Page 135 - How to Make Money in Stocks Trilogy

64
A WINNING SYSTEM
420,000
640,000
180,000
280,000
Volume
Price
4.5
3.8
1.3
1.7
1.5
3.2
2.0
2.8
2.4
19
14
10
16
12
30
26
34
22
7
6
8
3 weeks
closes
Volume up
p
tight
tight
2/1
e
3
3
3
3
lu
p
p
up
up
p
8-week cup
8-week cup
p
p
p
V
e
y
Buy
S&P 500
B
-
2/1
Volume up
p
u
k
6-week
k
m
base
e
w
day at buy point t
day at buy point
it
l
b
6
h
follow-through
Vo
Buy
y
i
s
has
o
Market has
h
Market h
h
5/4
t b
b
7-week cup with
h
w
k
5 tight weeks
s
5 tight weeks
o
Buy
Buy
u
o
M
B
e
d
d
k
%
Return on Equity of 37.2%
%
y
Buy
t
3/2
g
At breakout, stock has a
stock has a
w
.
t
7-
Market correction
n
h
c
y
c
3 weeks tight
t t
qy
g
s
t
q
o
At breakout
during bear market
closes
Stock came public
p
b
t
u
t
Mar 1981 Jun 1983 Mar 1983 Dec 1982 Sep 1982 Jun 1982 Mar 1982 Dec 1981 Sep 1981 Jun 1981 Dec 1980 © 2009 Investor’s Business Daily, Inc. Home Depot increased 892% in 64 weeks.
s
Only in America…two laid off workers w o e from another hardware store start a r e anced Home Depot. It ultimately advanced n ad ltimatel a It 100-fold in price by the year 2000. y the year 2000 0 y h fold in price by p p p Sep 1980 Jun 1980
Home Depot t
y
100
o
o
n
0
Dec 1979 Mar 1980 Sep 1979
Home Depot–1982 Weekly Chart Jun 1979 Mar 1979
Price = 20*eps 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 0.11 0.10 0.09 0.08 0.07 0.07 0.07 0.06