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Daily Blog - Tiger Software Send any comments or questions |
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New TigerSoft Short Selling Tools and Techniques Only $98.====> Get our TigerSoft Special Here and run the same programs shown here. We always look at the weakest stocks in order to to make the lessons as clear as possible. As the DJI has now gone 55 months without a decline of more than 10%, it would be wise to consider some short selling techniques. Of course, there are ETFs that now let you be long on a short sale. And these are fine for many accounts. But we make much more money using the approaches outlined below and expanded in my book, Killer Profits in Any Market using Tiger's Original Accumulation Index. In the chart below, notice first the bold major Peerless S9 and S12 Sell signals. These are our most bearish general market signals. The software lets you impose them on any chart. The first thing you will want to do when we get a reversing Peerless Sell signal is to look at the weakest stocks, stocks making new lows and stocks in the weak groups. It usually takes a few days for the market to roll over. So you have a little time. Selling FMT short on the January and June Sell signals would have worked perfectly. A second powerful system is based on the original Tiger Accumulation. When it dips below -.25, wait for the next recovery. Then when the Accumulation Index goes back below its moving average, sell short. The vertical lines illustrate where short sales would have been made using this system. The best such "Accumulation Index MA penetration Sells" take place between 4 and 8 weaks of the previous dip and coincide closely in time with a price violation of the 50-day ma.  A third, very simple approach also based on the original Tiger Accumulation is to sell short when our index is deeply negative and the stock violates its 50-day ma. Very negative Accumulation Index readings below -.25 show, we postulate, informed insider selling if the stock then starts to weaken more than the market as a whole. That is true for TGIC below in January. The rest of the market turned up in February, but not TGIC. A fourth system is based on our proprietary S12 Sell for stocks. You will see that in many of of the charts here and charts that show weakness that is exploitable by the short seller using TigerSoft. The Tiger S12 is not the same as the Peerless S12. It is based on the stock's behavior, not the Dow Jones, as is the case with the Peerless S12. In May, the Accumulation Index falls back below its moving average after previously dipping beloiw -.25. This constitutes a great place to go short a stock that is clearly underperforming the market. It means the effort to support the stock is ending. So, it becomes vulnerable. It did hold up for a few weeks. That was because the overall market was strong until our July 17th major Peerless Sell.  |
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