zlib.pub_how-to-make-money-in-stocks

["Price = Rite Aid\u20131970 20*eps 4.00 Weekly Chart 3.50 3.00 2.50 Market correction 2.25 46-week b 2.00 1.80 2\/1 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 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 Mar 1970 Jun Rite Aid increased 4","S&P 500 Price 52 A WINNING SYSTEM 80 Sell: climax top 70 60 Buy 3\/1 50 9-week base \u00a9 2009 Investor\u2019s Business Daily, Inc. Buy 40 34 4 weeks tight closes 30 3 weeks tight closes 26 big cup-with-handle 22 19 Volume dry up 16 at low in handle 14 12 10 8 7 6 5 4. 0 3. 4 3. 0 Volume 160,000 80,000 40,000 n 1970 Sep 1970 Dec 1970 Mar 1971 Jun 1971 Sep 1971 Dec 1971 Mar 1972 Jun 1972 421% in 71 weeks.","McDonalds\u20131970 #1 in fast food, save money, save time. Kentucky Fried Chicken was also part Weekly Chart of group move 2-year bear market Add Buy 39-week cup-with-handle 2\/1 2\/1 Volum Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 Mar 1970 Jun 1970 Sep 1970 Dec 1970 McDonalds increased","S&P 500 Price 140 Buy Tight weeks 120 Base-on-base 100 18 weeks up in a row 80 70 me up Volume up 2\/1 60 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 53Secrets 3\/2 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 Volume 460,000 220,000 100,000 40,000 Mar 1971 Jun 1971 Sep 1971 Dec 1971 Mar 1972 Jun 1972 Sep 1972 Dec 1972 Mar 1973 d 422% in 108 weeks.","Price = Sambos Restaurants\u20131971 20*eps 4.00 Weekly Chart 3.50 3.00 2.50 Bu 2.25 9-w 2.00 Volume 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 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 Mar 1970 Jun 1970 Sep 1970 Dec 19 Sambos Restaurants incre","S&P 500 Price 54 A WINNING SYSTEM 80 Buy 70 60 Buy 50 8-week cup- with-handle 40 34 10-week base 30 uy 26 22 week base 19 16 11\/10 Volume up 3\/2 14 \u00a9 2009 Investor\u2019s Business Daily, Inc. 12 e up 3\/2 10 8 7 6 4. 5 3. 8 3. 2 2. 8 Volume 80,000 40,000 20,000 970 Mar 1971 Jun 1971 Sep 1971 Dec 1971 Mar 1972 Jun 1972 Sep 1972 Dec 1972 Mar 1973 eased 458% in 104 weeks.","Price = Sea Containers\u20131976 Leases marine cargo containers, 20*eps containerships, and related cranes 4.50 on a worldwide basis. 4.00 Weekly Chart At buy p 3.50 Pre-tax M Return o 3.00 38.2% a earnings 2.50 2.25 Big on u 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 Jun 1973 Sep 1973 Dec 1973 Mar 1974 Jun 1974 Sep 1974 Dec 1974 Mar 1975 Jun 197 Sea Containers increas","Market correction S&P 500 Price Sell: heavy volume increase 80 with stalling, lack of further 70 price progress 60 50 Earnings acceleration Buy 40 Buy 34 point in June 1976: Add: first pullback 30 Margin was 29.6%, to 10-week moving Note 3 weeks tight closes 26 on Equity was average line 22 and last quarter 19 s were up 189% Buy 16 14 9 weeks up 12 in a row 10 46-week big cup-with-handle Heavy increased volume 8 without much further 7 Big volume up price progress versus 6 The Greatest Stock-Picking 55Secrets prior week\u2019s increase 4. 5 Big volume up 3. 8 3. 2 volume Volume up 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. up week Note: volume Volume dry-up in handle 80,000 40,000 20,000 75 Sep 1975 Dec 1975 Mar 1976 Jun 1976 Sep 1976 Dec 1976 Mar 1977 Jun 1977 Sep 1977 sed 448% in 59 weeks.","Price = Flightsafety Intl.\u20131977 Company provides high technology 20*eps training to operators of aircraft and ships through the use of simulators. 3.00 Weekly Chart 2.50 2.25 2.00 1.80 Market correction 1.60 1.50 1.40 1.30 1.20 1.10 1.00 General 0.90 market turn 0.80 0.75 0.70 0.65 0.60 0.55 0.50 Buy: 12-week cup-with-handle with prior 3 weeks tight closings 0.45 0.40 0.35 0.30 Buy 0.25 0.23 0.20 0.18 Buy: 3 weeks tight closes and volume rally back above 10-week moving average line 0.16 23-week double- 0.15 bottom-with-handle 0.14 0.13 0.12 0.11 Volume up Note: volume dry-up in handle Mar 1977 Jun 1977 Sep 1977 Dec 1977 Mar 1978 Jun 1978 Sep 1978 Dec 1978 Mar 1979 Flightsafety International incr","S&P 500 Price 56 A WINNING SYSTEM 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. 3. 8 3. 2 2. 8 2. 4 2\/1 3\/2 Volume 140,000 80,000 40,000 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun 1981 reased 958% in 195 weeks.","Price = Wang Labs\u20131978 Market correction 20*eps Sell: climax top Weekly Chart 2.00 1.80 Begins earnings 1.60 acceleration 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 3 weeks 0.23 tight closes 0.20 0.18 Buy 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.09 27-week cup- 0.08 with-handle 0.07 2\/1 Volume up Volume dry-up with 3 weeks tight closes Mar 1977 Jun 1977 Sep 1977 Dec 1977 Mar 1978 Jun 1978 Sep 1978 Dec 1978 Mar 1979 J Wang Laboratories increas","Sell: climax top on 19th week Price out of cup-with-handle 40 Market S&P 500 correction 34 30 Buy 26 18-week cup- Faulty base: do you 22 with-handle know why? 19 3 weeks tight 16 14 12 10 8 7 6 Volume up 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 57Secrets 3. 8 2\/1 2\/1 3. 2 2. 8 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun 1981 2. 4 sed 1348% in 139 weeks. 2. 0 1. 7 1. 5 Volume 480,000 340,000 240,000 160,000","Price = Resorts Intl.\u20131978 Operates hotels, tourist, gaming, 20*eps group and convention facilities in seasonable Bahama Islands. 9.00 Weekly Chart 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 0.30 Jun 1974 Sep 1974 Dec 1974 Mar 1975 Jun 1975 Sep 1975 Dec 1975 Mar 1976 Jun 1976 Se Resorts International incre","Market correction S&P 500 Price 58 A WINNING SYSTEM Sell: climax top 190 160 140 120 100 80 70 60 50 Buy 40 4 weeks tight area Huge 34 earnings 30 increase 26 22 Add: price 19 back through 10-week line 16 on volume 14 increase 12 10 Heavy increased volume without 8 further decline in price 7 Volume \u00a9 2009 Investor\u2019s Business Daily, Inc. 320,000 160,000 80,000 40,000 20,000 ep 1976 Dec 1976 Mar 1977 Jun 1977 Sep 1977 Dec 1977 Mar 1978 Jun 1978 Sep 1978 eased 630% in 24 weeks.","Price = Texas Oil & Gas\u20131978 20*eps 6.00 Weekly Chart 5.50 5.00 4.50 4.00 Mar Ea 3.50 3 more weeks 3.00 tight closes 2.50 Bu 2.25 3 weeks tight closes 2.00 1.80 29-week double 1.60 1.50 1.40 1.30 1.20 1.10 Texas Oil at split 1.00 adjusted price of 0.90 $15 brokeout of a 0.80 long 7-year base 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 Sep 1976 Dec 1976 Mar 1977 Jun 1977 Sep 1977 Dec 1977 Mar 1978 Jun 1978 Sep 1978 Texas Oil & Gas increase","Sell: goes S&P 500 Price past channel 140 line 120 Market correction 100 rket correction 80 70 60 arnings acceleration Buy 50 3 more weeks 40 tight closes 34 Add 15-week cup 30 26 Add 22 19 Buy 6 weeks in-a-row tight 16 uy closes create a flat base 14 12 8-week Add: 4 weeks in a row tight closes and support 10 flat base on pullback to 10-week moving average line 8 e bottom Note: bottom week has tiny price spread 7 and volume dry up, no further selling 6 5 Huge volume as price closes at 2\/1 Volume up 11\/10 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 59Secrets peak and part of 3 weeks tight Volume 11\/10 300,000 140,000 60,000 20,000 Dec 1978 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 ed 529% in 101 weeks.","Price = Global Marine\u20131979 20*eps 4.00 Weekly Chart 3.50 3.00 Mark Note: sharp angle up of 2.50 earnings line shows big % 2.25 increases in earnings for last 2 quarters 2.00 1.80 25-w cup-w 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 Sep 1976 Dec 1976 Mar 1977 Jun 1977 Sep 1977 Dec 1977 Mar 1978 Jun 1978 Sep 1978 Dec Global Marine increase","S&P 500 Price 60 A WINNING SYSTEM ket correction 80 70 60 50 Buy 40 13-week 34 cup-with-handle 30 26 AB 22 19 3 weeks 8 weeks up Stock at point \u201cB\u201d 16 tight closes in a row undercuts low of prior 14 Stock price wedges upward area \u201cA\u201d for a shakeout 12 Buy along 2 lows, so do not buy and closes in upper half 10 when next week hits new high of week\u2019s spread\u2014sign week big of buying support 8 with-handle 7 6 3 weeks tight closes Big volume 5 means accumulation 4. 0 2\/1 3. 4 \u00a9 2009 Investor\u2019s Business Daily, Inc. 3. 0 Volume 160,000 80,000 40,000 20,000 1978 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 ed 752% in 94 weeks.","Price = Pic \u2018N\u2019 Save\u20131979 20*eps 3.00 Weekly Chart 2.50 Market correction 2.25 Market Market 2.00 correction correction 1.80 Buy Buy 1.60 1.50 Add 1.40 Buy Add 1.30 1.20 3 weeks 1.10 tight closes 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 8-week cup- 0.23 with-handle 0.20 0.18 Could se position 0.16 18-week cup- excessiv 0.15 0.14 with-handle 0.13 0.12 Volume up Volume up Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun 198 Pic \u2018N\u2019 Save increased","Sell: 3rd stage Price base new high on 70 very low volume 60 General market S&P 500 50 has strong turn up after bear market 3 weeks 40 Market corrects tight closes 34 30 Buy 26 22 Volume support buying 19 comes in after prior week\u2019s shakeout 16 14 12 10 8 7 6 5 ell and reduce 4. 0 The Greatest Stock-Picking 61Secrets n on 3\/1 ve stock split 3. 4 Low volume 3.0 3\/1 2. 6 Volume up Volume \u00a9 2009 Investor\u2019s Business Daily, Inc. 320,000 160,000 80,000 40,000 81 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 Sep 1983 d 546% in 206 weeks.","Price = Wal-Mart Stores\u20131980 Here\u2019s an example of American entrepreneuria 20*eps and ingenuity. Begins with one discount store lower prices for everyone plus 1.5 million new Weekly Chart 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 Earnings 0.80 acceleration 0.75 0.70 0.65 Add 0.60 0.55 Buy 0.50 0.45 0.40 Note: 4 weeks tight closes 0.35 near peak each week 0.30 23-week cup-with-handle 0.25 0.23 0.19 2\/1 Volume up Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Ju Wal-Mart Stores increase","al innovation S&P 500 Price 62 A WINNING SYSTEM and creates 120 w jobs. 100 Buy 80 70 Buy 60 50 Earnings Buy 9-week base acceleration 40 34 16-week base 30 similar to base in 26 Dec. 1980 quarter 22 17-week 19 cup-with-handle 16 14 2\/1 12 \u00a9 2009 Investor\u2019s Business Daily, Inc. 10 Volume up 8 un 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 7 6 ed 882% in 158 weeks. 5 4. 0 Volume 620,000 420,000 280,000 180,000","Price = The Limited\u20131982 20*eps Weekly Chart 1.30 1.20 Market 1.10 correction 1.00 0.90 Note: If you pyramid, keep your av by never buying more shares at th 0.80 do not get top heavy with more do 0.75 prices than amount purchased ear 0.70 prices. This is averaging up rather 0.65 down. But buy fewer shares when 0.60 Watch closely your average cost a 0.55 Don\u2019t get excessive. 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 0.10 0.09 0.08 0.07 0.07 0.07 0.06 0.06 0.05 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun The Limited increased","S&P 500 Add Price 30 Sell: Second 2\/1 split in 26 only 8 months and volume 22 increases but price weekly 19 spreads retrace much of 16 same price area from 26\u201330 14 12 verage cost low, Tight closes 4 weeks he higher prices, tight closes 10 ollars in at higher rlier at lower 8 r than averaging 7 n you average up. and total position. 6 Buy Add 4. 5 Add: price comes back above 10-week 3.8 moving average line on big volume increase 3. 2 2. 8 38-week cup-with-handle 2. 4 About 50% of the time, stock will 2. 0 pullback to pivot buy point after its breakout, or slightly below buy point 1. 7 1. 5 1. 3 The Greatest Stock-Picking 63Secrets Volume up Splits only 8 moths apart 1. 1 2\/1 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume 1,640,000 980,000 580,000 340,000 200,000 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 Sep 1983 d 673% in 71 weeks.","Price = Home Depot\u20131982 Only in America\u2026two laid off workers 20*eps from another hardware store start Weekly Chart Home Depot. It ultimately advanced 1.80 100-fold in price by the year 2000. 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 Stoc 0.23 duri 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11 0.10 0.09 0.08 0.07 0.07 0.07 0.06 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Ju Home Depot increase","Price 64 A WINNING SYSTEM S&P 500 34 30 Market has 26 follow-through day at buy point Buy 22 19 Market correction 16 At breakout, stock has a 3 weeks 14 Return on Equity of 37.2% 8-week cup tight 12 closes 10 Buy 8 7 6 Buy 4. 5 3. 8 Buy 6-week 3. 2 base 2. 8 2. 4 3 weeks tight closes 2. 0 1. 7 ck came public 7-week cup with 1. 5 ing bear market 5 tight weeks 1. 3 Volume up Volume up Volume 3\/2 5\/4 2\/1 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. 640,000 420,000 280,000 180,000 un 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 ed 892% in 64 weeks.","Price = Price Co\u20131982 20*eps 7.00 Weekly Chart 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.25 2.00 1.80 This was using the old Livermore rule for shakeout below a $30 stock and a retracement back up to $33, 1.60 which becomes a new buy point. Since, Price Club 1.50 1.40 1.30 was in the $15 range the retracement was 1\/2 of the 3 1.20 points or 1.5 points above the first low of 14.50, which 1.10 made $16 the buy point for Price Club. 1.00 Second buy point was 10-weeks later as stock emerged 0.90 out of a double bottom with handle base at 19.75 on huge volume for the week. Stock\u2019s Return on Equity at 0.80 initial buy was 55.4% and annual earnings growth rate 0.75 0.70 was more than 100%. Later stock merged into Costco. 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 On Sa Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Ju Price Company increas","S&P 500 Price 140 120 100 Market correction 80 Add 70 Buy 60 3 weeks tight 50 Add: 3 weeks tight closes 40 Buy after shakeout Add again 3 weeks 4 weeks 34 below first low at Buy tight closes tight closes 30 14.5 then stock retraces back above 26 14.5 by 1.5 points 22 19 First low Many tight Add: pullback to 16 14.50 areas 10-week moving 14 average line 12 Shakout below first low 10 36-week double bottom Volume up 8 The Greatest Stock-Picking 65Secrets Huge volume 7 6 \u00a9 2009 Investor\u2019s Business Daily, Inc. 3\/1 5 Volume up Volume nly traded in local 300,000 an Diego market 160,000 80,000 40,000 20,000 un 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 sed 417% in 60 weeks.","Price = Stop & Shop\u20131982 20*eps 4.50 Weekly Chart 4.00 Earnings acc 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 0.30 0.25 0.23 0.20 0.18 0.16 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun 1981 Sep 198 Stop & Shop increase","Price 66 A WINNING SYSTEM S&P 500 celeration 80 70 Market correction 60 Add: big 50 volume Buy Add: 2nd pullback to10-week 40 38-week double moving average line 34 bottom-with-handle Add: 1st pullback to10-week 30 moving average line 26 Big volume 22 19 16 14 12 10 8 7 6 5 4. 0 \u00a9 2009 Investor\u2019s Business Daily, Inc. 3. 4 5\/4 2\/1 Volume 160,000 80,000 40,000 81 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 Sep 1983 Dec 1983 ed 536% in 74 weeks.","Price = Digital Switch\u20131982 20*eps Weekly Chart 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 0.30 0.25 0.23 0.19 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Digital Switch increase","Sell: climax top off 3rd stage base Price 120 S&P 500 At end of 8 weeks, now up much more 100 Note: up 20% in 1st 2 weeks, must hold 8 full weeks 80 Buy 70 60 50 Buy after pull back below Buy on huge 8-week base 40 10-week moving average volume Add 34 line and as price comes 30 up across 10-week line 26 on volume increase 22 19 16 14 12 10 Volume up 8 The Greatest Stock-Picking 67Secrets 7 Volume up 6 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. 4. 0 Volume 300,000 140,000 60,000 20,000 1 Jun 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 ed 843% in 46 weeks.","Price = Pulte Home\u20131982 Cyclical building stock 20*eps 2\/1 1.80 Weekly Chart 11..3455 1.25 1.15 1.05 0.97 0.88 0.78 0.68 0.63 0.57 0.51 0.46 0.41 0.36 0.31 0.26 0.23 0.20 0.18 00..1145 0.13 0.11 0.11 0.10 0.09 0.08 0.07 0.06 0.06 0.05 0.05 0.04 3\/2 Mar 1979 Jun 1979 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun Pulte Home increased","S&P 500 Price 68 A WINNING SYSTEM Market correction 36 Cyclical earnings 27 turnaround 23 19 Buy 16 13 55-week cup-with-handle 4 weeks 11 tight closes 9 Huge volume telegraphs 2\/1 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. big earnings next quarter 7 6 Volume dry-up 4. 6 3. 6 2. 9 2. 5 2. 1 1. 8 1. 5 1. 3 1. 0 0. 8 Volume 320,000 160,000 80,000 40,000 20,000 n 1981 Sep 1981 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 d 733% in 47 weeks.","Price = Liz Claiborne\u20131982 20*eps 4.00 Weekly Chart 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 0.30 0.25 0.23 0.20 0.18 0.16 0.15 Sep 1979 Dec 1979 Mar 1980 Jun 1980 Sep 1980 Dec 1980 Mar 1981 Jun 1981 Sep 1981 D Liz Claiborne increase","S&P 500 Price 80 70 60 Market correction General market turn Do Not Buy! 3rd stage 50 Buy base wedging up along Buy lows 40 Buy 34 30 Each low is 26 higher. Handle 22 dalooensgn\u2019ltowdrsifltikdeowinn19 first base 16 14 12 10 14-week cup-with-handle Handle properly drifts 8 down along lows 7 6 Good precedent for Apple The Greatest Stock-Picking 69Secrets Computer\u2019s cup-with-handle 5 in March 2004 4. 0 Volume up 3. 4 3. 0 3\/2 2\/1 Volume Volume up 320,000 \u00a9 2009 Investor\u2019s Business Daily, Inc. 160,000 80,000 40,000 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 Sep 1983 Dec 1983 ed 211% in 43 weeks.","Price = Franklin Resources\u20131984 20*eps 3.00 Weekly Chart 2.50 S 2.25 p s 2.00 a 1.80 Earnings acceleration 1.60 begins 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 Dec 1981 Mar 1982 Jun 1982 Sep 1982 Dec 1982 Mar 1983 Jun 1983 Sep 1983 Dec 198 Franklin Resources increa","Market correction S&P 500 Price 70 A WINNING SYSTEM Stock sells down on New York based financial 60 paper saying stock was overvalued; ultimately Sell: climax top stock triples due to quarterly earnings and sales 50 acceleration over 3 consecutive quarters. Buy 20-week base 40 4 weeks 34 tight 30 closes 26 22 19 16 14 12 10 Buy 8 Buy 7 6 5 8-week cup Red volume up Second 2\/1 split in 4. 0 only 10 months 3. 4 5\/4 3. 0 2\/1 Volume Big volume 2\/1 2. 6 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume up Volume up dry-up 2. 2 Volume 160,000 80,000 40,000 83 Mar 1984 Jun 1984 Sep 1984 Dec 1984 Mar 1985 Jun 1985 Sep 1985 Dec 1985 Mar 1986 ased 811% in 78 weeks.","Price = Microsoft\u20131986 Stock corrects for two years back and forth 20*eps then advances 100 times in price from 1989 Weekly Chart to 1999. Software maker for PCs and servers. 15 14 How do you tell a potential big winner? Holding 13 1. Stock emerges out of sound base on huge to 40 a 12 to exce 11 volume and goes up 20% in only 1, 2, or 3 weeks. correct 10 2. Stock has unique new product and big moving 9.00 Or you sales and earnings plus high return on equity. could, b 8.00 7.50 A 7.00 3 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 Mar 1983 Jun 1983 Sep 1983 Dec 1983 Mar 1984 Jun 1984 Sep 1984 Dec 1984 Mar 1985 Microsoft increased","S&P 500 Price 340 300 260 220 190 Do Not Buy! 3 weeks is not 160 a base, sell on way up on 140 this 4th stage non-base 120 Buy: possible 100 high tight flag g for 1st 8 weeks got you through 1st pullback down 80 and now you\u2019re ahead 58% rather than 20%. So due Buy 70 eptional action, you can hold through stock\u2019s first tion of 20%, or stock\u2019s first pullback to around 10-week 60 g average line, which will be another buy opportunity. 45 could decide to just hold another 8 or 10 weeks which by that time, create another base! 38 Buy 32 IPO Add: 1st pullback 28 * to 10-week 24 moving average 20 Average weekly volume when stock breaks out was 361,000. Huge volume increase of 317% above average Stock up 20% in 3 17 The Greatest Stock-Picking 71Secrets (1.5 million shares) vs prior 2 weeks volume of 78,000 weeks, must hold 15 for 8 full weeks from 13 Volume dry-up along buy and can now lows means little selling add small amount 11 Dry-up \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume 920,000 560,000 340,000 200,000 5 Jun 1985 Sep 1985 Dec 1985 Mar 1986 Jun 1986 Sep 1986 Dec 1986 Mar 1987 Jun 1987 272% in 30 weeks.","Price = Adobe Systems\u20131986 20*eps 4.00 Weekly Chart 3.50 3.00 2.50 New 2.25 flag sto 2.00 wee 1.80 to l littl 1.60 slig 1.50 sto 1.40 with 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 Dec 1982 Mar 1983 Jun 1983 Sep 1983 Dec 1983 Mar 1984 Jun 1984 Sep 1984 Dec 1984 Mar Adobe Systems increas","Market S&P 500 Price 72 A WINNING SYSTEM correction 80 70 60 50 w issue at 5.50 runs up to 9.63, then builds Sell: climax top 40 g of 4 weeks. Note extreme volume dry-up as 34 ock slowly creeps up closing tight with prior Add: 1st pullback 30 eks and tiny spread from each week\u2019s high to 10-week moving 26 low. Stock is under slow accumulation with average 22 le selling coming into stock. Little volume and 19 ght move up means few people notice the Buy ock. It is not obvious to everyone. That, along 16 h strong fundamentals, is why it worked. 14 12 10 Earnings 8 acceleration 7 6 4-week high tight flag All prices 4. 5 adjusted for 3. 8 2\/1 split 3. 2 Volume up on 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. new high Volume 300,000 140,000 60,000 20,000 1985 Jun 1985 Sep 1985 Dec 1985 Mar 1986 Jun 1986 Sep 1986 Dec 1986 Mar 1987 Jun 1987 sed 307% in 23 weeks.","Price = Costco Wholesale\u20131988 Founder was previously 20*eps partner with Sol Price\u2019s Price Co of San Diego 3.50 Weekly Chart 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 Market correction 1.10 1.00 0.90 0.80 Tight closes Add Buy 0.75 Add 10-week base 0.70 0.65 Buy 0.60 0.55 0.50 0.45 Large cup-with-handle is like 0.40 Xerox base in March, 1963 0.35 0.30 40 thi 0.25 4 weeks sli 0.23 tight closes bu 0.20 ou 0.18 0.16 0.15 0.14 0.13 0.12 Dec 1987 Mar 1988 Jun 1988 Sep 1988 Dec 1988 Mar 1989 Jun 1989 Sep 1989 Dec 198 Costco Wholesale increas","S&P 500 Price 70 Market correction 60 Buy 50 Earnings The Greatest Stock-Picking 73Secrets acceleration 40 0\u201360% of leaders will have 34 is normal pullback to, or 30 ightly below, buy point. If you 26 uy right, you won\u2019t get scared 22 ut just before big move. 19 16 2\/1 14 \u00a9 2009 Investor\u2019s Business Daily, Inc. 12 10 8 7 6 5 4. 0 3. 4 3. 0 2. 6 Volume 1,600,000 800,000 400,000 200,000 89 Mar 1990 Jun 1990 Sep 1990 Dec 1990 Mar 1991 Jun 1991 Sep 1991 Dec 1991 Mar 1992 sed 712% in 163 weeks.","Price = Microsoft\u20131989 20*eps Weekly Chart 10 9.00 Qualcomm later did same thing in Jan. 1999 when Buy: Third base formed is 8.00 1st base was loose and wrong, 2nd base was wrong tighter, corrected less fro 7.50 and then 3rd time it tightened up and formed correctly, to low, handle is in upper 7.00 breaking out in Jan. 1999 for a 20-fold advance in 1 base and drifts down and 6.50 year. Historical precedent is a sound guide. tight areas, first and seco 6.00 5.50 Do Not Buy! Wide Do Not Buy! Second were wrong third time wa 5.00 4.50 and loose base and base faulty, most of price 4.00 low volume breakout work on handle in lower (1st base attempt) half of base, 200-day line 3.50 in downtrend 3.00 2\/1 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 Sep 1987 Dec 1987 Mar 1988 Jun 1988 Sep 1988 Dec 1988 Mar 1989 Jun 1989 Sep 1989 Dec 1 Microsoft increased 5","S&P 500 Price 74 A WINNING SYSTEM 220 Market correction 190 160 140 120 100 Very Important Do Not Buy! Buy 80 s now It\u2019s a 3rd stage base 70 om high 60 r-half of d has 50 ond base as right 40 34 Support week 30 26 25-week base 22 19 Huge volume on Volume dry-up in handle 16 \u00a9 2009 Investor\u2019s Business Daily, Inc. support week just before breakout 14 12 2\/1 3\/2 10 8 Volume 13,000,000 8,000,000 5,000,000 3,000,000 1,800,000 1989 Mar 1990 Jun 1990 Sep 1990 Dec 1990 Mar 1991 Jun 1991 Sep 1991 Dec 1991 Mar 1992 517% in 121 weeks.","Price = American Power Conversion\u20131990 20*eps 1.80 Weekly Chart 1.45 1.35 1.25 1.15 1.05 0.97 0.88 0.78 0.68 Fundamentals were great before stock made its huge run-up: 0.63 3 years of annual earnings nearly doubling each year 0.57 Annual sales growth up over 100% Note: angle of earning Pre-tax margins at 26.9% accelerated in rate of c 0.51 Return on equity at 50.7% 0.46 4 weeks tig 0.41 Big volu 0.36 5\/4 0.31 0.26 0.23 0.20 0.18 00..1145 0.13 0.11 0.11 0.10 0.09 0.08 0.07 0.06 0.06 0.05 0.05 0.04 Sep 1987 Dec 1987 Mar 1988 Jun 1988 Sep 1988 Dec 1988 Mar 1989 Jun 1989 Sep 1989 Dec 1 American Power Conversion i","S&P 500 Price Sell: climax top 36 gs line Buy 27 change Pullbacks 23 19 Buy 16 13 ght closes 11 Big volume demand 9 ume clue 7 3\/1 6 Hi-tech stock have 4. 6 more pullbacks and shakeouts making 3. 6 them harder to handle. Therefore, 2. 9 must really know 2. 5 company well to sit 2. 1 through the 1. 8 numerous tests. 1. 5 1. 3 The Greatest Stock-Picking 75Secrets 1. 0 0. 8 \u00a9 2009 Investor\u2019s Business Daily, Inc. 2\/1 Volume 1,660,000 980,000 580,000 340,000 200,000 1989 Mar 1990 Jun 1990 Sep 1990 Dec 1990 Mar 1991 Jun 1991 Sep 1991 Dec 1991 Mar 1992 increased 745% in 96 weeks.","Price = Amgen\u20131990 New drug for cancer 20*eps chemotherapy patients. Weekly Chart 3.00 2.50 1 2.25 d Stock in shakeout 2.00 area closes in uppe 1.80 half for week, show volume support 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 Dec 1987 Mar 1988 Jun 1988 Sep 1988 Dec 1988 Mar 1989 Jun 1989 Sep 1989 Dec 19 Amgen increased 6","S&P 500 Price 76 A WINNING SYSTEM 80 Market 70 correction 60 General market Add: Shakeout 50 turns up + 3 rule Buy 5 weeks tight during 8 weeks 40 below 10-week line, stock 34 Add has huge earnings and sales 30 Buy Add: bounces off 26 10-week moving average 22 16-week line on volume 19 double bottom 16 Add: coming through 14 er- 10-week moving average 12 ws line on volume 10 8 7 6 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. 3. 8 3. 2 2. 8 2\/1 3\/1 Volume 12,000,000 7,000,000 4,000,000 2,000,000 989 Mar 1990 Jun 1990 Sep 1990 Dec 1990 Mar 1991 Jun 1991 Sep 1991 Dec 1991 Mar 1992 681% in 96 weeks."]