Page 186 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 89

Price 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 Volume 80,000,000 50,000,000 30,000,000 18,000,000 © 2009 Investor’s Business Daily, Inc.
Dec 1997

ff 10-week f 10-week w of age line with w i verage g g g 2/1 Sep 1997
k k h

S&P 500 Add: bounce off Add: bounce of ff c o d Ad Ad Ad moving averag e g i m p volume up m o e Add: first bounce e e n t b b s fi moving moving i k mov off 10-week mo off 10-week mo m w line e ge line average line d Big volume deman a e e with peak closes

s dd Ad Ad Ad A A 1 o r a u v B e h w 2nd week up e 2 2/1 Dec 1996
5 weeks s e 5 tight closes o g Buy y y y B B e cup base ght. ght. h h lining n e d d r 3 s , t e n. n n o a Sep 1996

Add Ad Buy y u 7-week w p p 3 weeks closing tight sing tight 3 weeks closing tigh t n k Since stock i is decl decl is de e s c s with volume up e with volum um v in price with i i ior week on its 3r rior week on its 3r o e r rio from prio from pr r h

Earnings reaccelerate nings reaccelerate a e e eacce e c gs is hea h furth furth down 2/1 Mar 1996 Dec 1995

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Sep 1995 Dell Computer increased 587% in 61 weeks.
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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