Page 128 - How to Make Money in Stocks Trilogy

60 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 20,000 © 2009 Investor’s Business Daily, Inc.

handle k cup-with-handle n a h ” i o k p u sign s a p Mar 1981 Dec 1980

S&P 500 13-week w 13 13 with cup- c Stock at point “B” po t c undercuts low of prior u area “A” for a shakeout f f s r A a “A and closes in upper half and closes in upper half s s of week’s spread—sign of week s spread— s k w of buying support t s n b Sep 1980

p u S u a a o o 2/1 Jun 1980
Buy Buy u B B 8 weeks up k w in a row o a m

A A A A A A A pward pward a p p y not buy not buy b o n h ts new high g w n Big volume o g Mar 1980 Dec 1979
Stock price wedges up Stock price wedges up e d w r k along 2 lows, so do n along 2 lows, so do n d s s g week hits when next week hits ek we w e n 3 weeks tight closes 3 weeks tight closes e o h t means accumulation n o a m c Sep 1979 Jun 197

Market correction Market correction n r 3 weeks e tight closes tight closes s t Buy Buy u 25-week big i cup-with-handle e h Mar 1979 Dec 1978 Global Marine increased 752% in 94 weeks.

M
c
2
Sep 1978
% o % i f g
Note: sharp angle up of a earnings line shows big % earnings line shows big % e increases in earnings for last 2 quarters e Jun 1978 Mar 1978

o
c
r
s
Dec 1977
Sep 1977
Jun 1977
Global Marine–1979 Weekly Chart Mar 1977 Dec 1976

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 Sep 1976