was top at 261 3/4.

October, 1907, was the next important low level after Steel reached extreme low in May, 1904. From October, 1907, to September, 1929, was 262 points. To be exact, this time was up on August 23, 1929. The top was reached at 261 3/4 on September 3, 1929, within 1/4 point of the 45 degree angle from 0 in October, 1907, showing that the stock had made its return to the 45 degree angle. This indicated that time and space had balanced. Suppose the etock had croseed this angle. So long as it stayed above it, it would have indicated higher prices, but just as soon as it got below it, it would be an indication for lower prices. Analyze other stocks according to this same rule. Allowing 1 point gain per month for the stock to follow the angle of 45 degrees, Steel was behind time in May, 1929. That ia why the fast advance of 100 points took place, bringing it up to strike the angle of 45 degrees and make final top when time and space balanced.

I have stated before that important tops and important bottoms become halfway pointe or main centers. [43] Now, it is very important to know why Steel made low at 150 in November, 1929. We go back to December, 1928, and find the last low on Steel was 149 3/4, having declined from a top at 172 1/2. There were three weeks bottoms around this level. After advancing from this level to 192 and 193, it declined to 162 1/2; then advanced to 261 3/4. From the 149 3/4 level. Steel advanced to a new high level of its hietory up to this time. Therefore, 149 3/4 or 150 must become an important center or halfway point. The last important low level was at 38 in 1915. We subtract 38 from 149 3/4 and get 111 3/4. We then add 111 3/4, which gives us exactly 261 1/2. The stock made top at 261 3/4, which makes the halfway point from 1915 to 1929 at 149 7/8. U.S. Steel declined to 150 in November, 1929, which was a etrong buying point, protected with a stop at 147.

[44] Figuring the total value of the stock, 261 3/4, we find the 3/4 point at 196 1/2, therefore a strong resistance level. Then, figuring from the last low, 70 1/2, in June, 1921, to the extreme high of 261 3/4, we find the 2/3 point 198. The writer advised selling U.S. Steel short in April,1930, with stop at 199. On April 7, 1930, Steel sold at 198 3/4. It was below the angle of 8 X 1 from 261 3/4, a weak position on the anglee from the top, but we must always consider the position on anglee from the bottom. At this time. Steel was above the 45 degree angle from 1914 and 1921 lows.

It is important to consider the position of the stock according to the Time Cycle. April, 1930, was 10 years from the high in April, 1921, and the high in 1919, 20 years back, was reached in March and April. Going back 7 years, we find the high in April, 1923, and going back 90 months from April, 1930, we find that Steel made top in October, 1922, and a sharp decline followed in November. All of these time cycles indicated top for Steel in April and when it reached strong reeistance levels and the Daily and Weekly Charts showed down, it was a sure sign to go short and

pyramid on the way down.

Looking ahead: Knowing the date of incorporation of U.S. Steel, February 25, 1901, you would look back to see what happened at the end of the 5, 10, 15, 20, and 30 year cyclee.

You would find that in 1901, 1902, 1903, and 1904, Steel was in a bear market and worked lower. Therefore, you would expect at the of the 30-year cycle very much lower prices, especially after Steel had reached extreme high in 1929 being the third high top in the bull campaign. You would also refer back 20 years to 1911 and 10 years to 1921. Theee cycles indicated that 1931 should be a bear year. Then, you would look for geometrical angles to tell when Steel was getting into a bearish poeition on angles coming down from 1929 top.

[45] May, 1930: When Steel broke below the bottome of the previous 3 months, getting under 178, it broke under the 45 degree angle from 0 from the bottom of 1915, and when it was under 174, it broke the 4 degree angle from the 1921 low, piecing it in a very weak position and indicating lower prices.

[46] In December, 1930, Steel declined to 135, on the angle of 2 X 1 from the low of 111 1/4 from January, 1927. This, being the halfway point of the life fluctuation, wae a strong support point.

1931

[47] The stock rallied to 152 3/8 in February, 1931. This was the end of 360 months of the end of the first 30-year cycle from the date of incorporation. A change in trend of Steel nearly alwaye comes in the month of February. The trend turned down at time when it went into the new cycle. On thie laet rally to 152 3/8, it failed to reach the 45 degree angle from 0 from May, 1918.

[48] In April, 1931. it broke the 135 bottom; broke the angle of 2 X 1 from 111 1/4 and the angle of 2 X 1 from 38 low in 1915; then broke the angle of 2 X 1 from the 1921 low, which put it in a very weak position. Dropping below the angle of 45 degrees coming down from the 150 low of November, 1929, and below the 45 degree angle from 150 of December, 1928, it was in such a weak position behind these 45 degree angles that it indicated very little rally.

[49] In June, 1931, low was 83 1/4. The price rested on the 45 degree angle coming up from 0 from the low of May, 1924, where the bottom was made at 95. Note that the 4 X 1 angle from 1904 and 1915 crossed near these levels, and the 4X1 angle coming up from 0 in September, 1929, croeeed at 84, making thie a strong support point for at least a rally.

In July, 1931, Steel rallied to 105 1/2, still weak on angles from the top and from the bottom.

[50] September, 1931, Steel broke 83, under the 2X1 angle from 0 in May, 1924, and under the 2X1 angle coming down from the 1929 top. As most all of the strong angles from the bottom were broken, it was in a very weak position.

[51] December, 1931, declined to 36 on a 45 degree angle from 0 in December, 1928, when the low was 150. At 36 it rested on the 45 degree angle coming down from the last low of 114 in June. 1925. This was 2 points under the 1915 low of 38 and was 242 months from 1011 low and 60 months from January, 1927 low. The stock held for a temporary rally to February, 192, when it sold at 52 1/2.

1932

This was 12 months in a new 30-year cycle. Note 1902 top in January was 30 years back, and also 1912 top in January, 20 years back.

[52] The decline continued and in June, 1932, low was reached at 21 1/4, the same low as October, 1907. This was 34 months from 1929 top. , At the time bottom was reached, it was under the 45 degree angle coming down from May, 1924, reached 0 in June, 1932, an indication for bottom and a change in trend. In view of the fact that Steel made extreme low in May, 1904, we would watch for change in trend in May and June, or when the cycle runs out. June, 1932, was 336 months from May, 1904, low and 26 months from April, 1930, top. Note May and June, 1912, low for a rally.

[53] September, 1932, U.S. Steel had a sharp rally to 52 1/2. This was the same high as the top of February, 1932, which it failed to cross. It was still in a weak position on angles from the top and a decline followed.

1933

[54] February, 1933, Steel declined to 23 1/4. This was a seconda ry low a nd a hig he r bottom t ha n 1932; indica ted good support. It was 42 months from September, 1929, or 1/2 a 7-year cycle, and 34 months from April, 1930, top and 24 months in the new 30-year cycle. In 1913, February was low for a email rally; in 1903, February was top Tor decline. Steel nearly always makes a change in trend in February. Looking back 7 years to 1926, you will find the low in March and April.

Note the 45 degree angle from in February, 1931, which was the end of the 30-year cycle, crossed at 24 in February, 1933. Therefore, the stock rested on this angle, which was a strong support angle.

[55] July, 1933, high 67 1/2. Note that in 1923 lows were made m July arid August; in 1913, high in August; in 1903, new lows were made in July.

[56] October, 1933: Steel declined to 34 1/2. This was 49 months from September, 1929, top and 42 months from April, 1930, top. October, 1923, was low, 120 months or 10-year cycle. 1913 also low in October. 1903, low in November. Looking back 7 years to October, 1926, we find a low, and looking up the 5-year cycle.