Page 110 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 51

Price 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 Volume 320,000 160,000 80,000 40,000 20,000 © 2009 Investor’s Business Daily, Inc.

Jun 1972
3/1
Mar 1972

S&P 500 e ke Dec 1971

Sell: goes beyond b go l l upside channel line like n a s American Photocopy c 36) ) (page 36) 3 Buy y y B 2/1 Jun 1971
d d d d y y i py y c o Sep 1971

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Buy: ascending base Buy: ascending base a o e e n g e p p p Volume up e lu V Dec 1970
e C C C B B A A up Volume up m V Mar 1971
Add: first 3 pullbacks to Add: first 3 pullbacks to u d week moving average line 10-week moving average line i w 10 Buy Buy B 40-week cup-with-handle - Sep 1970 Jun 1970 Mar 1970 Levitz Furniture increased 608% in 87 weeks.
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New product: warehouse concept for furniture r e o u sales. Consumers’ standard of living rises again. e g t s 18-month market t t t k th m 8 18 correction correction o Dec 1969 Sep 1969 Jun 1969
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IPO O IPO O * 2/1 Mar 1969 Dec 1968 Sep 1968
Levitz Furniture–1970 Weekly Chart Jun 1968 Mar 1968

Price = 20*eps 4.00 3.50 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14