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                                    8/27/2015   70+ TigerSoft Charts - 
 
            
                  Go to www.tigersoft.com/HH/Index.html 
                   ===>The Four Horsemen of Deflation  OIL   YINN   COMMODITIES   FOREIGN ETFS

                        8/27/2015
        New Highs: NASD  12       NYSE  2
        New Lows:  NASD  14       NYSE 5
                                                 
            8/27/2015  Bullish MAXCP Stocks    over $5                 
     160 ----> www.tigersoft.com/MAXMIN/8-27/MAXCP.html
                                 
                                 Bearish MINCP Stocks over $5   
       690 -->  www.tigersoft.com/MAXMIN/8-27/MINCP.html
                      
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     8/27/2015   The Peerless Buy B16 has brought us a record 988 (+6%) point gain
                        in just two trading days.  I can hardly argue with anyone who wants to
                        take profits, especially since the DJI has now closed back at the 3%
                        lower band, in other words the Peerless band-support that was broken.
                        The DJI has also now recovered 50% of what it had lost from the May
                        peak to the August bottom.  A shallow retreat seems likely, followed by
                        a rally next week just before the long Labor Day weekend.


       
                        The big  rally today also brought a new Peerless B14 (unusual up volume)
                        and a new Buy B17 (vastly improved IP21 with the DJI 3% below its
                        21-day ma.  How much more of a DJI advance might these "reinforcing"
                        Buys produce?  Especially as we about to enter the normally
                        bearish month of September and also since the Government published
                        today two positive economic reports that will give Fed "hawks" ammunition
                        to raise interest rates in September?

                                   The best write-ups on these 3 signals are here.
                         B16       http://www.tigersoft.com/PeerInst-2012-2013/-B16.htm
                                  B17        http://www.tigersoft.com/PeerInst-2012-2013/--Buy-B17.htm
                                  B14        http://www.tigersoft.com/PeerInst-2012-2013/-Buy-B14.htm

                                            
                                                             Augmented Buy B16s Are Very Bullish

                                B16s usually are not immediately reinforced by additional non-seasonal
                        Buys, leaving out the cases where a seasonal December B13 followed the B12.      
                     .  Below are the other cases since 1928 where the B16s were  quickly reinforced
|                       by additional Peerless Buys. 

                        Looking at these, one quickly sees that reinforced B16s are quite powerful.  
                        The weakest case  brought a 7.7% gain, comparable to what the DJI
                        has gained in just two days, but the other 6 each gained more than +16%. 
                        This suggests much higher prices after some kind of a temporary pullback.
                        Admittedly, it all depends on the Fed (not a "red wheelbarrow" as the poet
                        William Carlos Williams whimsically wrote). 

                         But since none of these augmented B12s took place in late Summer, and pullbacks
|                        and retests of the lows are very common after a steep decline caused by crazy,
                         unregulated computerized trading, a decline back no more than to 16000 seems likely.
                         It will be constructive ultimately, as long as the DJI does not close below 15700,
                         the 13.5%-down-from-the-high level.   Note that next week, the week before the US Labor
                         Day holiday, usually brings an advance.

                                                                              Subsequent
                                                           date        signal     DJI     Peerless Gain
                                            19400527 B16       116.4        .161
                                                          19400612 B14       121.5        .112
                                                          ----------------------------------------------------------
                                                          19711123 B16        797.97     .202
                                                          19711130 B12        831.34      .154
                                                          -----------------------------------------------------------
                                                          19740930 B16        607.87      .077
                                                          19741002 B8           601.53     .089
                                                          19741007 B19         607.56     .078
                                                          -----------------------------------------------------------
                                                          19741210 B16          593.87    .456
                                                          19741211 B7            595.35     .453
                                                          19741216 B6             586.83    .474
                                                          -----------------------------------------------------------
                                                           20021009 B16         7286.27   .204
                                                           20021010 B1           7533.95   .165
                                                           -----------------------------------------------------------
                                                           20081120 B16         7552.29    .185
                                                           20081202 B19        8419.09     .063
                                                           -----------------------------------------------------------
                                                           20090305 B16         6594.44    .277
                                                           20090312 B14          7170.06   .174
                                                            ---------------------------------------------------------------

                                            Temporary Sharp Declines
                                         and Extreme Artificial Sell-Offs.

                        Looking at the Peerless charts for 1987, 1997, 2011 and 2010
                        show us that the odds favor a retest of the 16000.  Only the 1997
                        case would suggest that there will only  be a shallow one- or two-day
                        retreat. 
 
         1987 Crash (Caused by Reckless Computerized Trading in Index Options.)


 
                                                        1997 Parallel: 
             Only two very shallow retreats here before old high was challenged,



                                                  2010 Flash Crash
 

                      2011 Republican Shut-Down of Federal Government
                                 (Boehner says that this will not occur in 2015.)


 

                        From Wednesday night:

                                 Other Sharp DJI Declines to The 13.5%-Down Level

                        When one studies other DJI recoveries in the past after sharp declines
                        to the 13.5%-14% support- level below the bull market peak, we see that
                        the falling 21-day ma does act as resistance for a week before prices
                        penetrate it and resume their rally.  See the study here.
                              ../../MAXMIN/8-26-2015/big_declines_and_the_importance.htm

                        Look especially at the charts of 1941 (months before Pearl Harbor),
                        1950 (a month after North Korea invaded South Korea) and
                        in 1997.  Especially note the 1997 Panic.  It occurred because of a panic
                        in Asia with the DJI up very considerably over the prior 6 years. 
                        Computerized trading then also drove the decline down excessively.
                        Wikopedia writes:

                                "The October 27, 1997, mini-crash is the name of a global stock market crash
                                that was caused by an economic crisis in Asia. The point loss that the
                                Dow Jones Industrial Average suffered on this day still ranks as the eighth biggest
                                point loss and 15th biggest percentage loss since its creation in 1896. This crash is
                                considered a "mini-crash" because the percentage loss was relatively small compared
                                to some other notable crashes. But after the crash, the markets still remained positive
                                for 1997. "      (See October 27, 1997, mini-crash - Wikipedia)


        

            
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