Page 96 - How to Make Money in Stocks Trilogy

44 A WINNING SYSTEM

Price 58 50 44 39 34 30 26 23 20 17 15 13 12 10 9 C 8 7 6 5 4 4.3 3.8 3.3 2.9 2.5 2.2 Volume 80,000 50,000 30,000 18,000 © 2009 Investor’s Business Daily, Inc.
ending base pulls s i e e k 3 times each k 3 times each e e t k h a higher low h a higher low h h nt from A to B to C t o All prices e p p A adjusted for r o d a 3/1 split 3/1 split p i s 3 3/1 Sep 1966 Jun 1966

Sell: climax top o x lim Buy uy y y B C C C B B A A A A Asce A A A back back b with with h h h w gh h n poin n p p p e p Volume up Volume up e u Mar 1966

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’ s o m n s l 9 y Buy B B B y Buy Buy u High Hi Hi H H tight t tight i t t flag l k cup- p w handle ek c k e handle n k k e r ses in upper r p u n e me Volume up Volume up lu Volume e m o dryp y-up y y Dec 1965 Sep 1965
Market corrects Market corrects t r c k Key precedent for Simmonds Key precedent for Simmonds S f high tight flag was Rollins in s g w a 1964 and Syntex in 1963 n e y y y d g a 19-week c 9 9 19 with-ha -ha with-h - Bottom week m Btt ot t closes in upper s s clos

S&P 500 M c p e gh t g g 9 Earnings i n E E E accelerate accelerate e a p Volume up Volume up e l V V V Mar 1965

Dec 1964 Sep 1964
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With this chart, you’ve now seen With this chart, you ve now seen w y more than 30 cup-with-handle p u chart bases. Are you now able to a recognize one when you see it? Are e o hen e one w you willing to study cup-with-handle you willing to study cup-with-handle w u bases i

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s s r m h t b recogni n i independent? e Mar 1964 Dec 1963

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Simmonds Precision–1965 Weekly Chart Dec 1962 Sep 1962 Jun 1962

Price = 20*eps 2.45 2.30 2.15 2.00 1.85 1.70 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.93 0.85 0.80 0.75 0.70 0.65 0.61 0.57 0.50 0.47 0.41 0.35 0.31 0.25 0.24 0.22 0.20 0.19 0.17 0.16 0.16 0.15