Page 462 - How to Make Money in Stocks Trilogy

332 INVESTING LIKE A PROFESSIONAL

from March to August of 1970, and of home builder Kaufman & Broad’s
NYSE-listed shares from April to August of the same year:
1. Centex’s relative strength in the prior year was strong, and it made a new
high three months before the stock price did.
2. Earnings accelerated (by 50%) during the June 1970 quarter.
3. The stock was selling near an all-time high at the bottom of a bear market.
4. A strong Centex base coincided with the base in Kaufman & Broad.

In the 2003 bull market, Coach (COH) was a NYSE-listed stock that we
found on our weekly review of charts as it broke out of its base on February
28. It gave another buy point on April 25 when it bounced off its 10-week

Price
Centex 26
Weekly Chart 22
19
16
14
12
10
8
7
6
4.5
© 2009 Investor’s Business Daily, Inc.
3.8
3.2
2.8
2/1 2/1

Dec 1969 Mar 1970 Jun 1970 Sep 1970 Dec 1970 Mar 1971 Jun 1971

Price
Kaufman & Broad 80
70
Weekly Chart 60
50
40
34
30
26
22
19
16
14
12
10
3/2 8
Volume © 2009 Investor’s Business Daily, Inc.
80,000
50,000
30,000
18,000
Dec 1969 Mar 1970 Jun 1970 Sep 1970 Dec 1970 Mar 1971 Jun 1971