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Playing The World Bull Market This Late in The Boom I wrote Peerless Stock Market Timing in 1981 based on a close study of data between 1970 anf 1981. It has proven itself many times in many ways. I have learned that powerful bull markets usually take quite a while to top out. Multiple tops are needed. Look back at the charts of 2000 for example. Peerless gives multiple clusters of major Sells. So we are vigilant and we think we know what to look for. Just keep in mind this is a global bull market. It will not be stopped easily. Oil prices might have to surpass $100/bar. A big regional war would stop it. American tariffs would probably stop it. And so would an American credit collapse. We will watch for these, toom and appreciate their financial significance. There is a simple technical tool to use now to determine when to take profits that I am recommending to Hotline subscribers. Drop me a line and I'll tell you what it is. william_schmidt@hotmail.com Not since March 2003, has the DJI closed down more than 10 from its highs. That's a record 55 months. This is the longest such sustained, uncorrected bull market since before 1915. If we measure the duration of the bull market using the standard of a 15% correction, then the current run is not so unprecedented. The DJI went 84 consecutive months without a 15% correction between October 1990 and August 1998. Even a 10% correction, like we saw from the July high to the August 2007 trading low for the DJI, can bring a much bigger fall for many foreign markets. Brazil (EWZ), Indonesia (IF) and Thailand (TF). Most emerging markets' ETFs fell 20%. The same was certainly true in the mid-2006 panic. Fortunately, as you can see from the charts below and elsewhere our Peerless usually gives timely Sells and Buys on the DJI-30 that apply nicely to foreign ETFs. You can see below that the May S9 Sell from Peerless called the top perfectly before the Indian market's 40% collapsein 2006. Peerless Sell and BUY Signals on India in 2006 The current Tiger Index of all foreign ETFs, weighted for value of trading, shows a powerful uptrend that has reached the top of its price channel. The Tiger Accumulation Index is now much stronger than it was for, say, India in mid 2006. The second chart below shows the Advance-Decline Line for these ETFs is also making confirming new highs. When we examine the chart of the foreign ETFs we see a bullish inverted head and shoulders pattern with a height of about 135 points (from neckline to low.). I project a minimum target of 750 or 760. At the bottom, we see there are 16 ETFs not making new highs and 39 that are. Traders may want to us the 10-day ma. But I would rather use Peerless. It is very likely it will give another major Sell right at the top. And we can sell then.
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Top 10 Power Ranked
Bottom Ten Power Ranked Current AI EWZ .27 EWK FXI .22 JDF VWO .18 EWI ILF .32 IEV PGJ .23 TFC KF .18 TF TWN .24 EWL EEM .21 EWJ IXP .12 EWO PWJ .34 EZA Foreign Performance for the Last Year 10 / 13 / 2006 - 10 / 12 / 2007 Rank Symbol Name Price Pct.Gain % over 50dma Accumulation Open Up% Close UP% --------- ----------------------------------- ---------- ------------ ----------- -------------- -------- --------- 1 FXI iShares FTSE/Xinhua China 25 Index Fund 202.2 140% 29.9% 180 59% 56% 2 PGJ PowerShares Gldn Dragon Halter USX China 35.78 108% 24.3% 181 67% 52% 3 EWZ ISHARES MSCI BRAZIL INDEX 79.47 91% 22% 192 59% 58% 4 JFC JARDINE FLEMING CHINA REGION FUND 32.02 85% 18.9% 150 52% 56% 5 GCH GREATER CHINA FUND 38 79% 9.1% 106 59% 52% 6 GRR ASIA TIGERS FUNDS 29.97 73% 13.2% 138 51% 59% 7 CHN CHINA FUND 51.5 72% 12.7% 137 58% 57% 8 ILF ISHARES S&P LATIN AMERICA 40 INDEX 258.94 69% 18.2% 192 58% 60% 9 EWS ISHARES MSCI SINGAPORE INDEX 15.85 61% 14.3% 170 60% 43% 10 VWO Vanguard Emerging Markets Stock VIPERs 111.65 59% 15.5% 185 63% 49% 11 SGF SINGAPORE FUND 19.96 58% 11.8% 144 56% 55% 12 EEM ISHARES MSCI EMERGING MARKETS INDEX 159.38 56% 15.5% 168 59% 56% 13 EWM ISHARES MSCI MALAYSIA (FREE) INDEX 12.42 55% 9% 155 59% 49% 14 EWY ISHARES MSCI SOUTH KOREA INDEX 72.05 55% 10.9% 127 57% 55% 15 EPP ISHARES MSCI PACIFIC EX-JAPAN INDEX 175.21 52% 15.3% 162 59% 58% 16 EWA ISHARES MSCI AUSTRALIA INDEX 33.48 52% 15.4% 148 60% 51% 17 EWH ISHARES MSCI HONG KONG INDEX 22.12 51% 15.3% 134 56% 48% 18 EZA ISHARES MSCI SOUTH AFRICA INDEX 143.82 47% 13.7% 126 57% 55% 19 EWG ISHARES MSCI GERMANY INDEX 35.37 44% 8.1% 157 57% 56% 20 IF INDONESIA FUND 13.56 43% 12.2% 152 52% 45% 21 EWC ISHARES MSCI CANADA INDEX 34.01 42% 10.4% 113 57% 51% 22 TF THAI CAPITAL FUND 15 42% 11.3% 105 50% 50% 23 KEF KOREA EQUITY FUND 14.52 41% 9.4% 149 54% 56% 24 EWW ISHARES MSCI MEXICO (FREE) INDEX 63.66 38% 9.7% 142 62% 47% 25 EWD ISHARES MSCI SWEDEN INDEX 38.44 35% 8.9% 138 55% 56% 26 IXP ISHARES S&P GLOBAL TELECOMM SECT 80.04 35% 8.9% 167 56% 59% 27 TFC --- 7.95 35% 8.3% 99 54% 46% 28 TWN TAIWAN FUND 23.11 35% 8.2% 187 48% 55% 29 PWJ PaineWebber Group 24.68 32% 7% 159 56% 56% 30 EWN ISHARES MSCI NETHERLANDS INDEX 32.93 30% 8.1% 144 56% 56% 31 KF KOREA FUND 48.17 30% 13.2% 178 50% 55% 32 EWP ISHARES MSCI SPAIN INDEX 63.12 29% 7.5% 136 52% 56% 33 EWT ISHARES MSCI TAIWAN INDEX 17.24 29% 6.9% 155 55% 54% 34 EZU ISHARES MSCI EMU INDEX 123.76 29% 7.1% 125 55% 54% 35 CEE CENTRAL EUROPEAN EQUITY FUND 61.13 26% 14.3% 145 55% 57% 36 FEZ FRESCO DOW JONES EURO STOXX 50 63.1 26% 6.3% 151 54% 57% 37 IFN INDIA FUND 57.48 25% 18% 149 52% 51% 38 IEV ISHARES S&P EUROPE 350 INDEX FUND 122.34 24% 6.9% 112 56% 57% 39 MXF MEXICO FUND 45.18 24% 8.6% 151 55% 56% 40 VGK Vanguard European Stock VIPERs 80.1 24% 7% 135 59% 52% 41 EWQ IShares MSCI France 39.19 23% 6.7% 140 54% 56% 42 EWO ISHARES MSCI AUSTRIA INDEX 39.6 22% 6.3% 149 57% 50% 43 IXN ISHARES S&P GLOBAL TECHNOLOGY SECT 68.73 20% 6.2% 132 55% 53% 44 EKH HOLDRS EUROPE 2001 90.42 18% 6.9% 131 56% 48% 45 EWU ISHARES MSCI UK INDEX 26.69 18% 7.2% 147 52% 56% 46 EWL ISHARES MSCI SWITZERLAND INDEX 27.35 17% 5.1% 141 52% 50% 47 VPL Vanguard Pacific Stock VIPERs 74.75 17% 7.4% 181 54% 52% 48 EWI ISHARES MSCI ITALY INDEX 35.79 15% 5.5% 130 53% 53% 49 EWK ISHARES MSCI BELGIUM INDEX 28.02 15% 7.7% 88 48% 58% 50 IIF MORGAN STANLEY INDIA INVESTMENT FUND 55.48 14% 18.4% 160 54% 56% 51 MF MALAYSIA FUND 30.95 12% 14.3% 40 11% 89% 52 EWJ ISHARES MSCI JAPAN INDEX 14.54 6% 4% 156 47% 52% 53 ITF ISHARES S&P-TOPIX 150 INDEX FUND 127.8 5% 4% 170 50% 52% 54 TRF TEMPLETON RUSSIA FUND 70.98 1% 10.4% 122 52% 52% 55 JOF JAPAN OTC EQUITY FUND 11.06 -11% 5.9% 120 41% 52%
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Very
High Accumulation - EWZ and VWO Very Low Accumulation - JOF Use the chart below for purposes of comparison.
"Chinese Red Chips"
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