Page 145 - How to Make Money in Stocks Trilogy
P. 145

America’s Greatest Stock-Picking Secrets  69
                                                              160,000
                                                            320,000
                                                                 40,000
                                                               80,000
                                                          Volume
           Price
                                                        3.0
                                                    4.0
                                                      3.4
                                  16
                        34
                                    14
                                      12
                              22
                      40
                                19
                          30
                            26
                   50
                 60
               70
                                        10
             80
                                                 5
                                             7
                                               6
                                           8
                               n
                               doesn’t drift down
                    base wedging up along
                                 along lows like in
                   Do Not Buy! 3rd stage
                   Do Not Buy! 3rd stage
                                 i
                              higher. Handle
                              Handle
                                 lik
            S&P 500
                             Each low is
                                 s
                   d
                    u
                               r
                              a
                             i
                                  first base
                                  first base
                                 lo
                    n
                               t
                             o
                                  a
                              higher
                   u
                             h
                               s
                                 n
                              h
                                  t
                             Eac
                             Eac
                                 l
                              h
                               d
                    w
                             E
                             E
                   o
                                 a
                                  f
                      ows
                                                         2/1
                      low
                    s
                   Do
                   D
                    b
                                             ts
                                             Handle properly drif s
                                             Handle properly drif f s
                                             ts
                       General market turn
                       General market turn
                       n
                       rn
                                              down along lows
                                              s
                                                          Volume up
                                                          p
                                                          p
                                             e
                                                          e
                                              l
                       e
                                              n
                           y
                           y
                                                          u
                           Buy
                       a
                                             r
                           B
                           B
                           B
                           B
                                              a
                                                          V
                                             e
                       r
                                              w
                                             n
                             Buy
                                                         3/2
                             u
                       G
                                                   Computer’s cup-with-handle
                                                    d
                                                    d
                                                    in March 2004 (page 99 and
                                                   e
                                            dle
                                            handle
                                            de
                                            14-week cup-with-handle
                                                  Good precedent for Apple
                                                   n
                                            d
                                            d
                                                  l
                                                      daily chart on page 114)
                                                      daily chart on page 114)
                                                    99
                                            a
                                                        p
                                                        Volume up
                    Market correction
                                                      1
                                                        p
                    Market correction
                    n
                    n
                    n
                                                        p
                                                        Volume up
                                                   -
                                                  A
                                          C
                           C
                           C
                    t
                                                      e
                                                        e
                                            t
                                                    a
                                                   w
                                                  o
                                                    h 2004 (
                                                      p
                                    Buy
                                            cup-
                                    Buy
                                                  n
                    r
                                    y
                                                        V
                                    B
                                                      o
                                                    0
                                            c
                                                   s
                    k
                                                  e
                                                      a
                                            ee
                                            e
                                                    h
                                                   e
                    M
                                                    Ma
                                                  d
                                            -
                          B
                                               B
                          B
                                               B
                                                                     Dec 1981 Dec 1983 Sep 1983 Jun 1983 Mar 1983 Dec 1982 Sep 1982 Jun 1982 Mar 1982  © 2009 Investor’s Business Daily, Inc.
                         A  A                 A  A                       Liz Claiborne increased 211% in 43 weeks.
                                                                     Sep 1981
                                         O                           Jun 1981
                                         IPO  *
                                                                     Mar 1981
                                                                     Dec 1980
                                                                     Sep 1980
                                                                     Jun 1980 Mar 1980
           Liz Claiborne–1982  Weekly Chart                          Dec 1979 Sep 1979
          Price =  20*eps   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    0.20    0.18    0.16    0.15
   140   141   142   143   144   145   146   147   148   149   150