The SAVVY Investor is looking for stocks which have been under active syndicate accumulation and are just ready to undergo a worthwhile market movement either one way or the other. It is of prime importance, therefore, that the chart reader be able to detect from his charts,  signs of syndicate  accumulation or distribution. This participation includes four of the  separate stages although only 3 are necessary.

The bull syndicate accumulates, marks up and distributes stocks.

The bear syndicate distributes, marks down and again accumulates stocks.

   Contrary to popular belief, we believe  the number of such syndicate owned stocks is not as small as generally accepted. In a major market, the estimate may be that as many as 75 percent of all active listed issues are under some type of artificial sponsorship, whether that sponsorship be dormant and largely protective at the moment or whether it be in the form of a manipulating syndicate. If the sponsorship were dormant, then the trader should not be particularly interested in the stock.                                             

     All that the successful chart trader needs to learn from his charts, therefore, is just what stage of manipulation the syndicate is in. If the stock has finished its accumulation stage, he will buy it for a major advance. If it has just reached the end of its distribution stage, then he will sell it for a major decline. This sounds fairly simple, but the experienced  trader knows that it is not quite as simple.

    As mentioned earlier, there are certain definite formations, which indicate which phase any particular stock is in trading wise. However, this is visible only to the chart trader, which afford him clear indications of either accumulation or distribution. Having mastered these simple formations the chart reader will first be able to detect syndicate manipulation and, secondly, he will be in a much better position to decide whether the next major movement of the stock in question is to be up or down.

SOME BASIC RULES  OF SUCCESSFUL STOCK MARKET TRADING

    Roughly speaking, there are seven definite formations that indicate accumulation and a like number which, if reversed in their appearance, indicate distribution. The "NEW DAY" theory of bands, moving averages,  channels etc., while interesting, do not play an important role in the Genesis Chart Reading System.

The Head and Shoulders Chart Formation

    Did you ever wonder when to sell a stock after a good solid advance?  Here's a sure fire indicator: One of the most common and important formations of distribution of stocks is the Head and Shoulders Top, the opposite of the Head and Shoulders Bottom in accumulation.  We'll cover the head and shoulders top formation by taking an example from our seminar.

    CLICK HERE    to see a detailed chart example of the Head And Shoulders Top in distribution.