Page 196 - How to Make Money in Stocks Trilogy
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94  A WINNING SYSTEM





          Price  180  155  135  114  98  84  72  62  54  47  41  35  30  26  22  19  16  14  12  10  9  7  6  5  4  4.2  Volume  80,000,000  40,000,000  20,000,000  © 2009 Investor’s Business Daily, Inc.

                    4-week high  4-week high  g  k  k  e  tight flag  ag  a  t  g  g  o  e  u  Mar 2000


             n  p  p  up  p  p  4  4  i  Up off 10-week moving week moving  m  e  0-  0 average line on volume average line on volume  v  li  i  p  p Volume up Volume up  m  4/1  Dec 1999
           S&P 500  Sell: climax top on Sell: climax to  x  m  un-up 4/1 split t t run 4/1 split ru  u  s  s  Buy  B  B  Buy  B  Ascending base Ascending base  e  e  e  b  n  ) (3 pullbacks)  s  c  C  C  B  B  A  A  Up off 10  ff  p o  p  g  g  ave  e  V  p  p Volume up  p  m  Sep 1999

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                             Add  d                   p Volume up  p  e  u  V  2/1  Jun 1999
                         . e  p  o  at t  w  u  Buy  Buy  u  handle  e  l  a  Mar 1999
                    n  o  you ve seen 23 great  x  m  e  o  y  4th time: finally   y  n  u  ic  handle  e  24-week cup-with-handle cup-with-handle  h  with  w  u  Dec 1998
                    Market correction  e  o  t  a  So far, you’ve seen 23 great  e  e  u  r  r  r  r leaders that had climax tops.  d  h  h  r Are you now able to see wha  o they look like to guide you in they look like to guide you in  o  e  o  the future? the future?  e  t  e  t  t  a classic cup-  la  with-handl

                        So far
                                         3. Do Not Buy!   y  N  3 bottoms and  o  mostofpattern most of pattern  o  in lower half of  in lower half of  e  base  Jun 1998 Mar 1998




                                                                     Dec 1997 Qualcomm increased 2091% in 45 weeks.


                                         2. Do Not Buy!  2. Do Not Buy!   t  3 bottoms not a   correct pattern correct pattern  a  and heavy red and heavy red  y  volume in base  n  2  2  3  3  1  Sep 1997 Jun 1997



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           New leader in cell phone  p  e  e  technology.  o  1. Do Not Buy!   y  Most weeks   k  s  M  are in lower  are in lower  i of base half of base  half  Mar 1997 Dec 1996 Sep 1996







           Qualcomm–1999  Weekly Chart                               Jun 1996 Mar 1996 Dec 1995







          Price =  20*eps   7.25   6.75       6.10    5.70    5.30   4.90      4.50    4.20    3.90   3.60      3.30    3.00    2.80   2.60      2.40    2.20   2.05      1.90    1.75     1.60     1.45    1.35   1.25   1.15         1.05   0.97   0.90        0.82    0.75    0.70    0.65    0.60    0.56    0.52    0.4
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