In 1998, then he came right back in again when the market confirmed a new uptrend. O’Neil then looked for new leadership that consisted of very strong fundamentally sound companies that then set up and broke out of classic basing patterns, be it the cup-with-handle, flat-base, double-bottom, high-tight-flag, ascending-base, or three-weeks-tight patterns. These stock patterns have occurred over and over again throughout stock market history and cycles. His experience and discipline taught him to be patient and wait for those right times, as they always occur at some future point. He also was right there buying into companies that were introducing new products and services in the exciting technology arena. Notice he always stays in touch with what is being introduced into the economy that is in strong demand. He does not limit himself to one or two industries — he becomes knowledgeable about many new industries and does his homework on the new innovative companies that are introducing exciting products that enhance our lives. Recall that Loeb as well would always seek out knowledge about many different industries so he would be able to invest successfully across many different sectors of an always expanding economic landscape.
Adapted from "How Legendary Traders Made Millions" chapter 10.