Page 58 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 25

Price 120 100 80 70 60 50 40 34 30 26 22 19 16 14 s 12 10 8 7 6 5 4.0 Volume 40,000 14,000 6,000 2,000 © 2009 Investor’s Business Daily, Inc.

g i w e o b a o o a c s moving average line on volume increase r m o o Sep 1946 Jun 1946
Note: tight closing g o weeks along low g s e Add: 2nd pullback to and below line as t a u soon as stock crosses back above the soon as stock crosses back above the c c s moving average line on volume increas e r a e s e 10/7 Mar 1946

Dow Jones Ind. x top x to ell: climax to t lim c - c e without-handle a 2 d a o n o Add: after you have a profit f p e h k and stock has 1st pullback b p p s to 10-week moving average g v g v Volume increases n m o 4/3 Dec 1945 Sep 1945

Sell:
Sell:
Sll
e
Buy u 10-week cup- 10-week cup- e w u h o r a a k s m e - Jun 1945
d
A
Volume up m Mar 1945
t t a
Buy 31-week double bottom, second bottom at 15.90 drops below bottom at 15 90 drops below first bottom on 3rd week down a o beginning of the base beginning of the base 3/2 Sep 1944 Schenley Distilling increased 1164% in 185 weeks.
y m e Volume up u Dec 1944
In 1941, Schenley Distilling was, by govern- b a tilli Di i l h S S ment mandate, producing alcohol around ment mandate, producing alcohol around o u n the clock for wartime use. It also began e f mass production of penicillin at this time mass production of penicillin at this time a p d a
n
d
e
e

in-a-row all close at
Note: 5 weeks up
peak for the week
Note: 5 weeks up
1941
th
k f
m
m
a
a
d
a
I
t
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m m Volume up from Volume up from o prior week Sep 1943 Jun 1943 Mar 1943
Schenley Distilling–1943 Weekly Chart Vital clue: Big earnings Vital clue: Big earnings i e turn-up leads to giant turn-up leads to giant a e price increase r Buy Buy 12-week cup- k with-handle n u o Note: big increasing volume e l re e on prior uptrend to the base e Dec 1942 Sep 1
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s
s
Price = 10*eps 11 10 9.00 8.00 7.00 6.00 5.00 4.50 4.00 3.60 3.20 3.00 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.45 0.38 e p