THE HALLER THEORY OF STOCK MARKET TRENDS GILBERT HALLERCunvren 1 CAN ANYONE PREDICT THE FUTURE? Do you hive myone can cert pred! tho fateh Whe ve pi tot te sn il sb th ne tr Tate? That = pret oh fer at ‘Wnt fve predit that omorowsorlg hgh ide wil be Illes hr, by sow Be Se pret sree fcome tort eva have leas ered it ie put We nd that ota evens In our word re ‘ctenay pdt, dc hey ate cnt by the pre: Stee olsen end tee “hat f we pre ttre wil be ok cane Che wether np hows 4c Tot ving town et Tht Fredonia se te at Wt cay. J col nt Cond wengectedly tnge tr decton te rover acho The pede ovet ht tml happen et not vay Thi predomi proba What fe pret at the stock ae wl gop oe ety heat tengo? Soh a dlton {roti pot come ese podton bare on th Enumptn tha ton wl bene the tot port intr afetng th eck mkt Carta rach hows thn terface the sock ma re Fequntly more import than ian, The reid een hat newer4 ‘ave AN PRD UU? happened, for past Kicory shows tht bull meets Rave sheng bee followed by Tne market ‘What if we predict th the world wll come to an en next month eee of the postions of the eae? There i [rly no chance at all of the preition coming tre, {ocit line nove happened i the past, and thee fm oad for eintfe nae fe the predittn. ‘Tht one certain nok {come ton ‘We fad there ave fr rn lasetons fn which pe itor can ually be placed or evalation: Pradction slic ore crt to come toe ithen apr Je haw on pris ws of sconce and nate andthe event ha ays hyped the rs, the proton eset come te 2, Deedes wih prob wl come tor ‘When sprit rine om Igle aml ats, an the vent ha lly happened in the pt, the ea prob: Bilt tha set come to. 8. Preiction which probly il nt come te. ‘When a predicted event a seldom happened fn the re the reiton i nt Based 0 fat get pully wl wt come tive, A. Protons which corny ail no come tor. ‘When predict event he never happenin the pst, anl'the pelton I asl spins cota #0 helt elon and nature, cert wil nt roe ‘ne of thes libel picts fn ect years was in smpaper aves in Mah, 1902. AE int Hie many Holy Men of Ulin weve peseing the en nf the world Sto cme ina mtr af orks. Tl prion as fad Um pein af the stor aot planet Mae people fn Thal el some people ve suntinsetoaly elewd ca wee rao mR 5 th prion The Hy Men were greatly rexpectd, and thy wee sn tel pret, “Ate day af ectoning spose, towns of rope swe sing tr a pier on the shores of The Ganges Nee hon th word I to end, any people Ina sal nyt eli he pdt, dha Toaay er pray any ‘When we so to analy that prediction, we fa it wat aetbared on at (one on eleven aso). The pe ‘ion wash on fe emp contary The tt ‘a lew of rence, andthe event had ever, append etree ht piston ar cera of are Some petins have get pac! vale: Ales a ager can regent keen scat ron Cte {Spreng of coins made by he lsc wl rere in acto sl Why? Breve has uly hapened at ‘oy nth po, th seen snetety emt La have oi he pst Tomrance cmparts can pret at deers ander the ageot 2 i hve more atest tha dives over 2 ‘hy? Hoc te ly happened hat way the pst toate art tht yong dss Bove tendo toa tre cance thm ber Ses ‘een aly pret tha he sock ert wil conte to Fntntewihevery bull mt followed by m bear lant every bra ht fale by x fl ae. Soh * prediston sours probable frente has ays hep feted thar wy he ptt roy ing to Yo Mcnge eoupe of pep, wh cnr mat eis ‘he hing wt ting wl contin to epetence $Sormting pels of ects opniam od excep ometines theta on which predtionsae asd, ae stdin, Sic pitions can ive te pression6 x9 we rar a Fen? {hat the person involved ght ve etary abies, Let me teil yn thet soy of ow Tpit Foe igh set ie alle nf iferent maton. "Test tin wae fn 150 when Uwe a peer i eat Ing driven bya yg lyin Californie Wer wee ving lng the twisting ron, way np Inthe Drsecoverst i hove the Bose Bnet in Pasa, We were traveling abot [dens per ewe Tetected a igal which enabled me toprediet that tre wrt Hw nin fv sco Tout’, "Sow dove Smet wry He.” My fia obediently applied the Drakes ade nd showed to abnt 0 esp brut when te right ft Hee Tow ut wit hang, Wer wee ging a0 shely ha he ar topped safely wiht lity My feud wae amazed that Ud predict the lwo Defoe it appeased to ell he thee wae lil ex: planation, bt she ose tat Twa rlaioyant-tha oul nce things hee he nor ae of eos pope Sovcho wae tn argv wth the yong Ta? "Te soc ne was ant yn ter, yin fn Califone aT tT was diving le over the Cajon Pas, en Jing for he deve contr 1 wae ering sho ls et Tr hen I etetd these signal gin pedi Hlow-ot within n fw seco, Lappe he brakes ad Front the coe to macys at Pere wea Bowe T git nt ae wae avon the et, hing at He rs, tat Ecol sve ntbing wrong, When Tg down om my Iran ant hrew to ook rth cae, Lx eee thet Ble we Hv the sight en tr. On the ine tow, here we fe knob the son of aca where th in coed Sheth al rest he pit whore a Mowent wn oy imate ofa foe socom eng tie. Teil Tet trast af the air ont af the re to prevent 4 bloweat while cov Ano rec ne ForoRe? 7 {eng tes «few ous tho spare wa on, aT vecot lyon my way “Fe thd te war Tea. Agu Ewa sing she beading for Fen, Whi sng trough the pela stahowt 35 mile per hour I detected tatoos sgl spin T dowel den ively, bt col ot sop ex Cleo T was going Uecgh anundenpe 1 erept ap te ‘ne, oto tht dea at nly B als per Rou The ron aot 20 fr fom plot wher vas pole o fol te highny when test ear Ue lew out wih a Fig Agrin the slow spond at Hwont we prevented Angee station, ‘Wlat we thesgal hat ware of a impeding bow cut? en's igh seed tunping sed, cong oe {ie The sound wat ot very Ho, aa eal ely bo ined fone wee aking or lenig tothe ai, The Toning sound was caved by the Eno ic swale on re the sr ween and ea dete re Mor people tink Hewave i sway an ftantaneusbrak fe ethene tt repent takes several mits fr ‘te we soto dtr the pot of compte fae ‘ty nd nt to tlle that te owt a bo predicted a saci deve aboot “The fot tn a ey in 1ST The Bai is ator let tnmentonn bese ofthe sped Ivar. Las ee ing 188d convertible way out a the ty, sthvsyomginiy ental be me: tvs nae evn th ond wait ave Soe tor nn May thre we ental other tale tke the yong by ah was lig, od she sd cvec"S> U oppel onthe gay, aod red th ermal ‘elon. We're tg to find ot how st hat Tn Seed cond fy rty son the telephone ples were gg hy mighty fr8 foe meron rao mu ror “The speedometer nla toc 10,110,120, ad that en thetint Wwe sie dppointed for we hd expt snore fo the Eid Wostayed at top sped or ly 4 few wits an then stated tow dwn rade, We a el dwn to ‘Det 10 ie per hone who wo Bear oie ie piece pel ning iow gat for. That see noting fo get too mpd about, tT pot both Hands o the seri ‘wel anya "Then rsd ate, Tied the sg Bt thi i swasaifrt gl {eile ir exp ae Ta ot Kr vey ht ee writs he, 1a tomake the ples pdt that ona oe re trv ai et ot 4 fw sno Tha 9 Tie ower hw he no ll ge te a 94190 nls por, Hoe tat Hives depend om tg Aint 1B toe oven Tefore al the at exc fom ating tok aly tight grip om the stewing we, deter: anna tet get ey Tn Then go toch ny iat onthe owes teal watch the spetomrter esl sl to 9,70. At BD es per hon he irwns completely gor, ae esata oncing Then {eo les peso the pe rakes Teowld el byte noe tate the et a ir seawater the ear dw il ot Tne the rd we bat swt drone top on he oer lt “hn entinntion of ho re howe el ight nthe at tome he tea were stage al ha hen hn tf the te by sential forer ‘The Bent andi pretore tug othe pint where ih sea opel ‘The Sond ed hd wee the al sling he ee fo so} PREDIC TE FUTURE? ° Sometines I woer what woul have happened thet doy AFT tsi th ean fm ti te {tye ot worked with you my ot Kao wat tue a sel In that en sae i otf The You wil pote character aby der which feat eget Tn ation to my fowr predetd re aes, have ex- vend thre blow-utewhich {wns able to pred. Shee spp to eane ny or when te bag oes srs ete hy ae pcan mp ai sa 5 we cn sce tat te fale predictions are nok crn, Jet ae nthe rah of probes ‘when T tht shot fw ad Bown ble to rds somthing at ie to detect a a Ion te Bw futsal women iy Tso yt lr ne {opie the com ofthe sock mathe Ha no aed How to print ft ne sro te nes? stn th i of prin ch ny pele woul! thi tapos ‘Wy not male what takes to make a comet pr tom slap tat set the sock met? Cold T Aicover te ats aot the mae whi wese ac ge telly Sow and thse facts to actly rei the “Sette sk mkt? TT wow le Yo babe to pede heaton ofthe stock make wh crt, at eo wt be pol, forthe sock mit i we gover hy rete lv of ce ni nate Tec of ence contol chen ‘Racin, gry, ad vows a physical phenomena carver "The spk mare mtn the rain of pre cence fort ts emetic phenomenon ete by naa, snd governed tyne etl by man Sek mkt Bete ‘he by inn sts esi haan yhooforos Therefore ck market preiions would hae be ee Eee abies o impo, Wee weather predictions ceetbrn Florida, whese 1 pend tho winters, people wifes Rage of wi ed wether pats Ba ta pane nour pet tho wet. hat are Fee Sante wy ahi rou in lowed te Seng Change fd ham lect rearing, The reefing ero he stot sth, ne Eom pant weather. “Trae wind changes al Hows fom the wes, there seit nen in ity with a tong, hanes of rai. serena ually nn that ol ont eappronch Ayes thcaocones, Whom the wt change pt ing fo ear pom Then thew makes ext Bese the eth and he cl, dy wrath eon Sack the nth wind preva. When the wind sare sata we ow the col wav # ending 6 segs etn owes ont om, afro Ee mA den ri atent wind brings lg warmer, oi er uteaster egenty gts prety ong Fea Tor severl day aloe swinging avon 0 the aoe nt aly sts clay, then ses cast TM Ca and tinge ack eral pleasent 1 ae re etter cena poms wi he st okd Wege penne and the me pater f repented gaat ech water ptr alte stleaee oe cose to peopl who ae roa a Tatty tenet One tine Twat to ng aon sec tn Fl, ft ston noth wd was Fete ow e189 ie erie wld be mighty wm HOE tng ini» rth we, preted that, he Baan i mnt the nto wo oF hee cays and eee to wat for tat prio to ome eve ‘ize enough the dawning of the third day found me powering ont of Ness Harbor. The sen rose as 1 eared The harbor entrance, Thon th sis wold ike the whi srngy oa gent dso filled with «bk norhast wind. ‘Tn tired out to boa wonderfully pleasant pth fst rons slingon abroad eal cae of my succes Seater prediction. “Roti tine was Iaving Mla withthe sme sling yacht heading fo the sland of Bin, the Hakamas. 1 Wer ealyn the moring bore sre, end stl pith dark Tie to get am en stat when heading forthe sland, 9 the eek appronch fo Rima or Cat Cay cone navigated Iniayligh The ip ca ak ten hours or mote inset ‘AT powered out the Miami it, expected to iv the cea ay pleasant forthe peoious day id been dead {Sim T'was Sopot fd 4 norteast ind stating to freshen up andthe soa were rwoning higher than norm. ‘Them the stars disapeared behind heavy clouds. My crew fel T wanted tot the ids, but ws catalan t0 rake dhe pedcton that nota tom ight be aging ins few bors non ocean ip in a al oa, natok ast vere ture T preter to have the esta my favor, 50 oe ted back to Mia ” ‘wns al davk when we dropped our anchor in Mit Macon ane went back to seep. Several hous ltr, Irene mw, eas ang ad wind. The wens con Tied geting wore, wt areal tom was blowing, There terete ihn, diving rn ad wind over 40 Bot We were mighty happy that we hed turned back. ner nthe day we ear that fro sall Dats had sunk dn tie ocans tt ge ships had own ven aground Torte high ws That tured otto be the worst norte» cam Aon PREDICT THR UR? caster Ia ever seen in lil The stor actly Id Foetve day We col ot grt uti the ocean ag the th dy “These fe tingid pt strate the ates which migt be deel! y tn vsor Wen eat Irena asa oe She tent go at Fe the igh tie to Stare ona vente, When the wind ei, ne snk weigh ane confidence and ae all is {otal fil advange ofthe fara wind alert ‘One sh ree tat favre comes do not last forever a sea, or inte ick market So a shold ty fo nate seh ogress pew he wind tng Inthe night dren. “The nteigettvestor how ao wing to reat sen danger tients, He sew are the fly f Termin ete tna oer ston we all Stet Many insexors completly erga al he waeing Sigal an sil yt hs Brea etetion Teng he boy tad progres: at safety Even {tones wing be tet tl Bel waning ea not dow vit the brvtodge need to ern the Staton aed tego the ngr egal ve mast ly SM the mpers ofa preted vente tape the neve {ary Inowleee One tl pres emo Exo To rut some ncaa prion af what ol pay hap inthe nen ature PT on ith pla cl oe t edict host mrkr a wl Te preet the wee The Insc clenatsof pti ron ot he toy dierent 7 even tat Yo mek deine with ong potty Fein tres wr the a hong tele of he ‘nije eon peste ‘Soe ms Ten eh evi fcts al wh are abe snmplan. Oe tb ae oll wt logs! and 0 AONE MINCE UE MURR? 13 wt et One rt oer wat tens uly eae Cerna actions Ones he perepie enought detect ‘Spl ch otha achge esting tote pce "ro sscrsflly pede the tus one st ows ae den wat at happen the pa ad whats bap- ning ree Is ot ho tre st stint of te fost ad he preset Tei ay hee that whe cern ston Bs content been followed hy specie ection, thre i a probaby thatthe sim ean beten tht action end Tacion vl contin nthe fot ‘Prt stork market Mteatons is mach more diet hn preiting the entry, fora grat del of fle infor tation isthe ket Oe cou ik OF the tk ae sm ipo ith alone of players Inying and sling socks between themselves iets mt le are Tor many of ay Be plying nly ral senshi se ofr pone ee ye {ng fr vine of dlrs Many of cor cel eppenent re IE one lig hy a he, ty have became content wanes ihe the game of poker stock mae gome can bo tvety rg Sone ofthe players aren abot hoes, Sha wild thing which wo balled costing In ay fre A Tew othr ar acosalyHked out of ego, fal may even en pn son, me ofthe players wl ry to bf you snd prove you ‘wv miseding Howe a ttomation in tie tempt to ‘vin One el ent ich atc fo any gun where Oe Sikes ae igh The cent player mit lea fo cope Sth the mise tact ofa eppmena The stack ae, ie ple, te fol ned Tack, 1 yo ee ial Ine yo en ot cme a cosisent tse, The sce player st low a ll stetgypcr ae roe? 14 ea avon se taeda hnowedge ffs. Lite tha mr, ere mst Hoc Tha pol as wt ne Ft TE dot art wn wil ling ni to pon rts fr the soe flyer No mate [eal one mig, the ber payer il bo Tapp tbe him nth am, fr expt pliers a ot {seething nwa te players were ‘sl ere 2 HOW IT STARTED My Sa fow years nthe stork market were not very profit: ie. The hex nt can bess sboot that period He at T sbtsined salle experience. Dulng my ently days in the ‘narket, Chew the Basi rls, but I had not developed a Arfnte operating program. I wat Ikea poker player wh ‘ens inthe gamo with a knowledge ofthe rls, but no plan of strategy to out the opponent, In thane eaey days Twat lik the majority of investors sus tying to te my saving to make me money. 1 boogie Flock when they looked ike they would go wp. they went fp, Took some profs. 1 they di nat go up, ltr sok them in fene won they dele, or inpatince when they unt stagnated "Somatines I honght or sold ae a reel of the advice which wan fre from 0 ny abate. There wat to mmch eo Acting advice that Teas frequently confesed and hesiont yout bow to preceed.T experienced small profits no large Profits, ae well me small Ines and arge Kees. At varios Firm owned rt ot every kind of tok ching Hive clips growth stocks and Same Ut were just plains My adventure othe commodity athe were ore pec. taco, ut ot expecially proftable, At various tines Iwas lang short in whet, cova ats, 9, soybeans ard eoton, coca, eg, Based and wool tops. Back around 1950 T was6 tow sea en wo os antes sn ing ays wen they Jen fon Re x adys sven, Ove te Pease nants ook her taken smal eight ta had rent goin Ind tt ace livery a $e th average nestor, exer as for oe sanar inden tention esr at ok a eu nt po chance or srs beara of mao gone wl experene. FOr, mer, ay Wot, al 1 Feta en eto, We were to wel of Herein om hee were tc when we reo th Sn eres fF whch were pee oat cg un Christa, When ey oer er 2 ast, ete U8. Ai ores and wat et eal the mono ek ep Sito awa genta fom igh scl atthe age seven cee Enno ently th nf ng om neti a lea ork, My terest £2 ett od en fr Tso many Hor at a mehines making nt pros ae. ently Me ee tan bt espns fora se teen ye ol eee ann when mi ter, my oer are 1 veer ang to Ty 4 ele old ada Fre entree tower My tier aot Bro op at dan ig he bevy ork af cnn Wed tee wat ptt when Ten He ee Pea vena manager of He eal ete eee engi ater hse an at Sen anor, aos. ba a eran, ere was 4 tne wh Tot ow re stare 7 hoo hones in tn weeks. Several of he hose wee rented, SAT coe mand at saree Two at fal Ji rg the days an T worked on the oes at ght von my day pining ad epating was ard work Mt proicite Te ony one hank in one ile town, al that wna thn aevows and fnaneal deta were ed. 1 TDM ell hn to bok anager as amazed to 0 a boy Treen ying and selling howe tikes ok pro, ning competed desl and reGsaneings, an bomowg Tage amounts of moe. "Eth age ot trent. for Fae lili contractor. At wnnty.ve Twa preadent of smal corporation was the Manager, ty ther snd brother were alleys asters “Shwonl pot at meh a possible ‘Wa sachs Daclgrownd, Creanded th stock market ms. 2 ronal lenge Ture that If stale ar enough, [Shut arn how to be ances in the marke Tq ese raket with detrnatin, tol ort cts and bv and trying many ator service My anulyprgsnm even chad ge priced lect courses Mien There weve s0 many diferent es about the Suse tate quite anf to determine which se aly fc and whieh were false assumptions. Se resto these wero 0 many confictng lens itu the sock ake, T deste to approach my sly of ne tarken tom mht alent set decided to adopt {Memethod ed by astntst when res to solve a prob- Jem lyin "cl ne dectve reasoning cause and fect sti econ eerie and sates | would est {aie nnempions and brliove ony What T cou prove t be {Eee outdo infrenes only fem my ow observe8 snow ae ame tosses than anak dectons from acorpted perio He et etre to sy Uh et as enti i- ead ofan eecmomist “dogg the ree aprone,¥ gray pcr tere et eet hits af formation to develop wer Ta Cat ea hy the sock mkt trv alo sr cere 1 pt acct ends oft ce te Mens 1 developed, ekling everthing of ea at the compete henry which presente Im hi ‘ook. kf charts i this bok are repretiny of those arte long time agp, ae than sted for Jes ae toned many Hoven of ails wh me, Fo cy he markt weever T went. Te ers and soci materia wer with ee even when ted 8 cane ST ence far from ciation. My sttiog ce tome nen cer all ver the Girt Takes and Minne rt on sang yacht in the Unie States, Meco nd the Haha Isla neha my vesting of he sok markt cree toy tance ines from ee chattering er tapes umes, ce at opinions He Toes na cflorent work a word of base pies penn Tere waning the ho Bee ay sal hat Tse was ime co thik sa Desi ies. ie Hae al forme to. got Seas abut the stock eer ta fact ny Hest Hee sere to aro whe aati gout er the water was a thon (thot Lee St I ight Ont were the fey Pr Seer ly roe ft le 1 he Be ft of Me Fe ef the ene close to the compreenson of ais rma bye pereeption. sow oe eran 9 actgmmg ieee tm hen Lew al weve omcetate on epg the tt lot for tres ew he Hore i he terns hd sd, {hese wat plenty of te for be hiking while running rca cones ow Toney ght watchesCravren 3 BULL MARKETS AND BEAR MARK ‘eamet hat people vest the ork kt Fr many ere Me ge ears on an ec rent fre es Sil dod come, ein aa Te ete Io give ti hen a am Se re ie mae 9 Ft a eevee el ee ‘There es net forthe Can "ca yg ant en 2 a wee fem aang we many wel by bh oT orc es Me sec ne teers ell ot Bent ea itm ove the ascent the pe af ols wor As cmpe the sks. hee Bea apm mec wl go dT ng ‘ne atte Tn sl fr wn ess, prot et Te Act ces of bv eg om the floor of the exchange, n Sepa ‘the Inw of Me Ao che eng ce ge 0 3. 2 este pine st es ale vt ak iso hele ep ra Te, presen not acta assy. Tere peop nea a is rnally a tendeney for price canges to nove Sn rds sich nay qo up down, ad eometines skews. When a ck make tered becomes wll exabied there i a de Ite tendency fr tha tre t cntine for some thn “When an up tien contin for about year of more, se ferty atle ull mdet,When 4d ted Sane aj yroporton, i ale ear ae. ‘Ny recat hos shown hat Dl rks have Tested from onetysrven yet esr markets nv fasted ong 98 Boe year: Thawe fund ieee portant to cssiiy itpeovons sock rhe ation, ding that action to inate aot bear markets Since bull mets al beat inset have mich completely dileene characters, is Teter to tik a em separately ‘THR ULL MARKET When an up toe Sst starts fom the bottom of «bese ark is ilo fo tll wheter Kil turn ints bull Marke 1 jst eg rally fa contig beat market. ‘When an wp tend Bist stat, i ust gain enough tech ical siength to pase a certain point When that point ssl siccesssly fe when a ball market starts, Then the Fern stength of the market will atract important buy Ing hy the big money Interet. The large wokume and sing, es ll arse move buyers who are anaius to get in near {ive start Ts, the fl ark fee way. ‘Diving that intial pace of a bull market, soon after pe that ema pant is when the Targest volume of a Fit market woolly oon. That alo wea the wp tend of vices strongest st smoothes, Daring that pil advane Tru stago, the rnctons are usally sal “ne seooth, perl fist phate of 2 ball market usualy rvs when alge eesetion docs. That reaction may lsttwo oF thee months Ten there are or Inge alc a Fenctons. tp ering forme. At that stage he the greta operon tg ds poe “When the markt makes is highest ial tp, th sole {5 lower then previonly. andthe tecknial sgt Tse than i wae eto, Tht ie when opine fem te eight Basins fs wsly owt tht ine, and theatre ake Fright te Sequwnty tale shont x new era of perma: neat property atte stage ofthe matt eye “TH, BEAM REARKET When a dwn ten sat rm some igh point all rather there smetines viene that eno oe = ‘ther rection Ue full rare ol pases a certln paint. At tha pint wher ela wen cree fn presve enh to attrac larg eae sling. There may be voter rally er tr after tat pnts once. Theee may tren be hes high regitred fy the Daw Jones Titi [Average Such amnnneral event has happened several nes inthe pt Ae end of mine sayeth Big operators prpey gosta DYta ny tom mw high t et po eres Folie slo ‘Who Bear mnt aly gt moving an ateanme {hing te Yeo Pee top wth pening pred Inge sno he eng presse ep ol fos twist pws den top los orev re tthe Sn ben ret er Yo sal th et pce sae These eye staf chan ection ofp fw sling "Wher te mare dn apy, margin alse set nt tomany people: Most fhe wl ot, rea nt Pt en SUAMRFHR AO REAR SEE a ny mote margin money, a0 tie margined stack mst Soldat the market to protect he ede, ‘When stock make! crahes cer mlions of people fe Dslions felis, a ae mate han they a “Thon fen the brokers bose rome ae filled with poole venting pos decine ane thei nvings go down the dai, ‘Th i when the type fveror sts thee worrying. de> ‘sli wloers an Hoping hi ert wil ot attack. ‘Aber market finaly reaches boom when every ho conld br frightened te selling hs sold ont About the ony ‘es left nthe stock market ar howe who abeatly it tot el om declining prices, (A bear market tenn of the galet Iza Faced by invests. Rapldly sopping ear onarets have change inilionsives inte pauper in forts few wks. "There len ‘eli hw mr came ht heen dan to he physial an nent health of Investors by major market deine, Some nen have cur commit suicide cause of stock market ‘The sock market ean haere a he 64, One ss r= spect ite prmer and vig ently, There ate ines sth eet Fe he eat ato.Charren 4 VOLUME, {ten tse of wlaoe, Lean te tt very one at nna ea on the Ree ore Stick Rstiange. AM of Tear eet ta hs bk sed the te ey othe NYS or te the largest vot import Sock euhange inthe rath eed cee ane Gpentant than an ey me vying the ements ofthe de Tomer weekly frst He the es i se nck mt sale Seta ges of ny Ki rete ck ete ely tons of won ad wt toes the mary of est Te gn enery var the sve ae shape oe i tom ely sens Dy he tes 1 oe een ck bet To erste he Soop Meroe dh place ton me sod er ‘tren he dy ens. ne sentra ingot way. the amen of sy a tle ck, Wien he soma ges gal for eh ac ein i etme gos venom heey oe. cn ete ow he demon snl ue ation Het Ten the spn the supp of storks ‘yes show that some 8 net rego wenkness in th fll sing mane oun os Stock marke strength ected Tr When the market gos pom heavy volome; 2. When prices deeline on Iow volume Stock market weakest cto; TT When prices deine on heavy volume: 2. When fie market goer up on light volume [A stuly of lng term volume charts sbows that volume it sally low when a rar market sin the process of raking ‘ botton, When a bull market stats, volume Increases. The Sone alee np rapidly daring the song upward surge of the erly tage ofa bull market, When th strong early sarge 1 the Dil market fs passed, the market continues opwaed (rth decreased wolume, AE the peak of the bull market, elu has movally decreased even more, thus indicating thatthe big demand for stocks hs been largely sats tht hight en th tp, he are fst consting goer om it omen, ike rocket wie has exhausted Ae fel. ‘The wcket can contnge eimblag upward for quite Altace without foe, Deease of the powestul initial thrust tien the momentum i overcome bythe pall of gravity, the rocket mst change Is conse ad start ownvand—n- Tes it tne ot to he mnt rocket Sometimes, ater tculing Tor nes rocket Hgpites second foe] charge ful thrste strongly upward gain "The stock mart, Uke rocket, ean ony coast so far with cot the trust proved by fge vole If that dus snot provided. the market wil wally tur down. Volume ears ‘Show tht costing tion, with the market going pam de- ‘eesed volume, las appeared at overy bull market top dor ing the last twenty-two ye "h study of the chart shows that chore have been several ties when ml market timed ont to be a multistage afar ‘tert coast fea wiilleon decreased volume. At those6 vou fies, ror rca involve st the markt tia Fe acy agin tient the pan nero of 8 Fee Sak ren re sal ok oc NDI, ed aga n 543 ‘Tha he ils ra 1912 10 14D wa a toetags bl make hi ree Hs stent al veo Sree gen wr velvet part of 190, talent wht a 14 58 wa te a eebaage al market ch mn ery nse 8 ne seein Ks, Many ayte sy the dene In {ssn ay her ae The all ker of IRB wen only ing tog fas on th et mario 191 we asin tgs ne. “Win sr markets have stv th pst, 28 Seto the devs sa Hr om the aes When the ae aber markt seep vole incre ca Tee hr ral line, stg pe lig Tres ave erate in the pst wen pple Ieee £0 fugit aie pty of ong al He wee, Fea Sng sent ts ane oe 0 ek a te cing are ‘i ted eis tne with sh cont a gene meeiement of spy al nan eA tthe deena wenn, vo ln co aa tee ete ng dvi, Sometimes when the aa ac aenstre 2 ng re, the dere a cnr vat in. Ate es wil tno 1 be a meet we stot pan, for aetor a canter conan or whe on it vole he ct print servation lt frm ay of sae tt the to every nt market, dang the Weep years, ae Brn aecampania! by Tower vol PAST Aco eats ring tat ll markt. When ae fo ht sc etn ser completly Corte of Ban's From th ive of Septeniber 2,585.‘Coury of Baro From he ue oa 8, 1953 vou 9 leg 1 woul seem that bull market could ot ea Teg at dhe wolume feresed along with the rising pcos, Twecnn tht woul inte a continuously Inereasug de sand for socks, “The law of evply allemand state that pees must so when the demand exceeds the supply. Theretore, efor the Tull mace ean end, lama mutt gradually ene oft the print where # is exconded by supply Such a gradual rasng, ‘of dem t ndiated by declining volume prises om ‘ave tore, Avothor conelosion 1 ot usally started by sudden, unexpected eveuts such wars, disasters, a Presidents heat attack, or even th ff President. "The evidence inlicates Hat bull markets are fuly temporaly interapted hy ich unenposted. socks. “Then, alter sharp rection, the bull market aga continues ite upward ein ttl the power offs thrust has bee lost Only then cana bear sack beg, “The majotyof people seem unable to understand that the stock market eyele fe not really governed by news ems Ips conditions. The Ife of bull market Ix determined ly ts own teal condition and the balance of supply and demand for stocks. Many poople, quite understandably, are tise to the point of compete confusion by daly pice fhvtnations, coneting opinions, rams and misifernation. Tsuapret that pat of the confusion may be caused pa tetly by som of the high stake players who have hoon the game for Tong tne ad want to keep om winning They Inve a finite avantage thelr opponents are hindered by onion, fae a gnneanee. nthe era befor do Socarites and Exchange Commision Iecame setive, profeesona stk. pool opertors actually [eed rumor spreaders to frequent the board rooms passbo vou a tps and send propa shot the stocks lng mae polite hy the poo. In those days the hg had ove ed ‘eventing but gins to separate’ the suhow from thee sony. ‘There ae stl some sans in the wool, try to slash yo tae ere The react wy olf eat he tend of wey arto he aan week mela eo Seely role. Te moving venga he Sek grate doctrinal amas et er aly oes ‘Sangean tae novng he, The ovine ay Ses wlan wey mom dee a pean rete ler chat shoving the ation ofthe Dow Jone imbat Avrge a tht werk mong ogy at whine ding ti ae of 00530 Th ee Lowden th chart hen he op oft all ‘et occu Te DIMA wach highest pt oi hel sare nth at week of Jeay, 0, Hat ht at Aietop of the fal marke ‘Theory of nests hk the DIA I te ate ats nrtt en hr aetna enh aoe ‘cote itr, alone ofthese ines wate esa {Tat wae ae move ofthe IIA yon wileninn char of the Ne ork Tes Avrage, te Heald Tite Ave, & Re howe owls verge, yom wl Bt al of tem show gen 1958 ath hit pit tel mare, Why DITA maketh ale move tn new high amy {ean thik of nly ow poste ese J. Investor wore more ansous toby the tity stocks in» one the DYTA tha the stocks in any of the oor market Aer eta was posh wp t0 4 new high by big operators reat toa the patie Into thinking that the ask wa fl going strong Tren eanceon hich to hase hice eter the ese il jut Hine to contin woresing abort i ‘the chat elealy shows the strong, sana se of the DEA dng ent prt the Tl mart, aH wat Patel men hy the pws hast nnn woe. Bas ey 185, the mat contin par om di creasing volume. Sete woe Tse made anew Fo in May, 195 arth Sane tie te DYTA te ese Bigh, At the wer a oy tii ih the win was conser pase nt ad ro vir te oll wae eae ti clase example showing how woe ayes th top ofa it ne, Sh we ay erty fe all ll arkets To tient, the Ln oral ight ots hove the top of the Foe Pee Jo othe fll markets, the woke peak oe do ret ferent mes. allowing ix xen ofthe ine We Fa nepal ll market ps Bull Maser wh “Top Da lune Pra one Jeng. Fire emt chnton me Jon fren ment fre the a Mal oS Ja Fig vw foe th tpl, 358 Nove gen ttn thetap Nowe, 161 Weey ohn shown on accurate charts. whe are panes cory Susy nthe New Yok Heal Tar a eT New York Stock Exehange Pana eee Weekly Trend of Stock Market Prices Et ‘Coney eth NewYork Herald Tene.The Weekly Trend _of Market PricesCuarren 5 THE TIME ELEMENT i Fated ti wa In my exhstive char lien o arn al meets Dang th st twenty 60 See ell ack ited 9 diferent length of time 3 etl mee vel om oe fee tates the im reent Hh cayenne rose oe. mm Tength of a bull market was never Tess than one Year TE dt neg eng te 0 1d sae pow ae ected wh est 0 a 2 ter the im eee fr Sere ek aks tne ete sie td For the sai ea goo of tl a ee Ten eed the mrt gh ra ie tee te wie swnging rts sy ot stn eth measrsnet honk start rege thew ye ec ry the mit a aah bn ft ie pln ye sa ie ae eo 4 al TT ido eur emt yams ll mat “Sergio ae year minor sn Ii se ice em very pitt Heh ma Trlpe to asl confesion, aso helps %0 Tepe take which : 2 ee th ier st wok s sree rie mura a A precise vnderstanting of Ill and wr maskets wil help ‘sto Form a correct analysis of fate market ation, ‘Te seven year Tong bull market whic Tasted from 1940) {o 1858 seam to dente that there i no maximum Tenge foe a ball market. The maximo doration of a bull market fe ot determined by the tine element, but by the markets ‘om progremive weakness, hich develops at result ofthe hanging Forces of sappy wl demand “Time is one of the two base elements which combine to form trends. The other element is price. Oe could make tho statement in the form ofan equation like this Timo + Puico-— Trend, ‘The changing prion nd the passig of time gradually bring ahont the formation of x trend Sch trends ean he wnderstood best by viwal observation ona chart. Tine chact presents x picture of tine and price Shanes ina balanced perspective, Charts ean be valoable kl In analyzing many Kinde of data in relation tothe pas Ingo time We sho understand that tae fan element with three tenors: pat, prevent and funire, Wa should Tow what has Inappentl in the pet i er to understand what x happen Jing in the present an plan wa tion to take in the ature. ‘We sat realize thatthe utere will som be the present 1 action fs pot taken at the proper tine, the opportnity ray lip nt the past ade lst foreverCraven 6 DEVELOPING A METHOD sent the tock markt the ie ett ging ae om al rie prem ena expt be sees and otc angers cu, thon! a deine plan of i er ate etd pation rel A ll twin a a eco I re Te got ate tp ofa iil make? a ean Ine, con Te Yan ee Tn er the tat af he mace when a evry eesti col a of aking ation th gh ti yay nye he wen ert mee tow nt of Is 8 8 1 agg ng el oti 1h — 7 cain al he xt Rte et stay este ing Se a sak makes a ct hae Tem set ec neater the Reon? Wa at ron Ter. ave et oat ioe eet owt st mao ater fen yma heen he ork ar sy eae der he stereo of 8 “Th move Ulead wanted t fll 8 et ting methods ¥coukl Bnd, for ¥ fle Se get ti Ment engl mt rerzneine a Mer » rnaréet Btatins, vt it did not som to be accurate enon for me. The Bow Theory ocexsionaly produces Se fale signals, al some of its tr siguals ave a long ‘way from the top or bottom. “Then there were the rethods which applied moving aver gest the ProrJonesTlstil Average. These were also metho asad on volume stds, group ratios, edd lots find san, Many of those mcthods were basally sound, but hey seemed to have common fault, Pratieally all the {echiniea! mths ha Fequent whipssws, resulting in smal Tess, dng the tines when the market would experience Inletsive rll and elines. ‘Twantel a ret that would ony signal the ectoal he ing and te et of ll naets al beat markets ‘One of the polemne with some methods we that too neh emphasis ws given to the trend ofthe Dow-fones In- stil Average. How ean an average of thiety high grade tacks show what the whale market is doing? None of the popular averages can show exactly what i happening to tho Entice market for there ace more than 1,500 steks traded on the New York Stock Exchange. No stock average, by self, can reveal the technial strength or weakness of the wile market. Bot i is ex teemely important to know what the DTA ts doing, forthe Inaortyof investor olive that it realy indicates the tre Toovernent the market. Tt ke wie to keep track of the DITA, sm ane can hw what the majority might Unk the ‘marke fe doing “About that tie Tame tothe concasion that st was not practical to place the minis fnportance of a mathod on any Fok average I easoned thatthe only really practical thi ‘ron fe to develop an acer method of measuring the Technical strength aa weakness of tho whole market “The only inestors T knew that would cover the wholee exisore & son 2 ot ba en ight rot fn fr a ong te nt Fateever paid mach attention to them, Ae ny te Bc evn of he ese ar ee ning ne any sos had mde ot Tih “Rea ne pt wel, a ow many hal wale ne re 1 sa a nc veey sl sgn ren» rl Beery ay i pom-Jone sal Average a9 aio te, ete somestng det oflwr Td deveope 8 ae asada ace vig te wet rire 1942 10 1964, It was so simple that any- se Pye the ety at nly hen tes 8 ec oat pend te xeon al chertng car rman tpetant lire, Ho ae se espe esr me a of £0 fevo yen peri fom Cnarren 8 CONTRARY ACTION My improve metho sated ane for quite while. 1 felt that was alot afar ae ¥eonkd go in developing av scewrate incthal for folowing How tenes of the stock anarket. But Mora wile, soeonssins thoghts began haunting me— ‘honghts that something wore ent be aed to improve the theta! Ison sof! those Resting Sought into a slid ‘gestion, “What aboot tops and bottoms "Tne thought of trying to Bind a way to Meni tho exact tops and bottons of ll an ear mnekets eas almost t00 sonal tn contemplate, Alle books Ia ever reed about the tock market ait was impostble, and T agreed with them “Tying to entity the exact tops and bottoms would be Iie reaching for the roe, Bt old on, ost a minute Ist tht exactly what ne government is now planning and work- ha omcrencing for Hie mon? We have already sent. men Sind rockets far ot into space, Sach things were thought to Trip jt» few ears 2 remember, abont twenty yeats ego, my Isends thought 1 swavlightly ery whem Tol der [expected to see rockets sing for ether planets within my hfe. Twenty yeats othe were only afew of we ws belleved that men cul ina tis planet on rocket ships, Now i is an accomplished fort ‘Go Tstarte on my awn space project—teyng to lente the %o owen acto top spaces Hh eto space ill and arate wn 7 Saat an electron compe toe mt then TAHT tan ftps th ore sr ta 4 ptr i ih omens) bl of Saat Pry preiers eosin ght nen eee tt wie we clog. Caer, son see Tuner ork qe we tp Re Mages emetntns on op sl toms. one eg lk ete ote By se remained with a method of ting Tease manner of contrary netioneashined Ta action Th canter action wont be jst the posite of iy af prope tink Uh snark wil dat the thatthe ajo eet nity Ts way wg, tthe op top or baton, land the batt. "Right wee he eto of ear market, the matty of ri ely tee in price wl ln eter ey Tero Pec they wld pote sling at hat te. Tiguene te topo kl mart, the majesty of pope Peek atone tae he marke wil go hgh Fhe il ot thik they wold nt eying a Ht tie “Tn, MaJONITY 1S USUALLY WRONC [Afi tay oie acetic a ate fe sole psu te see a te at hy ding the sora tte plane a wo gros the ty al Trem. yar espct iy of pple om th roa Te tity tema than the as Giant ere he may ace por fk who ee nt igh wae nk hd ake a sg ig, Many Sie moj mre sop tat they aro ata orig Tha saat comparatively wealthy a bs il ent ty plensant to eanteanpat thatthe major fet non tthe ot tegen rowan Acros a wave fo make goo Hivng with Jes work. So the minority tnt he smarter tha the mst. ialnnet any country, you would Bd that a large percents age of thet county's wealth is controlled by only sal er= fenage of the penple. A study tied “Characteristics of Stock Owners we recently publihod by the University of Pennsylvania's Whatton Schon, The report said that al frost 5% ofall the sok held by individ in tho United Sates were owned by approximately 198 of the Amesiean taxpayers Terould seem that only «minority of the people on this plete the ability an! wnhition to sudy hand, to igure but ways to acumate wealth ad to raise hee standa living. The majority are appareatly unable or unwilling to teste the knowledge and tke the action which would ene se them o do the same ‘nthe doy ofthe majority the herd astne which thoy Follow. Th esie to go along with large group is ev tent among. people sd animale. This used by tho ea {hat thee ie efety in mombcrs—an idea which las persisted since the primitive day of eilation. In mexiern Ife, people fee there is safety in conformity thik and act ike the majority of other people. Anyone who dares to be different From the row fe ot eonideed to be “normal ‘One of the hig trues sith anadern society i the com formity of ideas ction. Teal tthe mediocrity of con- fovmity. Many people are actally ara to be diferent—t0 none wna ens. Tak the road to success i paved with Trwsal fens, and taveed hy wausual people who dave to Irdiferent. In mr modern soley I frequently pays to be nnsval an diferent ‘Another rule with the majority is Ut they have 8 fene dency 10 believe what they ae tol, expecaly If something8 foreman AON te repente fruity The majority fin easier to aceept Te Ratement of eter than tn Unk foe themes. Teeny, whore at eliewe what they age td, moe tot tev orn ir secs lor tha re secatines te st fr hedge Hk aig on a8 ee ea sent thing 0 ge yo except the ets 7 Fae arg along, The snoess of yon voyage depos et wel en cnn seperate fet rn Fanta, how well sent can ana the etsy clone lowe wel ym" we in to veal the ght comelsions Ss stock market, th mat are orined Bellows hee tyre nin he Form of ips. rors and aden se ey hee ely aha hy Bon te aes a Fee mane inte awn eosin Dy analyzing sn et sao wrabese of the majvty hei disheiet1 tng, Mont people dnt expt prepare or changes in Sheep ‘They believe that things wl contin tue Maly ost ty ate ght nove. When the stork mele ge Tretia eestor et gong wp etl Roy dn ote otis sont the Hw war he mrt eu cong scone: and tv earn TAY the Sane tn the mort kro tha chungo fev alten yn ig br ty Br Hw tel re poet mates the cane. amd planning let se Thay al ake at that te. The enor wy tat see a arkrt has en flor I a ear mort a Seer aely Pear mart as heen fallow hy a Pll markt at ey Al aver mest pees 9 rind whic fe Bie Cog to cert changing eons Tre ent of invests aro alot payed their pr ene tiie to cane an pion wc it coarse, When a perso has efinite pinto, tere Bike anger that he mght ot be able o change tl ton Tate tr take the proper sti, caveman Acro = Amat every et orm a8 op orm selon ofthe mkt sanpnvetr sn contol grin norton lp tha te i pn ar i ‘tor bess leone mare sept the ‘hich ep to sonnei pion cuca Te nye yf gent eh en cate‘Se the pul aceon a agent rom hth 5 wm in ting art on hme whch ty acwopt Frequently = pan cp the Segiments which sopert Kew opinlen, ade fnoret esp mu 1 te a eae aetty cone sd plc eay the re eee ti pat, Des alld Tu ty ecto ave an cen bil to bay ns thet of ful kt, el peat the tom of ese steal parent th she may ns ast be oh hovenll hemi sl tec topes opeand “She woul hey ay sl fom nee the oton? Oasys ot ie he iat fo hae 1s le hp forthe secs of te ary. Te nt aough rn tet fe he nay Teal ot hej oy wrong in hi action sear he oat ull market nd the eto hese ma TEE, Ton for ways to ecogue majority stn st Ho pointe Tale Ike fr ay af ing ho contery ation Ihe taken ce pits Te would tbe emough a 0 mei i mye ron tronic cay when te marty rwrogeogh to take tonteary action. ect& cowmany AenoH TIF HEATON HY SIGNAL ett tif yet reve orale he a tc ny ae smn tf ie el eligi ta et ely Bet oat eu epi ce fen A a hey ho er iar ttt ray ey yep sl et atthe sme time, hr com ‘om ee cD he lg ae eeg sais ar ma en seit a ta west ton a aly athe et tin oe es spn pa ye ear niet Se ee sing can. The es voto ig, SE hy eg ene wo ly ete He es dng nt we Whe 79 D0 or mor an era ring wrk, Tell the Cente mh ra Booew ow “ : omy ek host in a a te ar oF the owe wk ater the fiat climax week. Tf, before the start of the forth work, Fe loa nh Oe cr! tect ie ot nn ety wl tt soto Si et este tht wee the ny SE covemany Aeon 4 A jot example of einige works oct nee she im TO the fst wee May, 1902 these sere net Thelin we (the it week in Jone) tere wee 14 ot lowe The tom Buy Sie IMtraicata raya the stare fort week alter Telnet week of ht ew we “Th Tn By ial il ot nak the Btw of every eae mare ince 1912 vee ome bea rbels ver Inventing cere wore Hotom By Sigal on the isting date: he Ost, 14, 1946 May 19, 1987 Now. 25, 1957 Joe 25, 1962 “Th bottom signals of 1046 and 1047 masked two of the {ovr ton he ree year ear market whl fasted from 4 to 198, "The hotom signals orcurred near the bottom ofthe out of the five bene markets whi tok place during the twenty town year period tween 1942 and 1904, “The was no Rett Buy Signal a 3960 because there vas selling climax in that bear market Since there wes m0 tng lina an the highest ye reached daria that bear traet owas only 3.807 st wo seem Ike that Bear market Shon have gone lower "That 1900 bear market came to sudden end right aftr Ain noction of President Ton F. Kenney. Pechaps th re- fate of Phat rection entribted to the premature end of ‘hat rar market ‘iy econ has shown that the fllowing conditions are Frequently found at major bear markot bottoms1 -There ete vl fring, al he ile interes Int on allo sok, : Mime ut ie pin he a Tp cag att tea ha Cera tar ses epee In dst te ioe he pres l miih 1 ee terea pation 3 pestis eranoni TENSE at ves say mn ak fa recesson nese itor — 1 Hg ek of ure sock wos Very Tete the pe tings abet Drs Tap See tt he Thee ism or sie hig vente Freeee many akruptie ecting feom to0 many at cn i ig. the previous companies expanding tan rapidly Fron These etn mich rompetitin z 6, Many well know promoters ane “sneil wizar” on eater fetes, Some their corporate empies erm ‘aa some of them even leave the ot ‘THR Tor SHI SIGNAT. My sarc for a way toilet the tf al market startet Thee wally sme even to ete Vieuntnp sey et eel array west ep One sen fs the diy tt tp saeco be ett sh we eens ory a ine pss of sents o moe Bye in nid may vt Fe ite Ts tin en To into aeeve hat the eee ing om presimpnetn Bang. Te Fae ht wae syste Bt hen Toke Teel te maj ly rm the top ats fal fcommany acre 5 A careful reseatc showed Unt the following conditions frequently were find at the tops of major bull maak: 1. When the market reaches atop ares the boll market has sally been bn progress for a year of more 2. The yield onthe DJIA Tae reached level of less than 496 a Some tne daring the bull market During. the Tsk 40 years, there a never been a major top without the ye “loping oles tan Sontines there ie divergence between the seton of the DJtAand the Advance sad Decline Index. Divergence oe cts wien the DITA goes to new highs on acest al lis, while the A &D Tne fils to make new highs on those tame ries, Sch neton shows thatthe majority of people think the mock market ie strong and msn, new Figs, wn i actully weakening. ‘Tees aro fever new highs than daring the earlier pat of the bull market, The greatest number of new highs are made when the market makes it most powerfl uptret ‘There is less whine a He top than during the ener pat of the hull market The greatest volume sssally oenre at shout the same tine a the yreatest numberof new highs remade, 6, New ese fover grips speculators. Sometines new stack fear eld ont fat dic to get alone onder. For inane, x spectator iy real about a wonderful new company planning to eubivide and sel ote on Uae planet Maree rma ack his broker to uy 08 shaves of Interplanetary Land Corp when its offer to the public. ‘Aw day Iter th broker aight sty, "Sorry, thete was 0 mach demand for that fue we could nly get 200 Shares” Some of thowe now stock ius have doubled ia Dice within few days cr werks after the public offering ‘There stalk ofa new era such athe “roaring tents6 fovrmany Acre the “saring sites, “a now platens of premanent roe pent phe tng pole paniipation inthe stock markt, A ream tone ero nal fvestrs got tothe raakot Tight nea the tp. 0, Thee generaleninsiaen al eonfience fn th ftir. “he enlist top age gees thi tre sre pide ponent gan ify Tp sre sae ria pti the ect in whem thn ret i ela itbihes ot The prblen wes to develon 9 see et whch wo comstentty ety thet. eros pte aeciate ining for sling 6 a Pr Siletorievery tp. “Thekey totho sation acenred tome one day whe was thinking sh my bute ae Te fret deter aoa mac pition at sea whe see were ering I Tecaat of Meaion in ecg yacht the "Galant Lay “puts often we cesta nr pition hy taking compass ecingr om ton or thren mnt peaks. wero the aeege my hes teal of tho fangs #8 T igh Fer I ntin top: My Ihr eon wit den Re earings wed alta re pitian in relation to those Thoxtain pra, whic wore shown om oe charts “Tee meray a elena postion i elation tthe meri pork on the wanten cats eased to Tok a mmr parker chats le devntly.T noien that Stes th top areas of all markets, theve were there Seton dtinctve peaks onthe Aaennce ne Deefino tnd Tacthia per well the highest tn a ll markt "Phere wee ther praks mar the tp a, fat T Fn 9 say to enti the ght peas. "Fac enret eatin of he peaks weston when the A tron aa fate, By a ao, Vanes that the #8 TP comma cro os Indes ow ht To tnd ha estumtons ne hl elt ea topo x bal tne the A & Index rover upward fn aga patter Sr alles etns, The are exer whet Index i doomed menen, goes below the rest of the last previous decline. a Her bie Beannee: “Theft pnk thighs point each by the Index before the failure. aes bytenen “hese pat tint of th net ely The sg cmp, no tho Sine 1 sel wen the AD Tnx Ins decline fo to ovr ant et 300 toh rom th tno hed peak Tras the Sl Si Tne nig sn movement oth A & Dodo, a ely oF dechne etomt of a est to we oven ine se dct ough the two ws dot ave to be Sonat. Aone work enna cana be conte ato forernany Acre sally or ale. Aone sve mount Is ony an ater ‘pt ina rally a ine are (mF ERK dora \ nS ms acPaTuTRE, A PATURE fon the pen, A He ns ane aos nek ceca han Tool Sig ess he yi ow the of Tee tn 4% 1 sme te di have be eer Dye rnc Cal rer, the pst hen 9 Mtns ager ili hat ad any sigan ‘un nthe ner the i pak tan as caer in lt nosh Tp el Sia st also com Fv bythe New Tig New Low ile sein fewer seathghean wae se the hl av “re event std beer wn oe et oe mr Indo the Top Sel Soe Te tne oat ha tobe The A & 1 toes from 19 0 29 serenade Ht fhe Bt peak tothe tp ofthe et ps | “Ta, Top Sell Sig A not ak nhc e142 ene th area hee pe for {ond not appenr a every op. top of even bul conemany acme or Thece were Top Sell Signals on the following dates; -Ayil8,1956 ‘Avs 16, 1950, December 24,1961 ‘The Top Sel Signals oceeed nea the top of three aut of one Pull markote whic ended dui the twenty-two dese period Ictwern 1942 ml 1964, When top and botom Signals dl not one, the amarket direction wae accurately Incatel by the trend signals, “Trying to pick the extet top and hott Is Hike resching foe the brase ring on « merry-fo-round. One enn not expect orca troy tne aon Bt Hf one co pk the op fel hotton at least all of the te, he would have te mend avantage ove the sort of investors ‘We must vnderstand that there ino physical law which says the thd pra rst always bo the exact top of x bl Imre There no lw which ays thatthe fourth week after {ell clini must sways he the exact bottom of a bese Ina “Those ilicators ae the anes whic have fen the most sccarate inthe past, and therfore should be ad to deter rine approximately the best tie for sction, We soul shenys ty Tor pipe seciracy, bt sometimes we most be ‘sliced with someting Iss "To pick the top and baton, one must sligiously follow nsatematially procter meth, One mst not ive any t= Sierstion to optimistic or pessimistic opinions voiced by ters or shold ne frm an opinion ofthe market 1 yo form an opinion, your snconscios pre wall make it die nit to change your opinion-espectlly # you have men Uood to ators Thave develaped the attitude that anybody's opinion,