Peerless Automatic Buy and Sell Signals

After you have placed a DJI chart on the screen by clicking on the "PEERLESS Daily DJI" button, you may get the a chart of the DJI for the most recent data you have in your computer by clicking "OK" with "DATA" set as the default File Name at the next prompt. You will see a year's worth of data plotted.  There is a band built 3.5% above and below a 21-day ma. At the bottom is the "P-Indicator".  This is the daily 21-day mvg. avg. of NYSE advances minus declines. To put the Peerless signals on the screen find "Signals(1)" at the top and click on one of the first three items: Bearish, Bullish or trading Range Mode. You will see some signals are labelled larger and are in bold type.  They have red arrows.  These are the major Peerless Buys and Sells.  The signals occur on the day pointed to by the arrow.  The arrows are distinguished by an identifying code, such as "B12", "B2" or an "S8" or "S9".   "B" or "b" stands for Buy.  "S" stands for Sell.  The arrows and signal-codes appear on the day of the signal.  Note that the computer needs at least 65 days of data to show all signals.  If the signals overlap, you may need to get a listing of the "Trading Results" using the pull-down menu entitled "Operations".  The automatic signals are numbered in no particular order other than that the signals after "12" were all created after 1982. Higher numbered signals have no more special potency than lower numbered signals.   You may look up a description of a particular signal and its historical success and potency by using our Help routines. The Automatic Major Buy and Sell signals appear in Big, Bold Red lettering.  Minor signals are smaller and appear in an assortment of colors.  There are three major Sell signals: S9, S12 and S10.  The first two occur when the DJI rallies to the upper band with the "P"-, "V"- and Accumulation Index  negative.  This is called a negative non-confirmation. There are nine major Buy Signals: B4, B9, B10, B12, B15, B16, B17, B18 and B19. Longer-Term investors should use only the Major Buy and Sell Signals. They should mainly trade in the trend shown by the direction of last major signal.  Any red major Buy signal can reverse any major Sell signal.  Similarly, any major Sell signal can reverse any Major Buy signal.   The last major signal determines the longer-term trend with one exception, which is explained by the Peerless DJIA-10% Stop Loss Rule. The average holding period can be seen in the fact that as of January 1, 2005, there have been 116 reversing Buys and Sells since 1965, about 41 years.  The average holding period on a reversing major Buy is about 4. months.  The DJI typically rose 9.9% from an average reversing Buy to a reversing Sell, though there is considerable variation from signal to signal.  As a result, these major reversing Buys afford excellent results to someone taking "long" positions in mutual funds, index options, futures or stocks who then sells where there is a major Sell signal. While these automatic signals should be amply profitable, users should get even better results by applying 4 other simple rules:  1) When a Sell S9 signal occurs wait for it to be "clinched" by having NYSE declines exceed advances by 25 or more at the close, either the day of the signal or on a subsequent day unless a major Buy signal intrudes. 2.) Four "clusters" of Sell S9 signals (clinched or unclinched) in 11 months have invariably spelled big trouble for the market. 3) Using the correct mode will maximize your results. 4) When a B9 signal occurs with that day's ratio of NYSE declining stocks outpacing advancing stocks by a ratio of 9:1, wait another day for buying.