TRUTH OF THE STOCK TAPE
TRUTH OF THE STOCK TAPE “Receive my instruction, and not silver; and knowledge rather than choice gold. For wisdom is better than rubies, and all the things that may be desired are not to be compared to it.”– PROV. 8: 10-11.
In addressing you TRUTH OF THE STOCK TAPE on the subject of investing your surplus funds, I might state that there is no other subject which I could select that so closely concerns your welfare and regard- ing which you might receive valuable assistance from my in- structions.
In the United States a stupendous sum, reaching into millions of dollars, is wasted annually in foolish speculations and unwise investments. This senseless waste can be traced to one and only one TRUTH OF THE STOCK TAPE source, namely, lack of knowledge. Men and women who would not attempt to treat the slightest ailment, or even adjust so common a thing as a kitchen faucet, but would hand each difficulty over to its respective specialist, the doctor or the plumber, will on the spur of the moment and without the slightest preparation, undertake the invest- ment of thousands of dollars in enterprises about which they understand absolutely nothing. Is it any wonder then that they lose?
I offer you suggestions and advice in the science of spec- ulation and investment in the same spirit as the physician. He would not think of guaranteeing you TRUTH OF THE STOCK TAPE perpetual life or insur- ing you against the common ills to which the flesh is heir. But in your difficulties he brings to your aid the accumulated experience of his profession, and a skill and knowledge which required years to accumulate and is ready for your instant use. I do not offer you a beautiful theory which will not work in practice, but give you invaluable advice, which if followed, will insure success in practical everyday Wall Street speculations and other fields of investment.
It has been well said that a writer who writes first for remuneration and secondly because he believes what he writes, will never achieve enduring fame, and that the sales- man who does not believe in his goods will never TRUTH OF THE STOCK TAPE make a success. I believe in the theory and rules that I have laid down in this book for you to follow, because I have tested and proved them.
It is my object in this work to facilitate and focalize the essential principles for practical use. My knowledge comes from over twenty years’ experience, in which I have traversed TRUTH OF THE STOCK TAPE the rough and rugged road that the inexperienced trader’s foot must press before he reaches the goal. Hence my object in writing this book is to give to the public something new and practical, not theory alone which would fail in practice.
Read this book carefully several times; study each chart and subject thoroughly, and a new light and knowledge will come to you every time you read it.
If I succeed in teaching only a few to leave wild gambling alone and follow the path of conservative speculation and investment, my work will not have been in vain and I will have been amply repaid for my efforts.
NEW YORK CITY, January 27, 1923.
CONTENTS TRUTH OF THE STOCK TAPE
PREPARATION FOR TRADING
CHAPTER PAGE I. WHAT IS TAPE READING? 2
II. CAN MONEY BE MADE IN WALL STREET? OR CAN THE STOCK MARKET BE BEATEN? 3
III. HOW TO READ THE STOCK TAPE 5
IV. HOW THE TAPE FOOLS YOU 8
V. HOW STOCKS ARE SOLD 16
VI. YOUR WEAK POINTS 20
VII. ESSENTIAL QUALIFICATIONS 22
HOW TO TRADE
VIII. RULES FOR SUCCESSFUL TRADING 28
IX. METHODS OF OPERATING 40
X. CHARTS AND THEIR USE 51
XI. THE SEVEN ZONES OF ACTIVITY 55
XII. HABITS OF STOCKS 59
XIII. DIFFERENT CLASSES OF STOCKS 68
XIV. HOW TO READ THE TAPE CORRECTLY 76
XV. WHEN THE TAPE FINISHES AND GIVES FINAL SIGNALS 83
HOW TO DETERMINE THE POSITION OF STOCKS
XVI. POSITION OF GROUPS OF STOCKS 88
XVII. GENERAL TREND OF THE MARKET 90
XVIII. HOW TO TELL THE STOCKS IN STRONGEST POSITION 93
XIX. HOW TO TELL WHEN STOCKS ARE IN WEAK POSITION 99
XX. JUDGING FINAL TOPS AND BOTTOMS 103
XXI. NUMBER OF TIMES A STOCK FLUCTUATES OVER THE SAME RANGE 114
XXII. CROSSING OLD LEVELS 117
XXIII. TOPS AND BOTTOMS ON RAILROAD STOCKS 127
XXIV. BOTTOMS AND TOPS ON INDUSTRIAL STOCKS 135
XXV. ACCUMULATION OF LOW-PRICED STOCKS 143
XXVI. HOW TO WATCH INVESTMENTS 146
XXVII. HOW TO TRADE IN COTTON 152
XXVIII. PROPER WAY TO READ THE COTTON TAPE 158
XXIX. HOW TO DETERMINE A CHANGE IN TREND 165
XXX. THE BOLL WEEVIL 168
XXXI. WHEAT AND CORN TRADING 170
XXXII. JUDGING ACCUMULATION AND DISTRIBUTION ZONES 173
SELECTING A BROKER 185
1. Dow-Jones’ Averages: Yearly High and Low 66
20 Industrial Stocks: 1896-1922.
20 Railroad Stocks: 1885-1922.
2. Studebaker Weekly High and Low 77 September 4, 1920, to January 6, 1923.
3. U. S. Rubber Monthly High and Low: 1914-1922. 84
4. Continental Can Monthly High and Low: 1914- 1923 91
5. New York Central Swing Chart: 1896-1922 96
6. U. S. Industrial Alcohol Monthly High and Low: 1914-1922 100
7. U. S. Steel — 3-point Moves: October 2, 1916, to December, 1917 105
8. American Smelting and Refining Monthly High and Low: 1901-1908 107
9. Corn Products Monthly High and Low: 1906-1922 110-111
10. Republic Steel Monthly High and Low: 1913-1922. 118
11. Dow-Jones’ Averages — Monthly High and Low — 20 Railroad Stocks: 1896-1922 128-131
12. Dow-Jones’ Averages — Monthly High and Low — 20 Industrial Stocks: 1897-1922 136-139
13. October Cotton Weekly High and Low: November, 1919, to January, 1923 160-161
14. May Wheat Monthly High and Low: 1895-1922 174-176
15. May Wheat Swing Chart: 1895-1922 178
16a. May Wheat Weekly High and Low: April 16, 1921, to January 6, 1923 182
16b. May Daily Wheat High and Low: December 13 to 29, 1922 182
TRUTH OF THE STOCK TAPE TRUTH OF THE STOCK TAPE
“No man can learn what he has not preparation for learning, however near to his eyes is the object. A chemist may tell his most precious secrets to a carpenter, and he shall be TRUTH OF THE STOCK TAPE never the wiser — the secrets he would not utter to a chemist for an estate.” — EMERSON.
In 1917 when the United States was forced to enter the war against Germany we heard on every hand “we are un- prepared for war.” Wilson’s period of “watchful waiting” instead TRUTH OF THE STOCK TAPE of preparing for the inevitable had at last brought us face to face with war without being ready.
Lawyers, doctors, engineers and professional men who make a success spend anywhere from two to five years’ time studying and preparing to practice their profession before they begin making any money.
Men enter into speculation in Wall Street without any preparation. They have TRUTH OF THE STOCK TAPE made no study of it whatsoever. They try to deal in something they know nothing about. Is it any wonder then that they lose?
Speculators and investors who simply guess, follow tips, rumors, newspaper talk and so-called “inside information” have no chance of ever making a success. Unless they TRUTH OF THE STOCK TAPE follow some well-defined plan based on Science and Supply and Demand, they are sure to lose.
Over twenty years of study and experience places me in a position to give you a definite, practical set of rules and instructions which will lead to success if you follow them.
No great success or gain can be expected unless a man is willing to study and learn by past experience. You cannot get something good for nothing and must pay with time, money, or knowledge for success.
TRUTH OF THE STOCK TAPE
WHAT IS TAPE READING?
Tape reading is a study of fluctuations of stocks as they appear on the stock tape and the ability to judge the ones that are in a strong or weak position and determine the psychological moment to buy or sell. We must also be able to determine the stocks that are inactive and show no definite trend.
Tape reading is psychological TRUTH OF THE STOCK TAPE because the mind acts and is influenced by everything it sees, hears, smells, tastes or feels. In reading the tape, we are not influenced alone by what we see, but by what we feel or sense, which cannot always be explained or a satisfactory reason given because it is “intuition.”
What is intuition? You often hear traders say “I am buying or selling this stock on my intuition. The best defini- tion I can give of intuition is that it is instantaneous reasoning. It is that something which tells us when we are right or wrong before we have time to reason it out. The way to benefit through intuition is to act immediately, and not stop to reason or ask why. That is what a good tape reader does.
The tape registers the dominating force currents from business TRUTH OF THE STOCK TAPE all over the country. It contains the condensed opinion of the majority and weighs the hopes and fears of manipulators, the public, and business men. That is why it is a reliable guide and business barometer, if you know how to read it correctly. And here is where the “rub” comes. The tape tells the truth, if you can interpret it correctly.
Tape reading requires a strong will power and a mind that, when it once sees the trend of the market, cannot be changed until the tape shows the change and is not influenced by news, false rumors, tips, or hearsay. Being able to read the tape correctly and act on your judgment is an entirely different proposition, which I will explain later on.
CAN MONEY BE MADE IN WALL STREET?
CAN THE STOCK MARKET BE BEATEN?
You have often heard the expression “99 out of every 100 who go into Wall Street lose.” Then one man out of every hundred must win. Therefore, my answer is that Wall Street can be beaten and that you can make money by specu- lating and investing along conservative lines and by trading in a few selected stocks.
But how are you going to do it? You must have knowl- edge and science. Know! Know !! Know!!! more than the other fellow or the common trader. Find out how suc- cessful men in Wall Street have made their fortunes; then go and do likewise. Remember that “Knowledge is Power.”
Statistics show that 98 per cent TRUTH OF THE STOCK TAPE of business men fail sooner or later. Then why do men go into business? Be- cause 2 per cent of them make fortunes out of general busi- ness and keep them.
Just ask yourself the question, “Who gets all the money that is lost in Wall Street?” It does not evaporate; for every dollar lost some one makes a dollar. Then the way to make it is to trade the same way the fellow does who gets what you lose. Remember TRUTH OF THE STOCK TAPE that every time you buy some one sells and every time you sell some one buys.
The majority of people who buy stocks lose money in the end. Why? Because they guess, follow newspaper dope, fake tips or inside information. They do not make safe investments; they gamble on 10 or 15 points ’ margin. They nearly always buy near the top, and, of course, nothing can keep them from losing.
The general public do not sell stocks short; therefore they are always wrong in a Bear market. When a man loses money buying stocks and refuses to sell short, he can always look back and say “if I had only sold when I bought, look how much profit I would have made.” Then, why doesn’t he learn to sell short? (In another chapter I will show you the proof that it is safe and practical to sell short.)
At the present time, there are TRUTH OF THE STOCK TAPE over 700 stocks listed on the New York Stock Exchange, and if you group them under their proper headings, there will be over 20 different groups. If you study the action of all the stocks in one group and watch them on the tape, you will find it is too much for you, and that you cannot make money trading in all of the stocks in any TRUTH OF THE STOCK TAPE one group, much less by trying to trade in several groups.
Tape reading requires patience, and the essence and value of it is concentration. There is no such thing as a man being born with a mind that can concentrate on 10 things at one time, much less 700. Then success depends upon selecting a few stocks and concentrating upon them.
HOW TO READ THE STOCK TAPE
The general opinion prevails with the public, especially among traders outside New York City, that the proper way to read the tape is to stand at the ticker and watch every quotation as it comes out. Nothing is more erroneous.
Expert tape readers are very few and far between. It is a study of a lifetime. While the tape shows the trend of the market, there are so many minor changes and quick reversals that the average man can not tell whether the big trend has turned or whether it is only a minor change that will last a few hours, a few days, or a few weeks before the main trend is resumed again.
If a trader goes into a broker’s office to watch the tape, he will find anywhere from two or three to a dozen traders standing around the ticker, all talking from time to time and TRUTH OF THE STOCK TAPE expressing their opinions or what they hear on different stocks. He must also listen to the gossip that comes over the news ticker, floating rumors from the street, and informa- tion about buyers and sellers that comes from the floor. With all of these disturbances, there is not one man in a million that can concentrate enough to tell anything about what stocks are going to do.
Besides, if he is able to pick a winner, and starts to buy or sell, he will be influenced by what someone says who is standing around the ticker and the result is that he will not act at the right time. Then it is impossible to beat the market by tape reading in a broker’s office.
No matter how strong a man’s will power may be, he is influenced, consciously or unconsciously, by what he hears or sees, and his actions or executions are interfered with accord- ingly. This is the reason why a few TRUTH OF THE STOCK TAPE big traders, like Liver- more, have a private office with a ticker, where they can beaway from all outside influences and watch the tape, form their impressions, and act on them without being influenced by things they do not want to hear. But only traders who have a very large amount of money and can devote all of their time to the market and tape reading can afford to have an office and a ticker where they can study the tape alone without interference. The average man cannot afford this.
Then it is necessary to know how to read the tape without seeing it, or without watching it all the time. Market move- ments of importance, i.e., the long swings, require weeks and sometimes months to get ready, or for accumulation and distribution to be completed. There is always plenty of time to buy or sell one or two days after a big move gets under way. Therefore it is not necessary to watch the tape every day, or every hour, in order to determine what stocks are going to do. It can be read just as easy and better after the market closes. The tape is simply a record of prices, and if you have this record of high and low prices made during the day, you can form your judgments from it.
Market movements depend upon Supply and Demand. It requires volume of trading in proportionate large or small amounts to move stocks up or down. The volume of sales to the stock market is the same as the steam is to the locomo- tive or the gasoline is to the automobile. The sales are the motive power which drives prices up or down.
For example: United States Steel has five million shares of common stock, and it requires a very large volume of sales to move this stock up or down very much. General Motors has fifty million shares of common stock and its fluctuations are confined to a very narrow range, because the buying or selling of 100,000 shares will not move it more than a point, if that much, while the buying of 100,000 shares of Baldwin will often move it up or down five or ten points, because there are only 200,000 shares of Baldwin outstanding and seldom ever over 100,000 shares of stock floating in the street.
Therefore, in order to understand the meaning of volume, you must know the total capital stock outstanding and the floating supply of the stock you are trading in. Mex Pete for several years has made moves of from 50 to 100 points while U. S. Steel has not moved 10. The reason was
that the floating supply of Mex Pete was very small while the floating supply of U. S. Steel was very large.
Another thing the tape reader must know is the financial position of the stock, whether it is weak or strong. It is not easy to frighten investors and traders and start a selling move in a stock which is generally known to be in a very strong financial position. Neither is it easy to force a stock by manipulation to very high levels that is generally known to have very little intrinsic value. Many stocks, known as “Mystery Stocks,” which are supposed to have large con- cealed assets, often have big moves up or down because the public buy or sell on the hope that something favorable is going to happen or on the fear that something unfavorable is going to happen.
As a rule, a stock that pays extra dividends or cuts a melon, is talked about and rumors circulated months and even years before the actual event takes place. Then, of course, when the good news comes out, it has been anticipated and discounted and the stock declines instead of advancing, as the public expect.
The tape is the great scale in which the weight of all buying and selling is weighed and the balance of Supply and Demand shown by the loss or gain in prices. When Supply exceeds Demand, prices decline to a level where Supply and Demand are about equal. At this stage fluctuations become narrow and it may require weeks or months to determine which way the next move will be. When Demand exceeds Supply, prices advance.
Then how can the man who stands over the ticker day by day determine a big move before it starts? He can not. The ticker will fool him once or twice each day while it is getting ready. It requires time to buy a large amount of stock when accumulation is taking place, and it requires time to distribute a large amount of stock at the top. One day, one week, or one month is not enough for a big move. Sometimes it requires several months, or even a year, to complete accumulation or distribution. While this process is going on, you can keep up a chart of the stock you are interested in and judge much better when the big move starts, than you can by watching the ticker every day.
HOW THE TAPE FOOLS YOU
The tape is used to fool traders, for often when stocks look the weakest on the tape, they are the strongest as accumulation is taking place. At other times when they are booming and very active and appear the strongest, they are really the weakest, because the insiders are selling while everybody is enthusiastic and buying.
The man who watches the tape daily is influenced by his hopes and fears. He can not help it. Suppose that the market has been strong all day, and the very stocks that he is interested in are gradually moving up, when suddenly, around 2:30 P.M. the market starts to break. It goes down for fifteen minutes and active stocks are off a point from the highs all around. It does not rally and by five minutes to 3, or closing time, they are off another point. The volume is heavy and he decides that something is wrong and he sells out at the close. The next morning stocks open up from 1/2 to 1 point. Why? Because the selling in the last half hour the day before was simply the result of profit taking and all of the traders who were scared sold out at the close rather than carry them over night, the result being that the supply of stocks to be offered next morning was limited, and the reaction had in no way interfered with or changed the main trend.
One great mistake the man makes who watches the ticker all the time, is that he trades too often. He gets in and out sometimes several times during the day, and each time he pays commission. If he buys or sells higher or lower each time, even though he has made profits on his trades, he is increasing the percentage against him. A man who makes 300 trades in the year, or, say, one for each market day, must pay an average of 1/2 point getting in and out. It cannot be done for less. Then 1/2 point on 100 shares 300 times, is 150 points for expenses during the year. Where is the man who can make money with such a handicap? Suppose a man makes one trade each month, or twelve trades during the year. His expenses are only six points against the scalper’s expense of 150.
Another important fact traders overlook is that the more times a man gets in or out of a market, the more times he changes his judgment. Therefore, the percentage of his being wrong increases. In a bull or bear market, there are often big reverse moves opposite to the main trend, from which big profits can be made, but a man can not catch them by jumping in and out every day. He must wait until he has a real cause and sufficient reasons, based on facts, before he makes a trade. If he jumps in or out on hope or fear, he will not only make losses, but he will miss the real oppor- tunity when it comes. The daily moves generally mean very little to the main trend of the market.
OVERNIGHT BUYING OR SELLING ORDERS
As a rule, out-of-town buying orders accumulate over night. If the buying orders are in excess of the selling, stocks will advance for the first thirty minutes, while the public’s buying orders are being filled. Then a reaction will take place. Prices may go lower than they were at the opening; drift along in an uncertain way until about 2 :30 P.M. when the professional crowd on the floor decide to even up; then either advance or decline for thirty minutes, according to whether the floor traders are long or short.
Remember that the professional floor traders have no commission to pay. You can buy a stock that goes up 1/2 point; then sell out and you are just about even, after paying taxes and commission, while the scalper on the floor makes 1/2 point, because he saves the commission.
The newspapers on Sundays usually carry a review of the market for the past week and the public, after reading all of the news, send in their buying and selling orders for Monday morning. If the orders are very heavy, they will influence the market for thirty minutes and sometimes one hour. After this, the trend of the market will be the op- posite.
A market that has been strong during the week or es- pecially during the latter part of the week and closes strong on Saturday, is likely to open strong Monday and finish the advance in the first hour on Monday. Therefore, be very careful about buying stocks on Monday morning’s strong opening. Public buying orders which accumulate over Sun- day are all executed Monday morning and as soon as this demand is supplied professionals start selling and the market has a reaction in proportion to its condition and position at the time.
Even if it is a bull market and going higher you will be able to buy cheaper on Monday afternoon or Tuesday when the professionals are hammering prices down after the public buying wave has been satisfied.
The above rule is reversed in a declining market. If stocks have been weak all the week or during the last two or three days of the week, and close at the low on Saturday, forced selling by the public will come in Monday morning and cause lower prices during the first 30 minutes to one hour. After this pressure is off, the market will rally. There- fore, it pays to sell on a strong rally Monday or to buy on a weak market on Monday morning. This rule of course applies to normal markets.
Another point, when a man is long or short of the market, and has a loss, it is but human nature to hope that the trade will go his way. Suppose he is called for margin early in the day. He tells his broker that he will either put up the margin before the close or sell out his stocks. The result is he waits all day, and the market fails to rally. The last hour comes, and hope gives away to despair and he sells out at the close, which causes the market to close weak and near the bottom, because hundreds of people are doing the same thing at the same time.
The same rule applies to people who are short of the mar- ket. Stocks start advancing early in the day, and they wait for a reaction on which to cover. They look for a reaction around the noon hour, but it fails to come. Again around 2 :00 P.M. the market is stronger, and they hope for a reaction, but the advance continues, with the result that near the close all of the shorts get frightened and buy in their stocks. Of course, the market closes on top and is left in a weak technical posi- tion, and the next day the reaction comes.
For a trader to succeed, he must study human nature and do the opposite of what he finds the general public does. The first day of a decline no one worries much, because they consider it a natural reaction. A market will often start declining on Wednesday. On Thursday the decline continues, and the traders begin to sit up and take notice and think they had better get out on the next rally. But Friday comes, and no rally; instead stocks get weaker. Why? Because people who would not sell on the first or second day of the decline begin to sell on the third day, and by Saturday the whole crowd gets scared and decides to get out and not go over Sunday. The result is that prices will break badly in the last hour and close near the bottom, while the wise trader or tape reader who knew his business sold on the first indication of weakness the first day and did not wait until everybody was selling.
This same rule applies to declines and advances lasting weeks or months. The longer the market goes one way or the other the greater the buying or selling in the last stage, because hope or fear increases as the market advances or declines, and it is hope and fear, not sound judgment, that most people trade on.
STOCKS DISCOUNT FUTURE EVENTS
The stock market is an accurate barometer of business conditions. Stock prices are nearly always six to twelve months ahead of business conditions. First bond prices rise; second stocks advance; third comes business boom. The same happens in a decline. Stocks will be down six to eight months while business is booming, because they are discount- ing the future business depression.
Market movements, that is, the main swings, are the result or effect of causes which, as a rule, exist long before the effect is known to the general public. In most cases, news is discounted before it comes out and seldom has much effect after it is generally known. Either good or bad news that is expected usually falls flat as far as the effect on the market is concerned.
For instance, an extremely good or bad quarterly or annual report on a stock comes out and the market does not go up or down on it for the reason that it is not news to those on the inside. They knew it thirty to ninety days before- hand. Therefore, when the public gets the news and acts on it, it is too late, for those on the inside who “know” have already discounted it.
If bad news comes out suddenly and stocks start selling off in large volume, then it is safe to assume that the market is going lower, that the public is long of stocks and the insiders are out. If good news appears and stocks start down, it shows that it has been discounted. Your charts will show whether the market is in a period of distribution or accumulation.
SUDDEN UNEXPECTED NEWS
Sometimes sudden, unexpected events happen unforeseen. For instance; the earthquake in San Francisco in 1906 was wholly unexpected and unforeseen by either the public or the insiders. It caused great loss and damage to property, and the market started breaking immediately after it, and de- clined for several weeks until it discounted the damage done to the various properties affected in that territory. When news of this kind comes out, that the market has not had time to prepare for, its full weight and effect must be felt after it comes out.
On February 3, 1917 Germany suddenly and without warning declared the U-Boat war against the United States. The stock market had not fully discounted this event because neither the general public nor the insiders knew it was coming. Once the news was out, everyone knew that it meant that the United States must enter the war against Germany. There- fore, it was bad news which had not been fully discounted and the market had yet to measure its effect. The result was that stocks opened off anywhere from 5 to 20 points, but supporting orders had been placed and the buying by shorts afforded enough support to stop the decline in the first hour of trading.
When a move of this kind occurs and a market opens away up or down, making a wide range, it is always well to sell out long stocks or cover shorts and wait, because in doing this you are following what the big traders do. On February 3rd, after you saw the market open down on heavy selling and you watched it for thirty minutes and saw that prices did not get much lower than the opening, it would be an indication that prices had opened at a level where there was support and that a rally would come. If you were short, the proper thing to do would be to cover at the market, then wait and see how stocks acted on the rally that day and the following day. If the rally was small and stocks again declined easily and began to break the low levels made on the day the bad news came out, it would be an indication that prices were going lower.
You will find it of great value if you will go back over the years of Presidential elections and study the action of the market and the formation of it on the chart in the early part of the year and again just previous to the election and following it. In most cases you will find that the event, whether considered good or bad, was discounted beforehand.
There is seldom ever a presidential year but what at some time there is a scare and severe decline. Public senti- ment gets mixed. They decide the Democrats are going to win and the market starts in to discount it. However, it makes no difference whether there is a Democratic president or a Republican. If stocks have been distributed and are in the hands of the public, they will go down during a Repub- lican administration. We have had just as many panics when a Republican president occupied the White House, as have occurred when the Democrats were in power. It all depends upon at what level prices are, and the condition of affairs throughout the country. This will be plainly registered by the tape and your chart will show it. If not, wait until you get a clear indication.
An extreme decline occurred in July and August, 1896, which was known as the “Silver Panic.” The whole country got scared and decided that Wm. J. Bryan was going to be elected and that his silver dream would become a reality. Investors and traders sold stocks regardless of value and on August 8th, the average prices of industrial and railroad stocks reached a level which was the lowest from that day until the date of this writing.
In 1912, when Wilson was elected for the first time, the stock market advanced in September and October previous to the election, because the Republicans were convinced that the Democrats would not win. Therefore, they did not create any scare to start the public selling stocks. Of course, after Wilson was elected, which really was an unexpected event TRUTH OF THE STOCK TAPE to investors who believed and feared that the “d—– Democrats” would ruin the country, they then began to sell stocks and discount the Democratic administration. The war followed in 1914 and completed the liquidation and made it even worse than it would have been. But this decline in stocks would have taken place even though a Republican had been in power, for the good and sufficient reason that prices were high, and that stocks had passed from strong hands into weak, and the general condition of the country was not such as to warrant the existing level of values at the time of the election.
TRUTH OF THE STOCK TAPE Profile:
Author : William D. Gann
Release date : 1923
Number of pages : 201
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