Page 144 - How to Make Money in Stocks Trilogy

68 A WINNING SYSTEM

Price 36 27 23 19 16 13 11 9 7 6 4.6 3.6 2.9 2.5 2.1 1.8 1.5 1.3 1.0 0.8 Volume 320,000 160,000 80,000 40,000 20,000 © 2009 Investor’s Business Daily, Inc.

Jun 1983
2/1
S&P 500 s e Mar 1983

4 weeks 4 weeks k w tight closes c h 2/1 Dec 1982

er s s s e e te e
C C C C C a a a q q Sep 1982
Market correction Market correction o e a B B Cyclical earnings n e c c turnaround r r B B B B 55-week cup-with-handle a w p u v g H g g g n big ea big e b e u u V V Mar 1982
n n o c s g Buy e e Huge volume telegraphs e t m g earnings next quarte t q t nings ne n Volume dry-up yp u u y Jun 1982

A A k w 5 A Dec 1981
Sep 1981
Market at points A, B and C makes new lows while stock makes new lows while stock h e price at A, B, and C is higher A Jun 1981 Mar 1981 Pulte Home increased 733% in 47 weeks.

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