Page 185 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  89
                                                            80,000,000
                                                              50,000,000
                                                                30,000,000
                                                                  18,000,000
                                                          Volume
           Price
                                                   4.5
                                                     3.8
                                                       3.2
                                      12
                                    14
                           30
                                         10
                            26
                               22
                                   16
                                19
                       40
                70
                    50
                  60
              80
                         34
                                           8
                                               6
                                             7
                                age line with
                               f 10-week
                               ff 10-week
                               k
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                                i
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                               Add: bounce of ff
                                verage
                               of
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                                g
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                                    moving
                                 p
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                                   e
                                   e
                                    i
                               o
             S&P 500
                                   e
                                                     n
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                                                     n
                                    k mov
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                                                     with peak closes o
                                    off 10-week mo
                                   n
                                    m
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                                                    a
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                                      average line
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                               d
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                                                      p
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                                                    v
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                                                      2
                        tight closes
                        s
                       5 weeks
                           Buy
                           y
                           y
                           y
                        o
                       s
                                                   d
                                                   d
                                                        n.
                                                        down...supporting action
                                                        n
                                                        supporting action
                                                        n
                                                   rior week on its 3r
                                                    h week down, this
                                                   r
                                                   ior week on its 3r
                           B
                       e
                                                    s
                           B
                                                     vy volume without
                                                     avy volume without t
                                                   3
                                                        o
                                                lining
                                                 with volume up
                                           cup base
                                                      her price progress
                                               ght.
                                               ght.
                                          7-week
                                               3 weeks closing tight
                        g
                                               sing tight
                                                        a
                                               h
                                               h
                                          e
                                                n
                                                 e
                                               3 weeks closing tigh
                       5
                                                      e
                                                    ,
                                                     t
                                                 e with volum
                                                 um
                                                Since stock i is decl
                                                 decl
                                                    w
                                                     w
                                          w
                                                      g
                                           p
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                                                   o
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                                                is de
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                                                        n
                                  Buy
                                Add
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                                                     m
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                                                 v
                                                s
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                                                 in price with
                                                 i i
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                                                   r
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                                                   from prio
                                                   rio
                                                    h
                                                   r
                                                   from pr
                                                    and 4th
                                                    h
                                                    h
                                                s
                                               k
                                                     heav
                                                     is heav
                                                     v
                                                      r
                                                     is hea
                                                        down
                                                      furth
                                                      furth
                                e
                                Earnings reaccelerate
                                nings reaccelerate
                                a e
                                                     h
                                eacce e
                                c
                                gs
                                                         2/1
                                i i
                                                                     Sep 1995  © 2009 Investor’s Business Daily, Inc.  Dec 1997 Sep 1997 Jun 1997 Mar 1997 Dec 1996 Sep 1996 Jun 1996 Mar 1996 Dec 1995 Dell Computer increased 587% in 61 weeks.
                                Ea
                                                                     Jun 1995
                                                                     Mar 1995
                                                                     Dec 1994
                                                                     Sep 1994
                                                                     Jun 1994 Mar 1994
           Dell Computer–1996  Weekly Chart                          Dec 1993 Sep 1993
          Price =  20*eps   4.50    4.00     3.50    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
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