Page 73 - How to Make Money in Stocks Trilogy

© 2009 Investor’s Business Daily, Inc.
Volume
2,000
4,000
16,000
8,000
Price
120
300
100
140
190
160
260
220
19
80
16
10
14
12
200-day moving
at over 500 in Jan. 2008 when it
at over 500 in Jan. 2008 when it
deceleration to 39% from earlier
deceleration to 39% from earlier
showed 4 quarters of earnings
Sep 1960
a
o
n
average line
h
m
li
r
d
f
0
f
a
Jun 1960
s
v
0
J
t
trend of 129%.
trend of 129%. .
9
n
q
0
Mar 1960
5
a
e
w
d
l
e
h
t
r
Dec 1959
Sep 1959
Volume up
p
Texas Instruments increased 772% in 116 weeks.
Jun 1959
k
pullbacks to 10-week
u
moving average line
e
e
Can add at first 3
w
V
t 3
3
l
Mar 1959
Dow Jones Ind.
g
g
s
t fi
e
t
Buy
Buy
y
d
dd
B
g
g
c
Dec 1958
C
p
Sep 1958
through precise buy point,
through precise buy point,
Buy 70 y 60 week 14-week week e e 50 base base s s bas b Two quarters of deceleration in n at e e o e a q Tw 40 rate of quarterly earnings per share rate of quarterly earnings per share e s a y r q o a 7-week ek e th growth from the earlier major gr
Volume up as stock goes
also closes week at peak
p
p
y
k
t
Jun 1958
Dallas-based leader in new e a semiconductor industry semiconductor industry d d — 1957 Bear Market— k B creates new bases creates new bases s e Buy y u Note volume Note volume handle e 35-week cup-with-handle e h with week cup c 35 treme volume note extreme volume note extreme v
Texas Instruments–1958 Weekly Chart Again note ext n dryup ne dry-up ne p p selling in stock g selling Mar 1957 Dec 1956 Sep 1956
Price = 20*eps 14 13 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 Jun 1956