wpe1E.jpg (33803 bytes)

         Daily Blog - Tiger Software

                            October 20, 2007
Updated 11/28/2007
                     The Stock Market's
                     Trading Ranges Swings
                     Can Be Very Violent.

                    But Peerless Buys and Sells
                    on The DJI-30 Will Help You
                    Trade Them Very Profitably. 

                    Examples from 1956-2007          

William Schmidt,     - Tiger Software's Creator
      (C) 2007 William Schmidt, Ph. D.  - All Rights Reserved. 

      No reproductions of this blog or quoting from it
      without explicit written consent by its author is permitted.

Back to Home Page - www.tigersoft.com


     Send any comments or questions
      to william_schmidt@hotmail.com


History Repeats with A Rhyme  

               Compare the broad trading ranges shown in the Peerless charts of 1956, 1986 and 2007.
                      Trading ranges have their own dynamics   Peerless has studied them closely.  It can teach you
                      a lot.. 
                             Why not get Peerless Stock Market Timing Software today for $295 and/or our Hotline
                      for a year for $298. 
                                                                     Special Offer
                            Get both and we'll throw in our TigerSoft individual stock / commodity program for free
                      until December 10th, 2007.  Call us at 858-273-5900 or email us at william_schmidt@hotmail.com.
------------------------------------ DJI-30 ---1956 -------------------------------------------
wpe25.jpg (48696 bytes)
                 ------------------------------------ DJI-30 ---1986 -------------------------------------------
wpe26.jpg (43883 bytes)

                   ------------------------------------ DJI-30 ---1986 -------------------------------------------

              wpe2B.jpg (69064 bytes)                               

                         How Peerless Lets You Profit from
                       Stock Market Trading Ranges: 1965-2007

                       In trading ranges you see prices move back and forth between mostly horizontal,
            reasonably parallel support and resistance lines.   Usually the DJI-30 trading ranges are
            4% to 7% apart, but there are cases like in 1986 when the bottoms and tops that line up are
            10% from each other.   The current DJI chart, so far, looks like a broadening pattern, not a
            trading range.   But if the Fed succeeds in stabalizing the market, I would think trading range
            characteristics will present themselves.  This, as you can see below, is often a phenemomenon
            seen in Presidential Election years.
(If you like this point, get Peerless.  There's are lots original insights
                in it.  And it has been thoroughly time-tested back to 1915)

                      Much of the time the DJI-30 is locked in a trading range.  Within it, the moves are
             often scary.   They are designed to scare the unwary out of their positions at the bottom and
             get those who do not heed charts to buy at the top.    Without many bids on the way down
             prices scarily fall from the top of a trading range to the bottom of it.  There they probe for
             support.   Once it's found and confidence comes back, prices easily rally to the top of the
             trading channel and test the resistance there.  These trading ranges can last 6-9 months.
             Trading patterns more often than not continue higher when they follow on an upward course.
             In a declining market, they are as apt to represent a bottom as a top.  In both cases, Peerless
             Buy and Sell signals, coupled with our charts' internal strength readings, give us special
             insights into their next price movements.

                    Breakouts from trading ranges are important. Some are authentic and prices move higher,
             but some are not.   The failed breakouts show major Peerless Sell signals on the false breakouts.
             Look at the chart for
1972-1973 and 1981 for example.

             ------------------------------------- Nixon Re-Election Breakout failed in January 1973. --------------------------------

             wpe14.jpg (50023 bytes)
  -------------------------------------   Failed Breakout Rally in Spring 1981, after Reagan's Election in 1980. -------------------------------------              
             wpe15.jpg (49203 bytes)

                     Here were are interested in trading ranges that last at least 4 or 5 months and last up to a year. 
             These will help the intermediate-term, mutual fund and ETF investor the most.  But you should be
             aware of longer term ones, such as the DJI was locked in from 1966 to 1982.  Lots of shorter term
             trading ranges can be seen in the charts below.  They are of interest to quick traders, but they
             can serve to mislead the longer term investor unless a broader perspective is taken.

                                                              16-year DJI-30 Trading Range
             wpe12.jpg (20169 bytes)
Rydex Funds produced this chart.

                      The DJI-30 forms these trading ranges about every two to four years.  Look at the
1972, 1976, 1980-1981, 1984-1985, 1986, 1988, 1989-1990, 1992, 1994, 1996, 2000, 2004 and
             now 2007.
  Our Peerless automatic Peerless signals will help you understand the way prices
             swing back and forth at these times and prompt you to buy at or near the bottom and sell
             at or near the top.  Here are the charts.  The automatic Buy and Sell signals on individual
             stock charts work the same way.  Look for a study here about them in a few days.  

             -------------------------------------------- DJI-30   1972   ---------------------------------------------------------------------------
             wpe12.jpg (43890 bytes)

             -------------------------------------------- DJI-30   1976   ---------------------------------------------------------------------------
             wpe13.jpg (43128 bytes)

  -------------------------------------------- DJI-30   1980-81   ---------------------------------------------------------------------------
              wpe14.jpg (53251 bytes)

              -------------------------------------------- DJI-30   1984   ---------------------------------------------------------------------------
              wpe15.jpg (49554 bytes)       
               -------------------------------------------- DJI-30   1986   ---------------------------------------------------------------------------
               wpe1C.jpg (46595 bytes)

                -------------------------------------------- DJI-30   1988   ---------------------------------------------------------------------------
                wpe16.jpg (48650 bytes)               

                 -------------------------------------------- DJI-30   1989-90   ---------------------------------------------------------------------------
                 wpe17.jpg (52084 bytes)

                    -------------------------------------------- DJI-30   1992   ---------------------------------------------------------------------------
                   wpe18.jpg (48494 bytes)           
                 -------------------------------------------- DJI-30   1994   ---------------------------------------------------------------------------
                  wpe19.jpg (53184 bytes)      

             -------------------------------------------- DJI-30   1972   ---------------------------------------------------------------------------

                   wpe12.jpg (44069 bytes)

                  -------------------------------------------- DJI-30   2000   ---------------------------------------------------------------------------
                   wpe1A.jpg (54911 bytes)    

                  -------------------------------------------- DJI-30   2004   ---------------------------------------------------------------------------
                    wpe1B.jpg (50724 bytes)                
                     -------------------------------------------- DJI-30   2007   ---------------------------------------------------------------------------











Hit Counter