12/06/2016

Fortune:12.18.2000Investor'sGuide:MyStocksAreUp10,000%!DanZanger

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Name
Top
Profession Pick
Dan
Zanger
Former
pool
builder

AminVirani

Chart
WhenYourBarber
GivesYouStockTips
...

Reason

U.S.
Themarketisina"breakaway
dollars gaptothedownside,"says
Zanger.(Um,right.)Untilthe
chartslookbetter,hesays,he's
stickingtocash.

Everyfewweekslastfall,ashifting
arrayofDanZanger'sfriendswould
gatherinthebasementofhisLos
Angeleshome.Theyweren'ttherefor
chitchat,however,ortowatchthegame.
Theyweretheretowitnessa
performanceandtolearn.
Forafewhoursatatime,anywhere
fromthreetofivebuddieswouldsitrapt
inthedarkenedroom,withwindows
shutteredtokeepoutthelight,tryingto
gleanthesecretsofanartistatwork.
Hisblondhairasrumpledashiscasual
clothes,Zangersatinfrontoffive
computerscreenslikearockkeyboardist
surroundedbysynthesizers.Hisbody
wouldtenseashiseyesdartedoverthe
scrollinglistof800stocksthathe
follows.Everysooften,withtheflickof
afinger,he'denterabuyorsellorder.
Zangerwouldconcentratesohardthat
hedidn'tnoticewhenspectatorscame
andwent.Hewouldn'thearthequestions
theycalledtohim."I'mlikeasurgeon
goingintodoanoperation,"says
Zanger."I'mtotallyfocused."
It'snowonderhisfriendsandneighbors
werecurious.Justthreeyearsago,
Zanger,47,waspayinghisbillsby
workinginBeverlyHillsasaswimming
poolcontractor,buildingHefnerworthy
tropicalfantasypoolsforrichand
famousclients.Inagoodyearhecould
make$50,000.Sincethenhisinvesting,
Zangersays,hasturned$11,000in

http://www.chartpattern.com/news/fortune.html

BrentMcKinney

A.J.Lee

ByLeeClifford

CONTENTS
Investor
StreetLife
Magazine
TechStories
TechGuide
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MyStocksAreUp
10,000%!
DanZanger

WayneChang

DanZanger

Stock/FundQuotes:

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SECTIONS

CoverPackage:
Investor'sGuide2001
introduction
TheYearThatWillBe
breakingout
SevenStocksThatAre
ReadytoRun
notaverygoodyear
TheFORTUNEIndexes
Update
themarketsin2001
Yes,Virginia,ThereIsa
SoftLanding
takeovercandidates
RidingtheBuyoutWave
funds
ThePerfectFundsto
BeatThisMarket
stratosphericreturns
MyStocksAreUp
10,000%!
energystocks
IsDynegytheNext
Enron?
buynow
TenHotGlobalStocks
fourmarkets
EmergingMarketsThat
LiveUpTotheName
timeline
TheBigScare
champions
America'sBest&Worst
WealthCreators
moneymanager
WhatYouNeedtoKnow
AboutGameShow
Winnings
wiredinvestor
DoPCMakersStill
DeserveaPlaceinYour
Portfolio?

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12/06/2016

Fortune:12.18.2000Investor'sGuide:MyStocksAreUp10,000%!DanZanger

savingsinto$18million.That'sagainof
164,000%."AsfarasIknow,"heexults,
"it'stheworldrecord."

streetlife
WhichStocksWillWinin
2001,OldEconomyor
New?

Talkaboutanyrecentinvestingtrend,
andZangerwilltellyouhewasonestep WEBRESOURCES
aheadofthemarket."Iforetoldthe
TheFortune500
biotechmovetwoorthreemonthsahead TheclassiclistofAmerica's
largestcorporations.Plus:
oftime,"hesays.Andthoseother
FORTUNE500Indexquotes
investorswhogotwhipsawedbythe
andcharts.
rapidturnaroundinInternetstocks?Not
Zanger.Hesayshewasshortselling
TheFortunee50
thosestocks.Referringtoapredictionhe Adefinitivewayto
madeinaninvestingnewsletterthathe measuretheInternet
economy,includingdetailed
beganpublishinglastyear,Zangeradds, companysnapshots.Plus:
e50Indexquotesand
"Ishowedeverybodythemarkettopof
chartsandTheFortunee
March10."
50:Update
RELATEDRESOURCES
Yeah,yeah,yeah.We'veallmetaDan
Zangeror20.Youknowwhomwe're
FORTUNE
talkingabout:theguyatworkwhowon't Technology
shutupabouthowhe'swhippingevery
CheckFORTUNE'stakeon
fundmanagerontheplanetwithhistech thelatesttechnologyand
ecompaniesissues.
portfolio.Thegolfbuddywhocan'tstop
droningonabouttheexcruciatingly
obscurebutincrediblylucrativeoptions
scenarioshepickedupfroma$25book.
Oryourneighbor's21yearoldkidwho,
tohearhisparentstellit,hasmade
enoughinthemarkettopayfortheir
retirement.

Theonlydifference?Zangerappearsto
betellingthetruth.His1999taxreturn
andtradingrecords,whichheshared
withFORTUNE,showcapitalgainsof
$14,232,878.
Zangerisrare,buthe'snotalone.We
undertooktolocatemembersofavery
unusualbreed:individualinvestorswho
chalkedupoutoftheballparkreturns
andwerewillingtoproveitwithtaxor
tradingrecords.Thoughnoonewasable
toequalZanger'suniversebeating
numbers,wedidfindatiny,scattered
tribeofinvestorswiththekindofresults
thatentitlethemtoallthecocktailparty
braggingtheywanttoindulgein.Our
notsomotleyselectionincludes
everyonefromastayathomedadtoa
personaltrainer.Theirinvestingstyles
couldn'tbemoredifferent,thoughthey
usuallycombineanOlympiantolerance
forriskwithapenchantforunorthodox
strategiesthatinvolvecharts,options,
margin,andthelikenottomention
insaneluck.Theyallhaveonethingin
common:Theyarehandsdown,notwo
waysaboutit,makingmincemeatoutof
allthosehighlypaidpros.
Bydefinition,mostofuscan'tbeatthe
marketaverages.Butsinceinvesting
becameAmerica'smostpopular
participatorysportinthe'90s,
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12/06/2016

Fortune:12.18.2000Investor'sGuide:MyStocksAreUp10,000%!DanZanger

outperformingWallStreetwisemenhas
becomeanationalobsession.It'sthe
quintessentialAmericanmythAnybody
canmakeitbigreincarnatedforthe
newmillennium.Andlikeanycompelling
myth,itrequiresahandfulofunlikely
individualstokeepusconvincedthat,
yes,amuscleboundpersonaltrainercan
outinvestahedgefundmanagerwith
billionsofdollarsinhisportfolio.It'sa
taleHoratioAlgermighthavepennedif
hehadknownaworldwithdiscount
brokersandonlineinvesting.
Sowhat'sZanger'ssecret?Theformer
poolcontractor,whoresemblesapoor
man'ser,arichman'sRichard
Branson,wasalwaysmorethanhappyto
explainhissecretstohisfriendsoncethe
marketclosed.Hewouldbecome
animated,describingtohisawedflock
whyhebought,say,1,000sharesof
AskJeeves.comattheprecisemomenthe
did.Thestock,he'dtellthem,was
clearlyheadedintoa"pennant"
formationithadrisenandthentapered
offquicklyandthusseemedprimedfor
anotherquick,steepincrease.
Hisfriendswouldlookoninglassyeyed
bewildermentasheexplainedhis
"technical"investingphilosophy.It'snot
exactlyastrategythatwouldmake
WarrenBuffettproud.Zangercompletely
ignoresyardstickssuchaspriceearnings
ratiosandrevenuegrowth.Theonly
thinghecaresaboutishowastockis
behaving."Itradewhateverthemarket
isgoingtopushupthemost,"Zanger
says."Itdoesn'tmatterwhatthe
companydoes,orwhattheirearnings
are."Devoteesoftechnicalanalysis
believethatstockpricesmoveineasily
recognizablevisualpatternsthatan
experiencedinvestorcancapitalizeon.
SowhenCMGIisgearinguptoa"cup
andhandle,"orAmazonisperilously
closetoa"descendingtriangle,"or
egad"channelformation,"Zanger
moves.Heinternalizesthosecurves,
thosespikes,likeadoctorscrutinizinga
heartpatient'smonitorinanintensive
careunit."Stocksaremybuddies,"
Zangersays."Iknowwhentheyfeel
goodorwhentheyfeelbad."
AtthebeginningofNovemberlastyear,
ZangernoticedthatQualcomm'sstock
wasacting"alittlefrisky."Sohedovein,
buying5,000sharesonthewayupfrom
asplitadjusted$57.50to$62.50.Ina
matterofweeksthestockwastradingas
highas$93butwasincrediblyvolatile.
Zangerhungon,buyingandsellingparts
ofhispositionondipsandspikes.By
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12/06/2016

Fortune:12.18.2000Investor'sGuide:MyStocksAreUp10,000%!DanZanger

Dec.30thepricehadleapedpast$161.
OnthefirstdayoftheNewYearthe
stockjumpedabitmore,andZanger
unloadedhisremainingpositionsat$196
and$194foraprofitof$2.7million.How
didheknowtosellneartheverypeak?
"Itwasclearlyinamassiveparabolic
blowofftop,"saysZanger.Obviously.
Thisspring,Zangersays,hemovedmost
ofhisassetsintocash,shieldinghim
fromthetechmeltdown.Therethe
moneywillremainuntilhischartstell
himtheworstisover.Whilehewaitsfor
thattohappen,Zangerisbusypreparing
torazethehomeherecentlyboughtin
Kirkland,Wash.Heplanstoreplaceit
withadwellingmodeledonFrankLloyd
Wright'sFallingWater."Youshouldsee
thepoolit'sgoingtohave,"heswoons.
Asforthebuildingofhisminiempire,
Zangerisunequivocal:"It'sthegreatest
storyevertold."
NextSection:BrentMcKinney
Vol.142,No.14
December18,2000

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|MyStocksAreUp10,000%!DanZanger|Brent
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