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    7/13/2014    International Events Are Pushing Aside
                        Our Technical Concerns about The Stock Market.
                        With the DJI back above 17800, I think we
                         have to be optimistic.  The break in the NYSE
                         A/D Line downtrend needs towiden.  But it
                         is enough to reverse the Red Sell S12.

                   NIXON's Surprise Trip To China in February 1972 helped
                   the bull market then run still higher. New trade with Iran
                   will be very profitable.



                          Perhaps, the market can forget Greece and the EURO for a while
                          and now consider what a thaw in relations with Iran could bring.  New
                          consumer markets and more oil production on the World Markets...
                          These are bullish developments.  I would think that they will
                          let the current advance continue, even though it seems to be coming mostly
                          from higher openings.  Of course, just as the Greek Parliament still
                          still needs to approve the additional austerity agreement that
                          P.M. Tsipras has negotiated with the EURO leaders,
                          (See http://www.bbc.com/news/world-europe-33517252 )
                          the Obama Administration must constitutionally now get the approval of the
                          Republican controlled Senate for a new US-Iran treaty by a 2:1 vote
                          or else a majority of both the Senate and the House.
                          (Source - https://en.wikipedia.org/wiki/Treaty_Clause .  It is doubtful
                          that the Obama-Iran agreement can be legally considered an Executive agreement. )

                                  Hourly DJI shows 17800 is now support
                                  and 18100 is resistance.  The higher prices
                                  should allow our MAXCPs and QUICKSILVER
                                  picks to rally more.  But without much more
                                  up-day and up-hour volume, I can't see how the
                                  DJI will be able to get past its overhead resistance.



                                             With The Breakout above 17800,
                                          The Pullback Must Be Considered over.

                          It's true that the downtrend of the NYSE A/D Line has only been slightly
                          broken.  But this is the best tool for deciding that a correction is over when
                          one doubts a current Peerless Sell signal.  I mentioned when we announced
                          the new Sell S12 that since 1965 its signals have only produced relatively
                          shallow declines.  I then researched how to reverse these signals if we
                          assumed that there was no Peerless Buy.  The best tactic here I discovered
                          was to use the A/D Line trendbreak to reverse a Red Sell S12..

 

                         
                         The downtrends of the Closing Powers for the DIA and SPY have not
                         yet broken their downtrends.  So, a small retreat might occur.  But breadth was
                         again very favorable today.  The ratio of NYSE Advances to Declines was 2.73:1.
                         It was 3.93 yesterday.  I think this and the big gap today above 17800 should
                         keep us from doing new shorting, except in oil/gas stocks.

                         Biotechs again are the leaders on the long side. I would think the best of these
                         will keep rising.  IBB is the simplest way to play this advance. Also note that
                         IWM's CP did break its downtrend and should have been bought.


          

                                          Abide by Breaks of the 65-dma when the
                                          Accum. Index is negative.  Knowing this
                                          has been vital to our avoiding buying oil/gas or
                                          service stocks and even selling some short. 
                                          (See the charts of OIL, OIH and GASL below.)              


                          Falling oil prices are an economic stimulant.  Translated into lower fuel prices,
                          they should put more money in consumers' hands around the world. 

                          And technically, the breakout  above 17800 now sets up a DJI move up to 18100.  
                          This may well allow the Stochastic tools that work well with the DJI (the 14-day
                          and 21-day K-Lines to rise up to an over-sold position).  At 18100, resistance
                          will probably be too much for the DJI.

                                                    Beyond Peerless....

                          One of the reasons I suggested taking profits in many of the shorts we had
                          on Bearish MINCP stocks was because of how well many other stocks had held
                          up in the face of very scary reporting late last week about Greece and China.
                          Our Stock's Hotline now is long more than twice as many stocks as we are short.

                          Always consider the psychology of the market makers, too. These folks clearly
                          did not want to the DJI to close below 17500.  In fact, so adamant were they
                          about this, it appears that they even arranged a "glitch" to prevent this and give
                          them time to plan a market rally, probably with the help of the FED and the
                          Chinese Government. 

                          Of course, keep track of support and resistance levels, too.   If prices cannot break
                          below a support level, they usually rally up to the overhead resistance. 
                          Now the DJI has rallied back to its falling 65-dma.  This will pose some resistance.
                          But I suspect prices get past it before the new17800 support is again violated. 

                          Biotechs appear  very well-represented in the Bullish Stocks tonight.  It was
                          important that IBB held above its rising 65-dma.  When this became apparent,
                          IBB then worked its way back to and then above the key 370 level.
. 

                         
                         

                          Today one of the Bullish MAXCP Biotechs rose 50% on successful completion
                          of stage 3 trials.  ANAC is of great interest to us because this was a $10/share stock
                          two years ago, when we noticed here that the CEO had just bought a big chunk
                          of his own stock and was starting a promotional tour for the stock.  Note the
                          tell-tale bulge of Accumulation at the start of its big two-year 1000%+ advance
                          back in 2013..
                          (Find the Accum. bulging stocks by running the Tiger Power Ranker against
                          the "HIGHIP21", "ACCUMVER" and "VHIP21" stocks.)

                          I suggested adding more short sales from among the Bearish MINCP stocks
                          on a rally to 17800 or on a close below 17500.  There are still not enough
                          Bullish MAXCP stocks to do much buying yet. The operative Peerless
                          S12 must stand for now, at least until the A/D Line breaks its downtrend
                          or we get a new Peerless Buy signal.

7/13/2015   150+ TigerSoft Charts                                     Go to http://tigersoftware1.com/HH/ to see them. New Highs: NASD  87          NYSE  72 New Lows:  NASD  28          NYSE  27                                                     30   Bullish MAXCPs                     WD, MKTX, ANAC, MIDD, DPZ, RARE, SUPN,                  LJPC, SKX, ETH, MYGN, TRIB, EGRX, ALNY, BLUE                                                    138   Bearish MINCPs                  KNDI, CTRL, Z, DLNG, ABX, CAR, SLW, GMCR, ECA, HTZ,                  GASL, TUES, DNR