Page 159 - How to Make Money in Stocks Trilogy
P. 159

76
         A WINNING SYSTEM
           Price
                                                 4.5
                                                   3.8
                                 16
                                  14
                                    12
                             22
                  50
                60
                         30
            80
                       34
                               19
                                       10
              70
                     40
                           26
                                             6
                                           7
                                          8
                          5 weeks tight during 8 weeks
                              sales
                             ales
                             les
                          k
                             e
                      Add: Shakeout
                          e
                      t
                             has huge earnings and sal
                            below 10-week line, stock
                             has huge earnings and sa
                             s
                             s
                          8 w
                      e
                            o
           S&P 500
                          g
                          g
                        +3 rule
                      h
                             a
                        e
                        + 3 rule
                            ,
                          i
                                 g average
                                 ng average
                                 e
                             g
                        r
                            i
                      Ad
                          ht d
                      Ad
                             n
                                 r
                      A
                            e
                      A
                        +
                          ti ig
                                Add: bounces off
                            -
                          i
                                f f f f
                                 10-week moving
                                 10-week moving
                                 week movin
                                  lume
                                  ine on volume
                                  ume
                                  ine on volume
                                  l line on volume
                                  e
                          k
                          k
                          k
                                 i
                             u
                          5 we
                                  u
                            o
                                  u
                                c
                          5 w
                          w
                                 m
                                 week
                            b
                            b
                                o
                                 e
                                 e
                                 10-we
                                 w
                                :
                                        e
                                        verage
                                A
                                A
                                        g
                                A
                                A
                                A
                                  li
                                      gh
                                      h
                                      Add: coming through
                                        ve
                                        e
                                      g
                                        10-week moving av
                      t
                      General market
                                      o
                      e
                                         line on volume
                      a
                                         e
                                        i
                                      g t
                       turns up
                       p
                       turns up
                                        m
              correction
              correction
              n
                      l
                                         l
                       s
             Market t t
                      e
                                      o
                                        e
                              Buy
                              y
              c
             Mk
                                        w
                       u
                              B
                      G
                                      :
             r
              r
                                      Ad
                                      Ad
                                        1
                                      A
                                      A
                                         l
                                              double bottom
                                              m
                                   Add
                                   Add
                                             week
                                             16-week
                                     Buy
                                     Buy
                                     B
                                             w
                                             16
                                                      eout  3.2  keout  k  n upper-  in upper-  n  2.8  k  3/1  2/1  p  Volume  12,000,000  7,000,000  4,000,000  2,000,000  © 2009 Investor’s Business Daily, Inc.  Mar 1992 Dec 1991 Sep 1991 Jun 1991 Mar 1991 Dec 1990 Sep 1990 Jun 1990 Mar 1990 Dec 1989 Amgen increas
                                                      Stock in shake Stock in shake Stock in shake  oc  o  o  closes in  closes in  closes in area closes   area c  e  half for week, shows  or week  r wee  f  volume support volume support  Sep 1989
                                                      St
                                                                     Jun 1989
                                                                     Mar 1989 Dec 1988
           New drug for cancer  c  u  chemotherapy patients. chemotherapy patients.  t  i i  ti  th  h  Sep 1988 Jun 1988
                                                                     Mar 1988
           Amgen–1990  Weekly Chart                                  Dec 1987
          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
   154   155   156   157   158   159   160   161   162   163   164