Page 167 - How to Make Money in Stocks Trilogy

80
A WINNING SYSTEM
3,000,000
8,000,000
5,000,000
1,800,000
Volume
Price
3.2
2.4
3.8
2.8
4.5
40
16
14
50
12
19
22
70
60
30
34
26
10
7
6
8
10-week moving average
e
Add: 2nd pullback below
w
(+650% EPS growth for
g
line and recovers back
above line on volume
above line on volume
m
v
b
t
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g
gro
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current quarter)
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r
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6
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e
-
r
(
d
Gartner (page 82)
Gartner (page 82)
n
Gas (page 59) an
2
channel line just
channel line just t
e
Sell: goes above
like Texas Oil &
)
e
o
9
n
p
p
g
S&P 500
o
e
p
e
(p
e
l
a
r
s
e
Big volume
olume
S
S
G
S
S
G
c
m
l
stock pulls back to old high
o
Add: 3 weeks tight closes,
Add: 3 weeks tight closes,
g
ff
of base and bounces off
e
10-week line on volume
10-week line on volume
g
g
g
Dry-ups
s
y-ups
f
s
week base
u
u
s
o
Buy
y
c
a
B
k
week
g
D
D
k
22-wee
b
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db
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2
p
3
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fb
Sep 1991 Dec 1993 Sep 1993 Jun 1993 Mar 1993 Dec 1992 Sep 1992 Jun 1992 Mar 1992 Dec 1991 © 2009 Investor’s Business Daily, Inc. Newbridge Networks increased 699% in 49 weeks.
Jun 1991
Mar 1991
Dec 1990
Sep 1990 Jun 1990
Newbridge Networks–1992 Weekly Chart Mar 1990 Dec 1989 Sep 1989
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 O O IPO IPO P 0.35 * * 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11