The comments expressed here are based upon study

The comments expressed here are based upon study and interpretation of available data as it relates to our historical models of the best-performing stocks. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any chart appearing in this material is for educational purposes and is not, and should not be construed as a recommendation or rating to buy or sell any security. It is possible that at this date or some subsequent date, the officers, directors and/or shareholders of Investor’s Business Daily, Inc. or their affiliates own securities or buy or sell securities listed in the following pages, or those not mentioned. © 2010 Investor’s Business Daily. All rights reserved. Investor’s Business Daily, IBD, CAN SLIM and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc. © 2010 Investor’s Business Daily. All rights reserved. 1

• Why Market Bottoms Matter To Your Bottom Line • How to Use “Follow-Through Day” to Spot New Uptrend No Bull Market has Started Without a Follow-Through Day • How to Make Money When New Uptrend Begins To profit from new market uptrends… “You must know when the storm is over and the market itself tells you to buy stocks again. You can’t go by your personal opinions, news or your feelings. You must have precise rules and follow them. ” - William J. O’Neil, IBD® Founder & Chairman © 2010 Investor’s Business Daily. All rights reserved. 2

Why Market Bottoms Matter To Your Bottom Line • Snooze You Lose - Biggest gains made in early stages of new uptrend - Top stocks break out immediately or soon after follow-through day • Fear & Uncertainty Can Make You Hesitate at Critical Time - Bull markets begin when everything looks bad - Don’t be distracted by news & personal opinions • Follow-Through Day Gives You Fact-Based Signal to Get Back into Stocks - No bull market has started without a follow-through day - Most reliable, time-tested indicator of new uptrend - Lets you rely on rules instead of emotions Spotting Market Bottoms is Easy with IBD Check Market Pulse graphic in The Big Picture for alerts to follow -through days and changes in market direction. © 2010 Investor’s Business Daily. All rights reserved. 3

How Leading Stocks Broke Out Near March 2003 Follow-Through Nasdaq Daily Chart 3/17/2003 Follow-Through NFLX, IGT, CECO MATK NTES, UNTD, SOHU, HITK SINA Follow-Through Day HAR OVTI DKS TEVA UOPX (AVID) Avid Technology (CECO) Career Education (CTX) Centex Corporation (DKS) Dick’s Sporting Goods (HAR) Harman Int’l Industries (HITK) Hi Tech Pharma (HOV) Hovnanian Enterprises (IGT) Int’l Game Tech (MATK) Martek Biosciences (NFLX) Netflix (OVTI) Omni. Vision Tech (SINA) Sina. com (SOHU) Sohu. com (TEVA) Teva Pharmaceutical (UNTD) United Online (UOPX) Univ. of Phoenix CTX, AVID HOV, JCOM Are you prepared to make big gains? Follow-Through Day • Have watch list ready when new uptrend begins • Biggest winners break out on follow-through day or soon after © 2010 Investor’s Business Daily. All rights reserved. 4 4

IBD Shows You When to Get Into – and Out of – the Market

How to Use “Follow-Through Day” to Spot New Uptrend What is a Follow-Through Day? • In correction, market tries to rally. Some rally attempts fail. • Successful rallies have follow-through day: Signals change from “market in correction” to “market in confirmed uptrend” • Tells you it’s time to buy stocks © 2010 Investor’s Business Daily. All rights reserved. 6

How to Use “Follow-Through Day” to Spot New Uptrend How to Spot Follow-Through Day • In a correction, when market makes new low, look for first day market closes up from prior day. Normally day one of rally attempt. As long as index stays above prior low, attempted rally remains in place. Key Elements of Follow-Through Day g At least one major index* closes up app. 1. 5% - 2% or more on volume heavier than prior day. *Major indices: S&P 500, Nasdaq Composite, NYSE Composite, or Dow Jones Industrials Volume does NOT have to be above average; just higher than prior day. g Typically occurs anytime from Day 4 or later in a rally attempt Can happen as early as Day 3, but first 3 days usually too soon to confirm new uptrend © 2010 Investor’s Business Daily. All rights reserved. 7

2006 Nasdaq Follow-Through Day 21 of rally Day 2: Big gain on volume heavier than day before BUT too early to be follow-through day. Days 5 - 20: Market direction unclear. Be patient & wait for follow-through. Day 1 of Rally Attempt: Market hits new low, and closes up for day. Days 3 & 4: Market declines, but doesn’t undercut low. Rally remains intact. © 2010 Investor’s Business Daily. All rights reserved. 8

Patience Pays Off Daily Chart Nasdaq gains 19% in 5 months after follow-through Follow-Through

Breakouts of Selected Leaders in 2006 Nasdaq Follow-Through Be Prepared! Don’t miss big winners that break out first Start building your watch list BEFORE follow-through day (AAPL) Apple (BLUD) Immucor (BDC) Belden (CNS) Cohen & Steers (CPA) Copa Holdings (DRIV) Digital River (GS) Goldman Sachs (IAAC) Int’l Assets Holding (ICE) Intercontinental. Exchange (VIP) Vimpel-Communications Follow-Through Day © 2010 Investor’s Business Daily. All rights reserved. 10

History, Not Hunches: 1974 Follow-Through Day Volume heavier than prior day. © 2010 Investor’s

History, Not Hunches: 1984 Follow-Through Day Volume heavier than prior day. Market down, but

History, Not Hunches: 1998 Follow-Through Day Failed Follow-Through Day: Big distribution day soon after follow-through spells trouble. It Pays to Wait! Successful follow-through comes one month later. © 2010 Investor’s Business Daily. All rights reserved. 13

History, Not Hunches: 2003 Follow-Through Day Ignore the News. Follow the Market. After-effect of dotcom collapse, bad economic news and pending Iraq War scared off many investors even as market took off. © 2010 Investor’s Business Daily. All rights reserved. 14

Not All Follow-Through Days Lead to Sustained Uptrend Failed Follow-Through, Nasdaq 6/06 Follow-Through Day 6/29/06 • About 25% - 30% fail fairly quickly (within few days or weeks) Beware of Distribution Days! Distribution days 3 & 5 of new uptrend Distributions days (i. e. , days of heavy selling) soon after follow-through spells trouble for new rally. Market sells off and enters correction. Easily track distribution days in new uptrend with IBD’s Market Pulse on page A 1. © 2010 Investor’s Business Daily. All rights reserved. 15

Nasdaq Daily Chart May – June 2010 Beware of Distribution! June 29, 2010 Follow-Through Day 6/2/10 Day 4 of rally attempt. Day 1 of Rally Attempt (5/27): First day up after market hit new low 2 days earlier. Distribution Day 1 (6/4): Bad omen. Came two days after follow-through. Outlook in Market Pulse changes to “uptrend under pressure. ” Distribution Day 2 (6/8): Undercut recent low. Outlook in Market Pulse changes to “market in correction. ” Don’t Rush In After Follow-Through! Get back in to the market gradually. Pull back if distribution mounts or your stocks act poorly. © 2010 Investor’s Business Daily. All rights reserved. 16

How to Make Money When New Uptrend Begins 4 Identify leading stocks breaking out of sound bases First stocks out of gate in new uptrend to become biggest winners. Don’t miss them! Start Building Your Watch List BEFORE Follow-Through Day! Preparation during a correction pays off in new uptrend 4 Get back in gradually Don’t rush back in all at once. Example: Start by buying 50% of normal position. If stock gains 2%, add 30% - 35%. If it rises another 2%, buy rest of position. Minimize risk by making your stocks - and new market uptrend - prove themselves. 4 Watch for distribution early in uptrend Distribution days soon after follow-through day can mean new uptrend will fail. Check distribution day count in IBD’s Market Pulse on page A 1 every day. © 2010 Investor’s Business Daily. All rights reserved. 17

Coming Next Month… Lesson 3: How to Read Charts with Skill and Identify Correct Buy Points You’ll learn: a. Why chart-reading gives you a huge advantage in selecting winning stocks a. How to pinpoint the best time to buy a stock using simple techniques a. How to quickly “see” if big institutions are buying or selling – and why that matters …and more! Stay in Touch! Get the latest updates from IBD on Twitter and Facebook! facebook. com/investorsbusinessdaily twitter. com/IBDinvestors © 2010 Investor’s Business Daily. All rights reserved. 18

The comments expressed here are based upon study and interpretation of available data as it relates to our historical models of the best-performing stocks. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any chart appearing in this material is for educational purposes and is not, and should not be construed as a recommendation or rating to buy or sell any security. It is possible that at this date or some subsequent date, the officers, directors and/or shareholders of Investor’s Business Daily, Inc. or their affiliates own securities or buy or sell securities listed in the following pages, or those not mentioned. © 2010 Investor’s Business Daily. All rights reserved. Investor’s Business Daily, IBD, CAN SLIM and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc. © 2010 Investor’s Business Daily. All rights reserved. 19