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

["Gimbel Bros.\u20131944 Gimbel appealed to lower- to medium-price clientele with the b basement of Gimbel Bros. stores and to higher-end shoppers w Weekly Chart their Saks stores. Specialty stores inside the department store merchandising private brands, created customer loyalty. Market correction Prior uptrend to base Buy of initial buy 35-week cup- with-handle Volum Volume increase on prior uptrend to first base Dec 1941 Mar 1942 Jun 1942 Sep 1942 Dec 1942 Mar 1943 Jun 1943 Sep 1943 Dec 1943 Mar 1944 J Gimbel Brothers increas","bargain Dow Jones Ind. Price with 80 es, and Buy 70 60 Market correction 50 Buy 40 me up Volume up 34 The Greatest Stock-Picking 27Secrets 30 3\/2 26 \u00a9 2009 Investor\u2019s Business Daily, Inc. 22 19 16 14 12 10 8 7 6 5 4. 0 3. 4 3. 0 2. 6 Volume 19,400 11,200 6,400 3,600 2,000 Jun 1944 Sep 1944 Dec 1944 Mar 1945 Jun 1945 Sep 1945 Dec 1945 Mar 1946 Jun 1946 sed 674% in 103 weeks.","Price = Outboard Marine\u20131954 Materials restrictions were lifted after the Kor 20*eps War ended in 1953. This led to rapid expansi Weekly Chart for Outboard Marine. It broadened its base b 2.50 using its motors in snow blowers, lawn mow 2.25 Prices are adjusted for 3-for-1 stock and chain saws to increase year-round sales, 2.00 split, so price at breakout was $13.50 rather than just summer-oriented boating act 1.80 1.60 Earnings acceleration 1.50 1.40 Add: 4 weeks 1.30 tight closes 1.20 1.10 Buy 1.00 0.90 Volume up 0.80 0.75 Big increase in volume 3\/1 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 0.09 Mar 1953 Jun 1953 Sep 1953 Dec 1953 Mar 1954 Jun 1954 Sep 1954 Dec 1954 Mar 1955 Jun 19 Outboard Marine increas","rean Market correction Dow Jones Ind. Price 28 A WINNING SYSTEM ion 60 by Sell: climax top wers, 50 , tivity. 40 34 Buy 30 26 22 19 16 14 12 10 You may ask, why shouldn\u2019t you buy here at the 8 bottom to get a lower price? You are not trying to buy 7 at the cheapest price, but at the time the stock has 6 the greatest probability of going up in price. When it\u2019s declining in price 9 weeks in a row below its 10-week 5 moving average line, only 3 or 4 out of 10 will be right buys, assuming fundamentals are the same. Buying 4. 0 when it\u2019s moving up and breaking out of a sound base 3. 4 near a new price high, 6 or 7 out of 10 will be right, 3. 0 during bull markets. Most people like to buy stocks 2. 6 going down when they look cheap, that\u2019s why they 2. 2 make more mistakes and lose more money. Volume Volume up 30,000 16,000 3\/1 8,000 \u00a9 2009 Investor\u2019s Business Daily, Inc. 4,000 2,000 955 Sep 1955 Dec 1955 Mar 1956 Jun 1956 Sep 1956 Dec 1956 Mar 1957 Jun 1957 Sep 1957 sed 720% in 177 weeks.","Kaiser Aluminum\u20131954 Reynolds Aluminum broke out to new highs a few weeks earlier and Alcoa broke out after Kaiser, meanin Weekly Chart this was an industry turnaround for the leaders in the group. Reynolds advanced a similar amount. 107\/100 Buy 15-week cup- with-handle Volume is up down from w stock could h Jun 1952 Sep 1952 Dec 1952 Mar 1953 Jun 1953 Sep 1953 Dec 1953 Mar 1954 Jun 1954 Sep 1954 Dec Kaiser Aluminum increa","ng Price e Dow Jones Ind. 120 100 This is the 200-day moving average line. A 80 longer-term trendline. 70 60 p, if it had been 3\/1 50 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 29Secrets week before, the have failed 40 34 30 26 22 19 16 14 12 10 8 7 6 4. 5 Volume 80,000 50,000 30,000 18,000 1954 Mar 1955 Jun 1955 Sep 1955 Dec 1955 Mar 1956 Jun 1956 Sep 1956 Dec 1956 ased 379% in 93 weeks.","Price = Thiokol Chemical\u20131957 Maker of rocket motors Remember 20*eps and rocket fuel handles are Weekly Chart corrections 3.50 leaders...so and stop lo 3.00 because th 2.50 Market correction 1957 bear market 2.25 creates base 2.00 1.80 Buy A Buy B 1.60 Not 1.50 sha 1.40 8% 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 53-week big cup-with-handle 0.20 0.18 0.16 Note: big volume on prior up- You always want a Vol 0.15 volume increase on the 0.14 0.13 trend to the cup-with-handle buy week breaking out Volume up on big up price weeks Volume dry-up at bottom of base Dec 1955 Mar 1956 Jun 1956 Sep 1956 Dec 1956 Mar 1957 Jun 1957 Sep 1957 Dec 195 Thiokol Chem increase","r 90% of all cup with Dow Jones Ind. Price 30 A WINNING SYSTEM e formed during market 80 s. These will be the new Sell: climax top 70 o don\u2019t get discouraged 60 ooking for winners just Buy D 50 he market is in a correction. 40 Buy C 34 30 te: possible Add: first pullback 26 akeout if down to 10-week moving 22 % from buy point average line 19 Note: 3 weeks tight closes along bottom of 16 pattern. You saw that at bottom of Tennessee 14 Coal & Iron\u2019s cup in October 1898, at the 12 bottom of S.S. Kresge\u2019s cup in June 1922, 10 the bottom of Dupont\u2019s first cup with handle base in March 1925, and Schenley Distilling\u2019s 8 cup in August 1945. Maybe you should learn 7 to recognize this accumulation in the future (if 6 you want to win). 4. 5 lume up Volume up 3. 8 3. 2 2\/1 3\/1 2. 8 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume 150,000 80,000 40,000 20,000 57 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 Dec 1959 Mar 1960 ed 860% in 109 weeks.","Price = Brunswick\u20131958 Company has new product\u2014 20*eps automatic pin-spotters for bowling alleys 3.50 Weekly Chart 3.00 2.50 Some com to their e 2.25 always Br 2.00 Buy 16-week cup- 1.80 with-handle 1.60 Volu 1.50 1.40 13\/10 1.30 1957 Bear Market 1.20 1.10 1.00 0.90 0.80 Big earnings 0.75 acceleration 0.70 quar ter 0.65 0.60 0.55 0.50 0.45 0.40 Buy 0.35 0.30 Buy 0.25 0.23 Base-on-base 0.20 0.18 0.16 0.15 Volume up 0.14 25-week cup-with-handle 0.13 0.12 2\/1 Mar 1957 Jun 1957 Sep 1957 Dec 1957 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Brunswick increased 1","Dow Jones Ind. Price 70 Sell: climax top 60 mpanies have seasonality 3 weeks 50 earnings. July quarters were tight closes runswick\u2019s best quarters 40 34 15-week cup- 3 weeks 30 with-handle tight closes 26 Sharp pullback 22 and possible 19 shakeout to 16 avoid 14 12 Note: peak closes 4 weeks tight closes 10 in low of handle 8 7 6 5 ume up 4. 0 The Greatest Stock-Picking 31Secrets 3. 4 3\/1 Volume up 3. 0 \u00a9 2009 Investor\u2019s Business Daily, Inc. 2. 6 2\/1 Volume 160,000 80,000 40,000 20,000 Jun 1959 Sep 1959 Dec 1959 Mar 1960 Jun 1960 Sep 1960 Dec 1960 Mar 1961 Jun 1961 1500% in 162 weeks.","Price = Zenith Radio\u20131958 20*eps Weekly Chart 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 Zenith is about to emerge from 2+ year ba 2.25 Note: many big volume spikes u like little skyscrapers. This is lar 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 Jun 1955 Sep 1955 Dec 1955 Mar 1956 Jun 1956 Sep 1956 Dec 1956 Mar 1957 Jun 1957 Sep Zenith Radio increase","Dow Jones Ind. Price 32 A WINNING SYSTEM 260 Sell: climax top 220 190 Do Not Sell! This is Buy 160 not a climax top, it is 140 only out of the high 120 tight flag 8 weeks 100 Buy 80 70 4 weeks 5-week high No volume coming 60 tight closes tight flag into stock near bottom of base 45 Buy 38 ase 32 28 11-week cup- Add on each of first 3 pullbacks to 24 with-handle 10-week moving average line, which 20 up prior to the base, also creates an ascending base 17 rge professional buying 15 Big volume Note: extreme volume dry-up 13 2\/1 increase at end of base meaning no 11 further selling has occurred 9 3\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume Volume up 80,000 50,000 30,000 18,000 p 1957 Dec 1957 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 ed 493% in 66 weeks.","Price = Texas Instruments\u20131958 Leader in new semiconductor 20*eps industry 1957 Bear Market\u2014 14 Weekly Chart creates new bases 13 for each new cycle 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 B 2.50 2.25 2.00 Buy 1.80 1.60 Note volume 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 35-week cup-with-handle 0.75 0.70 0.65 0.60 Volume up as stock goe 0.55 Again note extreme volume through precise buy poi 0.50 dry-up near low...no further also closes week at pea selling in stock Jun 1956 Sep 1956 Dec 1956 Mar 1957 Jun 1957 Sep 1957 Dec 1957 Mar 1958 Jun 1958 Sep Texas Instruments increa","Dow Jones Ind. Two quarters of deceleration in Price rate of quarterly earnings per share 300 Buy growth from the earlier major growth 260 Buy trend rate can frequently can be a 220 time to sell +22%, +21% versus 190 7-week +59%, +129%, +97%, +87%. 160 base Texas Instruments made a great 140 precedent for when to sell Google 120 Can add at first 3 at over 500 in Jan. 2008 when it pullbacks to 10-week showed 4 quarters of earnings 100 moving average line deceleration to 39% from earlier es Volume up trend of 129% 80 int, 70 ak 60 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 33Secrets 50 40 34 30 26 22 19 16 14 12 10 Volume 16,000 8,000 4,000 2,000 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 Dec 1959 Mar 1960 Jun 1960 Sep 1960 ased 772% in 116 weeks.","Universal Controls\u20131958 Weekly Chart 3\/1 Dec 1954 Mar 1955 Jun 1955 Sep 1955 Dec 1955 Mar 1956 Jun 1956 Sep 1956 Dec 1956 Mar 19 Universal Controls increa","Sell: climax top doubles Price 34 A WINNING SYSTEM in last 6 weeks 100 Dow Jones Ind. 80 70 Market correction Buy: 4-week 60 high tight flag 50 Add Buy Add: first Buy 10-week pullback to 40 flat base 10-week line 34 with tight 30 weeks 26 22 19 16 14 12 10 43-week cup-with-handle Note: number of tight 8 Huge volume\u2014supply weekly closes and 7 and demand at work tiny spreads each 6 week from hi to low 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. Fast drop after 3. 8 climax top, sell if you hesitated to sell Volume stock on the way up 120,000 2\/1 70,000 40,000 Note: extreme volume 20,000 dry-up on pullback, no selling coming in 957 Jun 1957 Sep 1957 Dec 1957 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Jun 1959 ased 645% in 51 weeks.","Price = Xerox\u20131958 The world\u2019s first fully-automated, plain paper photcopier. The 20*eps 914 model revolutionized the industry as previous photocopiers Weekly Chart required either special chemically treated paper, or were too 10 time-consuming and costly to produce a decent copy. 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 Add 19- 1.50 1.40 1.30 1.20 1.10 1.00 0.90 Buy 0.80 9-week 0.75 0.70 0.65 0.60 flat base 0.55 0.50 0.45 0.40 40-week cup-with-handle 0.35 Note: 3 tight closes in handle lows Sep 1957 Dec 1957 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 Dec 19 Xerox increased 120","Dow Jones Ind. Price 220 190 160 140 120 100 Buy 80 -week cup-with-handle 70 60 The Greatest Stock-Picking 35Secrets 50 40 34 30 26 22 19 16 14 12 10 8 4\/1 Volume \u00a9 2009 Investor\u2019s Business Daily, Inc. 18,200 Traded Over-The-Counter 10,600 from Jan. 1954\u2013Jun. 1961; 6,200 volume not available 3,600 2,000 959 Mar 1960 Jun 1960 Sep 1960 Dec 1960 Mar 1961 Jun 1961 Sep 1961 Dec 1961 Mar 1962 01% in 188 weeks.","Price = American Photocopy Equip.\u20131958 Predecessor to the 20*eps Xerox dry copier Weekly Chart Buy 2.50 2.25 Buy 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 3 weeks tight closes 13-week cup- 0.20 with-handle 0.18 0.16 0.15 0.14 0.13 Note: extreme volume 0.12 dry-up at end of base 0.11 0.10 Big volume increase 0.09 3\/1 Sep 1957 Dec 1957 Mar 1958 Jun 1958 Sep 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 Dec American Photocopy Equipment","Sell Price 36 A WINNING SYSTEM 50 Dow Jones Ind. 40 1961 sell was precedent for Amazon 34 going above channel line to sell at 30 61 in Oct. 2003. Amazon declined 26 for next 3 years to 25 before it built a 22 new base in 2007 19 16 14 12 10 8 7 6 Stock 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. tops on 3. 8 3\/1 split 3. 2 2. 8 3\/1 2. 4 2. 0 1959 Mar 1960 Jun 1960 Sep 1960 Dec 1960 Mar 1961 Jun 1961 Sep 1961 Dec 1961 Volume t increased 696% in 133 weeks 80,000 50,000 30,000 18,000","Fairchild Camera & Instrument\u20131959 In 1957, its subsidiary Fairc developed the planar proces Weekly Chart manufacturing of silicon tran years the company created t circuit based on planar techn You always want a prior uptrend of at l 30% on strong volu to the bases you bu Note: big acc volume on pr Mar 1956 Jun 1956 Sep 1956 Dec 1956 Mar 1957 Jun 1957 Sep 1957 Dec 1957 Mar 1958 Jun 195 Fairchild Camera & Instrument","child Semiconductor Dow Jones Ind. Price ss which led to mass- nsistors. Within a few Buy 190 the first integrated 160 nology using silicon. 140 120 least 15-week cup-with-handle 100 ume Buy uy 80 Add: 1st pullback to 10-week 70 moving average line 60 10-week cup-with-handle 50 celerating Volume up from Volume up 40 The Greatest Stock-Picking 37Secrets rior uptrend prior week 34 2\/1 30 26 \u00a9 2009 Investor\u2019s Business Daily, Inc. 22 19 16 14 12 10 8 Volume 16,000 8,000 4,000 2,000 58 Sep 1958 Dec 1958 Mar 1959 Jun 1959 Sep 1959 Dec 1959 Mar 1960 Jun 1960 Sep 1960 increased 582% in 73 weeks.","Price = Chrysler\u20131962 Third largest motor vehicle 20*eps producer in the U.S. 6.50 Weekly Chart 6.00 5.50 5.00 4.50 Sell: heavy volum no price progres 4.00 3.50 3.00 2.50 Earnings acceleration 36-week cup-with-handle 2.25 Buy 2.00 After sha 1.80 closes m vir tually 1.60 huge vol 1.50 Note: volume accumulation 1.40 up weeks on volume 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 Dec 1960 Mar 1961 Jun 1961 Sep 1961 Dec 1961 Mar 1962 Jun 1962 Sep 1962 Dec 196 Chrysler increased 2","me Dow Jones Ind. Price 38 A WINNING SYSTEM ss up 140 Buy 120 back 100 Buy Cup no 6-week handle 80 flat base 70 60 Sell: stock doubles from 15 to 34 and heavy 50 16 weeks increased volume with up in a row no further price progress 40 34 akeout, stock closing at 32 30 26 mid-range and 22 unchanged on 19 lume support 16 Heavy volume increase without 14 2\/1 2\/1 same progress as prior week 12 was the top of the stock 10 \u00a9 2009 Investor\u2019s Business Daily, Inc. 8 7 6 5 Volume 1,300,000 800,000 500,000 300,000 180,000 62 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun 1964 Sep 1964 Dec 1964 Mar 1965 215% in 51 weeks.","National Airlines\u20131962 Whole airline industry leads this market cycle due to jets replacing prop planes Weekly Chart Market correction Base Buy Sharp shakeout occurs during Cuban Missile Crisis, which ended the next week and general market rapidly follows-through on upside 28-week cup-with-handle Volume up Mar 1962 Jun 1962 Sep 1962 Dec 1962 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun 1964 National Airlines increase","S&P 500 Price Market correction 120 100 Buy 4 weeks closing e-on-base relatively tight 80 70 Shakeout below 60 35.75 low in April 50 40 34 30 26 22 19 16 14 12 10 Enormous institutional volume 8 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 39Secrets support after shakeout below 7 low of first week of April 6 2\/1 4. 5 Volume 130,000 70,000 40,000 20,000 4 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 ed 1004% in 179 weeks.","Price = Northwest Airlines\u20131962 New product: jet planes 20*eps and new route to Japan 7.00 Weekly Chart Market 6.50 correction 6.00 5.50 Do No v-shap 5.00 up off straigh 4.50 drift d 4.00 3.50 3.00 2.50 1962 bear market 2.25 2.00 1.80 1.60 Do Not Buy! Stock is 1.50 extended straight up 1.40 1.30 from 8 to 14 and it\u2019s 1.20 a third stage base 1.10 1.00 0.90 0.80 Buy Buy: pullback to 0.75 10-week moving 0.70 average line 0.65 Add: pullbacks to 0.60 10-week moving 0.55 average line 0.50 Volume up 0.45 0.40 0.35 0.30 Huge volume demand 0.25 Volume up Mar 1962 Jun 1962 Sep 1962 Dec 1962 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun Northwest Airlines increas","S&P 500 Price 40 A WINNING SYSTEM 140 ot Buy! Faulty base, narrow Market 120 ped 2 weeks down and 2 weeks correction f low (straight down and then 100 ht up) and handle area does not Buy down along its lows 80 70 Buy 60 See volume 50 7-week base- 40 on-base 34 30 Huge volume after stock has 26 shakeout below 38 low and 22 pulls back to 200-day moving 19 Big volume on average line for first time 16 down week 14 2\/1 2\/1 12 Volume up \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume up 10 8 7 6 5 Volume 120,000 70,000 40,000 20,000 n 1964 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 sed 1240% in 186 weeks.","Price = Xerox\u20131963 20*eps 18 Weekly Chart 16 15 14 13 12 11 10 9.00 8.00 7.50 7.00 6.50 6.00 1962 bear market creates 5.50 the Xerox base 5.00 4.50 4.00 3.50 Add: pullback to 1 line and whole ba 3.00 Do Not Buy! Straight all of its gain sinc Add: pullback to 10-week up from 17.5 to 32, 3 weeks moving average line 2.50 too obvious and tight closes 2.25 market is correcting along lows Buy 2.00 1.80 1.60 3 more tight 1.50 closing weeks 1.40 1.30 1.20 12-week cup-with-handle 1.10 1.00 Stock just corrected 32 to 0.90 normal handles correct on 0.80 68-week cup-with-handle similar to 44-week cup- and loose to safely buy on 0.75 with-handle Xerox formed in 1957 bear market in December 1962 0.70 0.65 Huge volume support: 1st red week closes in upper half of wee red week huge volume but gives up small am5o\/1unt, 3rd week up Jun 1962 Sep 1962 Dec 1962 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun 196 Xerox increased 66","S&P 500 Price \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 41Secrets 340 10-week moving average 300 ase is tight holding almost 260 ce advancing 100% 220 26, almost 20% in handle area. Most 190 nly 8\u201312%, which makes this too wide 160 n the attempted breakout 9 weeks later 140 ek\u2019s price range, 2nd 120 p big on huge volume 100 80 70 60 45 38 32 28 24 20 17 15 13 Volume 350,000 150,000 70,000 30,000 64 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 60% in 168 weeks.","Price = Syntex\u20131963 New product \u201cThe Pill,\u201d Syntex was on the 20*eps American Stock Exchange in a time they had a number of different growth stocks 6.00 Weekly Chart 5.50 Sell: climax top 5.00 Syntex doubled on a when issued 3 for 1 new stock run-up from 44 4.50 to over 90 on this chart 4.00 3.50 3.00 2.50 Stock prices adjusted for 3\/1 Buy 2.25 and 2\/1 stock splits. Syntex was actually at 100 at its buy point 2.00 1.80 High tight flag base 1.60 Became pre 1.50 high tight f 1.40 that appear 1.30 1.20 Huge earnings 1.10 growth 1.00 0.90 3\/1 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 Dec 1961 Mar 1962 Jun 1962 Sep 1962 Dec 1962 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Syntex increased 4","Dow Jones Ind. Price 42 A WINNING SYSTEM 120 t ecedent for 100 flag in Rollins red 1 year later 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4. 5 \u00a9 2009 Investor\u2019s Business Daily, Inc. 2\/1 Volume 800,000 500,000 300,000 180,000 Mar 1964 Jun 1964 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 451% in 25 weeks.","Price = Rollins\u20131964 Huge acquisition of 20*eps Orkin exterminator 3.50 Weekly Chart 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 0.14 0.13 0.12 Mar 1961 Jun 1961 Sep 1961 Dec 1961 Mar 1962 Jun 1962 Sep 1962 Dec 1962 Mar 1963 Rollins increased 2","Dow Jones Ind. Price 70 60 50 Buy 40 34 Buy 30 3 week high 26 tight flag base 22 19 16 14 12 10 Rollins became a perfect precedent 8 The Greatest Stock-Picking 43Secrets for Simmonds Precision next year 7 in Nov. 1965 when it broke out of 6 another 3 week high tight flag and advanced 5 times in the next 22 5 weeks. Of course you had to use charts to see the comparisons 4. 0 3. 4 3. 0 2. 6 Huge volume 3\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. acceleration on prior uptrend Volume 80,000 50,000 30,000 18,000 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun 1964 Sep 1964 Dec 1964 Mar 1965 Jun 1965 254% in 36 weeks.","Price = Simmonds Precision\u20131965 New product computers 20*eps used in space program Weekly Chart 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 0.14 0.13 0.11 0.11 Mar 1962 Jun 1962 Sep 1962 Dec 1962 Mar 1963 Jun 1963 Sep 1963 Dec 1963 Mar 1964 Jun 1 Simmonds Precision Products","S&P 500 Sell: climax top Price 44 A WINNING SYSTEM Buy 58 Market corrects 50 44 39 34 30 26 Key precedent for Simmonds\u2019 C 23 high tight flag was Rollins in 20 1964 and Syntex in 1963 17 Buy A B 15 13 Buy High Ascending base pulls 12 tight back 3 times each 10 flag with a higher low 9 point from A to B to C 8 7 6 5 4 19-week cup- 4. 3 with-handle 3. 8 Bottom week All prices 3. 3 closes in upper adjusted for 2. 9 half of range 3\/1 split 2. 5 on volume 2. 2 Volume up Volume up Volume 3\/1 Volume up \u00a9 2009 Investor\u2019s Business Daily, Inc. 80,000 50,000 30,000 18,000 1964 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 increased 672% in 38 weeks.","Price = Monogram Industries\u20131966 Supplier to Boeing jet airliners 20*eps 1\/5 Weekly Chart 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 0.14 0.13 0.12 Dec 1963 Mar 1964 Jun 1964 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Monogram Industries incre","S&P 500 Sell: climax top Price 70 1966 Bear market Buy 60 Buy Add 50 10-week 4 weeks tight cup-with- 40 closes C handle 34 B 30 Buy A 26 22 Ascending base like 19 Simmonds Precision 16 precedent in 1966 14 12 17-week base 3\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 45Secrets 10 Volume up Volume up 8 Volume up 7 6 5 4. 0 3. 4 3. 0 2. 6 Volume 120,000 70,000 40,000 20,000 5 Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun 1967 Sep 1967 Dec 1967 Mar 1968 eased 891% in 57 weeks.","Price = Digital Equipment\u20131967 Manufacturer of high-speed digital mini-co 20*eps computer accessory equipment, test equip Weekly Chart and modules. 9.00 Do Not 8.00 Handle 7.50 up alon 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 Buy 2.25 7-week 2.00 Big volume up base 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 Dec 1965 Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun 1967 Sep 1967 Dec 1967 Digital Equipment increas","omputers, S&P 500 Price 46 A WINNING SYSTEM pment, 190 t Buy! 160 wedges 140 ng lows 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 3\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume 140,000 80,000 40,000 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 Mar 1970 sed 743% in 156 weeks.","Price = Loews\u20131967 Shortage of hotels since jets greatly 20*eps increased travel. Loews Theaters Weekly Chart land was used in cities to build hotels 3.00 1966 Bear Market 2.50 2.25 Add 2.00 Buy 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 45-week large cup Big vol 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun 1967 Loews increased 10","S&P 500 Head Price Left Intermediate term shoulder Right 60 correction 50 shoulder 40 Buy 34 30 Buy Short sale after 3 rallies 26 up over 9 weeks and then 22 12-week closes back below 10-week 19 double moving average line 16 bottom 14 Buy 8-week 12 7-week cup 10 flat base 8 Add: first pullback to 10-week 7 moving average line 6 3 weeks tight closes 5 lume increase Volume on Volume up 4. 0 The Greatest Stock-Picking 47Secrets breakout 3. 4 3\/1 3. 0 \u00a9 2009 Investor\u2019s Business Daily, Inc. 5\/2 2. 6 2. 2 Volume 160,000 80,000 40,000 20,000 Sep 1967 Dec 1967 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 025% in 101 weeks.","Price = Mattel\u20131967 Largest toy manufacturer in U.S. 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 0.20 0.18 Sep 1964 Dec 1964 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 Dec Mattel increased 4","Intermediate market S&P 500 Price 48 A WINNING SYSTEM correction 100 Buy 80 70 Buy 10-week cup 60 50 2\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. 40 c 1966 Mar 1967 Jun 1967 Sep 1967 Dec 1967 Mar 1968 Jun 1968 Sep 1968 Dec 1968 34 30 41% in 66 weeks. 26 22 19 16 14 12 10 8 7 6 4. 5 3. 8 Volume 120,000 70,000 40,000 20,000","Price = Skyline\u20131967 Company manufactures mobile 20*eps homes and travel trailers. Weekly Chart 2.00 1.80 Ma 1.60 B 1.50 8- 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 0.10 0.09 0.08 0.07 0.07 105\/100 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun 1967 Sep 1967 Skyline increased 7","S&P 500 Price 1969 bear market 40 arket correction Sell: climax top 34 30 26 22 19 16 14 12 Buy 10 Buy 8 7 6 8-week cup-with-handle 4. 5 -week base 3. 8 3. 2 2. 8 2. 4 Volume up 3\/1 2. 0 \u00a9 2009 Investor\u2019s Business Daily, Inc. The Greatest Stock-Picking 49Secrets Volume up 1. 7 1. 5 3\/1 Volume 640,000 300,000 140,000 60,000 20,000 Dec 1967 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 715% in 98 weeks.","Price = Redman Industries\u20131968 Leading producer of mobile 20*eps homes and aluminum products. Weekly Chart 2.50 Prior uptrend 2.25 to base has big volume increase 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 0.09 0.09 Mar 1965 Jun 1965 Sep 1965 Dec 1965 Mar 1966 Jun 1966 Sep 1966 Dec 1966 Mar 1967 Jun Redman Industries increa","S&P 500 Price 50 A WINNING SYSTEM 50 Market correction Add: 3 weeks tight closes 40 even at this extended point 34 30 Buy Ascending base: pulled back 3 times, 26 C each time making higher lows and 22 higher highs during market correction 19 Buy B (also 2 pullbacks to the 10-week 16 A moving average line) 14 12 13-week cup- 10 with-handle 8 4\/3 2\/1 7 \u00a9 2009 Investor\u2019s Business Daily, Inc. 6 5 4. 0 3. 4 3. 0 2. 6 2. 2 1. 8 Volume 80,000 40,000 20,000 1967 Sep 1967 Dec 1967 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 ased 683% in 49 weeks.","Price = Levitz Furniture\u20131970 New product: warehouse 20*eps concept for furniture sales 4.00 Weekly Chart Market correction 3.50 2\/1 3.00 2.50 IPO Add 2.25 10- 2.00 * 40-week 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 Mar 1968 Jun 1968 Sep 1968 Dec 1968 Mar 1969 Jun 1969 Sep 1969 Dec 1969 Mar 1970 Levitz Furniture increas","S&P 500 Price 80 Sell: goes beyond 70 upside channel line 60 Buy 50 Buy 40 Buy: ascending base 34 d: first 3 pullbacks to 30 -week moving average line 26 22 C 19 B 16 Buy A 14 12 10 8 7 6 5 k cup-with-handle 4.0 The Greatest Stock-Picking 51Secrets Volume up Volume up 3.4 2\/1 3.0 3\/1 \u00a9 2009 Investor\u2019s Business Daily, Inc. Volume 320,000 160,000 80,000 40,000 20,000 Jun 1970 Sep 1970 Dec 1970 Mar 1971 Jun 1971 Sep 1971 Dec 1971 Mar 1972 Jun 1972 sed 608% in 87 weeks."]