Page 78 - How to Make Money in Stocks Trilogy
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America’s Greatest Stock-Picking Secrets  35





          Price  220  190  160  140  120  100  80  70  60  50  40  34  30  26  22  19  16  14  12  10  8  Volume  18,200  10,600  6,200  3,600  2,000  © 2009 Investor’s Business Daily, Inc.
                                                                     Mar 1962

                                                                     Dec 1961
            Dow Jones Ind.                                           Sep 1961


                                                                     Jun 1961

                                                                     Mar 1961 Dec 1960

                                                                 9
                                                                 9
                                                                Traded Over-The-Counter  u  C  h  e - from Jan. 1954 - Jun. 1961; ;  n  J  4  4  1  a  t available volume not available  b  v  e not  Sep 1960
                                                                e

             Market correction  o  creates new bases creates new bases  e  B  B  B  A  B by  i  A  Buy  Buy  19-week cup-with-handle  h-handle  ith  h  h  p  B  B  volume  Jun 1960 Mar 1960





            ers e  r  r  tc  ers  p  r  r  r  o  A  A  Key point: Dow Jones at point B Key point: Dow Jones at point B  s  D  e makes a new low below point A,  o  w  m but Xerox diverges at point B by   di  X  bu holding above its low at point A. holding above its low at point A  o  o A sign of power and strength.
           The world’s first fully-automated, plain paper photcopier. The   p  e  y  s 914 model revolutionized the industry as previous photocopie 914 model revolutionized the industry as previous photocopie  s  n  n required either special chemically treated paper, or were too   p  p  d  y  a  a  p  t time-consum



















           Xerox–1958  T  9  q  re Weekly Chart  i  Market correction  r  M  creates new bases  b  w  t  c  y  Buy  y  40-week cup-with-handle  e  i  e  Jun 1958 Mar 1958 Dec 1957 Sep 1957





          Price =  20*eps  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    0.35
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