Bought 400: at 121 1/2- sold at 121 1/2- even----$.........

Less commissions and taxes.........................$ 650.00

Net profit............. ;$97,045.00

New operating capital..$121,145.00

1500 short: at 121 1/2

We can now be very conservative and increase trading to 2000 shares and should we have ten consecutive losses of three points each, we would still have half our capital left to operate with, and ten consecutive losses are highly improbable.

(We are going to bypass the years 1917 through 1927, as those years are a repetition of what has been written, so far. Starting 1928, the operating capital stood at $1,634,177.50.)

1928

We buy 2000 at 140 1/2, and later buy 1000 at 144 1/2 and 500 at 149 1/2. March 22nd and 26th high 152. We raise stop to 149. Stop caught, and we sell short 2000 at 149, April 2nd and 11th, low 145, same low as March 14th and 20th. We reduce stop to 148, although, could have covered against double bottom. Stop caught. We buy 2000 at 148. April 12th, high 154. We raise stop to 151. Stop was caught, and we sell short 2000 at 151. April 24th, low 143 3/4. April 27th, high 147. We make stop at 148. Stop caught. We buy 2000 at 148. May 11th, high 150 3/4. We make stop at 147 3/4. The stop was caught, and we go short 2000 at 147 3/4, and . later sell 1000 at 142 3/4, and 500 at 137 3/4. June 11th, low 132 5/8. Last low, June 21st at 136 1/4. We make stop 137 1/4. Stop, was caught, and we buy 2000 at 113 1/4. July 9th, high 142. We make stop 139. Stop caught, and we go short 2000 at 139. July 17th, low 134. We make stop 137. The stop was caught.

We buy 2000 at 137 and later buy 1000 at 142 , 500 at 147 and 300 at 152, September 17th, high 160 3/8. We make stop 157 3/8. Stop was caught, and we sell short 2000 at 157 3/8. September 21st, low 155, We make stop at 158. The stop was caught, and we buy 2000 at 158. Later, buy 1000 at 162. October 15th, high 166. We make stop 163. Stop caught. We go short 2000 at 163. October 26th, low 159 1/8. We make stop 162 1/8. Stop wes caught, and we buy 2000 at 162 1/8, and later buy 1000 at 167. November 16th, high 172 1/2, and we make stop at 169 1/2. Stop was caught, and we go short 2000 at 169 1/2. Later sell 1000 at 164 1/2, 500 at 159 1/2 and 300 at 154 1/2, December 17th, low 149 3/4 and December 8th, low was 150 1/4. Also note, August 23rd and 28th lows were, 149 1/4 and 150 1/2. These bottoms give us an indication to cover shorts around 150 and buy," besides from the last low of 132 3/8 on June 25th to the high, 172 1/2 on November 16th made 1/2 point at 152 1/2 and 3 point stop was never caught. After low of 149 3/4 on December 17th, we made

stop 152 3/4. Stop was caught, and we buy 2000 at 152 3/4. Later buy 1000 at 157 3/4, 500 at 162 3/4, 300 at 167 3/4 , 200 at 172 3/4 and 100 at 177 3/4.

1929

On January 22, 1929, high 190 1/4. We make stop 187 1/4. Stop caught. We go short 2000 at 187 1/4. January 24th, low 183 1/2. We make stop at 187 1/2. January 25th, high 192 3/4. We make stop 189 3/4. Stop was caught, and we sell 2000 at 189 3/4. January 30th, low 179 1/2. We make stop 182 1/2. Stop was caught, we buy 2000 at 182 1/2. February 2nd, high 188. Make stop 185. Stop caught. We go short 2000 at 185, and later sell 1000 at 180. February 8th, low 171 1/8. Make stop 174 1/8. Stop caught. We buy 2000 at 174 1/8. February 13th, high 180. We make stop 177. Stop caught. We sell 2000 at 177 and later sell 1000 at 172. February 16th, low 168 1/4. We make stop 171 1/4. Stop was caught, and we buy 2000 at 171 1/4. Later we buy 1000 at 176 1/4, 500 at 181 1/4, 300 at 186 1/4, and 300 at 190 1/4. March 1st, high 193 3/4. We make stop at 190 3/4. Stop caught.

We go short 2000 at 190 3/4 and sell 1000 at 185 3/4. March 6th, low 180 1/2. We make stop 183 1/2. Stop was caught and we buy 2000 at 183 1/2. March 8th, high 187 1/4. We make stop 184 1/4. Stop was caught, and we go short 2000 at 184 1/4. March 11th, low and we buy 2000 at 184 1/4. March 28th, high 183 3/4. Make stop 180 3/4. Stop caught.

We go short 2000 at 180 3/4. April 1st, low 176 1/4. We make stop 179 1/4. Stop caught. We buy 2000 at 179 1/4 and later buy 1000 at 184 1/4. April 5th, high 189. We make stop 186. Stop caught. We go short 2000 at 186. April 9th and 17th, low 183 3/4. Make stop 186 3/4. Stop caught. We buy 2000 at 186 3/4. April 30th, high 190 1/2. We make stop 187 1/2. Stop caught. We go short 2000 at 187 1/2, Uter, sell 1000 at 182 1/2, 500 at 177 1/2, 300 at 172 1/2 and 200 at 167 1/2. May 31st, low 162 1/2. We make stop 165 1/2. Stop was caught, and we buy 2000 at 165 1/2. Later, buy 1000 at 170 1/2, 500 at 175 1/2, 300 at 180 1/2, 200 at 185 1/2, 100 at 190 1/2.

In the earliest part of July, the stock crosses 194, the highest in history, and not having broken an overnight bottom since the low of 162 1/2 shows strong up trend. As we have 30 points

Crofit in the first purchase at 165 1/2, we start a new pyramid and uy 2000 more at 195 1/2. Buy 1000 at 200 1/2. July llth, low 197 1/2. We raise stop on all purchases to 196 1/2. The advance continues, and we buy 1000 more at 205 1/2. July 20th and 24th high 209 3/4 and 210. July 22nd, 24th and 29th made lows at 204 1/2. We raise stops on all trades to 203 1/2. Stops were not caught. We buy 500 more at 210 1/2, 300 at 215 1/2, 200 at 220 1/2, and 100 at 225 1/2, August 9th, the last low was 213 1/2, We raise stops on all trades to 212 1/2. The

advance continues with no change in trend on the Overnight Chart. August 14th, high 245. August 15th, low 235 5/8. We raise stop on all trades to 234 5/8. August 19th, low 237 5/8. We raise all stops to 236 5/8.

The rule to follow when you have big profits on a double pyramid is, do no guessing; wait until the Overnight Chart closes your trades by catching a stop one point under a previous low or follow up with a stop 10 points under each days high level. This rule is to be applied only in active fast markets. For example, from August 14th high to August 15th low there was deoline of 9 3/8 points. Therefore, 10 points from the next extreme high level would indicate that the trend was getting ready to turn down.

August 24th, high 260 1/2. August 29th, low 251 1/2, just 9 points decline, and would not catch a 10 point stop. We raise all stops to 250 1/2. September 3rd, high 261 3/4, and a stop 10 points down would be 251 3/4. We sell out all long stock at 251 3/4.

The following statement covers all trades from March, 1928 to September 5, 1929:

March,

Bought

Bought

Bought

Sold

Bought

Sold

Bought

Sold

Sold

Sold

Bought

Sold

Bought

Bought

Bought

Bought

Sold

Bought

Bought

Sold

Bought

Bought

Sold

Sold

Sold

Sold

Bought

Bought

DEBIT

CREDIT ,634,177.50 17,000.00 4,500.00

2,000.00

21,000.00 5,500.00 250.00 3,500.00 4,000.00 40,750.00 15,375.00 5,187.50 1,612.50

10,000.00 1,000.00 1,750,00 14,750.00 2,500.00 33,500.00 11,750.00 3,375.00 525.00 69,000.00 29,500.00