Page 169 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  81
                                                             1,600,000
                                                                 400,000
                                                               800,000
                                                                  200,000
                                                          Volume
           Price
                                               2.2
                                                 1.9
                                                   1.6
                                           3.0
                                        4.0
                                          3.4
                                             2.6
                                                     1.4
                                                       1.2
                      16
                        14
                            10
                          12
                  22
                    19
              30
                26
             34
                                     5
                                 7
                               8
                                   6
                                              k
                                              k
                                              ck
                                              corrected sharply and stoc
                                          Be careful to avoid getting
                                          Be careful to avoid getting
                                          n
                    Add
                    Add
                    d
                                              t t
                                           shaken out on 4th week
                                           shaken out on 4th week
                    A
                                              d
                                              d
                                           e
                                             0
                                             out of base, S&P 500
                                          e
             e
             and extended from last base
            ase; stock is up 13 to 36
            ck is up 13 to 36
            a base; stock is up 13 to 36
           Do Not Buy! 3 weeks is not
           Do Not Buy! 3 weeks is not
                                           h
             a
                                              ly
           n
                                          i
                                                         2/1
                                             &
                                              r
                                          a
                                12-week cup-
             s
           i
                                p-
                                  with-handle
                                               was off 18%
                                               %
                                              h
                                               f 18%
                                               was off 18%
                                               %
           k
                                              td s
                                c
                                          t
                                             e
            p
           w
                                e
                                              e
                                             b
                                          e
            s
            s
             r
                                               was off f
                     Buy
                                              e
             d
            k
                                             o
            k
                                  h
                     u
                                           k
                                          c
                                -
            ; sto
             and extend
                                  w
                                              o
                                1
                                1
            t t
                                               w
                                               w
             n
                                             o
                                          B
             ex
           o
            bas
                                                     e
                                                     Low volume
                                                     e
             and
                                                     Low volume
           o
                                                         3/2
             n
                                                      shakeout
                                                     u
                                                     ou
                                                      u
                                       9-week double
                                       week double
                                       b
                                       b
                                                      k
                                                     ow
                                                      h
                                       o
                                                     L
                                        bottom
                                        m
                               y
                               Buy
                               Buy
                                                       Huge volume
                                                       Huge volume
                                                       Huge volume
                                       w
                                       w
                                                       m
                                                       m
                                        btt
                                       9-w
                                       9-w
                                        o
                                       9
                                        b
                                                        i increase
                                                        e
                                                       o
                                                       o
                                                       g
                                                       g
                                                        r
                                                       H
                                                        n
                                                       H
                                                       H
              S&P 500
                                                                     Sep 1991  © 2009 Investor’s Business Daily, Inc.  Dec 1993 Sep 1993 Jun 1993 Mar 1993 Dec 1992 Sep 1992 Jun 1992 Mar 1992 Dec 1991 EMC increased 471% in 56 weeks.
                                                                     Jun 1991
                                                                     Mar 1991
                                                                     Dec 1990
                                                                     Sep 1990
                                                                     Jun 1990
                                                                     Mar 1990
                                                                     Dec 1989
           EMC–1992  Weekly Chart                                    Sep 1989
          Price =  20*eps   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    0.10    0.09    0.08    0.07    0.07    0.07    0.06    0.06
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