Page 189 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 91
12,000,000
7,000,000
2,000,000
4,000,000
Volume
Price
100
120
140
26
19
22
80
50
60
70
30
34
40
14
16
10
12
8
6
5
7
target price
up 50 more
up 50 more
Peak close on
Peak close on
Wall Street
Wall Street
day, major
w
wn 8% below
w
n8%below
f f firm raises
brokerage
huge volume
Largest weekly
Largest weekly
correct over 8–12%
12%
ng as not
pullback
down volume
On top
i
On top
points
if in bear market
b oke
up 50
n bear market
OK for handle to
m
m
m
day
%
your cost
8
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ong
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ell: cli
3/2
Sell: cl
Sell: c
beginning of new uptrend
d
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0-week moving average line
a
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avy volume up from
Heavy volume up from
from buy at 29 until af fter it
wn less and closes
upper-half for week
om buy at 29 until after it
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n
2-week cup-
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wab never touches
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chwab never touches
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as climax top at 150
has climax top at 150
h
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3/2
Mar 1997 Jun 1999 Mar 1999 Dec 1998 Sep 1998 Jun 1998 Mar 1998 Dec 1997 Sep 1997 Jun 1997 © 2009 Investor’s Business Daily, Inc. Charles Schwab increased 409% in 26 weeks.
Dec 1996 Sep 1996
Schwab was the pioneer o w of discount brokerages. a k t b u fdi Jun 1996 Mar 1996
Dec 1995 Sep 1995
Charles Schwab–1998 Weekly Chart 3/2 Jun 1995 Mar 1995
2/1
Price = 20*eps 6.50 6.00 5.50 5.00 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