Page 122 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 57

Price 40 34 30 26 22 u 19 16 14 12 10 8 7 6 4.5 3.8 3.2 2.8 2.4 2.0 1.7 1.5 Volume 480,000 340,000 240,000 160,000 © 2009 Investor’s Business Daily, Inc.
Faulty base: do you Faulty base: do you d s b l know why? y y w w Jun 1981 Mar 1981

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3 weeks tight 3 weeks tight h t w 2/1 Dec 1980

Sep 1980
k k e - - p p u
9th wee d correction correction t Buy y B ek cup- 18-week cup- c ad e with-handle h Volume up Volume up m o Jun 1980
Sell: climax top on 19th wee Sell: climax top on 19 n p x m out of cup-with-handle h p- c o Market t Mk r M r c 18-wee - 1 h w Mar 1980

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Sep 1979 Dec 1979
S&P 500 So S a w This s s 2/1 Jun 1979 Wang Laboratories increased 1348% in 139 weeks.

At this point you are scared and c y unsure and the news is terrible. So unsure and the news is terrible s h you can t go by how you feel...learn you can’t go by how you feel...learn o to act on follow-throughs. g g g o Bases breakout at time of follow- e o throughs in market in

pe e e e d t t s u a o s r t a Sep 1978
Word processors replace type Word processors replace t o d writers, increase productivity and s e standard of living. standard of living i d n Market correction o ec r co ae Sell: climax top Sell: climax top Sell: climax top : 3 weeks s tight closes tight closes s e Buy u 27-week cu

Wang Labs–1978 Weekly Chart M Begins earnings Begins earnings n g acceleration c 2 w 2/1 Volume dry-up with y V 3 weeks tight closes 3 weeks tight closes g 3 Sep 1977 Jun 1977 Mar 1977

Price = 20*eps 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 0.13 0.12 0.11 0.10 0.09 0.08 0.07