Page 132 - How to Make Money in Stocks Trilogy

62 A WINNING SYSTEM

Price 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 Volume 620,000 420,000 280,000 180,000 © 2009 Investor’s Business Daily, Inc.

S&P 500 Jun 1983

9week base 9-week base e a k Mar 1983
y y
Buy B w
9
9
Dec 1982
Market correction o kt t Mk r y Buy u 16-week base a k w w 16 16 6 6 similar to base in t t il l i i Dec. 1980 quarter 9 2/1 p Volume up u m Jun 1982
n tio c i e ba ter arter a q q Sep 1982

y e n o
Buy Buy u cup-with-handle cup-with-handle - Mar 1982
17-week ee e 7 w Dec 1981
o
Earnings in acceleration acceleration e

on at r es es a r l e E Sep 1981 Jun 1981 Wal-Mart Stores increased 882% in 158 weeks.
Here’s an example of American entrepreneurial innovatio t m m ’ and ingenuity. Begins with one discount store and create Begins with one discount store and creat c t and ingenuity lower prices for everyone plus 1.5 million new jobs. All e o r consumers’ standard of living rises again. consumers

Wal-Mart Stores–1980 Weekly Chart Earnings g acceleration acceleration r w Mar 1980 Dec 1979 Sep 1979 Jun 1979 Mar 1979

Price = 20*eps 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 0.25 0.23 0.19