Page 207 - How to Make Money in Stocks Trilogy

100
A WINNING SYSTEM
Price
26
30
40
22
50
34
60
16
14
19
ck closes gap
S&P 500
s
s
up 8 weeks in a row
p 8 weeks in a row
a and stock goes
and stock goes
a
s
k
c
s
i
Pullback c
ack c
e
k
k
ea an
Do Not Buy!
Do Not Buy!
w
y
y
area a
a
area
up 8
u
p
p
up
p
x top
climax top
N
o
D
Sell:
Sell:
e
i
correction
correction
o
Market
k
r
Buy: big volume
e
m
M
c
l
o
on gap up
on gap up
big
g
y
o
B
B
n
Market correction
o
e
Note: tiny spreads for 4 weeks 12 e n e e e eonbase e-on-base b Base-o o se-o Base s B 10 and then 2 weeks (sound bases and then 2 weeks (sound bases a n Buy B need a few weeks with small l w e ) price variation) ) r 8 d: rebound off bound off o n d: rebo
ck in g ki B 2 22 4 e So you understand e p p Jun 2003 Mar 2003 Dec 2002
base patterns like
tt
Southwestern Energy–2004 Weekly Chart Now you’ve seen several base-on-base patterns like n on Now you ve seen several base r s this one. Compare it to IBM in 1927 on page 19, 9 m Minneapolis Honeywell in 1934 on page 22, Brunswi i 1934 o ll i l H H li 1958 on page 31, National Airlines in
Price = 20*eps 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 w 0.80 0.75 s 0.70 Min 0.65 5 0.60 0.55 m 0.50 a 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.