Page 123 - How to Make Money in Stocks Trilogy
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58
         A WINNING SYSTEM
                                                            320,000
                                                             160,000
                                                          Volume
                                                               80,000
                                                                  20,000
                                                                 40,000
          Price
                140
              160
            190
                    100
                  120
                                   30
                       80
                         70
                                     26
                                       22
                                         19
                                           16
                                  34
                                               12
                                                 10
                                40
                           60
                             50
                                             14
                                                      7
                                                    8
                                    s
                                    s
                                    earnings
                                    earnings
                                     increase
                                     increase
                                          back through
                                            week line
                                            10-week line
                                                       Heavy increased volume without
                                             on volume
                                  Huge
                                             on volume
                                         Add: price
                                         Add: price
                                              increase
                                  H
                                    e
                                                       t
                                         p
                                             l l
                                            e
                                              a
                                          t
             x top
                                         d
                                         d
                                          c
                                            10-
             ll: climax to
                                                       e
                                              c
             max to
             o
                                            1
                                             o
                                                        further decline in price
                                            1
                                             o
                                          b
                                         A
                                         A
             x
                                                        c
            S&P 500
             l: clim
             Sell: clim
                                                        p
                                                       v
             i i
             :
                                                        e
                                                       e
                                              weeks tight area
                                              4 weeks tight area
                                              r
                                                        l
                                                       e
             S
                                                       n
                                              h
            Market correction
            Market correction
            o
                                                        h
                                                       v
                                  Buy
                                  Buy
                                  y
                                                        u
                                  B
                                                       H
                                              e
            e
            o
            e
            Ma
            M
                                                                     Sep 1976  © 2009 Investor’s Business Daily, Inc.  Sep 1978 Jun 1978 Mar 1978 Dec 1977 Sep 1977 Jun 1977 Mar 1977 Dec 1976 Resorts International increased 630% in 24 weeks.
                                                                     Jun 1976
                                                                     Mar 1976
          ,  n  n
          g
          gaming                                                     Dec 1975
          Operates hotels, tourist, gaming  tourist  s Operates hotels  t group and convention facilities in group and convention facilities in  o seasonable Bahama Islands.  s  B  Sep 1975 Jun 1975
            o
             a
          p
                                                                     Mar 1975 Dec 1974
           Resorts Intl.–1978  Weekly Chart                          Sep 1974 Jun 1974
          Price =  20*eps   9.00     8.00   7.50      7.00    6.50   6.00    5.50    5.00    4.50   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
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