Page 71 - How to Make Money in Stocks Trilogy

32
A WINNING SYSTEM
Price
160
190
140
120
100
260
220
60
45
80
70
38
32
No volume coming
g
n
into stock near
nto stock nea
o
a
e
o
u
o
Sell: climax top
p
Dow Jones Ind.
m
c
5-week high
high
igh
Buy
y
y
Se
g
g
g
lag
tight flag
g
ag
ag
tight flag
g
e
5-w
s
5-w
not a climax top, it is
only out of the high
5 g
This is
Do Not Sell! This is
t
5
i
g
tight flag 8 weeks
i
t
k
p
Buy
y
e
Do Not Sell! Th
x
l
g 8
m
S
g
g
ght fl
o
o
f
s
tight closes
tight closes
s
tight closes
o
g
tig
ks
o
4 weeks
D
e
t
4
n
n
Market correction
Market correction
Two quarters earnings acceleratio
Two quarters earnings acceleratio
o
i
e
Zenith is about to emerge from 2+ year base Buy y uy 28 bottom of base bottom of base s m t a o e 24 20 n each of first 3 pullbacks to t c b p p t f o a d on Add on n d 17 11-week cup- 11-week cup- p c e h 10-week moving average line, which h
s
w
T
T
Jun 1956 Sep 1956
Mar 1956
Zenith Radio–1958 Weekly Chart Dec 1955 Sep 1955 Jun 1955
Price = 20*eps 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 0.50 0.45 0.40