Summary & Discussion of My Trading History of Circus Circus Enterprises (CIR) in 1999 Based on the Triangle Pattern


























New World Technologies, Inc.

Michael Fouche

Table of Contents

Introduction. 3

CIR Trading Executive Summary. 4

Discussion, Charts, & Results. 5

Original Return on Investment. 6

Alternative Return on Investment. 8

Conclusions. 9

Appendix – Transaction Receipts. 10













In 1989 I was introduced to Ted Warren’s book, “How to Make the Stock Market make Money for You” (originally published in 1966) – his claim was that one could discern specific patterns in stock histories to predict future performance (this is also called “Technical Analysis”).

In order to validate his claims, I studied many stock charts from the local library in 1990 – interestingly I found that the same type of patterns that Warren had used as examples from the 1950s and 1960s, were also present in the stocks that I’d studied from the 1970s and 1980s. 

Thus the next step was to begin investing - which is where the “rubber meets the road” so to speak, using the techniques that he had described in this book. 

During the early, mid, and late 1990s, I was successful for the most part, in selecting and investing in good stocks based on specific patterns – my primary downfall was in not being patient enough to wait for the stock to meet its full potential.

This document discusses the details of one of thirty documented stock investments which were made based on the patterns discerned from that particular historical stock profile.


CIR Trading Executive Summary

The following is a synopsis for this stock investment. 

Return on Investment (ROI)

117.3% in 6 months



Potential ROI if I’d been patient

Up to 514.1% in 66 months



Reason for Purchase

Classic triangle pattern



Time Frame When Purchased



The next two sections include more details on the reasons for the trade, the trading history, and the maximum potential ROI. 

Copies of the original stock transaction receipts, for each of the trades (buy and sell), are included in the appendix at the end of this document.



Discussion, Charts, & Results


CIR had the classical triangle pattern, as shown in below in Figure 1. 



Figure 1 -  Observed Pattern, and Buy / Sell History







Original Return on Investment


In this case I got in at the bottom – well after it had broken through (downwards) the lower support line.  Given that it was 50% below the lower support line, I believed it to be a solid point to jump in – 6 months later I exited with a 117% ROI as shown below in Figure 2.



Figure 2 – Observed Pattern, and Buy / Sell History







The transaction summary is shown below in Figure 3.  Note that this does not account for transaction costs.



Figure 3 – Transaction Summary





Alternative Return on Investment


The company was renamed “Mandalay Bay Resorts” in 1999.  In June 2004, the company was acquired for $71 per share -

I don’t have historical chart of the stock price profiles up until the company was acquired – however the known data point is that it was sold for $71 per share in 2004.  Thus if I’d held the stock for 66 months (approximately 5 ½ years), the ROI would have been 514%.  The assumption is that the stock could have been sold at a lower ROI sometime before that time frame as well.  Thus 100% and 200% ROI values were possible sometime in the next few years.

A projected transaction summary of the “maximum projected ROI” of 514.1% (assuming that I’d sold out at the maximum ROI percentage) is shown below in Figure 4.  Note that this does not account for transaction costs.




Figure 4 – Transaction Summary










This stock had a classic triangle pattern and paid off handsomely.  While the 117% ROI in 6 months was phenomenal, the payoff could have been much higher had I been more patient.





Appendix – Transaction Receipts

The records of the purchase and sell transactions are shown below.


Stock Purchase Receipt



Stock Sell Receipt