sell near the high point of that range and protect with a stop loss order 1 to 3 points away. However, a better plan would be to wait until the stock shows a definite trend before buying or selling; then buy the stock when it crosses the highest point or sell when it breaks the lowest point of that trading range.

FORECASTING DAILY MOVES

The daily velnent gives the first minor change and conforms to the same rules as the weekly and monthly cycles, although it is only a minor part of them.

In fast markets there will be a 2 day move in the opposite direction to the main trend and on the third day the upward or downward course will be resumed in harmony with the main trend.

A daily movement may reverse trend and only run 7 to 10 days; then follow the main trend again.

During a month, natural changes in trends occur around: 6th to 7th, 9th to 10th, 14th to 15th, 19th to 20th, 23rd to 24th, and 29th to 31 st. Those minor moves occur in accordance with tops and bottoms of individual stocks.

It is very important to watch for a change in trend 30 days from the last top or bottom. Then watch for changes 60, 90, 120 da ys from tops r bottoms. Six monthe or 180 days is ve ry important and sometimes marks changes for greater moves. Also around the 270th and 330th day from important tops or bottoms, you should watch for important minor and often major changes.

January 2nd to 7th and 15th to 21st:

Watch these periods each year and note the high and low prices are crossed or low prices broken, consider the trend up or down.

Many times when stocks make low in the early part of January, this low will not be broken until the following July or August and sometimes not during the entire year. This same rule applies in bear markets or when the main trend is down. High prices made in the early part of January are often high for the entire year and are not crossed until after July or August. For example: U.S. Steel on January 2, 1930 made a low at 166, which was the half-way point from 1921 to 1929, and again on January 7, 1930 declined to 167 1/4. When this level was broken. Steel indicated lower prices.

July 3rd to 7th and 20th to 27th

The month of July, like January, is a month when most dividends are paid and investors usually buy stocks around the early part of the month. Watch those periods in July for tops or bottoms and a change in trend. Go back over the charts and see how many times changes have taken place in July, 180 days from

January tops or bottoms, Fcr example: July 8, 1932 was low; July 17, 1933, high; and July 26th, 1934 low of the market.

HOW TO DIVIDE THE EARLY TIME PERIOD

Divide the year by 2 to get 6 months, the opposition point or 180 degrees angle, which equals 26 weeks.

Divide the year by 4 to get the 3 months period or 90 days or 90 degrees each, which is 1/4 of a year or 13 weeks.

Divide the year by 3 to get the 4 months period, the 120 degrees angle, which is 1/3 of a year or 17 1/3 weeks.

Divide the year by 8, which gives 1 1/2 months, 45 days and equals the 45 degree angle. This is also 6 1/2 weeks, which shows why the 7th week is always so important.

Di vide the yea r by 16, wh ich g i ve s 22 1/2 days r approximately 3 weeks. This accounts for market movements that only run 3 weeks up or down and then reverse. As a general rule, when any stock closes higher the 4th consecutive week, it will go higher. The 5th week is also very important for a change in trend and for fast moves up or down. The 5th is the day, week, month, or year of Ascension and always marks fast moves up or down, according to the major cycle that is running out.

BULL AND BEAR CALENDAR YEARS

By studying the yearly high and low chart and going back over a long period of time, you will see the years in which bull markets culminate and the years in which bear markets begin and end.

Each decade or 10-year cycle, which is 1/10th of 100 years, marks an important campaign. The aigits from 1 to 9 are important. All you have to learn is to count the digits on your fingers in order to ascertain what kind of a year the market is in.

No. 1. A new decade is a year in which a bear market ends and a bull market begins. Look up 1901, 1911, 1921.

No. 2. The second year is a year of a minor bull market, or a

rally in a bear market will start at some time. See 1902, 1912, 1922, 1932.

No. 3. The third year starts a bear year, but the rally from the 2nd year may run to March or April before culmination, or a decline from the 2nd year may run down and make bottom in February or March, like 1933. Look up 1903, 1913, 1923.

No. 4. The forth year, is a bear year, but ends the bear cycle and lays the foundation for a bull market. Compare 1904, 1914.

No. 5. The fifth year is the year of Ascension, and a very strong year for a bull market. See 1905, 1915, 1925, 1935.

No. 6. The sixth year is a bull year, in which a bull campaign whioh started in the forth year ends in the Fall of the year and a fast decline starts. See 1896, 1906, 1916, 1926.

No. 7. Seven is a bear number and the seventh year is a bear year because 84 months or 840 degrees is 7/8 of 90. See 1897, 1907, 1917. but note 1927 was the end of a 60 ypar cycle, so not much of a decline.

No, 8. The eighth year is a bull year. Prices start advancing in the 7th year and reach the 90th month in the 8th year. This is very strong and a big advanoe usually takes place. Review 1898, 1908, 1918, 1928.

No. 9. Nine is the highest digit and the ninth year is the strongest of all for the bull markets. Final bull campaigns culminate in this year after extreme advances and prices start to decline. Bear markets usually start in September to November at the end of the 9th year and a sharp decline takes place. See 1869, 1879, 1889, 1899, 1909 1919, and 1929- the year of the greatest advances, culminating in the fall of the year, followed by a sharp decline.

No. 10. Ten is a bear year. A rally often runs until March and April; then a severe decline runs to November and December, when a new cycle begins and another rally starts. See 1910, 1920, 1930.

In referring to these numbers and these years, we mean the calendar years. To understand this, study 1891 to 1900, 1901 to 1910, 1911 to 1920, 1921 to 1930, and 1931 to 1939.

The 10-year cycle continues to repeat over and over, but the greatest advances and declines occur at the end of the 20-year and 30-year cycles, and again at the end of the 50-year and 60-year cycles, which are stronger than the others.

IMPORTANT POINTS TO REMEMBER IN FORECASTING

TIME is the most important factor of all and not until sufficient time has expired does any big move, up or down, start.