Page 171 - How to Make Money in Stocks Trilogy
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82
         A WINNING SYSTEM
           Price
                          22
                       26
                            19
                  40
                      30
                    34
                                    10
                               14
                                 12
                              16
               50
             60
                                       8
                              potential shakeout
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                                    oses with
                                    h
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            S&P 500
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                                    closes w
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                  Sell: goes through
                  h
                              tti
                                      or week
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                                      tiny spreads for
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                                       Shakeout
                                       Shakeout t t t
                                       ut
                                       out
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                              B
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                  Market correction
                                       Buy
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                                       Buy
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                                          ht closes 7  Add once back   k  a  c  o  Add  Add  d  d  s  6 over 10-week line  kline over 10-week  e  -  v  5  week  k  6-week  6-wee  flat base  fl  4.0 Potential shakeout to avoid, if you   u  y  d  v  o  u  k  h  i  e  P  18-week cup- week cup  w  18  3.4  o  o pyramid
                                          4 weeks tight closes 4 weeks tight closes  gh  Dec 1993
                                                IPO  IPO  *  *
                                                                     Sep 1993
                                                                     Jun 1993
                                                                     Mar 1993
                                                                     Dec 1992 Sep 1992
           Gartner Group–1994  Weekly Chart                          Jun 1992 Mar 1992
          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    0.12    0.11
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