Page 43 - How to Make Money in Stocks Trilogy

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Price
120
100
160
140
Sell: climax top with
Sell: climax top with
h
excessive 5/1 split
w
p
o
Dow Jones Ind.
Market top
p
a
Market top
t t
s
l
k
Mk
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M
M
they introduced the “Burroughs Portable” that
they introduced the “Burroughs Portable” that
The largest manufacturer of adding machines A WINNING SYSTEM 80 70 60 Add: 3 tight weeks k e ht w h 3 ti Add A n after breakout and then n h n u k a 50 pulls back to 10-week e - k p y Buy B moving average line e g a v g m 40 Buy y B 34 30 e 8-week flat base a at
The largest manufacturer of adding machines
in the first half of the 20th century. In 1925,
1
b
a
weighed less than twenty pounds.
weighed less than twenty pounds
a
e
g
t
h
f
n
d
r
g
r
Burroughs Adding Machines–1926 Market correction n ti r t Mk M n n Earnings acceleration Earnings acceleration e n s begins s s beg Buy B n t e 44-week saucer-with-handle dl h ith h a k 44 4 Sep 1926 Jun 1926 Mar 1926 Dec 1925 Sep 1925
Price = 20*eps 8.00 Weekly Chart 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 0.50 0.45 0.40 0.35 0.30