Page 130 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 61

Price 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 Volume 320,000 160,000 80,000 40,000 © 2009 Investor’s Business Daily, Inc.

Sell: 3rd stage Sell: 3rd stage e base new high on g e e a very low volume y low vo ery lowv w ve e ve Low volume Low volume w L Sep 1983 Jun 1983

S&P 500 s Mar 1983
weeks weeks e we 3 we w 3w w tight closes c p Dec 1982
Volume up Volume up e u
t ti
p u et e Buy Buy uy i b i V Sep 1982
General market General market k a a n has strong turn up g r s after bear market after bear marke a e Volume support buying r p m comes in after prior comes in after prior a i week’s shakeout a s Jun 1982 Mar 1982

Market corrects Market corrects t r M V e c k w e c Dec 1981
G
h
a
Could sell and reduce Could sell and reduce a position on 3/1 position on 3/1 n excessive stock split t s 3/1 Sep 1981 Jun 1981 Pic ‘N’ Save increased 948% in 206 weeks.

Market correction n i ke Buy Buy B C p e Mar 1981

s e Dec 1980
3 weeks we tight closes l Sep 1980

d ih t t p
Add Volume up Jun 1980
Market Market k correction e Add A 8-week cup- k c e e with-handle n
Buy y 8-w 8-w 8 Mar 1980
Volume up u Dec 1979

Pic ‘N’ Save–1979 Weekly Chart Market M correction c Buy 18-week cup- week cup c 18 1 with-handle w Sep 1979 Jun 1979

Price = 20*eps 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 0.13 0.12