Page 220 - How to Make Money in Stocks Trilogy

106 A WINNING SYSTEM

Price 340 300 260 220 190 160 140 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 Volume 8,000,000 5,000,000 3,000,000 1,800,000 © 2009 Investor’s Business Daily, Inc.

Dec 2007

Sep 2007

Jun 2007

Buy y Buy B turns up turns up Mar 2007

S&P 500 EPS E t Dec 2006

e k k e age g e m Sep 2006
Sell: closes o S below 10-week 10 1 w l moving average g a g ov m on huge volume e h Jun 2006
s w e e o

Wedging up p p p Wedging up We We W W W along lows o Mar 2006
o
b
b
Market t correction c Add Add - Volume o p up Dec 2005 Sep 2005 Intuitive Surgical increased 418% in 123 weeks.

Market correction 15-w 15-w Jun 2005 Mar 2005
n n n Buy Buy 15-week cup- p c with-handle d e Huge volume volume m

Dec 2004

Sep 2004 Jun 2004

Intuitive Surgical–2005 Weekly Chart Mar 2004 Dec 2003 Sep 2003

Price = 20*eps 16 15 14 13 12 11 10 9.00 8.00 7.50 7.00 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 1/2