Page 173 - How to Make Money in Stocks Trilogy

© 2009 Investor’s Business Daily, Inc.
12,000,000
2,000,000
4,000,000
7,000,000
Volume
Price
3.8
3.2
2.4
2.8
4.5
19
30
34
26
60
22
70
40
50
Mar 1997
Dec 1996
2/1
S&P 500
Sep 1996
Jun 1996
price closes down
Volume increase
w
e
a
a
d
Mar 1996
n
s
n
n
weeks big volume with price dow
w
h price dow
c
m
weeks is not a base, 2 out of 3
2 out of3
u
u
e or sell: new high off 2
2
c
e
Dec 1995
2/1
weeks big volume with pr
g
w
w
e
eeks is not a base
Sep 1995
m
3 weeks volume
PeopleSoft increased 1145% in 129 weeks.
b
uce or sell:
m
ell
decline while
decline while
k
o
pulling back
l
t
l
Reduce or s
g
g
w
g
o
b
b
tight closes
s
Jun 1995
weeks
3 weeks
3 weeks
week
to cross line
to cross line
on volume
we
w
u
g
g
s
increase
increase
Mar 1995
Volume
oc
Buy: 9-week cup p- p week cup Buy: 9 y 16 with-handle and d a t 14 e base-on-base b s b 12 10 und n bou bo Add: rebo d 8 in price above in price above e e v b price rice rice i week line e 0-week line k 0-w w 10- 0 10 0 7 on volume m o on
2/1
Dec 1994
Sep 1994
n
n
d
s
IPOs are young entrepreneurial innovators l i i i e y that help drive every new market cycle and that help drive every new market cycle and r y d increase our standard of living. g g r o Market correction Market correction r Buy Buy Faulty base aulty base y y 20-week cup- 2 with-hand
d
p
a
c
l
t
IPO
Faulty base aulty base a Sep 1993 Jun 1993
PeopleSoft–1994 Weekly Chart IPO O * * Mar 1993 Dec 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