Page 72 - How to Make Money in Stocks Trilogy

32 A WINNING SYSTEM

Price 260 220 190 160 140 120 100 80 70 60 45 38 32 28 24 20 17 15 13 11 9 Volume 80,000 50,000 30,000 18,000 © 2009 Investor’s Business Daily, Inc.

g n Sep 1959
No volume coming o e u into stock near a nto stock nea o o bottom of base bottom of base s m t t h h h dry-up n r 3/1 Jun 1959

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Dow Jones Ind. Sell: climax top m c Se y Buy y igh high g g n each of first 3 pullbacks to c b p p t 10-week moving average line, which g v creates an ascending base s e Note: extreme volume dry-up Note: extreme volume dr e lu v m at end of base meaning no n a m a furth

s This is i t p g k y 5-week high e 5-w 5-w 5 g 5 lag tight flag ag ag g g tight flag g i t f o a g v m also creates an ascending base a a t t t Nt f d t s e u o Dec 1958
Do Not Sell! This is Do Not Sell! Th l S o not a climax top, it is x m only out of the high o tight flag 8 weeks e g 8 g g ght fl f Buy s s d on Add on n d e 10-we - 10- also cr s Big volume Big volume u v i n increase on e e n breakout t u k k br

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4 weeks ks e 4 tight closes tight closes tight closes o t p c handle d ng ng g y 2/1 Jun 1958 Mar 1958
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Market correction Market correction o e Two quarters earnings acceleratio Two quarters earnings acceleratio i s Buy y uy a 11-week cup- 11-week cup- e with-handle h with to the base, , ior to the bas a o k professional buyin professional buyin o This is large i Dec 1957 Sep
Zenith is about to emerge from 2+ year base o e Note: many big volume spikes up prior to t o m ke little skyscrapers. This is large profe like little skyscrapers. This is large prof pers. T ike little skyscrapers p p e Jun 1957 Mar 1957 Dec 1956

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Jun 1956 Sep 1956

Mar 1956 Dec 1955

Zenith Radio–1958 Weekly Chart 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