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America’s Greatest Stock-Picking Secrets 95

Price 100 80 70 60 50 40 34 30 26 22 19 16 14 12 f 10 8 7 6 4.5 3.6 Volume 2,500,000 1,340,000 740,000 400,000 220,000 © 2009 Investor’s Business Daily, Inc.

Big shakeout: 35 Big shakeout: 35 u a s to 23 in 2 weeks to 23 in 2 weeks w n 3 closes in upper half p i e of price spread and of price spread and r e r above 10-week line w 1 v t Sep 2001 Jun 2001

S&P 500 o c B o l of Very important n r p m volume clue u Mar 2001
Market correction o e s s s y y V v Dec 2000

3 tight closes 3 tight closes l gh Buy y s ses s s Sep 2000
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4 tight t closes 4 tight clos o g i Big cup-with-handle Big cup-with-handle - i p p p p g g Jun 2000 Mar 2000
3 t

B
Dec 1999

Sep 1999

Jun 1999 Taro Pharmaceuticals increased 382% in 39 weeks.

Mar 1999

Dec 1998

Sep 1998

Jun 1998 Mar 1998

Taro Pharmaceutical–2000 Weekly Chart Dec 1997 Sep 1997 Jun 1997

Price = 20*eps 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 0.19 0.17