Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market

3.4. ORACLE BUBBLES UP

Sure, enough, on October 28, just seven days after we had thought that big-cap stocks were about to be destroyed, and the market with them, a massive upside follow-through day occurred, signaling that the market was beginning a new uptrend. At that point, whatever we had thought before about the market was tossed right out the window as we immediately shifted into buy mode. There were no ifs, ands, or buts. The market had given its verdict with the follow-through day, and when the market turned, we turned with it. Of course, at the time, we had no idea that we were about to get the bullish tidal wave ride of our careers, a literal rocket ride that Figure 3.5 shows in all its upside glory. My buy watch list had already been simmering on the stove for several weeks, and I was ready to act. One of the stocks I had been watching was Oracle Corp. (ORCL), which had already broken out of a cup-with-handle base in September 1999, well before the late October general market follow-through, as Figure 3.7 shows. Note that in all these charts ORCL's price is split-adjusted, so that $10 on the charts I'm using here is actually $40 in 1999 pre-split terms.

Figure 3.7. Oracle Corporation (ORCL) attempted breakout from initial cup-with-handle base formation.: Chart courtesy of eSignal, Copyright 2010

The daily chart of ORCL (Figure 3.8) gives better detail of this early ...