19300926      S10            213.3         .151  
19400510      S10            144.8         .196 
19410129      S10            126           .048
19411007      S10            124.4         .111 
19471205      S10            176.1        -.021 

19480114      S10            177.4         .021
19490210      S10            172.4         .042 
19520910      S10            271.7         .025 
19530423      S10            270.7         .027 
19570814      S10            485.9         .111

19600120      S10            643.6         .049 
19600919      S10            586.7         .005  
19660301      S10            938.19        .173 
19700427      S10            735.15        .128
19780107      S10            793.49        .065 

19781027      S10            806.05        .017 
19791019      S10            814.68        .008 
19800307      S10            820.56        .052 
19820528      S10            819.54        .052 
19990923      S10            10318.58      .029

20050415      S10            10087.81     -.013 
20060613      S10            10706.14     -.029
----------------------------------------------------- 
                             No. = 22      .057  

5             3             7        3           2 

PE      6  .058
PE +1   6  .054
PE +2   5  .092  
PE +3   3  .053

Jan     4  .046
Feb     1  .042
Mar     2  .113
Apr     2  .007 very low
May     2  .124
Jun     0  ---   
Jul     0  ---
Aug     1  .111
Sep     3  .053
Oct     3  .045
Nov     0   ---
Dec     1  -.021

1-10    5   .076
11-20   8   .049
21-31   7   .054

19300926      S10            213.3         .151
   213.3  .909   -1.242 -98   -27    -487   -.148   -550  -.335   -.057
19400510      S10            144.8         .196 
   144.8  .979   -.41  -85    -34    -422   -.225   -207  -.152   -.088
19410129      S10            126           .048
   126.0  .965   -.455 -24    -39    -126   -.182    -39   .008   -.049
19411007      S10            124.4         .111 
   124.4  .980   -.290 -43    -29    -228   -.216    -85  -.345   -.015
19471205      S10            176.1        -.021 
   176.1  .973   -.434 -154   -25    0641   -.105    -215  .186   -.016
19480114      S10            177.4         .021
   177.4  .987   -.066  -34   -18    -143   -.029    -103  .068   -.015
19490210      S10            172.4         .042
   172.4  .964   -.551  -94   -24    -367   -.141    -159 -.327   -.009 
19520910      S10            271.7         .025 
   271.7  .987   -.371  -63   -19    -232   -.103    -148 -.371    .009
19530423      S10            270.7         .027 
   270.7  .974   -.773  -125  -46    -429   -.197    -319 -.344   -.057
19570814      S10            485.9         .111
   485.9  .961   -.739  -186  -24    -594   -.156    -438 -.299   -.033
19600120      S10            643.6         .049
   643.6  .963   -.587  -79   -11    -223   -.162    -398 -.494    .009 
19600919      S10            586.7         .005 
   586.7  .946   -.748  -138  -41    -391   -.154    -501 -.302   -.096 
19660301      S10            938.19        .173 
   899.77 .958   -.568  -159  -61    -413   -.125      -9 -.176   -.079
 

       gone 19700427      S10            735.15        .128 

19780107      S10            793.49        .065 
   793.49 .972    -.196  -85   3      -175   .01       -2  -.034  -.058
19781027      S10            806.05        .017 
   806.05 .934    -.76   -389 -59     -805 -.156       -10 -.291  -.053
19791019      S10            814.68        .008
   814.68 .942   -1.083  -305 -81     -579 -.152       -10 -.300  -.016 

19800307      S10            820.56        .052 
   820.56 .944   -.836   -455 -41     -877 -.103       -12 -.119  -.006
19820528      S10            819.54        .052 
   819.54 .968   -.357   -124  21     -239 -.136        -6 -.189  -.008
19990923      S10            10318.58      .029
 10318.50 .946   -1.049  -457 -42     -455 -.154      -158  -.247 -.038
20050415      S10            10087.81     -.013 
 10087.81 .965   -.676   -284 -13     -383 -.212      -307  -.273 -.045       
 

--------------------------------------------------------------------
                         No. = 130   Avg.= .102

39            52            23            6             10

PE     24    .094
PE + 1 35    .090
PE + 2 48    .108
PE + 3 23    .114 

Jan    10    .081
Feb     8    .183  high
Mar     9    .158
Apr    14    .091
May    13    .095 
Jun    12    .126
Jul    17    .106
Aug    17    .085
Sep     9    .087  
Oct    10    .09
Nov     2    .025  low 
Dec     9    .062

1-10    45    .107
11-20   53    .093
21-31   33    .108

----------------------------------------------------------------------------------------------------------------------------
2011 Peerless Edition    There are 3 conditions that bring automatic Sell S10s.

     1) Close below well tested horizontal support that goes back 40 or more days.
               
                                   Date           DJI Gain at time of next Peerless Buy
                                   ----------------------------------------------------
                                    1/14/1947    177.4            .   021  (2.1%)
                                    7/27/1977     888.43           .092
                                    1/7/1978        793.49           .056
                                    ---------------------------------------------------
                                    Number of trades = 3    Avg. Gain= 5.6%
                  Even though there are only  a few cases where the computer can spot an "S10", the signal
           is important, because it puts Peerless users on the alert to watch for well-tested support levels.
           And makes them aware of the key role they play in the stock market.  They point out the high
           inflection points in the market, where bounce-back rallies occur and where market collapses
           often start.

      2) DJI close more than 10.1% below 21-day ma

       3) DJI recovers back after #2 above for 20 trading days to tag 3.0% lower
                  and closing below 3.5% lower band.


#2-#3
           New Sell S10
                        Back-testing to 1928 Shows This Is Safer. 

                                   What worked well between 1942 and 2008 does not allow for declines like those
                       that took place between 1929-1933 and 1937..  Peerless was very closely tested back
                       to 1942, but this market is straining the limits of what was normal behavior after the Battle
                       of Midway.  Given the speed of the financial meltdown and the real risks that it could get even
                       worse because no one knows (because there was no regulation) the size of the
                       "Credit Swaps" time-bomb or how much deceit. non-transparency and obfuscation was fully used
                       in the packaging of mortgages, we should play it safe!   When the DJI fell more than 10.15% below
                       its 21-day ma, it was behaving in a dangerous way, as you can see below.  In addition, the rally
                       back towards the lower 3.5% band has turned out to be a good point for additional selling.

                                   Looking back to 1928, we see the advisability of taking a decline below the
                       10.15% lower band as an automatic Sell S10, except in July or December when
                       the seasonality for a rally is very high.  The only other exceptions I would make are if:
                      (1) the market has been closed for a day or more because of market circumstances (2001) or
                       (2) the DJI is below what it was from a year ago.  (1933) or
                       (3) the DJI falls more than 6% on the day it would otherwise be a Sell S10.

                                   "Normal trading" for the DJI is backing and filling between 4% bands around the
                       21-day ma.  There is another aspect of this new "Sell S10".  Treat rallies for 20 trading days
                       after a Sell S10, as defined above, as new Sell S10s if the DJI tags the 4.0% lower band
                       below the 21-day ma but the DJI does not close more than 3.5% below the 21-day ma.

                                 History of New Sell S10s   Green = profitable Red = loss.
                       13 of the 15 original S10s were profitable, using either a new Peerless Buy or in cases
                       before 1942, a closing above the 21-dma to Buy.

         1              10/24/1929 - DJI 299.50   It fell to 198.70 on 11/13/29.   After a decline this charge
                       there can be no recovery S10.       11/25/1929 DJI over 21-sma at 243.40.

        2             6/16/1930 - DJI 230.10    It fell to 211.10 on 6/16/1930
                                                                               7/10/1930 DJI over 21-sma at 227.40

         3             9/29/30 - DJI 208.10       It fell to 173.30 on 11/11/1930 - also one profitable recovery S10
                                                                               11/20/1930 DJI over 21-dma at 187.10

         4             4/29/31 - DJI 143.60       It fell to 121.70 on 6/2/1931.   also one profitable recovery S10  
                                                                              6/12/1931   DJI over 21-dma at 136.90

         5             9/15/1931 - DJI 120.60    It fell to 86.50  on 10/5/1931.
                                                                             10/13/1931   DJI over 21-dma at 103.50

         6             11/27/1931 - DJI 91.60    It fell to 73.80 on 12/17/1931.  Best to cover on Dec 17th for
                                                                             Santa Claus rally - DJI = 73.80

         7             4/1/1932 - DJI 72.30   It fell to 41.20 on 7/8/1932.
                                                                             6/15/1932  DJI over 21-dma at 50.60

         8            10/7/1932 - DJI 62.70     It fell to 58.30
                                                                             11/17/1932   DJI over 21-dma at 64.60

         9            9/13/1937 - DJI 158.00   It fell to 125.70.     also one profitable recovery S10  
                                                                             11/12/1937 DJI over 21-dma at 133.10.

         10            11/22/1937 - DJI  114.20 It bottomed three days later and rallied over 21-day ma 0n 12/2/1937
                                                   with DJI at 125.10

          11         9/4/1946  - DJI 176.70   It fell 6.5% to next Peerless Buy.
                                                                                          also one profitable recovery S10  2.1% drop.

          12         5/28/1962 - DJI 576.9   It fell 6.5% to next Peerless Buy.
                                                                                          also 4 profitable recovery S10s  10.5% to 12.1% drops.

           13         8/29/1974 - DJI 656..84  It fell 5.3% to next Peerless Buy
                                                                                          also 4 profitable recovery S10s  5.0% to 8.3% drops.
           
           14        10/16/1987 - DJI 2246.74   It fell 18.1% to next Peerless Buy
                                                                                          also 3 profitable recovery S10s  2.6% to 6.9% drops.
                                                (DJI rallied over 21-dma on 11/12/1987 with DJI at 1960.)
           15        10/7/2008 - DJI 9447.11  It fell 2.0% to next Buy.
                                                                  Recovery S10 at 9310.99 is still open.

 Peerless December 2013 Charts for all Sell S10s