Page 56 - How to Make Money in Stocks Trilogy
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24  A WINNING SYSTEM





          Price  160  140  120  100  80  70  60  50  40  34  30  26  22  19  16  14  12  10  8  7  6  Volume  25,000  10,400  5,000  2,400  © 2009 Investor’s Business Daily, Inc.

                   Add: bounce back  u  b  d  above 10-week  e  0  e  o  moving average line  a  a  n  o  4 weeks tight closes  e  l l  ht  h  ti  Sep 1937 Jun 1937








             Sell: poor  o  earnings report t t t  o  r  g  i  r  k  e  4  o  b  n  g  ease and above  o  d  m  Big volume Big volume  m  l  g  Mar 1937 Dec 1936
             S
              e
                         25-week base  e  w  25  2  Sell: price closes week below Sell: price closes week below  s  c  r  : 10-week moving average line  i  m  e  w on volume increase and above on volume incre  c  u  v average weekly volume  y  l  e  ge  r  Add: bounces off 10-  f  n  o  week moving average  week mo
                 Buy  u  eek base  a  e  w  a  a  s  o  -  age  e    Sep 1936



                             9-week S  e  o  a  A  e  w  i  p  weeks in a row  o  a  h  y  y  y  h  Volume up off   p o  u  10-week line  e  Mar 1936
                     Buy  Buy  B  base  base  Stock up 8  closes, last 2 weeks tiny price spreads from high price spreads from high  e up o  Dec 1935
             Dow Jones Ind.                  4 weeks in a row tight 4 weeks in a row tight  n  t  a  to low of week  w  Volume up on  e  Vou  l  e  breakout week  u  Sep 1935



            on. t  on  e  h  e  s  s  n  Buy  4  c  p  t  2 weeks volume 2 weeks volume  m  y-up  dryp  u  Jun 1935 Mar 1935 Deere & Co increased 307% in 104 weeks.
           One of only a few competitors left standing in the  a  t  w farm equipment industryafter the Great Depressio farm equipment industry after the Great Depressio  r  af  i  q Although it was losing money in the midst of the   y  n  g  g  g Great Depression, Deere gained farmer loyalty by  m  a  n  D carryin















           Deere & Co.–1935  Weekly Chart                            Dec 1933 Sep 1933 Jun 1933








          Price =  20*eps   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    0.25
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