Page 147 - How to Make Money in Stocks Trilogy

70
A WINNING SYSTEM
Price
30
26
40
34
19
14
16
22
60
50
t closes
t closes
4 weeks
4 weeks
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tight
tight
S&P 500
Sell: climax top
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20-week b
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Buy
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stock triples due to quarterly earnings and sale
paper saying stock was overvalued; ultimately
Stock sells down on New York based financial
Stock sells down on New York based financial
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acceleration over 3 consecutive quarters.
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acceleration over 3 consecutive quarters.
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Market correction
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Have you noticed how all the better stocks have 12 e c 10 a a quarter-by-quarter earning’s lines going up at a quarter-by-quarter earning s lines going up at a g y strong rate? That’s the C and A in CAN SLIM. S d e 8 Earnings g n 7 Buy Buy B acceleration 6 s
Franklin Resources–1984 Weekly Chart Sep 1982 Jun 1982 Mar 1982 Dec 1981
Price = 20*eps 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 0.14 0.13 0.12 0.11