Please note that index links point to page beginnings from the print edition. Locations are approximate in e-readers, and you may need to page down one or more times after clicking a link to get to the indexed material.
Accumulation/Distribution Rating (ACC/DIS RTG), 201, 346–348
A-D (advance-decline) lines, 226–227
Adobe Systems, 72
Advance-decline (A-D) lines, 226–227
Advisory services, 4
bearish, 225
institutional sponsorship vs., 192
AIG (see American International Group)
Alexander & Alexander, 148
Allen, Frederick Lewis, 387
Alliance Semiconductor, 84
América Móvil, 298
America Online (AOL), 85, 92, 138, 139, 152, 154, 169, 173, 176, 178, 187, 196, 208, 241, 329, 347
American Century Funds, 195, 395–396
American Chain & Cable, 131
American International Group (AIG), 196, 276, 277, 281
American Photocopy Equipment, 36
American Power Conversion, 75
Analog Devices, 266
Annual earnings per share (annual EPS), 161–170
and cash flow per share, 162
growth rates of, 161–162
and IBD Earnings per Share Rating, 165–166
and normal stock market cycle, 163–164
and price/earnings ratio, 166–170
and return on equity, 162
three-year record of, 162–163
in weeding out losers, 164–165
AOL (see America Online)
Apple Computer Inc., 99, 113, 114, 119, 120, 152, 153, 164, 173, 187
Applied Materials, 198
Arithmetically scaled charts, 159
ARM Holdings, 316
Art of Contrary Opinion, The (Humphrey Neill), 385
Ascend Communications, 86, 136, 137
Ascending bases, 137–140
Astrop, Bill, 242
Averaging down, 247–248, 303–304
Averaging up, 257
Back-end load funds, 397
Baidu, 298
Balanced funds, 398–399
Bank of America, 167, 191, 296
Barrick Gold, 300
Baruch, Bernard, 239, 240, 251, 254–255, 383
“Base-on-base” pattern, 136–137, 322
ascending, 137–140
flat, 127–128
for leader stocks, 189–190
square box, 128–130
third- or fourth-stage, 268
on top of a base, 136–137, 322
weekly analysis of, 185
wide and loose, 217
wide spread in, 117
(See also Price patterns)
Battle for Investment Survival, The (Gerald M. Loeb), 242
BEA Systems, 328
Bear markets, 122, 206, 207, 213, 412–413
beginning of, 360
buy patterns in, 151
buying put options in, 290
cutting losses in, 240, 284–285
and diversification, 252
ending of, 203
high P/Es during, 167
and interest rate changes, 228–230
leading stocks early in, 217–218
and mutual fund investments, 396
selling during, 207–208
in stock market cycle, 163
stock opening/closing in, 204
warnings of, 218–219
Beatles, The, 241
Bell, Alexander Graham, 328
Berlin, Irving, 241
Bias (Bernard Goldberg), 386–387
“Big Picture, The” column (IBD), 201, 203
Birch, Steve, 6
Bond funds, 398–399
Bond portfolios, 419
Bottoms:
head-and-shoulders, 148
recognizing, 202–203
spotting, 218–223
triple, 148
Breakeven point, after declines, 207
Breaking support, 269
Bristol Myers, 313
Broadvision, 317
Brocade, 328
Brooklyn Dodgers, 239
Brunswick, 31, 241, 246, 313, 336
Bull markets, 329
best time to buy in, 304
buying put options in, 290
climax signals for, 263–268
concentrated positions in, 275
high P/Es during, 167
leader stocks in, 190
length of, 163
money making in first two years of, 223–224
selling short during, 286
sentimental favorites in, 186
stock opening/closing in, 204
Burroughs Adding Machines, 18, 186
Business Objects, 317
Buy-and-hold investing, 207–208, 276–284
Buybacks, 183
Buying stocks, 3
after price declines, 190–192
in bear markets, 151
institutional, 195
at pivot points, 117–118
spreading out purchases, 275
(See also Money management)
Call options, 226, 289, 291, 292
CAN SLIM®:
characteristics represented by, 7–8, 112, 233–234
and market tops, 212
momentum investing vs., 234
for options, 290
as test for investing, 382–383
testimonials for, 475–487
in U.S. Investing Championship, 314
Capital gains tax, 294–295, 411, 412
Caretaker management, 157, 181
Carnegie, Andrew, 188
Cash flow per share, 162
CB Richard Ellis, 101, 128, 294, 347
CBS Evening News, 386
C-Cube, 319
Centex, 331–332
Cerro Corp., 313
Certain-teed, 131, 133, 136, 258, 260, 313
Channel lines, 264
Charles Schwab, 91, 154, 168, 173, 187, 241, 262, 338, 347
Chart books, 383
Chart services, 112
Chicago Mercantile Exchange (CME), 320, 347
China, 330
China Medical, 243
China Mobile, 298
Chrysler, 38, 164, 241, 260, 313
Churning, 211
Cisco Systems, 7, 79, 124, 125, 152, 165, 173, 176, 177, 182, 191, 196, 198, 218, 241, 246, 303, 328, 342, 347
Citigroup, 156, 196, 274, 276, 278, 282, 284, 296
Clancy, Maura, 386
Cleveland Cliffs, 164
Closed-end mutual funds, 397
CME (see Chicago Mercantile Exchange)
CMGI, 312
Coastal States, 313
Coca-Cola, 23, 137, 167, 207, 208
Coldwell Banker, 274
Coming Battle for the Media, The (William Rusher), 386
Commissions, 306
Commodities, 29
Commodore International, 328
Community Reinvestment Act (CRA, 1977), 229
“Company Earnings Reports” (IBD), 368
Compaq, 316
Composite Rating (Investors.com), 375, 376
Compounding, 394–395
Condé Nast Publications, 26
Conexant Systems, 198
Consolidated Cigar, 313
Continental Illinois Bank, 296
Convertible bonds, 295
Corning, 208
Corporate debt-to-equity ratio, 184
Corrections Corp. of America, 266
Costco Wholesale, 73
“Cousin stock” theory, 337–338
CRA (Community Reinvestment Act of 1977), 229
Crocs, 191
Crown Cork, 313
Cuban American Sugar, 153
Cullinane Database, 328
“Cup-with-handle” pattern, 4, 112–117, 315–318
normal-size, 119–121
“Cup-without-handle” pattern, 319
Cutting losses, 239–253
at 7% or 8% of your cost, 242–244
and analysis of activities, 249–250
and averaging down, 247–248
in bear markets, 284–285
as insurance policy, 246–247
letting losses run vs., 247
and long-term investing, 252
and psychology of investors, 249
to retain confidence, 252–253
and risk in common stocks, 244–246
as secret of success, 240–241
and speculators vs. investors, 251
and wide diversification, 252
Daily Graphs Online, 119, 160, 163, 189, 324–325
Databases, power and efficiency of, 415–417
Datapoint, 186
Day trading, 284
Dean Witter, 274
Debt-to-equity ratio, 184
Deckers Outdoor, 97, 128, 333, 334
Deere & Co, 24
“Defensive” industry groups, 339
“Defensive” stocks, 232
Dell Computer, 89, 128, 130, 152, 173, 198
Demographic trends, 338
Diamonds, 299–300
Diamonds Trust, 401
Digital Equipment, 46
Digital Switch, 67
Discount rate, 228–230
Disney, Walt, 328
Diversification, 252, 274, 275
DJIA (see Dow Jones Industrial Average)
Dollar cost averaging, 396–397
Dollar General, 127
Dome Petroleum, 7, 124, 191, 312, 314, 408–410
“Double-bottom” pattern, 123–127, 320
Dow Jones Industrial Average (DJIA), 192, 201
in 1973–1974, 206
divergence of S&P 500 and, 226
and market bottoms, 221–222
and market tops, 209, 210, 212–214, 217
publications displaying, 225
Dress Barn, 338
Duveen, Joseph, 168
Earnings acceleration, 157–159
Earnings deceleration, 158–159
Earnings per share (EPS), 154
annual (see Annual EPS)
and debt-to-equity ratio, 184
quarterly (see Quarterly EPS)
in SmartSelect Ratings, 165–166, 343–346
Earnings per Share (EPS) Rating (IBD), 165–166, 343–346
Earnings reports, 155–156, 160
ECNs (electronic communication networks), 292–293
Edison, Thomas, 241
EDS (see Electronic Data Systems)
Edwards, Robert D., 146
Einstein, Albert, 241
Electronic communication networks (ECNs), 292–293
Electronic Data Systems (EDS), 274, 328
EMC, 81, 124, 126, 173, 198, 208, 243, 328
Endevco Corp., 313
Entrenched maintainers, 157
Entrepreneurial management, 181–182
EPS (see Earnings per share)
Espey Manufacturing, 314
E-Tek Dynamics, 317
Exchange traded funds (ETFs), 400–402
Exodus Communications, 198
Failures, analysis of, 257–258
Fairchild Camera & Instrument, 37, 241, 338
Faulty patterns/base structures, 146, 148
Federal Reserve Board rate changes, 228–230
Fidelity Investments, 325, 395
Financial crisis of 2008, 229–230, 235
Financial World, 415
First Solar, 108
“Flat-base” price structure, 127–128, 321
Fleetwood Enterprises, 338
Flightsafety International, 56
Floating supply, 181
Fluor, 314
“Follow-on effect,” 337
Follow-through days, 220–221
Follow-up buys, 243
Food Fair, 265
Force-feeding, 243
Foreign stocks, 297–298
Fox News Special Report, 386
Franklin Templeton, 395
Free to Choose (Milton and Rose Friedman), 111
Freestone, Lee, 314
Friedman, Milton, 111
Friedman, Rose, 111
Gap, 243
Gartner Group, 82
defined, 201
divergence of averages, 225–226
and Federal Reserve Board rate changes, 228
IBD information on, 201
as profit taking indicator, 259–261
understanding, 304
General Motors (GM), 14, 172, 245, 274, 276, 278, 283
Geographical trends, 338
Gimbel Brothers, 27
Global Crossing Ltd., 148, 149
Global funds, 399
Global Marine, 60
GM (see General Motors)
Gods of Antenna (Bruce Herschensohn), The, 385–386
Goldberg, Bernard, 386–387
Goldston, Robert, 387
Google, 102, 131, 136, 152, 153, 165, 169, 173, 187, 294, 329, 347
Great Western Financial, 241
Greenfield, Jeff, 387
Greenspan, Alan, 228
Greyhound, 313
Groseclose, Tim, 386
“Group Leaders” (Investors.com), 376
Growth, value vs., 413
Guidelines for investing, 424–426
Gulf Oil, 334
Gulf+Western Industries, 274
Handleman, 321
Hansen Natural, 103, 173, 267, 268, 347
Hanson, Victor David, 356
Hayden, Stone, 260
Head-and-shoulders bottoms, 148
Head-and-shoulders tops, 148, 287
Healthcare Compare, 78
Hechinger, 187
Herschensohn, Bruce, 385–386
Hershey, 299
Hewlett Packard, 314
“High, tight flag” pattern, 131–136
Historical precedents, 6–7, 112
Holding stocks, 270–272
Home Depot, 7, 64, 128, 130, 187, 342, 347
Homestake Mining, 313
Hoover, J. Edgar, 387
Hourly market index, 230–231
Houston Oil & Minerals, 140, 143, 144
How Charts Can Help You in the Stock
Market (William Jiler), 146
How to Make Money Selling Short (Gil Morales), 285
How to Trade in Stocks (Jesse Livermore), 256
“How’s The Market?,” 358–360
Hughes Tool, 335
Human Genome Sciences, 267
Humana, 241
IBD (see Investor’s Business Daily)
IBD Forums, 381
“IBD Industry Themes,” 362
IBD “Market Wrap” video (Investors.com), 371
IBD Meetup program, 381
“IBD Mutual Fund Index,” 361
“IBD Stock Checkup” (Investors.com), 374–375
“IBD Timesaver Table,” 366–369
“IBD TV: Daily Stock Analysis” (Investors.com), 380
“IBD University” (Investors.com), 380
“IBDextra!” (Investors.com), 380
“IBD’s 10 Secrets to Success,” 352
“IBD’s Top 10,” 350
Ignatius, David, 356
Illiquidity, 290
Income funds, 398
Income stocks, 296–297
Industry analysts, 412–415
Industry conditions, 171–174, 338
Industry Group Relative Strength Rating, 325
Industry groups, 323–339
buying among top stocks in, 186–187
changes in industry conditions, 338
and “cousin stock” theory, 337–338
“defensive,” 339
earnings of companies in, 159–160
“follow-on effect” in, 337
historical leaders, 329–330
identifying market leaders, 324–327
old-line, 330–331
present and future, 331
rule for investing in, 336–337
sympathy plays in, 187–188
“wash-over effect” within, 334–335
weakness of key stocks in, 334
Initial public offerings (IPOs), 158, 293–295
“Inside Real Estate” (IBD), 353
Institutional Investor magazine, 335, 415
Institutional sponsorships, 193–198
Institutionalized investment decisions, 411–412
Interest rate changes, 228–230
International Business Machines (see IBM)
International funds, 399
International Game Technology, 173, 183, 241, 347
International Minerals, 313
“Internet and Technology” (IBD), 352–353
Intraday volume percent change (Investors.com), 373
Intuitive Surgical, 106
Investment philosophies, 412
Investor education, 478–480
Investors, speculators vs., 251
Investor’s Business Daily (IBD), 340–381
Accumulation/Distribution Ratings, 201
averages displayed in, 225
as better way to find winners, 342
“Big Picture, The” column, 201, 203, 212, 271
community created by, 381
creation of, 240
Earnings per Share Rating, 165–166
earnings reports from, 160
ETF information from, 400–402
following rules suggested by, 122, 203, 243
industry groups tracked by, 324
and Investors.com, 370–380
key indexes in, 201
and market tops, 212
mutual fund ratings of, 394
“New America, The” page, 294
NYSE and Nasdaq tables combined in, 333
other sources vs., 341
proprietary information in, 324–325
Relative Price Strength Rating, 188–189
resources from, 112
SmartSelect Corporate Ratings, 111, 342–350
testimonials for, 475–487
36-Month Performance Rating, 194
using, 350–370
“Investor’s Corner” (IBD), 370
“Investor’s Corner” (Investors.com), 380
continuing education section of, 380
Evaluate Stocks tab, 374–378
Find Stocks tab, 373–374
Market Direction tab, 370–372
Track Stocks tab, 378–380
IPOs (see Initial public offerings)
“Issues & Insights” (IBD), 356
ITT, 334
James, Barbara, 243
January effect, 384
Janus Funds, 196
JDS Uniphase, 93, 113, 131, 135, 196, 198, 208
Jiler, William, 146
JLG Industries, 88
Job creation, 188
Jobs, Steve, 212
Johnson, Ned, Jr., 256
Jones, Terry, 356
Jones Medical, 321
Jordan, Michael, 241
Juniper, 328
Kaiser Aluminum, 29
Kelly, Fred C., 248
Kennedy, Joe, 255
King World Prod., 315
Kmart, 410
Krauthammer, Charles, 356
Laggards, 186
in bear markets, 218
following market tops, 217
and market direction, 232
Large (big)-cap stocks, 181, 411
Leaders, 186–192
among industry groups, 324–327
in early stage of bear markets, 217–218
in groups, 186–187
identifying, 324–327
during market corrections, 190
mistakes by professional managers, 190–192
and relative price strength, 188–190
sympathy stock moves, 187–188
on weak market days, 192
(See also Winning stocks)
“Leaders & Success” (IBD), 352
Leading Fund Sectors (IBD), 355–356
LeFevre, Edwin, 260
Levitt, Arthur, 414
Levitz Furniture, 51, 172, 187–188, 191, 241
Lichter, Robert, 386
Life & Death of Nazi Germany, The (Robert Goldston), 387
Limit up/down days, 299
Limited, The, 7, 63, 115, 116, 338, 347
Line of least resistance, 117
Ling-Temco-Vought, 274
Livermore, Jesse, 117, 251, 256, 257, 272
Load funds, 397–398
Lockheed, 313
Logarithmic-scale weekly graphs, 159
Long-term investing, 207–208, 252, 276–284
Los Angeles Times, 386
Losses:
controlling, 271
holding onto, 303
letting losses run, 247
recognizing, 241
(See also Cutting losses)
Low-priced securities, 298, 305
Lucent Technologies, 191, 287, 288
Machinery industries, 204
M/A-Com, 136
Macromedia, 316
Madoff, Bernie, 303
Maintainer management, 158
“Making Money” (IBD), 356–357
Management fees (mutual funds), 399–400, 420
Mandell, Marc, 240
Mann, Wes, 356
Margin trading, 208, 245–246, 284–285, 407
Market corrections, 111
beginning of, 360
leaders during, 190
rallies during, 219–220
value of, 122
Market direction, 199–236
advance-decline lines, 227–228
bear market of 1973-1974, 206
bear market warnings, 218–219
breakeven point after declines, 207
daily checks of general market, 204, 206
defensive or laggard stocks, 232
detecting shifts in, 217
and Fed rate changes, 228–230
hourly market index, 230–231
identifying bottoms, 218–223
identifying tops, 209–210
index of “defensive” stocks, 232
and key averages, 225–226
market tops, 211–218
money-making in bull markets, 223–224
and myths of long-term investing, 207–208
observation of, 202–203
overbought/oversold indicator, 231
and pension funds, 232
protection from downturns, 208–209
psychological market indicators, 226–227
rallies, 210–211
stock market cycles, 203–205
stop-loss orders, 209
and timing the market, 200
upside/downside volume, 231–232
Market indexes (see General market)
Market makers, 209
MarketSmith, 421–423
Masters of Deceit (J. Edgar Hoover), 387
Mattel, 48
Matthews, Chris, 387
McDonnell Air, 313
McGee, John, 146
MCI Communications, 192, 241, 314
“Measure of Media Bias, A “(Tim Groseclose and Jeff Milyo), 386
Media Elite, The (Stanley Rothman and Robert Lichter), 386
Memorex, 191
Merck, 347
Merger candidates, 297
Metals, investing in, 299–300
Metromedia, 183
MGIC, 334
Microsoft, 7, 71, 74, 118, 119, 165, 173, 182, 188, 241, 338, 347
Microstrategy, 317
Milyo, Jeff, 386
Minneapolis-Honeywell Regulator, 22
Mistakes investors make, 258, 302–307, 400
Mitchell, Herb, 243
“Model Book of Greatest Stock Market Winners, The,” 7
Momentum investing, 234
Mondale, Walter, 386
Money management, 273–301
convertible bonds, 295
day trading, 284
foreign stocks, 297–298
futures, 298–299
gold, silver, and diamonds, 299–300
income stocks, 296–297
initial public offerings, 293–295
long-term investing, 276–284
merger candidates, 297
Nasdaq stocks, 292–293
number of stocks owned, 273–275
options, 289–292
penny/low-priced stocks, 298
by professionals (see Professional money management)
real estate, 300–301
short selling, 285–289
spreading purchases over time, 275
tax-free securities/tax shelters, 295–296
trading on margins, 284–285
warrants, 297
Monogram Industries, 45, 138, 139, 337
Monolithic Power, 243
Montgomery Ward, 274
Monthly investment funds, 396
Morales, Gil, 285
Morningstar.com, 194
Mortgages (financial crisis), 203, 339, 235, 391–392
Mosaic, 109
“Most Active—NYSE and Nasdaq” (Investors.com), 374
Motorola, 198
Moyers, Bill, 387
Municipal bonds, 295
Mutual funds, 393–402
aggressiveness of, 194
asset size in, 399
best time to buy, 395
big money made in, 394
bond vs. balanced, 298–299
compounding in, 394–395
fees/turnover rates for, 399–400
Fidelity, 325
foreign securities in, 298
global vs. international, 399
income, 398
load vs. no-load, 397–398
and market fluctuations, 396–397
and market timing, 200–201
mistakes with, 400
monthly investment plans for, 396
number to invest in, 395–396
open- vs. closed-end, 397
sector vs. index, 398
using IBD to buy ETFs, 400–402
“Mutual Funds & ETFs” (IBD), 354–355
“My Stock Lists” (Investors.com), 378–379
Naked calls, 292
Naked options, 307
Napoleon, 208
and market bottoms, 223
and market tops, 216
new stocks on, 150
tracking NYSE together with, 331–334
volume, as percentage of NYSE volume, 227
Nasdaq Composite Index, 201, 209, 210, 387–389
Nasdaq stocks, 292–293
“Nasdaq Stocks in the News” (IBD), 365–366
National Airlines, 39
NBC Nightly News, 386
NCR, 186
Neill, Humphrey, 385
“New America, The” page (IBD), 294, 353–354
New businesses, 188
New highs in prices, 174–177
New industry conditions, 171–174
New Leaders and Laggards Review, 415–417
New management, 171
“New Price Highs” list (IBD), 325
New products/services, 171–174
New Stock Market Ideas and Past Leaders to Avoid (NSMI), 197, 198, 416, 417
New York Stock Exchange (NYSE), 195
A-D line for, 227
and bear market of 1973–1974, 206
and market tops, 212
short-interest ratio for, 227
tracking Nasdaq together with, 331–334
volume of Nasdaq and, 227
volume of trading on, 225
Newbridge Networks, 80
News, reacting to, 384–387
News media, 385–387
Nextel Communications, 198
Nextel International, 347
NL Industries, 335
Nonrecurring profits, 156
Nortel Networks, 198
Northrop, 167
Northwest Airlines, 40
NSMI (see New Stock Market Ideas and Past Leaders to Avoid)
Nuclear power plants, 296
NY Central Railroad, 313
NYSE (see New York Stock Exchange)
“NYSE + Nasdaq Stocks On the Move” (IBD), 357–358
“NYSE Stocks in the News” (IBD), 365–366
O’Neil Database Datagraph books, 325, 407–410
Open-end mutual funds, 397
Opinions, 143, 210, 305, 336–337, 476–477
Optical Coating, 322
Option expiration date, 289
Oracle, 136–137, 173, 182, 328
Outboard Marine, 28
Overbought/oversold indicator, 231
Overhead supply, 149–150
Overownership, 196
Over-the-counter dealer market, 292–293
Pan Am, 313
PE Celera, 319
P/E ratio (see Price/earnings ratio)
Pension funds, 232, 412, 420, 421 (See also Professional money management)
PeopleSoft, 83, 143, 145–146, 173
Pep Boys, 128
“Performance Within Group” (Investors.com), 375
Pic ‘N’ Save, 61, 187, 312, 314, 347, 410
Pivot points, 117–118
PMD Fund, 311–314
Powell, Colin, 258
PowerShares QQQQ Trust, 401
Precious stones, investing in, 299–300
Precision Castparts, 105, 119, 121
Price Co., 65, 124, 125, 172, 187, 241, 314, 347
Price declines:
bear market phases of, 219, 225
breakeven point after, 207
buying after, 190–192
buying during, 303
Price movement:
due to industry group and sector, 323
influence of professional trading on, 346–348
Price patterns:
in bear markets, 151
“cup with handle,” 112–117, 119–121
“double-bottom,” 123–127
“flat-base,” 127–128
“high, tight flag,” 131–136
historical, 112
major advances from, 111
“saucer-with-handle,” 122–123
for selling short, 286–288
tight areas in, 117
volume dry-ups near lows of, 118
wide-and-loose, 140–147
(See also Bases)
Price/earnings (P/E) ratio, 166–170, 305, 306, 403, 412–413
Priceline.com, 107, 153, 154, 165, 329
Price-paid bias, 249–250
Prime Computer, 7, 186, 241, 322, 328
Professional money management, 403–423
database power and efficiency, 415–417
and “expert” input, 418
growth vs. value results, 413
and index funds, 413
industry analyst system, 413
influence on stock price, 346–348
institutional investors, 407–408, 412, 419–420
investment philosophies/methods, 412, 420
and market timing, 200
and MarketSmith, 421–423
mistakes made in, 190–192
O’Neil Database Datagraph books, 407–410
overweighting/underweighting relative to S&P, 413
penny-wise and performance-foolish, 420
selecting/measuring, 420–421
size problem in, 411–412
(See also Mutual funds)
Profit margins, in SmartSelect Ratings, 346, 347
Profit taking, 254–272
and analysis of failures, 257–258
gain-loss ratio for, 240
and general market, 259–261
and key points for selling, 261–262
profit-and-loss plan, 255–256
and pyramiding, 257
revised profit-and-loss plan, 258–259
rules for, 258–259
technical sell signs, 262–269
when to hold stocks, 270–272
Profit-and-loss plan, 255–256, 258–259
Program for Management Development (PMD) Fund, 311–314
Psychological market indicators, 219, 226–227, 249
Public Opinion magazine, 386
Pulte Home, 68
Pyramiding, 257
Qlogic Corp, 198, 267, 317, 347
Qualcomm, 94, 131, 135, 146, 147, 183, 187, 192, 208, 241, 263, 264, 410, 411
Quarterly earnings per share (quarterly EPS), 152–160
accelerating growth in, 157–158
deceleration in, 158–159
and IBD EPS Rating, 165–166
log-scale weekly graphs of, 159
and maintainer management, 158
major current increases in, 153–155
minimum level for current increases, 156–157
misleading reports of, 155–156
one-time extraordinary gains, 156
and other stocks in group, 159–160
and sales growth, 158
Quarterly earnings reports, 155–156, 160
Radio Corp of America (RCA), 21, 172, 313
Radio Shack, 410–411
Railroad equipment industries, 204
Rallies, 210–211, 219–220, 268
Ramirez, Michael, 356
RCA (see Radio Corp. of America)
Reacting to major news, 384–387
Reagan, Ronald, 386
Redman Industries, 50, 138, 139, 327
Reebok, 316
Relative performance, 249–250
Relative price strength, 148–149, 188–190, 344–346
Relative Price Strength (RS) Rating, 188–189, 344–346
Reminiscences of a Stock Operator (Edwin LeFevre), 260
Research in Motion, 298
Research Tables (IBD), 363–364
Resorts International, 58
Return on equity (ROE), 162, 346, 347
Rexall, 172
RF Micro, 317
Richmond & Danville, 10
Risks:
with common stocks, 244–246
with convertible bonds, 295
with futures, 299
and IBD selling rules, 247
with low-priced stocks, 305
with options, 289–290
with tax-free/sheltered investments, 295
Rite Aid, 52
Robinson, Michael, 386
ROE (see Return on equity)
Rolm, 186
Rothman, Stanley, 386
Rothschild, Nathan, 255
Rowan Companies, 335
RS rating (see Relative Price Strength Rating)
Rusher, William, 386
Russert, Tim, 387
Ruth, Babe, 241
Ryan, David, 314
St. Jude Medical, 243
Sales + Profit Margins + Return on Equity (SMR) rating, 346, 347
Sales growth, 158
Sambos Restaurants, 54
“Saucer-with-handle” pattern, 122–123
Schabacker, Richard, 146
Schenley Distilling, 25
Schlumberger, 334–336
“Screen Center” (Investors.com), 373–374
Sears, Roebuck, 274
Seasonality, 156
SEC Rule FD, 414
Sector funds, 398
Sectors, 323–325
Securities Research Company, 204
Security Pacific Bank, 420
Selling stocks, 4
at 7% or 8% below your cost, 242–244, 271
during bear markets, 207–208
IBD rules for, 243–244
institutional, 195
key points for, 261–262
at margin calls, 285
at market tops, 208
price-paid bias in, 249–250
technical signs for, 262–269
when loss exceeds 10%, 244–245
(See also Money management; Profit taking)
Shares outstanding, 180–181
Short selling, 209, 227, 285–289
Short squeezes, 286
Short-interest ratio, 227
Short-term options, 291
Siebel Systems Inc., 198, 317, 328
Silver, 299–300
Simmonds Precision Products, 44, 131, 134, 138
Since Yesterday, The 1930s in America (Frederick Lewis Allen), 387
Slippage, 290
Small businesses, 188
Small-cap stocks, 185
SmartSelect Corporate Ratings (IBD), 111, 342–350
Accumulation/Distribution rating in, 346–348
Composite Rating, 348
EPS rating in, 343–346
relative price strength rating in, 344–346
sales, profit margins, and ROE in, 346, 347
Volume Percent Change in, 349–350
SmithKline, 127
SMR rating (see Sales + Profit Margins + Return on Equity rating)
Software Toolworks, 192
Southern Copper, 347
Southwestern Energy, 100
S&P 100, 299
S&P 500 (see Standard & Poor’s 500)
SPDR, 401
SPDR Financial Sector, 401
Speculation, 227
investing vs., 251
with options, 289
with penny stocks, 29
successful, 239
Sperry Rand, 186
Spread, 291
Square box structure, 128–130
S.S. Kresge, 15
Stability of annual growth, 162–163
Standard & Poor’s 500 (S&P 500), 201
in 2007-2008 bear market, 207
declines in, 245
divergence of Dow and, 226
and Fed discount rate, 224
and market bottoms, 223
and market tops, 209, 210, 214
over-/underweighting relative to, 413
publications displaying, 225
and stock market cycles, 204, 205
Standard Kollsman, 313
Standard Oil, 127
Standard Oil of Indiana, 334
Starting to invest, 5–6
Stephanopoulos, George, 387
Stock market cycles, 163–164, 203–205, 223
Stock Market Theory and Practice (Richard Schabacker), 146
Stock splits, 182–183
Stock tables (IBD), 325–326
“Stocks on the Move” (Investors.com), 373
Stop & Shop, 66
Storage Tech, 315
Stower, Jim, 195
Straddle, 291
Strip, 291
Studebaker, 153
Stutz Motor Car, 153
Subgroups (industry), 323, 324, 327, 361–362
Subprime real estate mortgages, 229–230, 301
Success, 475–487
from analyzing mistakes, 258
with CAN SLIM, 477
of companies, 4
confidence for, 483
cutting losses for, 240–241
effort required for, 302–303
and ego, 235
investor education for, 478–479
in market timing, 475–476
from persistence and hard work, 261
tools for, 482
from using facts, 476–477
using proven rules, 477–478
Sun Microsystems, 187, 198, 320
Supply and demand, 180–185
and buybacks, 183
and debt-to-equity ratio, 184
and entrepreneurial management, 181–182
evaluating, 184–185
and number of shares outstanding, 180–181
option prices influenced by, 290
and stock splits, 182–183
Surgical Care Affiliates, 127, 128, 322
Sympathy plays, 187–188
Syntex, 7, 42, 131, 133, 136, 169, 172, 178, 179, 187, 241, 260, 313
Tandy Corp., 183, 186, 410–411
Tape watching, 382–384
Taro Pharmaceuticals, 95, 128, 130, 192
TASER International, 98, 131, 135
Tax shelters, 295–296
Taxes, 295–296
capital gains, 294–295, 411, 412
with ETFs, 401
worrying about, 306
Tax-free securities, 295–296
Technical Analysis of Stock Trends (John McGee and Robert D. Edwards), 146
Technical sell signs, 262–269
Teledyne, 183
Telex, 315
Tennessee Coal & Iron, 11
Texas Instruments, 7, 33, 119, 120, 128, 129
Texas Oil & Gas, 59
Textone, 338
36-Month Performance Rating, 194
Tight price areas, 117
Time Warner, 208
Timing the market, 200, 475–476
Titanium Metals, 104, 138, 140
“To the Point” (IBD), 351–352
Top reversals, 218
Top Stories (IBD), 351
Topps Chewing Gum, 265
Tops, 211–218
factors related to, 262–269
head-and-shoulders, 148
historical, 212–217
identifying, 209–210
leaders as clues to, 213, 217–218
recognizing, 202–203, 211–212, 219
selling at, 208
Trends, industry, 327–329, 338–339
“Trends and Innovations” (IBD), 351
Triple bottoms, 148
Triquint Semi, 317
Tsai, Jerry, 256
Turnaround stocks, 164
Turnover rates (mutual funds), 399–400
United States Surgical, 77
Universal Controls, 34, 131, 132
Universal Match, 256
Upside/downside volume, 231–232
Urban Outfitters, 333
U.S. Cast Iron Pipe, 153
U.S. Investing Championship, 314
U.S. Steel, 218
USA Today, 386
Value, growth vs., 413
Vanity Fair, 414
Varco International, 335
Verbatim, 328
Verisign, 316
Veritas Software, 142, 143, 316, 328
Viacom, 323
Vignette Corp, 198
Vinik, Jeff, 196
Visa, 357
Volume, 119
and hourly market index, 230–231
at market tops, 209
of Nasdaq and NYSE, 227
on NYSE, 225
as profit-taking indicator, 268–269
upside/downside, 231–232
Volume dry-ups near the lows, 118
Volume Percent Change, 349–350
Volume spikes, 117–119
Waban, 187
Wall charts, 204
Wall Street Journal, 341, 349, 384
Walt Disney, 337
Wang Laboratories, 57, 172, 186, 328
Wards, 319
Warrants, 297
“Wash-over effect,” 334–335
Watching the market, 382–384
Webster, Mike, 6
Western Co. of North America, 335
Why You Win or Lose (Fred C. Kelly), 248
Wickes Corp., 187–188
Wide-and-loose price structure, 140–147, 217
William O’Neil + Co., 197, 325, 335, 336, 340, 408, 421–423
Winning stocks, 311–322
CAN SLIM characteristics of, 7–8
examples of, 314–322
historical, learning from, 6–7
IBD method of identifying, 342
in PMD Fund, 311–314
reasons for missing, 413–414
in U.S. Investing Championship, 314
(See also Leaders)
“Wisdom to Live By” (IBD), 352
Wolf, Marshall, 312
Wooden, John, 287
World News Tonight (ABC), 386
Wright Aeronautical, 20
Writing options, 292
Xerox, 7, 35, 41, 165, 169–170, 197, 303, 313
Yahoo!, 90, 154, 173, 198, 208, 287, 288, 329
Year-end distortion, 384
“You Can Do It Too” (IBD), 364
“Your Weekly Review” (IBD), 353
Zacks Investment Research, 414