from the 1906 bottom. You can see from this that the stock was still in a strong position according to the space movement or resistance levels, but in a weak position on angles and was running down to complete the 7 year cycle from 1907.

[28] In February, 1914, Steel rallied to 67, just 2 points above the 1/3 point from 94 7/8 to 50, Note that it made 67 for 2 months, hitting against the angle of 2 X 1 from May, 1904, and failed to reach the angle of 2 X 1 from October, 1909. To run out a 10 year cycle from low in 1904 would indicate bottom in May and June, 1914, and 7 years from low in November, 1907, would be November, 1914, [29] The Stock Exchange cloeed at the end of July, 1914, on account of war and U. S, Steel sold around 32 on the New Street Curb in the month of November, 1914. So for the purpose of calculating, November, 1914, should be considered, according to time, the month when Steel reached low. [30] However, this level was lower than it sold after the Exchange opened, so we muet also calculate the exact date that Steel made the extreme low. This was in February, 1915, when it sold at 38, just 168 months or 14 years from March, 1901, 64 months, from 1909 top, 72 months from February, 1909 bottom, and on the 88th month from 1907 bottom, all strong time cycles indicating bottom. The etock went below the angle of 4 X 1 from May 1904, but quickly recovered and stayed above it. This bottom at 38 was juet above 2/3 point from 94 7/8 to 8 3/8, and 3/4 point from 21 7/8 to 94 7/8 was 40. February, 1909, bottom wae at 41 1/8. 37 1/2 is a natural resistance level, being 30 plus 7 1/2 or 22 1/2 plus 15, and 7/8 of 45 is 39 3/8, all strong resistance pointe on space movements.

How to forecast from this point according to time. Going back 10 years we see that in 1905, 1906 and in January, 1907, the stook advanced; then in 1915, 1916, 1917 it should be up trend. We add 7 years to October, 1909 top and get October, 1916. [31] Top was reached in the early part of November, 1916, when the stock sold at 129, and a sharp decline followed to December, 1916, when the stock sold at 101, but final low wae not reached until February, 1917, when it sold at 99. Thie was close enough to the 10 year cycle from March, 1907, when there was a panic and 7 yeare from the top of February 1910. The top at 129 was 21 months from February, 1914, bottom. It broke on the 22nd month, had a small rally in the 23rd month, made bottom 24 months from February, 1915, low. Note strong position on angles at 99, which was 90 or square above the base of 8 3/8 and exactly on the angle of 2 X 1 from 80 bottom in April, 1916,

[32] The 180th month or 15 year cycle ended with February, 1916, with the stock holding above the angle of 2 X 1 from May, 1904, low, still below the price of 90. In Auguet, 1916, it crossed the 1909 top at 94 7/8, which indicated much higher. Now we want to know what price to expect Steel to advance to, so we look back and see top at 80 in 1909, 1910, 1911, and 1912. In 1916 there was 3 months bottoms at 80. This being the last low muet be an important center or halfway point. Take the 1909 top, 94 7/8, and subtract the 1915 low at 38 and get 56 7/8. Add this to 80 and get

136 7/8. [33] The exact high on May 31, 1917, was 136 7/8, the stock being up 98 5/8 points from 1914 low, and 128 points from the 1904 low. It is always important to go back 5, 7, 10, 15, and 20 years to bottoms and tops. Taking the 1907 low at 21 7/8 and 1917 top at 136 7/8, we find the halfway point to be 79 1/4, proving that the starting point at 80 was to become the center of gravity or halfway point for a 10 year cycle.

.The 1917 top was 91 months from October, 1909 top, and exact square angle of 90 degrees, being only one month over it. I was 193 months or 16 years from 1901 top. Note November, 1908, top was 90 months from April, 1901, top. Sixteen years is 4/5 of the 20 year cycle. Stocks make their best advances in the 8th and 9th years of a cycle. May 1917, was 16 years and 3 months from March, 1901. There is a cycle of 32 years and 6 months. Steel had worked out 1/2 of this cycle to top. In view of the fact that top was reached on the 91 et month and on the exact space movement was evidence that the stock was top for a further decline. In 1917, top coming out on the price indicated and on the 91st month, indicated top and a short sale. Besides, the volume of sales was very large, indicating distribution.

We know that 1907 was a panic year and that stocks made low in October and November, 1907; then 1917 muet repeat. 1910 was also a bear year and 1917, or 7 years later, indicated a decline. [34] The trend turned down in the panic of December, 1917, Steel sold at 80, the halfway point from 1907, getting just below the angle of 2X1 from 1907 and getting eupport 1 point below the angle of 2X1 from 0 May, 1904. December, 1917, was 90 monthe from July, 1910jand 30 monthe from February, 1914. This was another indication of bottom for rally. We Know that Steel went up in 1908 and 1909. Therefore in 1918 and 1919, 10 years later, we expect it to work like 1908 and 1909. Steel advanced in 1918 and made last top in October and November, 1919, just 10 years from 1909 top. In 1920 and 1921, Steel followed 1901, 1910, and 1911. In June, 1921, made bottom 7 years from the low in July, 1914, nearly 14 years from the 1917 low, 76 monthe from the 1915 low, 49 months from 1917 top and 242 months from the top in April 1901, working out the 20-year cycle, the most important cycle.

[35] By taking the top at 136 5/8, we find that 1/2 of the total value is 68 1/4. The stock got eupport above the halfway point of its total value, indicating a good buying prioe. It was down 66 1/4 pointe from the top, another resistence level. The 1/2 point from 8 3/8 to 136 5/8 was 65. The fact that it held above these halfway points indicated strong support and much higher prices to follow. The next point, 87 1/4, was 1/2 from 38 to 136 5/8. [36] It made bottom in February, 1918, and February, 1919, at thie level. In 1920. efter Steel broke 87, it never rallied again to 91 until it declined to 70 1/2 in June, 1921. [37] In 1922, Steel crossed 88, the halfway point; went to 111; then declined to 86. It remained 4 months at this eame bottom without getting 2 points below the halfway point from 1915 low to 1917 high. This was proof enough that there was etrong buying and

good support at this main center and that the stock would go much higher later. [38] In May and June, 1924, just 20 years from May, 1904, when Steel made low, it sold at 95 and has never sold at that price again before the high was made at 261 3/4, making higher tops and higher bottoms each year.

In November, 1928, Steel made top 20 years from November, 1908, top. [40] In January, February and March,1929, tops were around the same level, 192 to 193. [41] Steel declined and made the last low in May, 1929, at 162 1/2, a little lower than February and March, 1929, lows.

[42] On September 3, 1929, Steel reached the highest in its history. 261 3/4. Note that tops were reached in July, 1919, and in October, 1909. This was 1 month sooner than the 1909 top and 1 month later than the 1919 top. The top was reached on the 343rd month from March, 1901. This is very important number, which marks culminations and indicates tops or bottoms, because it is 7 X 49, and 49 is composed of 7 X 7. The top was reached 98 months from the 1921 low, or 8 years and 2 months, making top early in the 9th year. Note that the top on the old stock before it sold ex-stock divided was reached in May, 1927, 10 years from the top of May, 1917. September, 1929, was 174 months from 1915 low and nearing 180 months from 1924 low, 72 months from 1923 low, 56 months from August, 1926 top, 24 months from September, 1927 top, and 147 months from May, 1917. This is important because 135 plus 11 1/2 equals 146 1/4, an important resistance level on the Master 12 X 12 Cha rt.

From September, 1904, when the trend turned up, to September, 1929, was 300 months, an important cycle, which indicated the end. It is important here to figure the space movement. Figuring from the low of 38 in 1915 to the high of 261 3/4 in 1929, we get 223 3/4 points. We know that 225 is one of the very strong resistance levels. Then figuring from the low of 21 7/8 in 1907 to the top at 261 3/4, find the space movement 240 points, enother very strong resistance level, because it is 2/3 of the circle of 360 degrees. From the extreme low in May, 1904, Steel was up 253 3/8 points. 255 is the halfway point between 240 and 270, therefore a very strong resistance level

Figuring from the low at 70 1/2 in 1921 to the top in 1929, the space movement equaled 191 1/4 points. This is exactly 180 plus 11 1/4, another strong resistance point. The last run on Steel from 152 1/2 in May, 1929, to the top, was nearly 100 points. My rule says, when stocks have sharp advances, getting up 90 to 100 points, it is time to watch for top and a change in trend.

I have found, after years of experience, that over a long period of years a stock cannot maintain a gain of more than 1 point per month, or that it cannot do better than to hold the 45 degree angle. When a stock in its early yeare goes up too fast and gets ahead of time, sharp reactions have to take place while the etock is squaring itself of adjusting itself to the time period. One of my rules is, when time and space balance, the stock makes top or bottom. This was the most important indication of all that Steel