Challenging the reader with Mystery Charts
We're the first to admit December's Mystery Chart (Figure 1) was tough. We threw in too few hints
and, since we used the Standard & Poor's index rather than the Dow, only four people came up with the
1982 stock market bottom, although thousands have begun their analyses from that turning point.
Our winning trader was John F. Cody of Ruff Securities in Atlanta, whose straightforward breakout
system we found to be effective and unique. In his approach, you wait for breakouts of lines with at least
four points of definition, not two or three. As the annotated chart indicates, this happened right at the
begining of the big bull market.
It was also neat that volume broke out at the same time! Congratulations to John, who is our newest
Certified Technical Genius!