Home > stocks > Spotting buying and selling signals 1900-1925

Spotting buying and selling signals 1900-1925

Examples

  • Bethlehem Steel – 1914
    8 month base during WWI, Market closed 4 months during WWI.
    Can usually buy a market leader the first 2 times it pulls back to 10 week SMA
    6 week high tight flag signals buy on high volume.
    Sell: climax top after going parabolic
  • General Motors – 1915 (8-cylinder engine)
    9 month base before buy point.  Big volume at buy point.
    GM breaks out as DJIA turns up into new trend.
    Another base forms during 4 weeks of tight price closes.  Add to long.
  • S.S. Kresge – 1923 (Transition from Mom & Pop to Corp. owned retail stores)
    14 week cup-with-handle.  Buy.
    22 week saucer-with-handle. Buy.
    Add at 10 week moving average line.
    Sell on the way up if stock goes above trendline on a log chart plotted over 3 peaks spread out over a period of months.
  • Utah Securities – 1924 (Utilities – more homes/industry wired for electricity)
    54 week base. Big volume increase on buy week.
    Pullback: about 1/2 the time, a breakout from a proper base may pull back to its buy point or slightly below. Rarely will it ever pull down 8% below your exact buy point if properly executed.
  • Du Pont de Nemours – 1925 (Leader in Science & Tech – Ag, film, auto)
    9 week cup-with-handle. Buy.
    Uptrend 9 weeks.  Buy.  Pullback (not 8% below last buy point).
    Sell climax top.  35 week double bottom with 3 weeks tight closes. Buy.
    4 weeks tight closes at moving average line. 20 week cup-with-handle.
    Handle drifts down along weekly low prices.  3 weeks tight.  Buy.
    Flat base.  Buy.  Sell climax top with excessive 3-1 split.

Indicators

  • Quarter-by-quarter plot of earnings per share for prior 12 months.
  • Earnings per share acceleration.
  • Market correction.
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