Larry Williams’ Points to Remember

1. Keep a watchful eye for selling climaxes.

2. Be quick to turn bullish, slow to turn bearish.

3. A low yield, under 2.8% in the S&P 500, is a bear market signal.

4. Money supply usually tops and bottoms before stock prices.

5. The annualized rate of change of the monthly short position is the best single long term index I am aware of.

6. Mutual funds’ cash position forecasts major market moves.

7. The advance decline line usually tops out before the Dow Jones Industrials.

8. Member of the New York Stock Exchange do very little shorting at major bottoms.

9. The four week sum of secondaries is usually under 5 at major bottoms.

10. There is a [40-year] master cyclical pattern to the market.

[Source: The Secret of Selecting Stocks for Immediate and Substantial Gains, by Larry Williams]