TRADING RESULTS FOR BULLISH
       and BEARISH SPECIAL SITUATIONS
       Picks from Late July - September 2010

                         11/4/2010
           
       (C) 2010  William Schmidt, Ph.D.
                         11/3/2010

       The picks here made use of Closing Power
           new highs and lows in conjunction with
           confirming highs levels of Accumulation
           for the buys and recent steadily low levels
           for the short sales.   Most were simply
           picked using the Bullish MAXCP stocks as
           Buys and the bearish MINCP stocks for
           short sales.  Positions were closed out
           when the Closing Power violated its trends.
           Steeper trendlines were used after a sustained
           move.  When the Accum Index was very high
           a little more opportunity to advance was
           given.  See the CP trend-break-lines in the
           charts below. 

           It is believed that the best Buys and SHort sales occurred
           soon after the new B7s and S7s, which show extreme CLosing
           Power divergences from price.           

       Trading with the market trend using Peerless helps a lot.  In the period shown below
                there were no Peerless Sells.  Short selling had to be nimble.  Breaks in a Closing
                Power downtrend are shown below as the basis for covering the short sales.
                
                The best buys came soon after a downtrend in Closing Power was broken
                following a Peerless Buy.  By this rule, the best buying opportunities came
                after 7/7/2010  and 9/1/2010.   Work down the list and you will some very nice
                gains in the stocks below just after these dates.  As prices become more
                extended in the general market, the quality of new Buys deteriorates.  Adding
                to positions in the stocks that do the best after a Buy signal usually works
                well, especially if you can buy after a minor retreat and another Closing Power
                new high.



      TOTALS for Special Situations from 7/30/2010 to 9/30/2010
              During this time the SP-500 rose from 1101.60 to 1193.55, about 8%.

                                   All 34 Trades. Avg Gain = +10.9%

                                   21 Long Trades. Avg Gain = +12.7%
                                   15 winners' avg. gain = +20.7%
                                      6 losers' avg. loss = - 7.4%

                                   13 Short Sales Avg. Gain = +8.0%
                                      8 winners' avg. gain = +16.5%
                                      6 losers' avg. loss = +5.5%

        Regarding long trades, it appears from the data in this study that we can significantly
        improve results by not buying the stocks with an AI/200 <140 or an IP21<.22
        unless they are testing their lows. as CA was.

                              1, LONG 8/5/2010 CRME 9.31 +.57       AI/200=139 (LOW) IP>.36
                                  Loss = -20.3%   Watch for false breakouts!

                              2. LONG 8/5/2010 TGH 28.13 +.43   AI/200=167 IP=.13 
                                  Loss = -2.4%

                              3. LONG 9/1/2010 N 19.58 58    AI/200=139 (low) ip= .35
                                 Gain +16.8%

                             4. LONG 9/13/2010 ADVS 52.82 .8    AI /200=197  IP> .16 (low)
                                 Loss = -5.9%

                              5/   LONG 9/24/2010 CHN 32.49 .5  AI/200=153 IP = .20 low
                              Gain +1.9%

                              These 5 lost an average of 2% apiece.


====================================================================================
           IMPORTANT

          The best gainers generally had very high levels of current Accumulation, "IP" or "IP21",
          above +.46.  This is the horizontal line above which our charts indicate "Insider Buying".  level
                                       
                                           A/200      IP21   Gain

                         RDWR        171          .56      +33.4%
                         VMED         162          .51      +20.0%
                         RDWR         171         .56      +33.4%
                         VRNT          189          .50     +33.4%
                         NTCT          182          .47      +19.6%

                         PSMT          189         .45           +5.4%
                         IRS              175         .45           +9.2%
                         EMC            175         .36                           -2.4%
                        TRE              172         .32          +41.4%
                         CVLT          161         .31          +14.7%
                         EZCH          189         .31                           -2.3%

====================================================================================
         
           It was not a good idea to short a stock that gas recently received a Buy B7.
                                SHORT 9/13/2010 V 65.48 -2.61 97 IP<-.20
                                Loss = -7.4%   There was an August B7 just before what proved to be
                                a false breakdown.
         
         One other conclusion from this is that penetrations of the 65-dma after a Buy B7
         or S7s.  Look at the many examples below.  See paricularly VRNT and CHN.                                   

             Also:  Use success tests of rising 65-day ma when CP downtrend broke.