Page 138 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 65

Price 140 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 Volume 300,000 160,000 80,000 40,000 20,000 © 2009 Investor’s Business Daily, Inc.
3 weeks tight closes
4 weeks 4 weeks e w tight closes tight closes tight closes g Jun 1983
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S&P 500 Buy y 3 weeks s 3 weeks s e closes t closes s t clo tight cl c Add: pullback to Add: pullback to a l week moving 10-week moving k e average line Volume up Volume up m o Mar 1983

r r h n 9 w tight c g A A w 10 a v w o Dec 1982
Price Co. went on to gain another went on to gain another n g t we 169% bef fore it topped in 1986 169% before it topped in 1986 n d p t r e % with a total gain of 1294% 2 f i o Add: 3 weeks tight t g t k w Add again Add again i d a d Buy B Shakout below o a h first low f

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Market correction n t c k M : A Buy after shakeout Buy af fter shakeout o r u below first low at below first low at a o s e 14.5 then stock o n h 4 retraces back above retraces back above e e e b c b e t 14.5 by 1.5 points n p p y b 4 w o Many tight a a
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Only traded in local l d d San Diego market San Diego market Sep 1981 Jun 1981
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Mar 1981 Price Company increased 417% in 60 weeks.

d e 7 t E e h w . Dec 1980
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nnovator in wholesale membership Innovator in wholesale membership m l t warehouse stores. Another leap forward s for consumers’ standard of living. i f li f d d t t ’ s f This was using the old Livermore rule for shakeout e h g below a $30 stock and a retracement back up to $33, belo

Price Co.–1982 Weekly Chart a a b t o i p 1 a o l bu ii i o Sep 1979 Jun 1979 Mar 1979

Price = 20*eps 7.00 6.50 6.00 5.50 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