Page 1246 - How to Make Money in Stocks Trilogy

228 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

Fossil – 2011 7/22/11: 79% gain from flat base Price
breakout in February
Daily Chart
1
Weak Market Big Warning Sign
Point 1: 7/25/11 - Market Pulse 2 120
changes to “Uptrend under pressure”
Point 2: 7/27/11 - Market Pulse
changes to “Market in correction”

Drops below 50-day line on heaviest 100
volume in months and closes at
bottom of range. Volume gets even
heavier next 2 days.
© 2013 Investor’s Business Daily, Inc.
Protect your gains even before drop below 50-day line: Weak Volume
overall market and rising selling volume in stock spells trouble.
1,200,000
700,000
400,000
200,000
22 6 20 3 17 1 15 29 12
May June July August
Be ready to lock in profits as the overall market weakens.

Fossil – 2011 79% gain from breakout in just 5 months. Price
Don’t let those profits disappear in market
Weekly Chart correction. 120
110
Breakout 1 100
Protect Your Gains in Weak Market
90
Point 1: 7/27/11 - Market Pulse Support
changes to “Market in correction” Support 80
70
Fossil crashes below 10-week line Support Loses support
the very next week. at 10-week line. 60
Flat base Closes week
at bottom of
Support at price range. 50
10-week line 46
42
Big volume spike as stock crashes below
10-week line: Signals institutional selling 38
and change in trend 34
© 2013 Investor’s Business Daily, Inc.
Volume
4,000,000
1,600,000
800,000
400,000
200,000
Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
Double whammy: The market is in a correction and your stock is selling off
on heavy volume. Time for defensive action.