Page 181 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  87
           Price
                                           4.0
                                             3.4
                                               3.0
                           14
                                10
                             12
                          16
                       19
                     22
                  30
                   26
                34
              40
                                  8
                                      6
                                        5
                                    7
                                    e
                                    e
                                   upper-half for week
                                   k
                                    lume increase
                                    ume increase
                                              n
                                              n
                                              Earnings acceleration
                                              Earnings acceleration
                                  s close in
                                  s
                                   o
                                    n
                                              l
             S&P 500
                                    e
                                  c
                                              c
                                  s
                                   per-h
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                                  eks
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                                    n vol l
                                    vol
                                  2 wee
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                                    on
                                              a
                        high tight flag
                        g
                       Buy: 5-week
                       week
                       e
                        g
                       Buy: 5-
                        h
                       y
                       B
                       B
                        h
                                      Tight closes
                                      Tight closes
                                      Tight closes
                                      s
                                         Buy
                                         u
                                      g
                                            Add
                                      market follows-through and
                                      through and
                                   during market corrections?
                                      n
                                Have you observed almost t
                                   s
                                            A
                                    Breakouts occur once the
                                    Breakouts occur once the
                    Market correction
                    n
                                      h
                                   o
                    o
                                m
                                    t
                                       creates a new uptrend.
                                               Buy
                                               Buy
                                  all bases were formed
                    e
                                               B
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                                               B
                                       e
                                      o
                                  m
                                    n
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                                   o
                                v
                                       p
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                                      t
                                    r
                                      market follows
                                       w
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                                      a
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                                                  Pay attention to Initial 2.6  i  t  y  IPO  IPO  I  2.2 5weeks tight  t t 5 weeks tight  h  s Public Offerings (IPOs)  P  f  1.9  *  s  oses  oses  ses 4 weeks tight closes 4weeks tight clos  o  o  k  e  4  s  s that show strong earnings that show strong earnings  a
                                                                     Sep 1993
                                                                     Jun 1993
                                                                     Mar 1993
                                                                     Dec 1992
                                                                     Sep 1992
           Accustaff–1995  Weekly Chart                              Jun 1992 Mar 1992
          Price =  20*eps   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    0.10    0.09    0.08    0.07
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