Tiger  Software

PO Box 9491
San Diego, CA 92169

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When To Take Profits
in High Accumulation, Ballistic Stocks

Selling high accumulation stocks as well as any others
are done using six TIGER guidelines:

by William Schmidt, Ph.D. - Tiger Software - San Diego, CA

(Editor's note: This was written in mid-90's.   You will see how timely this information was in the Bear Market of 2001-2003.)

When should we sell?

(1) We seldom choose to fight a bear market-trend by holding speculative or high tech stocks once our Peerless Stock Market Timing Software has given three or more "S9" sell signals in the course of a year.

Such an automatic signal tells us when to sell out because the ice underneath the market is too thin. The Peerless Stock Market Timing Software's famous killer "S9"s, are discussed elsewhere in these articles.

Look at the way the steep 1990 decline hit three typical computer stocks. You will see the PEERLESS "S9"'s in August super-imposed on the charts of AAPL (Apple), CPQ (Compaq) and DEC (Digital Equipment). (Much worse declines could be shown for the October 1987 Crash, which PEERLESS also perfectly predicted on a fourth "S9". In fact, you can see any stock charts back to 1985 with Tiger's Power-Stock-Ranker Software and the a TC-2000 Historical Data CD-ROM.)

Click to see chart of Apple's top in July 1990 at the time of our PEERLESS Major Sell Based on DJI.
Click to see chart of Compaq's top in July 1990 at the time of our PEERLESS Major Sell Based on DJI.

. Click to see chart of Digital Equipment's top in July 1990 at the time of our PEERLESS Major Sell Based on DJI.

Similar charts showing even more dramatic declines were seen in October 1987, another major top signaled by the Peerless Stock Market Timing Software.

(2) We have learned use Tiger's Power-Stock-Ranker Software to watch for price head and shoulders patterns with our Accumulation Index dipping into negative territory while the right shoulder is being made. You can see an example of this just above in the case of DEC. By way of illustration, look at CUBE and CARN.

Click to see chart of C-Cube's massive head and shoulders top in mid 1996.

Lesser known Carrington Labs is proof that small companies often reverse and decline dramatically after completing a quick head and shoulders top. Profits are won by the ever

Click to see chart of CARNs top in mid-1996.

Serious deterioration of the TIGER Accumulation Index is very common among stocks that form major tops. Its appearance with a vast majority of high tech stocks in April and May 1996 warned of the coming 20% NASDAQ decline in June-July 1996.

(3) We sell our favorite high-tech high accumulation stocks when they start making new highs which are unconfirmed the On-Balance-Volume Line (OBV) not making new highs. Two recent examples, SOLV and ZOLT, show the dangers of not heeding the warnings of "false new highs".



Click to see chart of Zoltek's top in July 1990, called by the OBV Line falling far behind the stock's price action.


(4) We sell our high accumulation stocks when they explode unreasonable - doubling or tripling in a week or two and then have a day when they close lower on the highest volume in a year. This is the simple formula for our major "S24" sell signal. Two recent examples are: ANCR and NYER. Both ANCR and NYER were originally bought a year earlier near 6. They were first picked up by our TIGER ELITE STOCK PROFESSIONAL (ESP) Service because they showed massive Big-Money accumulation. Their rallies were ignited by the "TIGER Terrific Triad" - a nested B10, B12 and B20.

Click to see chart of ANCR's take-off and then its collapse in 1996.


Click to see chart of NYER's top in mid-1996. Unusual downside volume called it perfectly..

(5) We advise selling our high accumulation stocks when they make new high after a big advance of 100% or more, but their TIGER Accumulation Index is in negative territory. Such blatant non-confirmations of a new high signify heavy Big-Money Distribution. An example of this is FSCX which we recommended on our Elite Stock Professional Service below 8.

Click to see chart of FSCX's top in May-June 1990. This was a stock we loaded up on at 8 a few months earlier.

(6) When one our stocks zooms up extraordinarily, as CAMP did, we nearly always take profits when the stock closes below its 50-day moving average. This is a commonly used point to place a STOP SELL order, so we have to be quick. Fortunately, most of the high accumulation stocks we buy give other warnings when to sell. That is the purpose behind our proprietary major S25, S26 and S27 sell signals. The Sell "S20" tells us that the stock has closed below its 50-day moving average.

Click to see chart of CAMP's top in May 1996.

More information about Peerless Stock Market Timing Software

More information about Tiger's Power-Stock-Ranker Software

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