Page 143 - How to Make Money in Stocks Trilogy

68
A WINNING SYSTEM
Price
36
27
23
S&P 500
n
n
Market correction
Market correction
o
c
o
e
a
Market at points A, B and C 19 A A 16 makes new lows while stock makes new lows while stock h e price at A, B, and C is higher A C C B B 13 11 s Cyclical earnings g n e c c turnaround r r 9 7 6 Buy B 4.6 C C C 3.6 2.9 B B B 4 weeks 4 weeks k w 2.5 s tig
2/1 Dec 1980
Sep 1980
k k k Jun 1980
Cyclical building stock Cyclical building stock d Mar 1980
c
Dec 1979 Sep 1979
Pulte Home–1982 Weekly Chart Jun 1979 Mar 1979

Price = 20*eps 1.80 1.45 1.35 1.25 1.15 1.05 0.97 0.88 0.78 0.68 0.63 0.57 0.51 0.46 0.41 0.36 0.31 0.26 0.23 0.20 0.18 0.15 0.14 0.13 0.11 0.11 0.10 0.09 0.08 0.07 0.06 0.06 0.05 0.05 0.04 3/2