A +30% trading gain on long side is achieved for this period provided that one
used the Peerless signals and also bought when the 65-day ma turned up
as shown below in APril since the DJIA was at an all-time high and the internal
strength indicators were positive. Using the short side, too, the gain for this
period would have been +22.7%. In this way the bad Sell S9 and S12 signals
that occurred between February and April would not have made the year
unprofitable. Of one only ised the automatic signals, the gains would have been
+27% on the long side and 17% using long and short positions.
Below is the annotated Peerless chart for 1998-1999. The breadth
divergence and weakness in the first quarter was contradicted by the
bullish readings of the Accumulation Index. Breadth weakness is certainly
an important warning. But in this case it led the market by an entire year.
The DJI did not reach its peak until Jabaury 2000. hotmail.c
