Page 152 - How to Make Money in Stocks Trilogy

72 A WINNING SYSTEM

Price 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 Volume 300,000 140,000 60,000 20,000 © 2009 Investor’s Business Daily, Inc.

All prices ic adjusted for adjusted for t u 2/1 split p 2/1 Jun 1987

p All p A a 2 Mar 1987
S&P 500 Sell: climax top x lim c Sll k llba u n o k 4-week high high high gh h h 4week hig h e ag g Dec 1986

Market k M correction io e o then builds d u n s - d S io ith p t h h ’ h w o nd a m ce the h Add: 1st pullback 1st d Add A g o to 10-week moving to 10-week moving w o kd d r average ge r a y Buy IPO O O g * acceleration i - tight flag g g g Vol

New issue at 5.50 runs up to 9.63, then builds t Newissue at550 runs up to 9 63 6 p s t flag of 4 weeks. Note extreme volume dry-up as m o e r e e stock slowly creeps up closing tight with prior ht ti i in lo p l weeks and tiny spread from each week’s high weeks and tiny s

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Mar 1985 Jun 1985 Adobe Systems increased 307% in 23 weeks.
Dec 1984
Sep 1984
Jun 1984
Mar 1984

Dec 1983 Sep 1983

Adobe Systems–1986 Weekly Chart Jun 1983 Mar 1983

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 Dec 1982