Page 146 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  69





           Price  80  70  60  50  40  34  30  26  22  19  16  14  12  10  4.0  3.4  3.0  Volume  320,000  160,000  80,000  40,000  © 2009 Investor’s Business Daily, Inc.
                               n  i        8  7  6  5
                   Do Not Buy! 3rd stage Do Not Buy! 3rd stage  u  o base wedging up along  n  w  Each low is   o  h  Eac  Eac  E  E  higher. Handle  higher  h  h  t  s  d  n  l  a  first base  first base  a  t  f
            S&P 500  d  u    i  Handle  a  doesn’t drift down  r  along lows like in  lik  s  lo  Dec 1983


                      ows
                    s
                      low
                   Do
                   D
                    b
                                             ts  ts  s   2/1  p  p   Sep 1983 Jun 1983
                       rn
                       n
                       General market turn General market turn  e  a  r  Buy  y  y  B  B  B  B  Buy  u  Handle properly drif f s Handle properly drif s  e  r  e  n  down along lows  l  n  a  w  3/2  Volume up  e  u  V  Mar 1983
                    n  n  n  t  G  C  C   C  de  dle  handle  d  d  a  t  l  A  o  e  n  -  w  d  d  99  a  1  e  p  p  p  e  Dec 1982 Sep 1982
                    Market correction Market correction  r  k  y  Buy  Buy  B  14-week cup-with-handle  cup-  c  e  ee  Good precedent for Apple  n  e Computer’s cup-with-handle  s  e in March 2004 (page 99 and  h 2004 (  0  h  daily chart on page 114) daily chart on page 114)  p  o  a  Volume up Volume up  V  Jun


                    M
                                                                     Mar 1982
                          B  B              -  B  B  d  Ma
                                                                     Dec 1981

                         A  A                 A  A                       Liz Claiborne increased 211% in 43 weeks.
                                                                     Sep 1981

                                         IPO  *                      Jun 1981
                                         O
                                                                     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
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