Page 156 - How to Make Money in Stocks Trilogy

74 A WINNING SYSTEM

Price 220 190 160 140 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 Volume 13,000,000 8,000,000 5,000,000 3,000,000 1,800,000 © 2009 Investor’s Business Daily, Inc.
Mar 1992

S&P 500 Dec 1991 Sep 1991

Support week k pport week e Suppo u Volume dry-up in handle n r j j just before breakout k e e 3/2 Jun 1991

Market correction Market correction r k ! y! o 25-week base week base k e 5 25 m k e w Dec 1990
n n n t y Buy y Buy s e u V f u Mar 1991
Very Important t Do Not Buy tt Do Nt Bu I I V It’s a 3rd stage base It s a 3rd stage base s e Huge volume on v g support week support week r pp 2/1 Sep 1990 Jun 1990 Mar 1990
M

Buy: Third base formed is now Buy: Third base formed is now w m tighter, corrected less from high g g s r to low, handle is in upper-half of u n base and drifts down and has n d tight areas, first and second base a s were wrong third time was right g m g n Dec 1989 Sep 1

g
w
b
B
t
t
t
e e e Jun 1989
did 94) l o t o Historical o Do Not Buy! Second Do Not Buy! Second o base faulty, most of price p t y work on handle in lower n half of base, 200-day line day line 200- Mar 1989 Dec 1988
History repeats itself. Qualcomm (page 94) later did g ( lc Q lf it same thing in Jan. 1999 when 1st base was loose 1999 when 1st base was loose s h n and wrong, 2nd base was wrong and then 3rd time and wrong, 2nd base was wrong and then 3rd time w b it tightened up and formed c

Microsoft–1989 Weekly Chart y Hi same thing in Jan h o e 9 Jan e N D D D a a o (1 2/1 Mar 1988 Dec 1987 Sep 1987

Price = 20*eps 10 9.00 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 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