performing its downward tilting price      action, so much so that the blue Closing Power rose into the      area of the chart where the price action was.      This was also true of ArcSight (ARST) which jumped 20% today      in anticipation of a big.       Meanwhile CA, SYMC and CHKP show similar CLosing Power       strength relative to their weak price action.  CA is my pick now,       because of the three it shows positive Accumulation.         All of this is getting me to flag conditions like this, as well         as CLosing Power non-confirmations of new highs followed by         Closing Power trend-breaks with supporting readings from         the Accumulation Index.  The quickest way to produce lists         of stocks like this will be for me to offer downloadable lists         of such stocks each night.  Look for this on our Data Page         this weekend or early next week with software revisions         to follow which will show these occurrences with Buy and Sell         signals on their charts. ===============================================================         8/25/2010     CURRENT DJIA CHART and PEERLESS SIGNALS        The Buy B17 should produce some kind of recovery, but the        bearishness of the Head/Shoulders patterns still casts a gloomy        pall over the market.  Sellers are apt to limit any rally from        here.  The 9700 neckline needs to be tested successfully to        restore technical confidence, I think.        A 3% to 4% bounce Is due from 10000, but the A/D Lines are still        falling, so I would wait to buy unless you are a short-term trader,        or are hedged and are comfortable trading 5 to 20 cycles, using the        Stochastics shown on the ETFs linked to here and will accept        a loss if the important neckline at 9700 is closed below.  The        end of next week - just before the Labor Day weekend - would        seem a reasonable target for the next high, based on seasonality.        The DJIA held at the round number 10000 level.   The rebound        was a gradual recovery after 10:AM EST rather than a last hour        program trading buying manipulation.  Again volume was lower        on the revovery than it had been the day before on the decline.        But there were 685 more up than down on the NYSE.   On the        NYSE there were 44 new highs and 33 new lows.   Bearishly, the NASDAQ        showed only 6 new highs and 54 new lows. Five of the NASDAQ        new highs were by less than 7 cents.         The good news is the short-term automatic Buys appeared on        all the ETFs and most of the Tiger Indexes.   See the QQQQ and        Tiger Index of the SP-500 below.  In addition, of the 247 stocks        traded best with a 5-day Stochastic a couple of weeks ago, 211        are now on Buys.  This group's Tiger Index has given a short-term        Buy.                                                 SPY - Red Buy                    TIGER INDEX OF SP-500 STOCKS - RED BUY                                 TIGER INDEX TRADING STOCKS        I am impressed that there were more "MAXCP" stocks than        "MINCP" stocks, by 179 to 54.  Despite all the fears that there        would be another big slow-down ("Double-dip" is the Wall Street        euphemism for millions more unemployed.), professionals bid        three times more stocks to new Closing Power 12-month highs        than new CP new lows.  Admittedly, most of the "Bullish" MACP        stocks are dividend plays that look attractive with intrerest rates        low and Bernanke expected tomorrow to say he will keep rates        low until there is a recovery. Watch the chart and trend of the        10-year Treasuries.  If interest rates start to rise, it will test the        mettle of the many plays on low interest rates.   As you can see        below, Treasury rates woul dhave to rise a long ways to        eclipse the "bullish" MAXCP dividend plays below, so long        as the economy does not weaken so much as to raise doubts        about the levels of the dividends...       10 Most Bullish MAXCP (179) Stocks:        D (-1.26)  4.1% dividend        NST (+.10) (NSTAR)  4.1% dividend        VRX (57.75 +.73 - Valeant Pharm.) - See story: lots of cash...        AWF (14.59 +.08) 8.3% dividend        EPD (36.85 +.05)  6.3% dividend        BTZ (13.05 +.11) - Blackrock Pfd. 7.3% dividend        MYD (15.01 +.05) - Blackrock Muni. 6.4% dividend        WEC (55.87 +.02) - Wisc. Emergy  2.9% dividend        TEG (49.34 +.31) - Integrys Energy  5.5% dividend        MYN (14.02 +.06) - Blackrock Muni.  6.0% dividend        10 Most Bearish MINCP (54) Stocks:        SPWRA (10.27 +.16)        LINC (10.43 +.12)        KNDL (8.52 -.23)        NXY (17.82 +.11)        CHNG (5.18 -.11)        ADY (6.65 -.07)        STP (7.9 +.08)        MFC (11.09 +.03)        CFFN (27.14 -1.95)        TKLC (10.93 +.12) ===========================================================        8/24/2010     CURRENT DJIA CHART and PEERLESS SIGNALS        So many head and shoulders patterns demand our attention.  It is        not that there are so many chartists in the world or that they        are self-fulfilling, as some cynics might say.   It is that these        patterns typically foretell something significantly bearish lies        ahead.  Added to that is the bearish seasonality of Septembers,        years that end in "0" and the fact that both the Opening        and CLosing Powers are falling for the SPY, QQQQ, IWM and        MDY.     NYSE A/D Line Keeps Falling.  With so many bearish looking head     and shoulders patterns, we must wait for the downtrendline of     this A/D Line to be broken.  Market history shows these factors should     over-rule the automatic Buy B17.  It sure looks like the 10-month     H/S neckline at 9700 and 9500 will be tested next, now that the     DJI has closed below its 3.5% lower band.      In recent days, I have added new materials on this subject.     See recent Hotlines below.     See also Rising market 17s and Head and Shoulder Patterns     and  Head and Shoulders S10       With 10-year Treasuries under 2.5%, banks are struggling.  One     might think that the low rates would encourage borrowing, consumption     and investment, but banks are choosing to make fewer loans     and are reluctant to pass along their lower borrowing costs.  The     The Fed and the Treasury makes no demands on them.  But perhaps,     that will change if Elizabeth Warren is made the head of the     new consumer financial protection bureau. Perhaps, that is what     the decline in financials now is showing.  Or perhaps, the decline     just reflects economic stagnation and that more debt failures and more     bank failures lie ahead.  We watch financials very closely.   Peerless     has its best track record with Financials among the various Fidelity     Select funds.  As financials go, so goes the stock market.      A short-rebound going into the 3-day Labor Day weekend next week     is typical.  But I would stay short some of the weakest, most     bearish MINCP stocks and some of the most bullish MAXCP stocks.     As interest rates fall, many of the later have risen despite the     general market weakness. As you can see below the "bearish"     MINCP stocks are getting hit every day.  As long as their Closing     Power trends are down, there is no reason to cover short sales     in them.                                      Tiger Index of Finance Stocks     The breakdown shown by the TigerSoft Index of Financial Stocks     looks serious.  It can be inferred from their poor action, that     they would prefer to borrow from the Fed at near 0% and invest in     much higher yielding Treasuries.  At least, the low interest rates     are good news for those that watch the nation debt..  The $13 trillion     US debt could theoretically be refinanced and the annual interest charge     would be only $330 billion, less than one third the US military budget.            As Tiger ranks them, the most "bearish" finance stocks above     $3 are: BAC, PNSN, AIG, AEA, MS, GS, PBCT and MFC.     We will take a position on the SPY or DIA when the A/D Line trend     and the Peerless signal agree or the head and shoulders pattern     is escaped or achieves a breakdown.                        I show the changes where they were in the list of                 the previous night.       Bullish MAXCP (MAXCP contains 109 stocks)       D +.06, NST, BTZ, MYD -.01,  TEG +.26, PGP, WEC +.15, EDD +.02,       CRM, VGR, XEL, PZA and NU                            Dominion Resources, Inc. (D) Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States.  Yield is 4.10%.               Bearish MINCP (MINCP contains 146 stocks)        TBT 30.63 -1.01,        HAWK 7.02 -.15,        SPWRA 10.11 -.4        SPWRB, 9.73 -.46        BAC 12.64 -.24        OPTR 7.78 -.20        LINC 10.31 -.67,        EHTH 9.54 -.52,        ESI 51.46 -1.07,        MHS, 44.83 -.19        PMC 6.93 -.34,        GT 9.37 -.27,        NXY 17.81 -.94,        KNDL 8.75 -.28,        WINN  7.94 -.15                                       UltraShort 20+ Year Treasury ProShares (TBT) ===============================================================       8/23/2010     CURRENT DJIA CHART and PEERLESS SIGNALS       Though we see a Buy B17, the presence of three head and shoulders       patterns for the DJI should be of higher concern, in view of the       stock market history of these patterns.  The best way to trade when       there is a Buy B17 and a head and shoulders pattern is present is       to watch the A/D Line.  Buy only when the neckline is successfully       tested and then the A/D Line downtrend is violated, or if the       neckline is violated, wait for a sell-off which achieves the minimum       downside objective and then watch the A/D Line for a trendbreak.       That the Closing Power uptrends have been broken and we are       approaching the often bearish month of September also argue       for caution and hedging for now.  The positive Accumulation Index       readings for the DJI and NASDAQ below suggest the lower       neckline at 9800 will hold and there will be more backing and       filling.  For now, I am suggesting holding long the "Bullish"       MAXCP stocks and holding short the "Bearish MINCP" stocks.       We will take a position on the SPY or DIA when the A/D Line trend       and the Peerless signal agree or the head and shoulders pattern       is escaped or achieves a breakdown.       Bullish MAXCP (MAXCP contains 95 stocks)         MFL, D, AEF, MYD, FFIV, MYN, TEG, WEC, EDD, VMW       Bearish MINCP (MINCP contains 135 stocks)        TBT, HAWK, SPWRA, SPWRB, BAC, OPTR, LINC, EHTH, ESI, MHS,        PMC, GT, NXY, KNDL, WINN                                               NASDAQ

                  


=================================================================================
              8/20/2010   Thursday's Buy B17 (on-going bull market variety)
          is risky because if 10135, the location of  recent small head and
          shoulders' neckline is broken, the next support is at 9800
          The history of Buy B17s and Head and Shoulders patterns
          strongly suggests we should respect the pattern's bearishness
          and work with the A/D Line trendlines.  Right now, those trendlines
          are DOWN and BEARISH.  Wait for a resolution or hedge by
          buying only the "bullish" MAXCP stocks and shorting the
          "bearish" MINCP stocks.

               "Bullish" MAXCP Stocks: MFL, NZ, FFIV,  MYO, PGP, VMW
               "Bearish" MINCP Stocks: TBT, HAWK, SPWRA, BAC, EHTH. ESI, PMC and MHS

               The Tiger Index of the SP-500 stocks shows the DJI has fallen to the H/S neckline support.
               The A/D Line for these stocks is falling and leading prices down. Only 41.4% of these
               stocks are above their 65-dma.  The Trend of the A/D Line for these stocks is falling.



               Breadth is a problem now. Thursday's jobs report has shifted attention to the unrelenting high
               unemployment and away from low interest rates and year-to-year earnikngs gains.  Even
               foreign ETFs are being dragged down by the weakness in the US economy.  The Peerless
               "NASDJI" relative strength indicator is clearly negative. The same three head and shoulders
               patterns the DJI shows are now pressent in the NASDAQ chart.  This has to be worrisome.
               This bearishness will have to be worked out of the market.




               On the NASDAQ there were 61 new lows and only 12 new highs.  On the NYSE, where low interest
               rates help yield stocks and funds, there were 4 more new lows than new highs.  But there is
               hope the neckline of the DJIA and of our SP-500 chart will hold.  After all, a rally around
               Labor day has a good tradition.  There are more MAXCP stocks (112) than MINCP (79)
               stocks.   Closing Power usually leads prices and right now more stocks are showing Closing
               Power is at its yearly highs than lows.  The SHU

               My research shows we should wait for the downtrends of the A/D Lines to stop falling
               in the present situation were dangerous and unresolved head and shoulders are present.
               These are made much riskier because of the bearish seasonality of September and early
               October..



              



         Head and shoulders patterns have to be judged.  That does
         not diminish their importance.  See the details in my new study
         of B17s as they occur with head and shoudlers patterns.  This
         summation and conclusion read:

            "Where a head and shoulders (H/S) pattern appears, it seems best to wait
              for the neckline to be tested and hold, or if is broken to wait for the DJI to have
              some headroom before buying.  If you see a potential head and shoulders pattern
              developing, the judged Peerless Right Shoulder Apex rule should be applied.  This
              involves selling when the A/D Line turns down or its recent steep uptrendline is violated.

              When the H/S neckline is violated, the minimum downside objective was usually reached.  
              This is calculated by taking the height of the pattern at its maximum and subtracting that
              number from the point where the neckline is violated.  In such cases, the simplest
              and safest approach is to wait for the A/D Line downtrend to be broken after the
              minimum downside objective has been reached.  This usually occurs in a market
              that is ready to rise quickly.  So, hesitation can be somewhat costly. "  

       http://www.tigersoft.com/PeerInst/B17s-RisingTrend/B17-rising-trend.htm    

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

                          CURRENT DJIA CHART and PEERLESS SIGNALS

         The current chart of DJIA now shows 3 different head and
        shoulders pattern.  That adds to the bearishness we see
        in the larger pattern.  I fear a decline below the smaller,
        recent pattern's neckline and the lower band will mean
        another test of 9800.  But perhaps, today's Buy B17
        will save the day.  The A/D Line breaks and new ETFs'
        sells would get me to be hedged or sit on the sidelines
        until we see a satisfactory test of the 10200 support or
        the Closing Powers turn right back upwards. The coming
        of the very often bearish months of September and October
        are worrisome.

                                                                                        Steep A/D Line
                                                                                        uptrend broken.

                                                                                          High Accum.

                                                                                      Bearishly low
                                                                                       Blue Volume

          WORKING SIMPLY WITH A/D LINE TREND-BREAKS
       Serious weakness would break the more gradual A/D Line
       uptrend.  The longer term up-trend is still intact.

        8/19/2010   New Buy B17 (on-going bull market variety)

     In 50 of 51 earlier cases this signal was reversed with a profit.
     In 8 cases (16%) there was first a paper loss of berween 4% and 10%
     In 4 more cases there was a paper loss of between 1% and 3%/
     That means a paper loss of under 1% occurred in 75% of the B17s
     that took place in an on-going bull market, with the DJI within 13%
     of its yearly highs.  For more information on Buy B17s, please go to
     http://www.tigersoft.com/peerinst/--Buy-B17.htm

      When a head and shoulder pattern was visible, as now, paper losses did occur.
     See the cases of the Fall of 1941 (a bear market B17) and February 2000.
     This is more like the June 29, 1951 Buy B17 when the current
     Accumulation Index was +.102 and the DJI quickly reversed from
     the lower band and ran to new highs.  The trick here will be
     for the DJI not to breakdown much more than 2.6% below the
     21-day ma, as it did then.  Right now it is 2.1% below the 21-day ma
     and shows a current Accum. Index value of +.163.  Such levels
     show usually mean there is too much Accumulation to break below
     the lower band now at 10124.

     Somewhat lower prices should NOT be too disturbing tomorrow.  Watch
     to see if the CLosing Powers move up or down from their current positions.
     They broke their uptrends today.  These low interest rates are
     a big prop behind much of the NYSE.  Technically, the problem is
     that many more stocks are now below the important 65-dma.
     That will make a good rally difficult with volume low and
     the bearish month of September coming up.  Let's wait until
     this weekend to get a better idea of what new steps to take.
     That there was a bearish shift today can be seen in the breakdowns
     of some key DJIA stocks below their 65-dma (AXP, BA, DIS, GE, JNJ,
     KFT,  TRV , WMT and XOM) and the fact that the number of MAXCP
     stocks is now only slightly higher than the MINCP stocks.   These show
     unusual CLosing Power strength and weakness.  New lows on the
     NASDAQ jumped to 83 with new highs only 10.  This is not good.
     Our Tiger Index of 209 bond funds fell today despite 10-year notes
     rising.  Is that a warning that interest rates are hitting lows right
     now and they can only bearishly rise from here.  Our Hotline will
     remain short a number of the "bearish" MINCP stocks and long
     some of the "bullish" MAXCP stocks. 

       Some very weak looking bearish MINCP stocks are TBT, HAWK.
       SPWRA, BAC, OPTR, PMC, GAJ, ALNY, MHS, WINN, LEN, CHNG. ADY and COMV.
       It has to be of concern that the bearish list is so long.  
--------------------------------------------------------------------------------------------------------------------------------------------------------

                  

       The SEC is apparently activating its whistle-blower, bounty hunter program
       for individuals who have knowledge of "original" information about illegal insider selling. 
       Use our bearish MINCP stocks to see those the SEC should be investigating.  Want to be
       an SEC bounty hunter. 
      See  - http://www.tigersoftware.com/Insider-Trading-Bounty-Hunter/index.html
-----------------------------------------------------------------------------------------------------------------------------------------------------

        Some of the most bullish MAXCP stocks are   MFL +.25 today, FFIV, MYD, MYN, AEF, EDD,
        AAP and NTAP(below), which is recommended for purchase.

        NetApp, Inc. provides enterprise storage and data management software and hardware
        products and services in the United States and internationally.

New Buy B17 (on-going bull market variety)     The B17s occur near the lower band when the Accumulation Index     is much  improved from a previous low or is positive.  The exact     parameters are not yet posted and are considered proprietary.      Date              DJIA       Gain at next Sell   Paper Loss 1. 12/ 10/ 1928              263.9              +18.5%                      none 2.   3/ 5/ 1935                100.1              +18.6%                       3% loss 3.   1/ 12/ 1939              147.3                +1.0%                       7% loss 4.   8/10/43                    136.20                -0.5%                       5% loss 5.    2/13/46                    198.7               +1.6%                        7% loss                                    6.    6/29/51                    242.60            +11.3%                       none 7,    10/29/51                  260.4               +5.3%                        none 8.    11/5/51                    259.8               +5.5%                        none   H/S 9      4/7/53                     275.2              +8.8%                        8% loss 10.   9/26/55                  455.6             +7.9%                          4% loss 11,   10/11/55                438.6           +12.0%                         none 12.   10/18/55                448.6              +9.5%                        none 13.    2/5/57                    470                +10.3%                       3% loss 14.     2/13/57                 462.1            +12.2%                       none     15.    9/9/59                     637.6             +5.9%                       4%  loss   Simultaneous H/S 16.    9/15/59                  630.8              +8.7%                        2% loss 17.    9/23/59                   624               +9.9%                         none     18.    2/11/60                   618.60             +0.7%                       3% loss 19.    11/13/67                 859.74            +5.6%                      none 20     2/14/68                   837.38            +10.2%                      none         13% down from high 21     2/20/69                  916.65               +3.7%                        none 22     2/25/69                 899.80                 +5.6%                         none    23     2/28/69                 905.21   .            +5.0%                         none   24     2/26/73                 959.79               +1.4%                         4%  loss 25      9/16/75               795.13                 +6.5%                        none 26   10/8/76                  952.38                 +4.6%                        none   27    5/15/79                 825.88                 +6.6%                      none   28    11/7/79                 796.67                 +8.6%                      none 29    12/9/80                 934.04                  +3.5%                     none 30       2/2/81                932.25                   +8.8%                    none 31       8/9/83             1168.27  .                 +9.2%                    none 32         5/22/84         1116.82                    +9.8%                     3%   loss 33        7/14/86          1973.45                     +2.3%                    none 34        9/11/86          1792.89                  +30.6%                     none   35       11/19/86         1826.63                  +28.2%                     none 36       5/19/87            2221.28                   +5.9%                      none 37       9/4/87              2561.38                    +3.0%                     none 38        11/11/88         2067.03                    +34.1%                  none 39        10/17/89         2638.73                    +6.5%                     none 40        1/23/90           2615.32    .              +13.2%                    none 41         2/1/1990        2586.26                  +14.8%                     none 42          11/22/91       2902.73                  +13.9%                     none 43          12/5/91         2889.09                  +14.4%                      none 44          9/22/93         3547.02                  +11.9%                      none 45         7/17/96          5376.88                     +5.7%                     none 46         12/12/96        6303.71                     +8.4%                     none 47         4/1/97             6611.05                     +3.4%                    none 48         5/27/99         10466.32                     +3.7%                   none 49        10/18/99        10116.28                  +13.4%                    none 50        2/4/2000        10963.8                       +1.4%                  11% loss  H/S 51        3/2/07             12114.1                     +15.3%                   none 52        8/20/10           10721.21                 ?                                                         H/S  IP21-.163

-------------------------------------------------------------------------------------------------------------------------------
     8/18/2010   Judged Sell based on NYSE A/D Line trend-break and
     DJI's head and shoulders' pattern.    But as long as the Closing
     Powers keep rising and Interest Rates stay in a downtrend,
     the market will probably rally.  Watch for reversals of these.
     The normally bearish month of September is not far away. 

         Speculative stocks do not agree that this is still a bull market.  More stocks made new
         lows than new highs on the NASDAQ. Only 3 of the 10 biggest NASDAQ-100 stocks
         are above their 65-dma.  The QQQQ has been underperforming the DJIA on a 50-day basis
         since June 28th. 

         We have said everything depends now upon the Feds ability to keep interest rates low until
         a broader economic recovery is very evident.  So, far, the Tiger Chart of Ten Year Yields
         remains in falling mode.  But the Closing Power downtrend could be broken if rates rally.
         See the chart below.



         228 stocks has their Closing Power make a new high today or yesterday. 
         These are the MAXCP stocks.
         The vast majority of these are stocks that offer yields which were appealing.
         The most bullish 10 MAXCP are
                         FFIV,
                         BTZ (current yield = 7.4%),
                         LNT (current yield = 4.4%),
                         MYD (current yield = 6.4%  )
                         NST (current yield = 4.1%),
                         OGE (current yield = 3.6% ),
                         CRM,  
                         VGR (current yield = 8.4%)
         EDD (Morgan Stanley Emerging Markets), TEG  (current yield = 5.5% )

         Only 34 stocks appear tonight in the list of stocks with their Closing Powers making new lows
          today or yesterday.  All but 11 are already down more than 10% in the last month.  4 are ultra-short
         ETFS (DXD, ERY, TZA and SRS).  RPM is the weakest of these "MINCP" stocks.  You can see
         below that it isat key support but is sfows heavy red Distribution.  Short a little of it, is my advise,
         in expectation of a breakdown and short more when it does close below 17.

                                                     RPM - Example of Stock To Short

                                      
          NYSE  106 New Highs  5 New Lows.  Positive Accumulation.
          7200 is resistance. Steep A/D line uptrend has been broken.




          NASDAQ  17 New Highs  22 New Lows.  Positive Accumulation.
          2340 is resistance. 



                       IWM - Russell 2000 ETF
       
---------------------------------------------------------------------------------------------------------------------------

    8/17/2010    It Seems Best Still to Consider Us Operating
    Under A Judged Sell.  The Sell was based on the break in the
    NYSE A/D Line's uptrend right after the right shoulder appeared
    in the DJI's 8-month-long head and shoulders pattern.  For more
    of the rationalle see other recent Hotlines.

    A case can be made for an extended stalemate in the market.
       The Tiger Index of SP-500 stocks shows the 10 month head
       and shoulders pattern we are stuck in.  If symmetry were to
       play out, we might not see a decisive move up or down until
       early next year.  With the DJI's internals still positive, it would
       seem any decline back to 9800-10000 would bring in buyers from
       the sidelines.  On the other hand, a rally to 10500-10600 would probably
       be met with lots of sellers, because the real economy is so slow
       to improve and interest rates cannot realistically be expected
       to fall much more.


   
    Another small head and shoulders has appearedi in the last two week's trading.
   .  The DJI backed off today from the apex of its right shoulder.   This fits in with
      the judged Sell, despite today's rally. 

      Clearly interest rates this low (under 2.7%) make many dividend paying stocks on the NYSE
      attractive.  The DJI-30 stocks' DIA pays dividends that right now yield +2.65%.  From this
      we can see how closely the DJI is pegged to the 10-Year Treasury rate.  So, the Fed's
      buying Treasuries and providing very cheap money to banks goes a long way in explaining
      the resiliency of the market while unemployment is very high and Main Street is still in
      a very bad way.   The low interest rates also lure buyers into foreign ETFs that pay dividends
      higher than US Treasury Bills.  You can see some of these below.  The Fed is, in effect,
      try to reflate the World Economy.  That is a big job. 

    The real question remains: can the Fed continue to keep rates this low?  What can it do
      for an encore?  Lower 10-year Treasury rates would seem unlikely.  Mostly, the FED must
      now keep rates low and ensure that utilities and corporations remain able to pay the dividends
      they do now, if  it wants to hold up the market.  That should work for dividend stocks,
      so long as the FED does not raise rates and undercut the attractiveness of all these NYSE
      yield stocks.  There is no effective political opposition to Bernanke's easy money policies. 

      It probably will take unusual Dollar weakness from this point forward, for the FED to be
      forced to raise rates to attract buyers back to US debt.  Both Gold and Crude Oil
      show bearish head and shoulders patterns.  If the patterns do work out bearishly, it would
      mean the FED can continue their low rate policies through the end of the year.  But if the
      right shoulder apexes of Gold and Crude Oil are exceeded, the Dollar will get weaker,
      perhaps much weaker, and that would  probably force the FED to lift interest rates. 
   
    (The Importance of FED rate changes for the market was studied in some historical
     detail in a Blog I wrote on August 18, 2007      
    Federal Reserve Discount Rate Changes and Their Effect of Stock Prices: 1965-2007 )

                                        Gold and Crude Oil

   

FED RATE CHANGES ARE BEING MATCHED FAIRLY CLOSELY BY THE      YIELDS IN DIA and Foreign ETFS, as well as Utilities, Bonds, REITS and      yield funds generally... DIA   DJIA  +2.65%   SPY +2.03%    QQQQ +0.49%                         Yields on Foreign ETFSs BKF  Barclays Global  +2.9% CH    Aberdeen Chile Fund  +2.6% DGS  WisdomTree Emerging Mkts Small Cap Div  +2.96% EPP   iShares MSCI Pacific ex-Japan  +3.67% EWA  iShares Trust (Barclays Glob  +3.09% EWG  iShares MSCI Canada Index +2.71% EWO  iShares MSCI Austria Investable Mkt Idx +4.67%   below 149-dma EWP  iShares MSCI Spain Index  +4.68%     below 200-dma EWS  iShares Trust (Barclays Global )  +2.95% EWU  iShares MSCI United Kingdom Index +2.7% EZA   iShares MSCI South Africa Index  +3.72% EZU   iShares MSCI EMU Index  +2.99% FEZ   SPDR DJ EURO STOXX 50  +3.39% IEV    iShares S&P Europe 350 Index +2.7% IXP    iShares S&P Global Telecommunications  +4.31% TAO   Claymore/AlphaShares China Real Estate   +3.55% VGK  Vanguard European ETF  +4.19% VPL   Vanguard Pacific Stock  +2.82%

                                PEERLESS DJI and SIGNALS
                                                                      H/S Sell            RSH/S Sell

                                                                                                 Low Volume

CURRENT STATUS:      KEY ETFs, Signals. Closing Power and A/D Line Trend                    8/17/2010                               Closing Power:Opening Power                                                        UU = Both up.  (initially reliably bullish)                                                        DD = Both down  (initially reliably bearish)                                                        UD = Opening Power up, Closing Power Down (bearish)                                                        DU = Opening Power Down, CLosing Power Up (bullish)                                                         Blue = Bullish       Red = Bearish  Click Index Symbol    Automatic       Closing Power                   Pct of  Stks over     Opening Power   To See Graph               Signal              Trend                                    over 65-dma           Closing Power   ---------------------------------------------------------------------------------------------------------------------------------------                  DIA                      Red Sell           Closing Power is Rising                                            DU Bullish                                             DJIA-TGR-Index          Red Buy          A/D Line Trend  Break         57% (+17%)    SPY-                               Red Buy            Closing Power is Rising                                             DU Bullish                                           SPY-TGR-Index            Red Sell            A/D Line Trend  Break           50.4% (+6%)    QQQQ                         Red Buy            Closing Power is Rising  .                                          DU Bullish    QQQQ-TGR-Index      Red Buy         A/D Line Trend  Break       42% (+7%)   QQQQ-10-TGR-Index  Red Buy     A/D Line Trend  Break    20%    no change                                        Still above 65-dma but caught in flat trading range.       Foreign ETFs          Red Buy!           A/D Line is Rising                 95%  (+6%)                       6 buys / 2 sells   4 buys / 4 sells

-         HOTLINE     8/16/2010      Judged Right Shoulder Apex Sell
      with Break in A/D Line Uptrend.

           The markets have refused to sell off following last week's break.   The DJI seems
           to have support at its 65-dma support.  Its chart is above.  if the market cannot
           fall, it should try to rally.   The rising CLosing Powers suggest this briefly.

           The Fed is apparently now heavily buying Treasury instruments with money they are
           empowered to create.   Deflationary pressures and employment stagnation are also
           reducing borrowing demand; this and the bankers' preferred way of making money
           now, borrowing from the Fed for nearly nothing and buying Treasury instruments. 
           So, the result is interest rates have fallen to new lows, below 2.6%.  The FED now has
           its own a stake in keeping interest rates low.  (Aug 17th Report of heavy Fed buying
           Treasuries)  If the Chinese or Japanese started selling their Treasuries, not only would
           interest rates rise sharply,but the Fed's balance sheet would be savaged.  This is
           risky behavior by Bernanke.   Is it a sign of desperation?)



              Such low interest rates have sent the bond market soaring and also made foreign
           investments with higher yields seem more attractive.  We see this in the exceptional
           strength in bonds and foreign ETFs.  Cyclical industrial metals crossed back above
           their 65-dma today and are on a short-term Buy.  CAT is the highest AI/200 stock in the
           DJI.  It just gave a new short-term Buy. I would buy CAT now.  Perhaps, cyclicals
           will lead the recovery, as their reputation would give us hope..

                                                  Tiger Index of Bond Stocks



                                                 TIGER INDEX OF FOREIGN ETFs



               The FED claims it is trying to help home buyers.  The Tiger Index of Home Builders
           does not look good.   That could mean rates will go even lower, if it gives the
           Fed more excuse to keep rates low.  More likely, they believe that only if interest
           rates are low will a general economic recovery take place.  Such is their faith in
           monetary stimulus.  A more real benefit is that the interest on the national Debt
           is kept from exploding out of sight.

                                             TIGER INDEX OF HOME-BUILDING STOCKS



               The risk in the Fed's low interest rate policy is the the Dollar will fall faster and
           faster.  That has not happened yet.  But a symptom of the potential danger to
           the Dollar is renewed interest in Gold and Gold Stocks.  Gold is back above
           its 65-dma. Some speculative Gold stocks are starting to perk up. With interest rates
           very low, the comparative cost of owning gold, which pays no dividend, is insignificant. 

                                                           GOLD and ANV (Allied Nevada)
                                Watch to see if these get past their right shoulder apexes.




               As long as the A/D Lines of the SPY, NASDAQ-100 and DJIA-30 are in downtrends
           and as long as most of these stocks are below their 65-day ma,  I think caution or
           hedging is most helpful, especially when we can short stocks which show insider
           selling (negative red Accumulation) AND falling Professional-Closing Power making
           new lows. 

                 What is impressively bullish right now is how well the Closing Powers have
            been doing for the SPY, QQQQ and DIA.  They have been rising while the
            public Opening Power has been falling. Such divergences are usually resolved
            in favor of what the CLosing Power does. When the CLosing Power next turns sharply
            down, I would expect a 3% decline by the DJIA back to its lower band.  

               I believe a real scandal is developing in the for-profit education industry. Insider
           selling, such as the selling of 700,000 shares of APOL by Peter Sterling, one of
           America's richest,   before the bad news about the GAO charges of criminal fraud were
           made public, will surely create a public outcry.  This seems such a flagrant case,
           it will be interesting to see if the national media pick up on it, and then if the SEC is
           forced to bring insider trading charges.  It does not matter if Sterling exercised
           options or sold long held stock.  The rules against insider trading are clear that
           insiders cannot sell based on material information they they have which the public
           does not.  The charges of criminal fraud by the GAO are very serious.  They seriously
           damage the compnay's credibility on Wall Street, with government subsidizers and
           prospective students. 



--------------------------------------------------------------------------------------------------------------------------------------------------------
                              
           8/13/2010  
                              Judged Right Shoulder Apex Sell
           with Break in A/D Line Uptrend.  Seasonality
           Is Not Good and Wall Street Has A New Pariah
           Industry. 

       Two thirds of the Julys-Augusts in the second year of a Presidential Election Year,
       like we are now in, bring very tradable declines.   See table further below for the details.

               The fact that the DJI has formed a head and shoulders pattern should also be great
       concern.  Our studies show if there is a NYSE A/D Up-Line trend-break, also like now,
       after the DJI hits a symmetrical right shoulder in what appears to be a developing head
       and shoulders pattern, we should look for a drop to the lower band, at a minimum.  That is
       about 3% lower for the DJIA.  The DJIA chart is shown further below.

                While the CLosing Power Lines are still uptrending, many more of the leading indexes'
       stocks are now below their their 65-dma than above.   Their A/D Line uptrends have
       been broken, too.  Look back and see how well these A/D Line trendlines work on
       the DJIA-30, the NASDAQ-100 and SP-500. 

                So, we have to be bearish now.
.  
                This coming week see if the DJI is allowed to move down below the support of its
       65-dma at 19290, just 10 points below Friday's close and watch the Closing Powers.
       Closing weakness below the openings this coming week would be bearish.  Seasonality
       for August 15th shows the DJI rose only 48.7% of the time over the next two weeks
       and four weeks.

                                         For Profit Schools Get "F" for Fraud from GAO.

                 Want some short selling ideas?  Look at the trouble that for-profit schools
       are in.  The GAO has found evidence of widespread fraud in that the schools have
       have told prospective students how to lie to get a government subsidy.  These colleges
       depend on these subsidies.  Besides "F" for Criminal Fraud", more and more reports
       are showing that they also are getting an "F" for failure to educate usefully for a career
       while putting forth ads that claim the opposite.    Lawyers already getting in the act.
           http://finance.yahoo.com/news/Kahn-Swick-Foti-LLC-and-pz-314049688.html?x=0
. 
       You can see from the charts 2 months ago of these stocks that insiders and
       then Wall Street professionals knew the GAO was writing a scathing report on the
       abuses of the for-profit vareer colleges....  See the TigerSoft Blog of August 14, 2010
       and the Daily Tiger News Report of Apollo of 8/7/2010.  Read these pieces and see how
       the Insider Trading Tiger Charts reflect the news..   Trading the trend of the Tiger
       CLosing Power will give you, I expect, a great insight into how Wall Street handles these,
       the latest pariahs.


                                              
                                   Trade the trend of the Closing Power here.
                                                           

CURRENT DJIA CHART and PEERLESS SIGNALS

8/13/2010   Judged Right Shoulder Apex Sell
  with Break in A/D Line Uptrend.  Seasonality
  Is Not Good and Wall Street Has A New Pariah
  Industry. 

       Two thirds of the Julys-Augusts in the second year of a Presidential Election Year,
       like we are now in, bring very tradable declines.   See table further below for the details.

               The fact that the DJI has formed a head and shoulders pattern should also be great
       concern.  Our studies show if there is a NYSE A/D Up-Line trend-break, also like now,
       after the DJI hits a symmetrical right shoulder in what appears to be a developing head
       and shoulders pattern, we should look for a drop to the lower band, at a minimum.  That is
       about 3% lower for the DJIA.  The DJIA chart is shown further below.

                While the CLosing Power Lines are still uptrending, many more of the leading indexes'
       stocks are now below their their 65-dma than above.   Their A/D Line uptrends have
       been broken, too.  Look back and see how well these A/D Line trendlines work on
       the DJIA-30, the NASDAQ-100 and SP-500. 

                So, we have to be bearish now.
.  
                This coming week see if the DJI is allowed to move down below the support of its
       65-dma at 19290, just 10 points below Friday's close and watch the Closing Powers.
       Closing weakness below the openings this coming week would be bearish.  Seasonality
       for August 15th shows the DJI rose only 48.7% of the time over the next two weeks
       and four weeks.

                                         For Profit Schools Get "F" for Fraud from GAO.

                 Want some short selling ideas?  Look at the trouble that for-profit schools
       are in.  The GAO has found evidence of widespread fraud in that the schools have
       have told prospective students how to lie to get a government subsidy.  These colleges
       depend on these subsidies.  Besides "F" for Criminal Fraud", more and more reports
       are showing that they also are getting an "F" for failure to educate usefully for a career
       while putting forth ads that claim the opposite.    Lawyers already getting in the act.
           http://finance.yahoo.com/news/Kahn-Swick-Foti-LLC-and-pz-314049688.html?x=0
. 
       You can see from the charts 2 months ago of these stocks that insiders and
       then Wall Street professionals knew the GAO was writing a scathing report on the
       abuses of the for-profit vareer colleges....  See the TigerSoft Blog of August 14, 2010
       and the Daily Tiger News Report of Apollo of 8/7/2010.  Read these pieces and see how
       the Insider Trading Tiger Charts reflect the news..   Trading the trend of the Tiger
       CLosing Power will give you, I expect, a great insight into how Wall Street handles these,
       the latest pariahs.


                                              
                                   Trade the trend of the Closing Power here.
                                                           

CURRENT DJIA CHART and PEERLESS SIGNALS                                                                                                                                                         Performance of DJIA in August and September                         in Mid-Term Election Years        In 18 of 24 cases, the DJI fell from a top at this time or kept falling.        24 cases since and including 1918:         - 11 cases. The DJI fell more than 8% from tops between August and September.                 1926, 1930, 1934, 1938, 1946, 1962, 1966, 1974, 1978, 1986, 2002         - 5 cases.  The DJI fell less than <7% from tops between August and September.              1918, 1922, 1954, 1986, 1994                - 5 cases of DJI >=4% decline from tops in July.              1942, 1982, 1990, 1998, 2006   Red means decline extended into Sept.         - 1 case of DJI >4% decline from an October high.              1950         -  2 cases where there were no significant declines from July to end of year.              1958, 1970 1918 9/4/1918  Minor top followed by a 4% decline. ---------------------------------------------------------------------- 1922 9/12/1922 Top followed by 9% decline ---------------------------------------------------------------------- 1926 8/9/1926  Top followed by 12% decline                Broadenig H&S Top. ---------------------------------------------------------------------- 1930 9/10/1930 Major Top at 245 just before severe bear market.                S9s/S12s, H&S, A/D Line uptrend-break. ---------------------------------------------------------------------- 1934 8/24/1934 Top at 95.50 just before 9% decline below lower band.                S9/S12, A/D Line uptrend-break. --------------------------------------------------------------------- 1938 8/5/1938  Top at 144.50 just before 10% decline below lower band.                   S12,A/D Line uptrend-break. --------------------------------------------------------------------- 1942 7/17/1942 Minor top just before 4% decline and new Buys.                    No signal, Miniature H&S, Minor A/D Line --------------------------------------------------------------------- 1946 8/4/1946  Major Top before 20% decline                S10, big and also miniature H&S, A/D line uptrend-break. --------------------------------------------------------------------- 1950 10/25/1950  Minor top 10/25/1950 before 4% decline                Sell S8, A/D Line uptrend-break ---------------------------------------------------------------------- 1954 8/23/1954  Unable to surpass 350 on this the third try before 4% decline            Steep A/D Line uptrend-break ---------------------------------------------------------------------- 1958          nothing looked like a top here. ---------------------------------------------------------------------- 1962 8/24/1962  Top before 10% decline to kower band. Th market was in process of bottoming here, but Cuban Missile Crisis intruded.       No Sells, A/D Line uptrend-break on 9/19/1962 at 687.10. DJI bottomed at 576.10 on 10/24/1962. --------------------------------------------------------------------- 1966 8/5/1966   Top before 10% decline below lower band                 On Major Sells. Key Support Failure at 820.                 Plunging A/D Line. --------------------------------------------------------------------- 1970            no decline after July.                 end of bear market. --------------------------------------------------------------------- 1974 8/8/1974   Major Top before 27% decline                 Earlier Sells and Collapsing A/D Line.  --------------------------------------------------------------------- 1978 9/11/1978  Major Sell S12. 14% decline followed.                 S12 and then S9/S12. A/D Line uptrend-break --------------------------------------------------------------------- 1982         7/21/1982  Top followed by 6% decline and then new bull market.                                   S9, A/D Line uptrend-break --------------------------------------------------------------------- 1986 9/4/1986   Top followed by 10% decline                 S9, A/D Line uptrend-break --------------------------------------------------------------------- 1990 7/17/1990  Major Top followed by 20% decline                 S9, A/D Line uptrend-break. H&S top --------------------------------------------------------------------- 1994 8/30/1994  Minor Top - 4% decline followed.                 S2. A/D Line uptrend-break. -------------------------------------------------------------------- 1998 7/17/1998  Major top followed by 20% decline.                 S9,S12,H&S, A/D Line uptrend-break          also minor top at 8/19/1998 -------------------------------------------------------------------- 2002 8/22/2002  Major top followed by 20% decline                 S12, H&S -------------------------------------------------------------------- 2006 7/5/2006   Minor top. 4% decline and then strong rally after 7/18                 S12

--------------------------------------------------------------------------------------------------------

     8/12/2010              HOTLINE              
         A new Judged Peerless Sell   A severe decline from the right shoulder apex in a head and
         shoulders pattern is a distinct possibility.    The right shoulder apex is a dangerous "tipping" point.
         The more head and shoulders patterns, the more dangerous the situation.  We see many head and
         shoulders patterns here in the other averages and the general market  ETFs, as well as in the DJI itself,
         Note also the small one at the April top and also the 9 year h/s price pattern. This is the perfect place for a 
         serious decline to start down from.    This is treated as a judged Sell with the breaking of the NYSE A/D
         Line.

           The FED Will Do Its Best To Prop Up The Market, but America Badly Needs Presidential Leadership

        My sense is that monetary policy is wholly inadequate to bring a recovery.  It is like pushing a string.
        As American incomes drop, aggregate Demand falls.  With higher levels of unemployment looming
        businesses defer new investments and even lay off workers or replace them with lower
        paid workers overseas.  The rich could certainly be taxed at a much higher rate to pay for badly
        needed public works programs.  High frequency program trading does nothing productive socially. 
        It should be heavily taxed.  Marginal tax rates were much higher in the 1950s and 1960s for very
        high incomes.  Growth was not prevented.   American infrastructure is falling apart.  We are not
        keeping up with many other nations.   Unless the economy turns around, the US Treasury will surely
        be exhausted completely.  Then it will be too late.  The IMF will impose strict austerity conditions.
        Growth is what is needed now to shrink the budget.  Putting the 25 million unemployed people
        back to work would bring jobs, growth and modernization of infrastructure.  Inflationary?
        Deflation is the problem now.  Obama says none of these things.  Yet he is called a "socialist".
        He is so easily cowed and bullied.  His political opponents see him as a wimp and they will
        keep on bullying him.

        Sadly, Obama is no FDR, who immediately began vast  publics works' programs in 1933-1934 and
        did not hesitate to take on the biggest Wall Street banks.  Like Obama, FDR was called a "socialist",
        even as the New Deal saved capitalism from itself. FDR's fireside chats on the radio gave new hope
        to the 25 million without work.  The result was his party spectacularly increased its hold in Congress
        in the first mid-term Elections of 1934, despite what the pundits in the news media of the day predicted.
        Only in 1937, when FDR started again listening to bankers who demanded that he cut back government
        spending, did the stock market go into its 48% "second dip" .  It was only in the 1938 election, that
        anti-New Deal Republicans and Democrats started to gain back seats in Congress.  Obama is now starting
        to talk of budget balancing in the middle of this gathering Depression.  In doing so, he risks another 1937 Crash.
        And it makes no political sense, at all, assuming he has read the history of the New Deal.
        (History books on FDR by Blum, Schlesinger   and Burns are personally recommended. There are many others
        I have not read. See http://www.presidentprofiles.com/Grant-Eisenhower/Franklin-D-Roosevelt-Bibliography.html )

        By contrast, Obama offers no real vision, except to say, "I saved the banks".  Blaming Bush offers
        no vision.  But that is all his handlers let him say,  Now, 18 months into his Presidency, he appears
        too spineless and  too treacherous in the way he has treated his supporters to even trust, much less inspire. 
        Who knows what is in his heart?  He seems unable to deal with the current economic mess.  The most
        charitable interpretation is that his educational background is badly flawed.  He seems completely
        ignorant of macro-economic alternatives to the Fed's bank-friendly monetary policy.  He avoids all
        references to the political and economic history of the New Deal.  We are left thinking he is just a
        fast-talking political wheeler-dealer who still thinks he can fool people with empty rhetoric.  I think
        that there is a reason Obama has never released his college transcripts.  Either he did not study economics
        or he did very poorly in them if he did. 
        
                                                   A Technical Bounce Seems Likely

         But there is some hope of a rally back up to 11000, where the April head  and shoulders' neckline
         was broken.  (Broken support becomes resistance.), 
                   1) The Closing Power uptrends have not been broken.
                    2) The DJIA is at the support of its 65-dma with still positive internals.  The P-Indicator
               stands at  +232  and the Accum Index is  +.184
                    3) The QQQQ gave an optimized red Buy.
                    4) If the DJI were to fall 1.7% more, about 3% below the 21-dma, we would very likely get
               a Buy B9 or Buy B12.

        We have to close out our short position on the QQQQ because of the red Buy and the failure of the QQQQ's
        Closing Power to break its uptrend.  But so many of the "bearish" stocks picked out by the Tiger Power Ranker
        for the MINCP stocks are breaking down badly, I think the best thing to do is to short more of them.
        See the Blog on the Weakest Stocks Now, that I will post later tonight.

       Two Markets Now

        More and more we have a divided, schizophrenic market.  On the NYSE, where there are many income
        stocks, there were 12 more highs than lows today.  But on the NASDAQ only 9 stocks made new lows
       while 84 made new lows.  You have to decide what you are trading in this market.  DJI-30 stocks are more
       likely to pay dividends.  The good breadth of income and dividend stocks has held up the market as a
       whole.  It is the Fed's low interest rate policies which have helped bond holders and prevented the NYSE
       Advances minus Declines breadth from deteriorating to the point where we get a Peerless Sell.  If the
       more gradual NYSE A/D Line uptrend is violated, it will be a very bad sign, like it was in 1977 and 2002.

       I am doing a Blog showing the weakest stocks.   You can see how deadily bearish is the combination
       of red insider and insitutional Distribution coupled with heavy (declining) Blue Professional Selling.
       It is here: http://www.tigersoftware.com/TigerBlogs/August-12-2010/index.html  

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

  8/11/2010  Judged Right Shoulder Apex in Head and Shoulders
  Pattern.  Watch to see if Closing Power uptrends are violated to further confirm the decline.
    Past judged Sell Signals like this were all profitable.  Head and shoulders tops should be
    recognizable by serious traders.  Google them to find many more examples or look at all the
    cases in the DJI at the link below.  We are short QQQQ and more stocks that we are long on the
    Tiger Stocks' Hotline.  The biggest decliners today were most often the stocks that had a
    CLosing Power making new lows ahead of price.  See "bearish" examples.

             The FED does not want a market decline now.  It is doing all it knows how to do
        to hold up the market.  But FED action may not be enough. And Bernanke may not
        be able to quell growing resistance among the Governors of the regions of the FED
        to such low interest rates/

                       If professional traders sense the market is too weak even for the FED to hold up,
        I would expect them to break with the Obama Adm.-Fed-Goldman/JP Morgan syndicate, I
        believe exists sell.  Will they be allowed to sell short on down-ticks with shares they have
        not bothered to borrow? Probably not.  So, a decline here may be gradual at first. I would
        stay with the Judged Sell even if there is a rally.  The upside potential seems very limited. 
        Serious weakness is appearing in too many stocks.  There were 85 new 12 month lows
        on the NASDAQ, only 7 new highs.

                       We will want to see whether mutual funds sell on this weakness or hold for now. 
       The breaks in the A/D Line uptrends will, I believe, get the more aggressive to sell.  The
       low interest rates will get others to hold or do some buying on much more weakness.
       The DJI closed 0.8% below the 21-day ma with the P-Indicator still +237 and the current
       Accumulation +.189.  Another 2.5% lower, we will get a Buy most likely.  We would
       have to take it, knowing that the upside will be limited. 
     
                    Watch to see if another news story develops here that tilts the market down:
       tension in the Middle East, more fraud charges brought against Wall Street firms, Chinese
       selling of US Treasuries, worsening US employment and consumer confidence data or
       intra-Fed dissension over monetary policies/

                     I have posted all the historical examples since 1940 of what I want to consider
       a "a judged right shoulder apex sell in a head and shoulders pattern.   All the patterns
       are symmetrical and lasted at least 40 days.   Where the pattern is not symmetrical,
       it is harder to calculate where the right shoulder apex would be.  But as you can see
       in the case of the 1929 top, this rule would have been extremely profitable.

           

------------------------------------------------------------------------------------------------------------

  8/10/2010  The Fed Tells Us They Will Buy Treasury Bills.
  Is that because Chinese will not?  Bernanke does not
  realize how dangerously un-reasoning his words are.
  Bernanke's fears of deflation and stagnation are overtaking
  his cautious optimism.  The head and shoulders patterns
  should be seen for what they often are; namely dangerous
  top patterns.  At a minimum, Selling Now Seems Advisable.

           IMPORTANT:   While the automatic Buy B8 has not been reversed by an automatic
            SELL, I would sell more stocks short and take more profits.  We are at a dangerous
            tipping point, the right shoulder apex of a well-established head and shoulders pattern. 
            Just as Peerless cannot automatically spot a compact head and shoulders and
            issue an automatic Sell like we saw completed on May 4th, 2010, so too, Peerless cannot
            now automatically do what we can by sight, namely call a top and issue a SELL based
            on the presence of a well-defined head and shoulders AND the DJI turning down from
            the apex of its right shoulder. 

            My sense is that this is where are are now. If Closing Powers are broken tomorrow,
            A/D Line uptrends will almost certainly also be be broken.  In that case, Sell
            Short more QQQQ.   And close out long positions if their Closing Powers are violated. 
            We will call this a judged "RSAPEX" SELL, where the "RS" stands for the right shoulder.

                         The professionals that run the market up and down so easily when volume
             is low and the public is not much of a factor, may reverse their stances tomorrow
             and sell and sell short.  The DJI looks like it will open 120 points lower.  It may be that
             some of these professionals are jumping ship and selling into a weak opening.
             Tomorrow will be a test to see if the Obama-Geithner-Bernanke-Goldman-JPM syndicate
              that has rigged the market for a year to produce higher prices, in fact, now breaks apart..

             The A/D Lines are not yet broken.  A bad down day next would probably also
              break the CLosing Power uptrends.  I would do some more selling or selling short
              the weakest Closing Power stocks,  stocks that break below their 65-dma and
              confirmed breakdowns.   The Indexes all seem very close to the resistance of their
              previous head and shoulders peaks.  As they approach the resistance they are
              now forming bearish rising wedge patterns, too.

              Many of the strongest groups and stocks are now back up to their previous highs. 
              Following a deep sell-off, these old highs usually stop the next rally.  See the foreign ETFs
              chart for example, or CAT below.  We had recommended the Indian ETFs and CAT.
              Take profits in them.



                                             WHAT MIGHT SAVE THE MARKET

                        There is still a chance for an important breakout from IBM,
              specifically, the highest priced DJI stock and therefore, by far, the
              most influential DJI stock.  The DJI-30 is weighted only by price.  
              So at 130, IBM has 3 times the importance in that average that INTC and
              MSFT do together.  Crazy?  Like a fox, it is this unique characteristic that helps
              make the DJIA the last big index to top out in a bull market.  In this way,
              non-confirmations by other indexes and the A/D Line of DJIA new highs
              often point to times when the DJIA dangerously out of step and camouflaging
              serious internal market weakness.


              

              The problem is that 3 other tech stocks in the DJI-30 are showing
              serious problems.  INTC and MSFT rate as short sales.  HPQ is going
              down on the highest volume it has seen for some time.  BAC looks
              terrible: steady red distribution and downsloping blue Closing Power..

             



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

                 8/9/2010   At the risk of sounding repetitious:
             "The Buy B8 Is Still Operative under Peerless.  It Is Best Not
              To Fight The Fed, The Treasury and Wall Street
              Professionals All at Once. 

              The DJI and NASDAQ (below) have now reached the resistance of its January left shoulder
                         apex in its sprawling 9 month head and shoulders pattern.  Weakness in the morning "should"
                         continue to bring in afternoon buyers.  If it does not and i instead followed by
                         significant weakness, it will be a sign that the CLosign Power uptrends are
                         probably about to be bearishly violated.

                         We can's help notcing  pits, potholes, air-pockets in a lot of stocks's recent
                         price action.  A healthy market would have fewer of these and also show more
                         energy in speculative stocks instead of safer dividend stocks.
.
                         The "NASDJI" tool is not positive.  This means the more speculative NASDAQ
                         is under-performing the DJIA.  At the same time, Accumulation is high.  This
                         usually means there would be support if there was weakness.

                                                     NASDAQ IS AT A HIGH INFLECTION POINT



                        
                           WHY ARE PROFESSIONALS DROPPING SOME STOCKS QUITE HARD?

                              TigerSoft's Closing Power making new lows way ahead of price is the best
                         way to pick stocks that may collapse or keep falling even in a generally rising
                         market.   We are short many of these stocks as a hedge on out Stocks' Hotline.. 

                          SELL SHORT KLIC - CLosing Power Is Making  A New Low Ahead of Price



   

          Closing Power's Eleven Rules

          In most cases, Closind Power leads or coincides with price action.  Trading
          its trends gives a big advantage to traders.  This is expecially true when
          the public is not much in the market and opening prices are not wildly
          away from the previous days closings.  Closign Power measures Professional
          buying and selling in the market. Much of this is designed to rig prices and
          manipulate public fear and greed.

                              1) Three tests of a Closing Power Trendline at least 20 trading days
                              in duration is best.

                              2) Use flat topped CP breakouts and breakdowns.



                              3) Use CP trend-breaks just after support or resistance has been reached
                              and prices are moving back in the opposite direction.   If the 65-dma is
                              is rising at a +200% annualized rate, expect that support to hold. 

                              4) Closing Power making new highs ahead of prices usually means a
                              new price high will follow AND CP new lows ahead of new price lows
                              are warnings of a bigger decline.  Short the latter, especially after a minor
                              CP rally fails and its uptrend is broken.



 

                            4) Use price advances past their 65-dma when confirmed CP trend-breaks.
                        
                              5) Use CP trend-breaks after non-confirmation by it of a new high or new low.


                              6) Use CP trends when unexpected news hits a stock.  Trade the trend of the
                              Closing Power until there is a reversal by the Closing Power.

                              7) Watch for CP trend-breaks after it reverses from its own steeply rising or
                              falling 21-day ma.

                              8) Use steeper trendlines when prices move far away from expected
                              support or resistance.  This will lock in profits.  Do not do this is the first
                              big move up of a new bull market or the first big move down in a bear market.

                              9) The biggest price moves are made when both Opening and Closing
                              Power are moving in the same direction.  Buy B21s and S21s show this.
                              But they lose their value after a very big move.

                              10) When both Opening and CLosing Power are rising or falling, a break in
                               the Closing Power's trend should be taken as a sign the extreme move
                               is ending.  It is time to take profits.
                

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

                 8/6/2010   Buy B8 Still Operative under Peerless.
             It Is Best Not To Fight The Fed, The Treasury and
             Wall Street Professionals All at Once. 

             They Want The Advance To Continue.

                    There is no basis for calling a reversal, even on a short-term basis
                                   until the Closing Power uptrends are violated or the NYSE A/D Line
                                   uptrend is penetrated.  The most bullish thing the market can do now
                                   is to keep rising.  If it turns down, the bearish scenario of a head and
                                   shoulders pattern playing itself out becomes more likely. By rising, it will
                                   destroy the 8 month head and shoulder pattern (shown above) and start
                                   to turn up the DJIA's key 65-day ma.  It would, however take a DJI
                                   close above 11723 to abort a 13 Year head and shoulders pattern that
                                   is shown below. 
          
                        The very low volume on the advance since March 2009 and the
                       combined 9 month and 13-year head and shoulder patterns do make me cautious. 
                       This has translated into holding a number of short sales on our stocks' hotline. At
                        the same time, we are long the most bullish stocks, those that have recently had
                        their Closing Power make a new 12-month high and are rated by TigerSoft as
                        "bullish"..

                                        Look again at the very long-term DJIA chart, going back to 1885.  You can
                        see the 13 year head and shoulders pattern the DJI may be tracing out.  With that
                        chart, it will take a DJI move past 11800 to abort the current head and shoulders
                        pattern.  

                               That means that even if the current market could manage to advance
                        enough to destroy the head and shoulders pattern, it might not be enough to keep
                        the rally going very much  longer.  On the bright side, head and shoulder tops
                       on this 1885-2010 chart are very rare.  The only other I can find was the one that
                       ended with the 1925 new high in April. 

                               Data for this period does not let us see the A/D Line then, the Accumulation
                       or P-Indicator.   But we can see volume and the OBVPct (AKA OPCT). The 1925
                       rally began as:
                                     1)   the DJI's 65-dma turned up.
                                     2) the intermediate-term's right shoulder apex was exceeded and
                                    3) the OBVPct rose over +.23. 

                      See these statistics in the chart below.  Then see in the current DJIA chart that
                      the DJI has slightly exceeded its left shoulder apex and has had the OBVPct reach
                      +.25.   Bearishly, however, the DJIA's 65-dma is still falling.

                                     DJIA-1924-1925

                                     
                                   DJIA-2009-2010

----------------------------------------------------------------------------------------------------------

                 8/5/2010   We still operate with a Peerless Buy B8
           on the DJIA.  My comments of yesterday still apply.
           The up-trends of the NYSE A/D Line and the ETFs' CLosing
           Powers plus the Peerless Buy B8 do not let us call
           a top. 

           For the most part, the rally is mostly benefiting bond holders
           and dividend paying stocks.   On the NASDAQ today, there
           were only 10 more new highs than new lows. Watch this
           statistic.

                                         Tomorrow

                       It can't be said that this is a jobless recovery.  July produced
                      an estimated 42,000 more private sector jobs, but US manufacturing jobs
                      fell by 6,000 and big businesses (more than 500 workers) could not manage
                      any more jobs in July.  Friday morning we see whether the official unemployment
                      rate shows any change from the current 9.5%. The Labor Dept. is bracing
                      us for 9.6%.  The bears are looking for a much higher number, which they
                      think will make the market tumble.  

                                        Monster's stock has stalled out at the resistance of its 65-dma. 
                      Good Unemployment news tomorrow will likely be needed to send it higher.
                      That may be true for the US markets, too.


                   
                        .   The continuing weakness in housing stocks with interest rates this low must
                      be profoundly unsettling to the FED.  They will be most reluctant to raise rates. 
                      And that will likely prop the market up for a while longer. 



                                       Certain sectors are clearly much stronger than others.  Income stocks
                      show the most accumulation, as a group. In San DIego, bio-medical stocks make
                      up ALL of the top ten performing stocks in 2010.  See CATM.  Some stocks that save
                      people money are clearly in vogue, viz. PCLN and PSMT.  Here are some interesting
                      stocks for bulls to consider.  They show there is still life in the rally.






---------------------------------------------------------------------------------------------------------
                8/4/2010   We still operate with a Peerless Buy B8
           on the DJIA. 

                            More and more stocks are crossing above that key
                             trading barrier - the 65-day ma - and showing high Accumulation
                             with a Closing power that seems to be leading prices higher.
                             Examples: BBH. GOOG, HOT, SLB.   The low interest rates,
                             now under 3% for 10-yr Treasuries force investment
                             money off the sidelines into the market.  Also, the European
                             financial crisis seems to have left center stage and the oil seems
                             to have disappeared in the Gulf (of course, so has a lot of
                             marine life) and oil stocks are doing much better.  Goldman
                             Sachs (speaking of things fishy) has been let off the hook and banks
                             can be as big as they want and be brokerages, too.  All the bad news
                             that drove the market down in April and May seems to have disappeared
                             like a bad dream.  The big difference now is that interest rates
                             are much lower..

                                     Foreign markets and yield stocks are the real locomotives of
                            the advance now. But even on the NASDAQ there were
                            31 new highs.  Important tech stocks like EMC, IBM, and INTU show real
                            strength.   True, retail ( MA ) and homebuilding stocks are
                            not much improved, but note how quickly stocks rise
                            when they get past the 65-dma.  PCLN is a stunning example.
                            Even heavily shorted PFE.   When I search through stocks I can find
                            many more that look like they will go higher and fewer and fewer
                            stocks with Closing Power new lows. though there are some:
                            STX, ITRI, MPWR and GPRE. Look at the interesting stocks here. 
                            Judge for yourself.

                    All my investing life, I have heard three trading adages:

                                          1) Don't fight the fed. (That would make us bullish.)

                                          2) Don't sell short a dull market. (That would make us bullish)

                                          3) Pick your trading strategy and stick to it to avoid being pulled into
                        emotional trading traps like fear and greed.

                                 Regarding the third point, our strategy remains either use Peerless for
                         intermediate trading (which is still on a Buy)

                                                                      or

                         if we use price patterns, automatic signals and Closing Power trends to
                         trade short-term, our view has consistently been we must use in the case
                         of head/shoulders patterns a close above the previous shoulder's apex
                         as reason reverse from a short position to a long position.  Accordingly,
                         if one is still short QQQQ, use a break in the CLosing Power downtrend
                         from June and a close above the June apex to cover short sale in QQQQ
                         and go long. A break in the CLosing Power downtrend is probably sufficient
                         to cover the the short sale.  That has not occurred yet.  Below is the
                        QQQQ chart.


                       
                           I have argued that American consumers and workers are less and
                      less important to the multinational corporations that comprise the DJI,
                      the SP-500 and NASDAQ.  I think it is important now to appreciate the
                      increasing role that foreign stocks markets play.  Look at how the TigerSoft 
                      Index of Foreign ETFs has risen back up to its highs. We were alerted
                      to this by the way the Indian and Chinese ETFs' CLosing Powers were
                      making new highs ahead of prices.  This led me to predict they would
                      soon be challenging their highs.  See below CHN and IFN or IIF.
                      Also note how well Spain (EWP) is recovering

                                 Tiger Index of Foreign ETFs - Highs being challenged.



      CHN's CLosing Power is leading ETF back to highs.
                            
           IIF's CLosing Power is leading ETF back to highs.



======================================================
             8/3/2010   We still operate with a Peerless Buy B8
           on the DJIA. 

                                   In the table above, you can see that the TigerSoft chart of the SP-500
                      gave a new Sell.  In addition, the indexes are all stalling out at the resistance
                      that was expected at their June highs.  Except for the DJIA, they are all on
                      optimized trading Sells. too. We remain short the QQQQ here as a short-term
                      trade.   On our stocks' Hotline we a long a handful of non-yield stocks whose
                      CLosing Power is making new highs and have high Tiger Power Rankings. 
                      We are also short a handful of stocks with the oppositie internals. 

                                   My view is that  the Administration, the Federal Reserve and the big
                      banks have reached an agreement to keep prices rising.  This is the best way
                      they think for the public hostility towards Wall Street to cool off, for professional
                      traders to make plenty of money (because they are all rigging the market higher).
                      for professionals to stay less regulated and for the Administration to quietly get
                      big Wall Street campaign contributions for the Fall when its base has become
                      impoverished and disenchanted. 
                        April 9, 2010    The Power Elite's Biggest Gamble of All.  They Cannot Afford to Lose.
                        That's Why The Market Looks Like It Will Keep Rallying.  

                                   The Administrations' hope that this rising market will significantly improve
                      the real US economy seems a dubious proposition if we study Main Street statistics
                      or the economic theories I have setout that cast doubt on the importance of US
                      workers and US consumers to today's multinational corporations.
                          See 8/3/2010 - Comments
                    

                                    The flies in the ointment are the massive Federal budget deficit, $14
                      trillion by year's end, and the gathering weakness in the Dollar.  Some weakness
                      helps exports and encourages foreigners to buy US stocks and bonds.
                      But an accelerated decline can get out of control and scare foreigners away
                      from all US securities and Treasuries.  In these curcumstances, the government
                      can sell gold (which it may be doing now) or it can raise interest rates to
                      try to attract foreign capital back. It will run out of Gold eventually.  So, the
                      Fed may be expected to raise interest rates at some point if the Dollar
                      is too weak.  Below you can see the Dollar's weakness is gathering speed.
                      It has now reached its rising 200-day ma support and the third standard
                      deviation below its least squares line for the year.  If it keeps declining,
                      trouble and higher rates lie ahead.  The 10-year Treasuries' Yields is testing
                      its lows at 2.9%.  It has not yet turned up.  Deflationary pressures are too high.

     


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

             8/2/2010   We still operate with a Peerless Buy B8
           on the DJIA.

                   If the QQQQ closes above 47.7, thereby advancing past its June high,
                          short-term traders should admit that the red QQQQ Sell signal gave a bad
                          signal.   They should then cover their short sales.  Such a move would abort
                          the bearishness of its head and shoulders patterns.  Studying lots of these
                          patterns convinces me this is by far the best  thing to do.  However,
                          until this occurs, lets wait and see if there is anoter retreat. The DJIA
                          and the NYSE made new recovery highs above their June highs, but
                          the NASDAQ and SP-500 have not.  If this happens, it would be a good
                          idea to cover most shorts.  These stocks will probably experience a week
                          or so of strength if the general market's bearish pattern is eliminated..

                   I think Obama's new bank bailout of $30 billion, this time
                          to community banks, went a long way to show that any negativity
                          he might have shown  towards Wall Street excesses in pay, abuses of
                          power, fraud, rigging the market and insider trading is not to be taken
                          seriously,   that it is just rhetoric to mislead his populist base.  Obama
                          has showed in this that he depends up on Wall Street to
                          rally and will along with the FED do whatever it takes.  I believe
                          this is why the markets opened up nearly 2% higher.  The very moderate
                          SEC settlement with Goldman for its fraud in marketing bundled mortgages
                          to the public that it was secretly selling short also demonstrates that
                          Obama is no threat to Wall Street, rhetoric asside.. 

                          Interestingly, only the DJIA has closed above its June high.
                          Short sellers should use a close above the the June closing
                          to mean that pattern's head and shoulders is being aborted.
                          Friday, I mentioned in connection with the DIA that both the
                          Opening and Closing Pwer were bullishly rising.  When this
                          condition first presents itself, it is reliably bullish.  I should
                          have mentioned that this condition was true for the QQQQ
                          and SPY on Friday.  The table at the top of the page shows
                          and will show by the term "UU" that this is true.  The TigerSoft
                          charts will be fashioned to show that this is true automatically
                          as they first appear.

                             Volume remained low.  But the A/D Line for the NYSE made
                           a new high.  Nevermind that the best performers now are mainly yield
                           stocks.   With interest rates so low, institutions and the public both
                           are being forced by the FED to invest in stocks.  A move by the
                           averages to new highs above their June's peak will bring quite
                           a bit of short-covering.  I think the market has been rigged to
                           run them in on this rally. 

                                                          US DOLLAR



                             The big question is whether the size of the deficit will bring a dangerously
                           steep Dollar Collapse before the low rates can revive stocks enough to give
                           the affluent reason to spend enough money to slowly lift the economy. 
                           A weak Dollar, as long as it does not collapse, helps exports.  We sometimes
                           over-rate the importance of the American consumer.  The bigger
                           Corporations are more and more dependent upon inernational consumption,
                           just as they are more and more dependent upon foreign workers.  This
                           helps us understand some of why Wall Street's rally has been so
                           disconnected with a Main Street recovery.   Other reasons are that
                           in laying off American workers, their costs are reduced and their
                           profits raised.  When the same workers are hired back, the discipline
                           of long unemployment will force them to accept much lower pay..


.
                           

                       


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

            7/30/2010 We still operate with a Peerless Buy B8
           on the DJIA.  This is our intermediate term system.
           The average length of a trade is about 3 months.
           
                     Traders, may want to be short the QQQQ, given its
                          ETF's Sell, the break in the CLosing Power Uptrend
                          and the growing weakness in the NASDAQ-TEN,
                          the biggest stocks in the QQQQ.  Seasonality tends
                          to bring a small decline over the next two weeks.

                         But, with Opening Powers rising, higher openings should
                         not be a surprise.  Short sellers may want to wait for
                         a steep downward reversal after a strong opening.
                         That would setup a downward trend with our Closing Powers
                          for the ETFs.  For now, with the DIA, we are in the short-
                          term bullish situation where both Opening and CLosing
                          Powers are rising.  In the DIA chart below the B21s and
                          S21s show when BOTH Opening and CLosing Powers
                          are moving in the same direction (based on their 21-day
                          moving averages.  This can lead to steep moves which
                          end when the CLosing Power reverses.

                                              Both Opening and CLosing Powers are Rising for DIA.                              
  
           
                        The key NYSE A/D Line uptrend is still unviolated. 
                           Peerless more than anythng else, is based on
                           breadth, especially the A/D Line and the 21-day
                           ma of daily breadth.   That helps explain why we have no
                           Sell signal.  If rates were going to start rising, we would
                           probably start seeing new DJIA strength that not being
                           confirmed by the NYSE A/D Line showing corresponding
                          strength.   Instead, it is the A/D Line which is leading
                          the DJI higher.

                     As I've noted, the NYSE now is benefitting more from
                           the low interest rates because it has a much higher
                           percentage of yield stocks.   Even so, the NYSE below
                          shows a potentially bearish head and shoulders pattern.
                           Economic conditions, particularly renewed and
                          dramatic weakness in the Dollar, could force an end
                          ot the Fed's present policy of extremely low rates.  
                          Below the charts of the NYSE and the Dollar, is the
                          Tiger charts of Utility stocks  

                           --------- NYSE -----------
                   NYSE at right shoulder peak with weak OBV.


           
                                           US Dollar



                           Tiger Index of Utility Stocks                      
                        At apex of right shoulder. Strong OBV.   84% over 65-day ma. 

                                    The NASDAQ TEN
                           The index and commentary of the NASDAQ-TEN is shown below.

10 Biggest Stock in NASDAQ-100 Stock Symbol  Weight Technical Condition    Apple Inc. AAPL 13.3% At falling 65-dma.  Bearish Closing Power NLs QUALCOMM Inc. QCOM 6.8% Above flat 65-dma Microsoft Corp. MSFT 5.4% Below falling 65-dma Google Inc. (Cl A) GOOG 4.7% At falling -65 dma Oracle Corp. ORCL 3.3% Above falling 65-dma Gilead Sciences Inc. GILD 3.1% Below falling 65-dma Research In Motion Ltd. RIMM 3.0% Below falling 65-dma Cisco Systems Inc. CSCO 2.9% Below 65-dma. Trying to build bullish invverted H/S Teva Pharmaceutical Industries Ltd. (ADS) TEVA 2.8% Intel Corp.  Below 65-dma.  Weak CP INTC 2.5%

                                        NASDAQ-TEN
                                  Often these biggest stocks in the QQQQ have a leading
                                                effect on the markets.  A decline next by them below
                                                the support of their 21-day ma would be bearish
                                                for the QQQQ.   These 10 stocks' A/D Line has broken
                                                its uptrend and only 3 of the stocks are above their
                                                65-dma.  Tech stocks AAPL and INTC look particularly
                                                vulnerable because of the pronounced weakness shown
                                                by the CLosing Power being so close to a new low, far
                                               ahead of prices.
 




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

           7/29/2010   Still A Peerless Buy B6.  The key NYSE
           A/D Line uptrend is still unviolated.





                        But bearishly, the QQQQ CLosing Power uptrend line was broken today, as
                    were   the A/D Line Uptrends for SP-500 and NASDAQ-100.  Coupled with the
                    declining 65-day mvg avgs, the head and shoulders patterns and the
                    automatic Sells on all the major market ETFs, I think a good case can
                    be made for shorting the QQQQ now, if you are a short-term trader.
                    Note that iintermediate-term traders must wait for a Sell Signal from Peerless
                   or a break in longer-term NYSE A/D Line.



                   
                                       WHY ARE 10-YEAR TREASURIES SO STRONG?
                                     Deflationary Expectations and Fear
  10-Year Treasury Yields


                     The FED is clearly doing all it can to shore up the markets.  Some of you
                     have asked why so many high yield securities are among the strongest stocks
                     now, "bullish" and with the Closing Powers making new highs.  I think that
                     it is because of the almost desperate FED easy money policies.  With money
                     market yields so low, In highly uncertain times, high yield bonds and good
                     paying utilities look attractive.  Stocks appear too risky.
                   
                     But, the Fed's bet may be a  risky one.  Not because "the seeds of inflation
                     are being sown", but because monetary policy is not powerful enough to create
                     much of a recovery in a very weak economy.  Japan in the 1990's showed
                     us this, as they mainly shored up their crashed economy by subsidizing
                     their own big banks with very low interest rates.  The very weak Main Street
                     recovery now parallels Japan's experience in their "lost decade".
                     (See my Blog of July 15, 2008 -
                       Limits of Monetary Policy: Will The "Stagflation" of The 1970s Reappear? )
                    
                     Clearly, the FED for now does not want the stock market to start falling.
                     Will they succeed?  A lot depends on the Dollar.  It has been weak for a month,
                     but so far,  not dramatically so.  One would think that all this would be bullish
                     for gold.  But it has not been.  Apparently, the deflationary economic pressures
                     weigh more heavily on the minds of Gold-Bugs.  Either that, or the FED and the
                     Treasury are now selling Gold Futures with freshly printed dollars to artificially
                     hold back its prices. 

                     For more on this, see my new Tigersoft's Daily Comments on Breaking News