Page 182 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 87

Price 40 34 30 26 22 19 16 14 12 10 8 k 7 e e 6 5 4.0 3.4 n n 3.0 2.6 2.2 1.9 1.6 Volume 3,000,000 1,400,000 600,000 200,000 © 2009 Investor’s Business Daily, Inc.

S&P 500 s close in s c eks s ek e 2 wee e w upper-half for week o per-h -h p lume increase ume increase n e n vol l vol on on n Earnings acceleration Earnings acceleration l c a rt Volume support p s m 3/1 Jun 1996 Mar 1996

Buy: 5-week week e Buy: 5- y high tight flag g g h Vo 2/1 Dec 1995

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oses s oses ses o o Sep 1995
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n o m s o t through and n h Add A Buy Buy 4 handle e n with- Vo V V V V u Mar 1995
Market correction e o e Have you observed almost t v s all bases were formed m o r during market corrections? e o e Breakouts occur once the Breakouts occur once the n r c market follows-through and o t w creates a new uptrend. e p w B B 8-week cup-with-handle w p wee
market follows

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IPO
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s P * s a 18-w 18-w 18 Dr and tiny pric Sep 1994 Jun 1994 Accustaff increased 1359% in 68 weeks.
Pay attention to Initial t y Public Offerings (IPOs) f that show strong earnings that show strong earnings w Mar 1994 Dec 1993
i
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