Page 80 - How to Make Money in Stocks Trilogy

36 A WINNING SYSTEM

Price 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 2.8 2.4 2.0 Volume 80,000 50,000 30,000 18,000 © 2009 Investor’s Business Daily, Inc.

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961 sell was precedent for Amazon f f t t n c a l going above channel line to sell at t l li n ha bo 61 in Oct. 2003. Amazon declined d o m . 0 t for next 3 years to 25 before it built o b s a 3 new base in 2007 new base in 2007 0 2 e Dec 1961 Sep 1961
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Sell Sell S 961 1961 6 6 i i g O e r b w Stock t tops on to 3/1 split t s / 3/1 Jun 1961 Mar 1961
Dow Jones Ind. Dec 1960

Sep 1960

Jun 1960

Mar 1960
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s s o e m r Dec 1959 American Photocopy Equipment increased 696% in 133 weeks

e e o i 3 weeks tight closes 3 weeks tight closes k Earnings accelerate— Earnings accelerate— n vertical slash marks show c earning’s report week earning’s report week n Sep 1959
Predecessor to the Predecessor to the Xerox dry copier x Buy Buy Note: extreme volume e v e dry-up at end of base e dry-up at end of base o u Big volume increase e Big volume increase e s 3/1 Jun 1959 Mar 1959 Dec 1958

American Photocopy Equip.–1958 y Buy k cup- cup 13-week cup p 13- handle ndle hand with-han han with t m Sep 1958 Jun 1958 Mar 1958 Dec 1957

Price = 20*eps Weekly Chart 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 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11