From the Trading Desk

SOHU 10-11-02/3-26-03 to 7-14-03

This stock was another huge winner that along with SINA kick-started this new bull market. This stock was another one of the first stocks to breakout and produce big gains. However, the very first buy was not a large buy because as you can see via the chart pattern this extremely HUGE accumulation day came from a choppy and not the most well-formed base. However, as the uptrend went along, just like EVOL and many other stocks we are going to review during this time frame, the stock setup in a beautiful base and then broke out producing a very smooth extra-large return. From my first purchase on 10/11/02 the stock returned an exceptional 2,077% gain in nine months! Do you see how this strategy in bull markets, when using 4 to 1 margin from Interactive Brokers, can make you filthy rich? Sadly, I did not load up there but did so about five months when it set up and broke out from one of my favorite 50 DMA bounce/breakout chart patterns. In a very short time (under four months), this stock produced a very large steady gain of 255%. This is why I love bull markets. They make you filthy rich, using this methodology. 2003 was a great year and for those around then and in 1999 you know that is saying a lot.

the initial buy:

sohu10_11_02__Large_.PNG

the large buy:

sohu3_26_03zoom4__Large_.PNG

sohu3_26_03zoom3__Large_.PNG

the top:

sohu7_14_03__Large_.PNG

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