How I Make Money In Stocks Using IBD & MarketSmith Mike Jaffe mjaffe48@gmail.com 505-358-8798

Books I’ve Read / Techniques I Use William J. O’Neill Books I’ve read each many times - brought up printed charts for the same period to see how they looked on my computer Amazon price: $55.00 First 109 pages are annotated stock charts Suggest reading them in this order: Appearance In book Appearance on my computer

Tools I Used Investors.com + eIBD (electronic version of IBD paper): time intensive IBD/eTables: (Don’t use - time intensive ) IBD/Leaderboard (Don’t use - stock list too narrow) IBD’s MarketSmith software Saves time via: Screening Charting Pattern recognition Many proprietary screens that focus on most important factors

Methods I Use William J. O’Neill in IBD Analyze stock fundamentals: Choose stocks with strongest fundamentals: EPS % change current quarter ≥ 20% Sales % change current quarter ≥ 20% EPS % change up during last 3 years Current price ≥ $10 Return on equity (ROE) ≥ 17% Profit margin ≥ 17% JAZZ ranked #1 in Medical group ranked #2 Proprietary ratings (higher the better): Composite ≥ 85 Earnings Per Share (EPS) ≥ 85 Relative Strength ≥ 85 SMR ≥ 85 Accumulation/Distribution A, B, C Leading Industry Groups 1-50 Learn to Read charts: Choose stocks with a) best fundamentals, b) breaking out of strongest bases with c) lowest base count on d) highest volume

Find Stocks From: IBD Articles & Tables Start by choosing stocks from eIBD Section A: UA up 60% in 8 months QIWI up 240% in 7 months EDU up 90% in 8 months Section B: Small weekly charts of IBD 50 & Market Leaders with buy prices (pivot point) Section B:

Find Stocks From: Investors.com Screens View Market Pulse daily Compare stocks by downloading & sorting in Excel: very time intensive

Quick Review IBD Bases: (http://education.investors.com/) Cup w/handle: Flat Base: Double Bottom: Ascending Base: Saucer Base: Occurs when, over 3 weeks, a stock’s weekly closing price is within 1% of its closing price during the preceding week 3-weeks Tight: Weekly Daily

Find Stocks From: MarketSmith (IBD) Screener and chart program in one: great time saver 1. Create and save custom screens from 135 technicals & fundamentals 2. Choose from 64 prebuilt screens 3. Screen Results List includes base count & % to pivot 4. Click on stock to bring up chart

Find Stocks From: IBD MarketSmith Create alerts Intraday, daily, weekly, monthly charts Do back testing Can mark-up chart manually & save symbol to a custom list Do stats pass IBD parameters? All fundamentals in one box (7 qtrs.): EPS % chng, Sales % chng, etc. Shows base pattern & base count via pattern recognition Compare other top stocks in same group

When To Buy: IBD MarketSmith Daily chart: Buy 10-cents above highest point from 6 primary bases Daily, weekly chart: Sell using numerous sell rules Shows: Pivot point (dotted line) RS rating & slope of RS line Blue band = + 5% above pivot Stage count Red band = - 8% from pivot % to pivot or below pivot Green band = + 20% apprec. (not shown)

Find Stocks From: IBD MarketSmith Access proprietary lists

Find Stocks From: IBD MarketSmith Open 2nd window Shows daily view while original window is in weekly view to show all info at once

Find Stocks From: IBD MarketSmith Show percent gain of stock or group of stocks for any present or past date range

Find Stocks From: IBD MarketSmith

Find Stocks From: IBD MarketSmith

Costs Compared: eIBD eIBD: eTables: Year Month $240/yr ($20/mo ) Yearly savings = 21% What you get: Investors.com articles and tables eIBD electronic paper Yearly savings = 17% eTables: Year Month $139 ($16/mo ) $168/yr ($14/mo ) What you get (each to view/sort & all to download to Excel): IBD 50 stock list IBD 85-85 stock list Big Cap 20 stock list New America stock List Total yearly cost: $328

Costs Compared: IBD MarketSmith Year Month Yearly savings = 35% + 45 days free $1347/yr ($112/mo ) $999 ($73/mo ) Options: MarketSmith software available on iPhone = Free Pattern Recognition = $139 ‘Growth 250’ list with 30 proprietary screens = $349 What you get: Screening Charting Pattern recognition Many proprietary screens that focus on most important factors Total yearly cost: $1487

Summary: How I Make Money In Stocks Using IBD & MarketSmith Find stocks with: Strongest fundamentals Breaking out of solid, clear bases MarketSmith saves me more time and ability to find more breakout stocks worth much more than $1,487 cost (I made more than this in my first week using MarketSmith)

Summary: How I Make Money In Stocks Using IBD & MarketSmith Questions?