Page 180 - How to Make Money in Stocks Trilogy

86 A WINNING SYSTEM

Price 56 48 42 36 31 27 23 20 17 15 13 11 10 8 7 6 5 4 4.3 3.7 3.2 2.8 2.4 2.1 1.8 1.6 Volume 8,000,000 5,000,000 3,000,000 1,800,000 © 2009 Investor’s Business Daily, Inc.

Jun 1996

Mar 1996

e g g 2/1
S&P 500 ck above ck above b k ek moving o m e line on elineon i Dec 1995
Add: bac bac Add: ba d e 10-wee 0 average ge erag g e e e me volume m volum m g g e e ce ce e n ra 2/1
A
A
a
very ery y ve v v k still being still being s k s ted even v d a big advance a d d Earnings acceleration Earnings acceleration e a Sep 1995
ve weeks ve e weeks v e w Five ve Five v tight, stock stock o ight t g ate accumulat a m c r a bi af fter a bi i bi i a r t g g g n E 2/1 Jun 1995
Buy Buy u t tig tig p and nd 6-week cup and n n p c ase ase base-on-bas a a - Mar 1995

General l General e market turns market turns k Buy y e - e a Volume up Volume up p p p e u Dec 1994
Sep 1994
t
Heavy volume withou v further price decline is support is support pp Mar 1994 Ascend Communications increased 1384% in 75 weeks.
IPO * e d Jun 1994

u
h
Dec 1993
Sep 1993
Jun 1993 Mar 1993

Ascend Communications–1994 Dec 1992 Sep 1992 Jun 1992

Price = 20*eps Weekly Chart 2.45 2.25 2.10 1.95 1.80 1.65 1.50 1.40 1.30 1.20 1.10 1.00 0.93 0.85 0.78 0.72 0.68 0.62 0.58 0.50 0.46 0.40 0.37 0.31 0.27 0.25 0.23 0.21 0.20 0.18 0.16 0.15 0