(C) 2019 William Schmidt - www.tigersoft.com
Below are some basic concepts for trading Options using TigerSoft's Hotline ($400/yr)
and Software ($995 including year of Data, Hotline and Books).
STEPS TO TAKE.
1) Wait for a new Peerless signal on DJI chart. In this case the classic S9s at the end
of September 2018 and the beginning of October 2018 had a superb history and
were clear choices. See chart below. They appear in HOTLINE along with their track
record historically since the end of 1928. The classic Sell S9 is very powerfully bearish:
Examples were October 1929, October 1979, October 1987.
Hotline Comments will amplify the power and usefulness of the particular signal
that has just occurred or has recently occurred.
From top of nightly Hotline of October 2nd. 3 hours before opening of trading in New York.
10/1/2018 “Be scared. It's October. This is when the Peerless Sell S9 is
most deadly (1929, 1937 and 1987). It is based on a widening
divergence between the DJI's rise and most NYSE stocks
which are falling. Note below how all three of our most
important measures of internal strength indicators for the
general market are now negative despite the DJI's show of
strength…”
From top of nightly Hotline of September 4th. 3 hours before opening of trading in New York.
10/3/2018 Another Peerless Sell S9 occurred today. It loudly warns us that
most stocks are much weaker than the DJI. Ten Year rates rose sharply, too.
This accounts for a good part of the weakness on the NYSE shown by dividend-
paying stocks and bond funds. As a result, the DJI's advance today was again
not confirmed by the NYSE A/D Line. Importantly, all three of our key
Peerless oscillators were negative: PI = -126, IP21 = -.03 and VI= -28. A
"titanic warning" was also blasted today for all technicians to hear as new lows
on the NYSE and NASDAQ rose to 184 whereas there were only 138 new
highs. https://kingworldnews.com/alert-3rd-largest-cluster-of-hindenburg-titanic-warnings-since-2009/
2) See of signs of interest rate changes confirm the next move Peerless predicts.
The 10-yr Bonds’ yield made a new high. See chart below from HOTLINE of 10/3/18.
The yield on 10-year bonds burst to a new high. Rising interest rates scare traders
out of stocks.
3) Use the specific ETF recommendations of the Hotline to go long or short, where the direction
is chosen by Peerless. Taking the ETF that has the highest (red signal) optimal system is one way.
SOXL was on a red Sell whose system had gained 295.4% for the last year. This was the highest
among the leveraged ETFs we look at.
Other approaches could be taken, too. The Hotline's Table 1 shows the key Power Ranking values,
like IP21 and ITRS. IWM has the weakest values on 10/3.
In the TigerSoft chart of SOXL, see that it was on a red Sell from
Tiger's optimized best system for the stock and that system had
gained 295.4%. See also the black (numbered) Peerless system's
signal on the SOXL chart. And see also that the blue Closing Power
had not yet broken its uptrend and the stock had not yet broken its
support near 140. We often wait for the Closing Power to break its
uptrend and prices to break support to increase the likelihood of a
rapid decline when trading options.
4) Be sure that the Closing Power, Accumulation Index (IP21) and ITRS (Relative Strength
confirm the choice of ETFs or stocks. This may require waiting for the Closing Power
to break its trend. Trade the CP trend breaks with such stocks and ETFs. See how blue
Closing Power break in uptrend “clinches” Sell S9 and was used to go short SOXL
@137.
5) Cover the Short Sale or Take profits in the long position when the Tiger Closing
Power breaks its trend. SOXL’s CP downtrend was broken @97. That’s a gain of 40
points in three weeks. Options would have probably quadrupled or even more.
