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    TigerSoft and Peerless Nightly Hotline  
                 (C) 2006 William Schmidt, Ph.D
                   Book-Mark This Address  
            12/26/2006     ....    
                I show some charts of
                leading High Accumulation
                individual stocks below to illustrate
                power of TigerSoft.

      HELP:  Track Record of Major Peerless Signals

                        "Be a Tiger.  Go for it!"
                   12/26/2006                 We still operate under major Buys from the Peerless and the
         NASDAQ programs.  And there is a new Buy-B13, telling us to expect a Santa Claus rally.
         The operative major Peerless signal is a Buy B18.  It proved to be profitable 86% of the time.
          It occurred on 9/26/2006 with the DJIA at 11669.  It gains an average 8.2% on the
          DJIA at the time of the next major Sell.  If it produces an average gain here, the DJIA will
          reach 12650 at the time of the next major Sell.

                There is a global bull market going on led by China, SE Asia and Europe.  Bull markets like
         this are hard to stop, but last May's S9 shows that a major top called by Peerless is strong
         enough to stop even them in their tracks
.    Look at the Chinese life insurance stock below, LFC.
         It is up the most of all the bullish special situations for the last year and is proof that we
         should sell our big winners LAST.    It is up 36% in the last four trading days!

               But profit-taking now seems more than prudent if the QQQQ moves below 43....   The QQQQ
         has completed a bearish "hands above the head" pattern and the DJIA has now gone a record 45
         months without a 10% correction..  It is at support.  Watch to see which way it moves. The
         Red Sell Signal is part of an optimized system that has gained 35% for the last year.  It is oversold.
         A great  rally hs occurred from August to the end of November.  Now the market is clearly
         getting winded.  The fizzled breakouts by the NASDAQ, QQQQ (Nasdaq-100) and
         RUT (Russell-2000) are warnings.   The QQQQ (Nasdaq-100)  has closed decisively below its
         rising 50-day ma with its Accuumulation Index negative.  This is defitiely bearish for the
         QQQQ.  If it were a stock we would have to say "Take profits."   If it turns out to be leading
         the NASDAQ as a whole with this breakdown, then the NASDAQ will break below its 2400 support,
         from its recent bottoms and its own rising 50-day ma.  The NASDAQ closed up 12.33 at
         2413.51.  Corrections usually don't begin until January, but this year typical seasonality
         repeatedly failed. 

         The DJI-30 pulled back to its rising 21-day ma and rose a little up from it today...  The 21-day ma
         has acted frequently as support since the start of the rally since July.  (The 21-day ma is the middle
         red dotted line int he DJIA charts below. )   Violations of the 21-day ma are about 60% reliable at
         this time of the year in telling you direction of the next two-three weeks' trend.  So weakness by the
         DJI and a close below 12400 will have to be construed as a warning of a rapid further pull-back,
         probably to the lower band 2% beneath current levels.

         Also bearish are the 21-day percent change results for the Fidelity Select Funds.  These are
         shown just below.  As of tonight's close, only 3 of the  44 Fidelity Select funds show more than
         a 1% gain for the last 21 trading   days,  But 19 of them are down more than 5%.  Some of this
         poor performance may owe to dividend distributions, but there is no doubt that that these leading
         funds are being pummeled with profit-taking.   This contradicts the bullish message of the rising slope of
         the NYSE A/D Line.

          I am also concerned at the swift deterioration in the Accumulation Index readings for the
          QQQQ and SPY (SP-500).  Big money is selling with some urgency.  What is it that they know
          that is not yet in the public spotlight?  Higher interest rates?  Increased US troops in Iraq?
          A show-down with Iran over nuclear weapons?  If gold and oil are up tomorrow, we will know it's
          a sure sign of renewed Middle Eastern tensions.

          A pattern of weakness after the opening has started for the QQQQ.  This must be watched.
          Until the QQQQ gets back above its 21-day ma, I would expect it to continue.  So, be careful
          about buying tech stocks early in the trading day.

          Perhaps, the DJIA will rebound yet again from its 21-day ma.  But, given how far the markets have
          rallied since July and given that we have not seen a 10% correction in the DJIA in 45 months,
          since March 2003, I think we have to more than a little worried.  Taking more profits
          seems advisable if the DJIA falls below 12400.
   Recent 1 Month Gain 
FSTCX     Telecommunications                 +2%
FSPFX      Paper-Forest                             +1%
FSUTX     Utilities                                       +1%

Weakest for last 30 days

FSRBX     Banking                                  -12%
FSVLX      Home Finance                        -10%
FSCHX      Chemicals                              -10%
FDLSX     Leisure                                   -10%
FSHOX     Construction                             -8%
FSLBX     Brokerage                                 -8%
FSCBX     Small Caps                                 -8%
FIDSX      Financial                                     -8%
FSDPX     Industrial Materials                  -7%
FSCPX    Fidelity  Consumer                      -7%
FCYIX     Cyclical                                       -7%
FSRPX    Retailing                                     -5%
FSRFX     Transportation                          -5%
FSNGX    Natural Gas                              -7%
FSMEX    Medical                                    -5%
FSLEX      Electronics                               -5%
FBSOX     Business                                   -5%
FSPCX      Insurance                                -5%
FSDAX     Defense                                   -5%

  =============================   DJI-30 ========================================

                 Notice the DJI's flat top.  This is ordinarily a bullish sign.   The DJIA is still above its
      red 32-day ma.  That is usually support  in an advancing market. 
      Flat tops usually bring excellent breakout runs.  The reason is that such selling is too easy. 
      (More often, the way to make money in the market is to do what is not so easy or comfortable.) 

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-----------------  NASDAQ remains on a Buy and is at support --------------------------
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                 Oil fell sharply back to its rising 50-day ma.     A recovery advance by  oil will hurt the
     NASDAQ and  the stock market generally.   Watch the oil ETF.

---------------------------------------- CRUDE OIL --------------------------------------------------------------------------------
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----------------------------------------------- BIOTECH ------------------------------------------------------------------------
I am concerned that we have not yet had any real  recovery by the BBH (Biotechs).
A close below its support at 185 would be bearish short-term.  Its blue 50-day ma is falling.
Its Accumulation Index is negative.  So is its relative strength (ITRS).
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-------------------------------------- WEAK DOLLAR and STRONG EURO ----------------------------------------           
            The Dollar remains under pressure.   Look at the EURO chart below.  Notice all the
      Accumulation in its chart.  Silver and gold do well in this environment.   So do foreign ETTs until there
      is a major Sell Signal from Peerless.... We have to be concerned that the pronounced weakness
      in the dollar   will  get  the FED to start talking about its concern about "Inflationary Pressures", all
      the while what it is really concerned about is how it can finance the huge Federal Deficit" when
      foreigners don't trust the dollar and it must soon start considering raising interest rates
      to satisfy them.  Fortunately for the bulls, usually the Fed will not talk about "inflationary
      pressures" in December for fear of hurting Christmas retail sales, because of their importance
      to the economy.   So, the Fed usually waits until January or February.  That delay buys some
      time for the market in December.   As a result, big declines are very rare in December.  You have
     to go back to 1968 to find a case when a significant intermediate-term top was made in December.  

After 12/25 seasonality:
             Since 1965, the DJI has risen 
              59% after the next 3 trading days.   
              67% after the next 5 trading days,      
67% after the next 10 trading days,   
              56% after the next  21-trading.            +1.2% avg.
              64% after the next two months.           +2.1% avg.

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    ======================= GOLD STOCKS AND GOLD ===================================

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YHOO.BMP (730014 bytes)
              Learn how to spot them as they breakout. 
              Use Tiger's Power-Stock-Ranker.

                          -------------------- LFC Wild Breakout over 42. -------------------------
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