Page 112 - How to Make Money in Stocks Trilogy

52 A WINNING SYSTEM

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 160,000 80,000 40,000 © 2009 Investor’s Business Daily, Inc.

Jun 1972

S&P 500 p 3/1 Mar 1972

Sell: climax top Sell: climax top x m e Dec 1971

S
S
S
Buy Buy B ek base 9-week b b ek b e e w e ? Sep 1971
oses oses s lose e e e ot it? Jun 1971
4 weeks tight close 4 weeks tight clos h e s 3 weeks tight closes 3 weeks tight closes s c ose s s g This pattern was repeated a n t in 2009. Did you spot it? Did you spot o d n 2009 0 p Volume dry up y e at low in handle l a n Mar 1971

46-week big cup-with-handle 46-week big cup-with-handle p Jun 1970 Rite Aid increased 421% in 71 weeks.
Buy Buy 3 Sep 1970
y s e e e n h n m o w t Dec 1970

07 t tim 0 O ry 0 h handle growth n e 46 Mar 1970 Dec 1969
18-month bear market similar in time to i il im t k m th b o 17-month major bear market from October 200 k r j o through March 2009. Therefore, 2009 recovery r 2 g could have several big cup-with-handle growth with could have several big cup p r h stocks like Rite Aid

18
Sep 1968 Dec 1968
Rite Aid–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