ABSTRACT
It is also true that each stock has its own habits and characteristics, which are more or less stable from year to year. Certain stocks normally respond to a Bullish Phase of the market with a very large upsurge, whereas others, perhaps in the same price class, will make only moderate moves. You will nd that the same stocks that make wide upward swings are also the ones that make large declines in Bear Markets, whereas the ones that make less spectacular up-moves are more resistant to downside breaks in the market. There are stocks that ordinarily move many, many times faster than others. We do not know, for example, whether a year from now Glenn Martin (EN: read, Microsoft, eBay) will be moving up or down, but we do know, and it is one of the most dependable things we know, that whichever way it is going, it will be covering ground much faster than American Telephone and Telegraph. (EN9: Even T accelerated into hyperspace after its unfortunate divestment of local Bells. And, unlike the leopard, completely changed its spots.) These differences of habit, of course, are due to the size of issue, oating supply, nature of business, and leverage in the capital structure, matters we have touched on briey before. As a matter of fact, we are not especially concerned with why the differences exist. We are interested mainly in what the differences are, and how we can determine them.
