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.