CANSLIM.net Help Lines
1-888-CAN-SLIM
954-785-1121
 

You are not logged in. Upgrade Here
CANSLIM.net NEWS MONTHLY NEWSLETTER FOR FEBRUARY 2010  
DOW 10,067.33 YTD -3.46% |  Nasdaq 2,147.35 YTD -5.37% |  S&P 500 1,073.87 YTD -3.70% (as of 1/29/2010)
Market Falls Into A Correction At Start Of New Decade
- Adam Sarhan, Contributing Writer, www.CANSLIM.net 		Stocks To Watch In This New Market
- CANSLIM.net News Staff
Markets Leading Groups
- CANSLIM.net News Staff 		INM February 2010 - The M Criteria Recently Raised A Warning Flag Again
- Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net
Featured Stocks Month in Review
- CANSLIM.net News Staff 		New CANSLIM.net Loyality Program Coming
- Frank DeBold



Market Falls Into A Correction At Start Of New Decade
Adam Sarhan, Contributing Writer, www.CANSLIM.net

The 10-month robust rally we witnessed in the US equity market came to an abrupt end on January 22, 2010, sending the major averages back into a serious correction. Not surprisingly, the US dollar rallied smartly last month and closed back above its 200-day moving average (DMA) line for the first time since April 2009. The stronger dollar sent US stocks and a slew of commodities lower last month (more on that below) for their worst monthly decline since February 2009. In addition, investors remained concerned that the effects of the massive worldwide stimulus packages from 2008-2009 are beginning to wane and the future of the global economic recovery may not be as robust as initially expected. This robust 46-week rally was a bit odd in nature since it helped send the major averages to one of their strongest 10-month sprints in history and did so with only a dearth of high quality leadership participating. It is important to note that so far since that rally began, none of the major averages have pulled back more than 8-9% before the bulls showed up and sent prices higher. It is also important to note that since the March lows, the major averages have retraced (rallied back for) approximately +50% of their recent bear market decline, which is a fairly typical bounce before a new down leg ensues.

Earnings & Economic Data: B
Before we discuss the market's action, let's analyze how the market's have reacted to the latest round of earnings and economic data. So far, the market has responded poorly which is not a healthy sign. The Labor Department said US employers slashed -85,000 jobs in December which fell short of the Street's unchanged estimate. Meanwhile, the unemployment rate held steady at -10% which is near a 26-year high. However, November's reading was revised to show a gain of 4,000 which was the first time US employers added jobs in nearly two years. Since the recession began, the US has lost 7.2 million jobs which is the largest on a percentage basis of all jobs since World War II ended in 1944-45.
 
During the latter half of January, stocks sold off as investors were concerned that Congress would not reconfirm Federal Reserve Chairman Ben S. Bernanke for a second term. However, those concerns were allayed at the end of the month when Dr. Bernanke received enough votes and won a second term. The economic news released last month was less than stellar, especially from the ailing housing market. This is best evidenced by the ominous price and volume action of the major averages.
 
The latest round of earnings data was also a disappointment as several high profile companies sold off after reporting their fourth quarter results. The latest round of corporate earnings continues to top analysts' estimates but fails to impress investors as concern over future growth continues to weigh on stocks. Barring some unforeseen event, earnings will have expanded nearly +70% and snapped a record nine-quarter earnings slump. Longstanding readers of this column know that in addition to analyzing the numbers we pay equal, if not more, attention to how the market reacts to the numbers. So far, the reaction has been lackluster at best.

Market Action:  Price/Volume D+
The major averages topped out in October 2007 then proceeded to precipitously plunge until they put in a near term bottom in early March 2009. Since then, the market snapped back and enjoyed hefty gains which helped send the major averages to one of their strongest 10-month rallies in history. The small cap Russell 2000 Index was the standout winner, surging a whopping +90% before reaching its interim high of 649.15 on January 19, 2010. The tech-heavy Nasdaq Composite is a close second, having vaulted +84%, before reaching its interim high of 2,326.28 on January 11, 2010. The benchmark S&P 500 Index raced +73% higher before placing its near term top of 1,150.45 on January 19, 2010, and the Dow Jones Industrial Average soared +66% before printing its near-term high of 10,729 on January 19, 2010.

 
This data indicates that Tuesday, January 19, 2010 appeared to be a very important day for the market because that is the day that most of the popular averages placed their near term tops. Over the next few days, the market got whacked with heavy distribution and more negative reversal days (open higher and closed lower) which put pressure on this 46-week rally. Then on Friday, January 22, 2010 all the major averages sliced and closed below support (their respective 50 DMA lines) on heavy volume. The fate of the rally was sealed at that point because all the major averages entered a correction due to the series of distribution days negative technical action in the major averages and several leading stocks. As of this writing (January 31, 2010), all the major averages negatively reversed on a weekly, monthly and yearly basis which reiterates the importance of adopting a strong defensive stance until a new follow-through day emerges!
  
Until a new rally is confirmed, it is best to avoid new buys, since history shows us 3 out of 4 growth stocks follow the major averages. Remember to always keep your losses small and never argue with the tape. Looking forward, a new rally will be confirmed only when the market manages to produce a sound follow-through day. Until then, patience is king. No one knows for sure how low this correction will take the market, so instead of guessing we shall simply continue to react intelligently to what we see happening. This simple, yet effective, strategy has served investors well through previous bearish periods. As always, we will continue to objectively analyze price and volume to better understand the market's underlying health.  Never argue with the tape, and always keep your losses small.
 
Professional Money Management Services -  A Winning System - Inquire today!
Our skilled team of portfolio managers knows how to follow the rules of this fact-based investment system. We do not follow opinion or the "conviction list" of some large Wall Street institution which would have us fully invested even during horrific bear markets. Instead, we remain fluid and only buy the best stocks when they are triggering proper technical buy signals. If you are not completely satisfied with the way your portfolio is being managed, Click here to submit your inquiry.  *Accounts over $250,000 please.  ** Serious inquires only
Adam Sarhan is a Registered Representative and Vice President of Investments with Source Capital Group (Member FINRA,SIPC) and offers a suite of services for individual and institutional investors. Mr. Sarhan earned a BA and MA in Political Science from Florida Atlantic University and he is well versed in capital markets. In addition, Mr. Sarhan completed the CAN SLIM® Masters Program presented by Investor's Business Daily. Investors with a significant financial interest may inquire about opening an account by calling the office locally at 954-785-1990 or 1-888-237-8399 or emailing to asarhan@sourcegrp.com. Further information is always available upon request. Contact us if you know anyone that may have an interest in receiving this or any of our other products.


You stack the odds of making a winning trade in your favor by choosing a leading company in a leading industry group, so when buying stocks be sure to choose one with plenty of company, that is a stock trading among a group of several strong-performing peers!  Familiarize yourself with the list of the top performing industry groups and leading stocks listed below.  These symbols and related companies ARE NOT intended to be construed as a list of timely and proper choices based on the CAN SLIM® investment program.   These pace-setters in each of the currently top-ranked groups listed may not presently fit within the guidelines we suggest adhering to.  The point is that it is always wise to choose leaders in the same or a very similar business to that of the strongest stocks in the market.  Find companies that resemble other strong stocks' leadership characteristics.

TOTAL BREAKOUTS INDUSTRY GROUP BREAKDOWN OF BREAKOUTS BETWEEN 1/1/2010 and 1/31/2010
62 COMPUTER SOFTWARE & SERVICES MSTR - 7, RADS - 6, IGTE - 6, CTSH - 5, INFY - 4, JDAS - 4, RDWR - 4, VIT - 4, WIT - 4, LFT - 3, CERN - 2, RLRN - 2, NTCT - 2, PEGA - 2, TLEO - 2, TLVT - 2, SXCI - 1, ARST - 1, CVLT - 1,
51 ENERGY DPM - 9, VNR - 9, CAM - 7, CQP - 7, EEP - 5, FTI - 5, NFX - 4, BGH - 3, OII - 1, GPRE - 1,
49 HEALTH SERVICES RHB - 9, ISRG - 6, CI - 4, WLP - 4, HUM - 4, MEND - 3, EVVV - 3, AMMD - 3, HLS - 3, EW - 2, ODSY - 2, THC - 2, MR - 1, AMED - 1, HS - 1, KCI - 1,
32 TRANSPORTATION NMM - 13, ALK - 7, TAM - 4, CPA - 3, AAWW - 3, GOL - 2,
29 MANUFACTURING BUCY - 7, LULU - 5, HRBN - 4, CYD - 4, JOYG - 3, HEAT - 2, CFI - 2, HPJ - 1, KS - 1,
28 FINANCIAL SERVICES WRLD - 13, CACC - 6, ACF - 5, SPR - 4,
27 ELECTRONICS ATHR - 7, BRKR - 6, SWKS - 5, AMSC - 5, VICR - 1, VLTR - 1, JST - 1, KTII - 1,
27 CHEMICALS LZ - 8, CAGC - 6, GFRE - 5, BAK - 4, PENX - 3, NEU - 1,
27 LEISURE CAKE - 7, RICK - 7, HMIN - 5, BJRI - 3, SBUX - 3, CBRL - 2,
22 CONSUMER NON-DURABLES SWM - 9, RL - 4, DECK - 3, GES - 3, CTB - 2, IPAR - 1,
21 DRUGS NTY - 4, RDY - 4, WCRX - 3, PRGO - 3, CHTT - 3, CBPO - 2, VRX - 1, HITK - 1,
19 TELECOMMUNICATIONS NIHD - 5, DRWI - 4, TSTC - 3, EONC - 2, EQIX - 2, MRCY - 1, ABVT - 1, CTEL - 1,
18 WHOLESALE ANW - 6, WILC - 6, USTR - 4, TECD - 2,
18 FOOD & BEVERAGE ABV - 5, GMCR - 5, CRESY - 4, WBD - 3, SAM - 1,
17 INTERNET BIDU - 4, IGLD - 4, FFIV - 3, BCSI - 2, ASIA - 1, CRM - 1, GOOG - 1, SDXC - 1,
16 MEDIA SNI - 5, SCHL - 3, DGIT - 3, NWS - 2, NWSA - 2, SBGI - 1,
14 SPECIALTY RETAIL NRGP - 11, ULTA - 3,
14 DIVERSIFIED SERVICES MA - 3, SCI - 3, VSEC - 3, WXS - 2, TTEC - 1, CLCT - 1, LPSN - 1,
13 COMPUTER HARDWARE CML - 4, ARUN - 3, AAPL - 2, WDC - 2, QTM - 1, SNDK - 1,
12 RETAIL DBRN - 8, CTRN - 2, CBD - 1, RBI - 1,
10 INSURANCE CHSI - 7, AFL - 3,
10 AUTOMOTIVE SORL - 5, CAAS - 4, THO - 1,
9 METALS & MINING EGO - 4, CNX - 3, NXG - 1, SLW - 1,
7 CONSUMER DURABLES LZB - 5, NPK - 2,
6 AEROSPACE/DEFENSE BA - 3, TDG - 3,
6 COMPUTER SOFTWARE & SERVICES SNCR - 5, FIRE - 1,
6 FOOD & BEVERAGE YUII - 6,
5 REAL ESTATE ASPS - 5,
3 BANKING BOFI - 3,



INM February 2010 - The M Criteria Recently Raised A Warning Flag Again
Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net

The Pro Bowl in Miami last night was a high-scoring shootout fairly typical of the all-star NFL football game, but it reminded me of how so many fund managers and individual investors are all offense.  Most have an "always in" mentality, and they do not seem willing to spend enough time on the sidelines.  The lack of a more aggressive offense (i.e. heavier buying outright, or on margin) was discussed in last month's INM article (read here) for having contributed to the underperformance that plagued many professional portfolio managers in 2009. It was suggested that investors should stick to "following the good old M criteria" and that the ability to generate above average returns depends on us doing a better job of that. However, those who are doing a good job of following the M probably ended the month of January with a heavier weighting in cash than in stocks than when the month began. This new decade has begun with a call for greater defense!

A number of investors called our Lighthouse Point office in the first part of January, having apparently started the new year with a resolution to be proactive on the buy side. We urged patience because so few ideas were truly matching up with all of the essential criteria of the investment system - which we steadfastly stick to. And by the time the month had ended, the M criteria was clearly pointing us in a different direction - away from having an active buying bias.

It seems like a wise option to consider, since the money market interest rates are so low, to pick up a couple of extra percentage points "safely".  So, a few long-time customers approached us in recent weeks with the idea of buying municipal bond funds.   The edge an investor might gain by moving cash from a money market fund to a muni bond fund has very little appeal in my view. I have disagreed with the suggestions many professionals have made of putting large amounts of capital to work in that manner.  The concern I have is that the perceived safety in many such investments may be far greater than truly is that case. I am not the only person who has considered the notion that municipal bond defaults could be a big problem in the future.  Ratings agencies let investors down before, and the amount of confidence that can be placed in them now is still very low.

None of us knows how long nd how deep the current correction may be.  However, in the Certification course they teach that the next confirmed rally can always be just one week away. Hopefully, the market will have another faily contained pullback and then resume with a healthier crop of strong new leaders.  This has been one of the encouraging characteristics of the rally since last March, where each pullback was followed by an expansion in the new highs list and more leadership coming from "growth stocks" and not cyclical or commodity-linked areas. 

Even if this correction turns out to be more substantial than the others we have since during the recovery period, eventually a new rally with a confirming follow-through day will come along.  In the meanwhile, we will continue closely tracking the market and the action in high-ranked stocks.  There is no need to force trades and generate activity for activity's sake.  Waiting until the system's rules tell us we have better odd again is the most prudent thing to do at this juncture.
Kenneth J. Gruneisen has successfully completed the CAN SLIM® Certification Program.  Mr. Gruneisen is a Registered Principal and manages a Source Capital Group Member FINRA,SIPC) branch office offering personalized assistance. Investors with a significant financial interest in equities may inquire about opening an account by calling the office locally at (954) 785-1990 or 1-888-237-8399 or emailing to kgruneisen@sourcegrp.com. Further information is always available upon request. Contact us if you know anyone that may have an interest in receiving this or any of our other reports.
The recommendations made by CAN SLIM® certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil & Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil & Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.



This section of CANSLIM.net News is probably the most read by our members, as it usually includes coverage of some high-ranked leaders that are among the most ideal looking buy candidates under the investment system's guidelines. If it were entirely up to our staff, we would have a long list of new ideas to present with detailed analysis and annotated graphs in every issue. However, the responsible thing to do for now is hold off on featuring new ideas, since leadership is very elusive of late. Regular readers of CANSLIM.net's daily reports are well aware of the lack of leadership and dearth of strong stocks for consideration.

When conditions improve, patient and watchful CANSLIM.net members should be able notice that improvement in a number of ways. First, the list of stocks meeting the Mid-Day report's screen parameters will expand, and new ideas worthy of possible action will be highlighted in yellow with pivot points and max buy levels identified. This can only happen as the market action dictates. Our experts on staff will also produce more detailed Stock Bulletins including annotated graphs, when and only when healthy leaders are setting up and meeting all key criteria. Another thing to watch for will be a Special Report, just as powerful new rallies have prompted in the past, and which is only possible with widespread leadership. And of course, CANSLIM.net News will have more ideas featured in this "Stocks to Watch in This New Market" section when the M criteria is finally saying that investor's odds are better in stocks - evidenced by more strong leaders.
Kenneth J. Gruneisen has successfully completed the CAN SLIM® Certification Program.  Mr. Gruneisen is a Registered Principal and manages a Source Capital Group Member FINRA,SIPC) branch office offering personalized assistance. Investors with a significant financial interest in equities may inquire about opening an account by calling the office locally at (954) 785-1990 or 1-888-237-8399 or emailing to kgruneisen@sourcegrp.com. Further information is always available upon request. Contact us if you know anyone that may have an interest in receiving this or any of our other reports.
The recommendations made by CAN SLIM® certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil & Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil & Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.



Color Codes Explained :
Y - Yellow - Better candidates highlighted by our staff of experts.
G - Green - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.
W - White designates that the stock has been dropped over the course of the month.  Refer to the associated notes for that stock for further explanation.

Quote details are snapshots of price/volume detail captured at the time the note was taken. 

 
Symbol/Exchange
Company Name
Industry Group 		Last Chg. Vol
% DAV		 Date  Featured Price Featured Latest Pivot Point
Featured
Latest Max Buy Price
ARST - NASDAQ
Arcsight Inc
COMPUTER SOFTWARE & SERVICES - Business Software & Services 		$23.75 -1.09 367,900
72% DAV
509,000 		12/22/2009
(Date Featured)		 $25.94
(Price Featured)		 PP = $27.20
MB = $28.56
Most Recent Note - 1/29/2010 5:41:15 PM
G - Today's 3rd consecutive loss on light volume led to a violation and close under its 50 DMA line as it sunk to a new January low. Distributional pressure negated its latest breakout. ARST was first featured in yellow at $19.91 in the 9/01/09 mid-day report with an annotated daily graph (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 1/21/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
ASIA - NASDAQ
Asiainfo Holdings Inc
INTERNET - Internet Software & Services 		$23.90 -0.08 2,620,471
208% DAV
1,261,700 		12/24/2009
(Date Featured)		 $31.05
(Price Featured)		 PP = $32.40
MB = $34.02
Most Recent Note - 1/29/2010 6:18:13 PM
G - Small loss today on heavy volume after reporting strong earnings and sales for the latest quarter. Distributional action has been pressuring it toward an earlier pivot point after its latest breakout failed. Noted on 1/20/10 - "violating its 50-day moving average (DMA) line and breaching recent chart lows, raising concerns and triggering technical sell signals." Traded up as much as +68.13% since first featured in the August 2009 CANSLIM.net News (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 1/29/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
BIDU - NASDAQ
Baidu.Com Inc Ads
INTERNET - Internet Information Providers 		$411.71 -6.14 1,273,357
71% DAV
1,802,400 		1/13/2010
(Date Featured)		 $431.25
(Price Featured)		 PP = $426.75
MB = $448.09
Most Recent Note - 1/29/2010 6:23:21 PM
G - Another loss today on below average volume, closing further below its 50 DMA line. Correction - Due to report earnings after the close on February 9th. Gaps down for considerable losses on 1/19 and 1/22 pressured it under its November '09 highs and violated its short-term average line, hurting its outlook after recently spiking to new all-time highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/14/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
BIDU - NASDAQ
Baidu.Com Inc Ads
INTERNET - Internet Information Providers 		$411.71 -6.14 1,273,357
71% DAV
1,802,400 		1/13/2010
(Date Featured)		 $431.25
(Price Featured)		 PP = $426.75
MB = $448.09
Most Recent Note - 1/29/2010 6:23:21 PM
G - Another loss today on below average volume, closing further below its 50 DMA line. Correction - Due to report earnings after the close on February 9th. Gaps down for considerable losses on 1/19 and 1/22 pressured it under its November '09 highs and violated its short-term average line, hurting its outlook after recently spiking to new all-time highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/14/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CAAS - NASDAQ
China Automotive Systems Inc
AUTOMOTIVE - Auto Parts 		$17.17 -1.34 1,442,776
N/A 		11/30/2009
(Date Featured)		 $18.84
(Price Featured)		 PP = $17.62
MB = $18.50
Most Recent Note - 1/26/2010
Loss today on higher volume drove it near its December low. Based on weak action it will be dropped from the Featured Stocks list tonight. Violated its short-term average line last week while many China-based firms encountered heavy distributional pressure. CAAS was actually rather late-stage at $18.84 when first featured in the 11/30/09 mid-day report (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 1/15/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CACC - NASDAQ
Credit Acceptance Corp
FINANCIAL SERVICES - Credit Services 		$53.22 +0.10 66,554
141% DAV
47,300 		9/29/2009
(Date Featured)		 $33.48
(Price Featured)		 PP = $37.10
MB = $38.96
Most Recent Note - 1/29/2010 6:25:40 PM
G - Small gain today on heavier than average volume for a new all-time high close. Its current streak of 5 straight gains leaves it very extended from any sound base. Well above its 50 DMA line, an important support level to watch. On Monday Jan 25th the company announced the pricing of $250 Million Senior Secured Notes.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/28/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CRM - NYSE
Salesforce.com Inc
INTERNET - Internet Software & Services 		$63.55 -0.61 1,570,233
80% DAV
1,973,900 		12/18/2009
(Date Featured)		 $67.32
(Price Featured)		 PP = $67.82
MB = $71.21
Most Recent Note - 1/29/2010 6:27:32 PM
G - Edged lower today for a 3rd consecutive loss on below average volume, remaining below its 50 DMA line. Previously noted weakness triggered technical sell signals. A damaging gap down on 1/12/10 was noted as "indicative of institutional (I criteria) distribution."
>>> The latest Featured Stock Update with an annotated graph appeared on 1/27/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CTRP - NASDAQ
Ctrip.com International
LEISURE - Resorts & Casinos 		$31.29 -1.69 2,727,284
135% DAV
2,022,100 		1/14/2010
(Date Featured)		 $36.67
(Price Featured)		 PP = $39.35
MB = $41.32
Most Recent Note - 1/29/2010 6:30:35 PM
G - Considerable loss today on above average volume, diving toward its prior chart highs in the $31 area. Damaging losses previously violated its 50 DMA line and recent chart lows, triggering technical sell signals. Do not be confused by the 2:1 split effective as of 1/21/10. PP and Featured Price adjusted for split.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/20/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
GMCR - NASDAQ
Green Mountain Coffee Roasters
FOOD & BEVERAGE - Processed & Packaged Goods 		$84.82 -2.78 2,037,747
137% DAV
1,492,300 		12/28/2009
(Date Featured)		 $77.49
(Price Featured)		 PP = $76.50
MB = $80.33
Most Recent Note - 1/29/2010 6:34:02 PM
G - Today's loss erased a large part of its 1/28/10 gain after very strong earnings and sales increases for the quarter ended Dec 31, 2009. This outlier has been working against ugly market conditions (M criteria). Until a new follow-through day emerges from at least one of the major averages, the investment system rules discourage accumulating shares in any company. Recent chart lows in the $78 area are an important support level to watch now.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/13/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
HEAT - NASDAQ
SmartHeat Inc
MANUFACTURING - Industrial Electrical Equipmen 		$12.34 -0.93 461,021
N/A 		1/6/2010
(Date Featured)		 $17.19
(Price Featured)		 PP = $17.27
MB = $18.13
Most Recent Note - 1/27/2010
Loss today on lighter volume has it -33% from its 52-week high and now trading under its September-October highs which are a likely chart support level. Based on recent damaging technical action it will be dropped from the Featured Stocks list tonight. Last week's 50 DMA line violation triggered a technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/19/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
ISRG - NASDAQ
Intuitive Surgical Inc
HEALTH SERVICES - Medical Appliances & Equipment 		$328.06 -6.95 644,398
127% DAV
506,100 		1/22/2010
(Date Featured)		 $340.40
(Price Featured)		 PP = $314.00
MB = $329.70
Most Recent Note - 1/29/2010 6:36:10 PM
Y - Loss today on higher volume led to a pullback and close under its "max buy" level for the first time since featured in yellow in the 1/22/10 mid-day report (read here). Its annual earnings history (the A criteria) has been very impressive. ISRG has rebounded impressively from its March low ($84.86) and may be on course for its all-time high ($359 in 2007). Notes outlined technical deterioration before and when it was last dropped from the Featured Stocks list on 6/10/08. ISRG traded up more than 13-fold since first featured in yellow in CANSLIM.net reports in the summer of 2004.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/22/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
LFT - NYSE
Longtop Financl Tech Ads
COMPUTER SOFTWARE & SERVICES - Business Software & Services 		$34.66 -1.38 3,548,782
741% DAV
478,600 		11/17/2009
(Date Featured)		 $31.77
(Price Featured)		 PP = $33.04
MB = $34.69
Most Recent Note - 1/29/2010 6:38:57 PM
G - Gapped down today for a loss with very heavy volume. Still trading below its 50 DMA line while probing its prior chart highs in the $31-33 area which define the next technical support level. Due to report earnings on Wednesday, February 10 after the market close. Widespread weakness in China-based issues has clearly been a factor in recent days.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/26/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
PEGA - NASDAQ
Pegasystems Inc
COMPUTER SOFTWARE & SERVICES - Business Software & Services 		$33.25 -2.46 314,284
190% DAV
165,700 		1/4/2010
(Date Featured)		 $34.00
(Price Featured)		 PP = $36.19
MB = $38.00
Most Recent Note - 1/29/2010 6:40:52 PM
G - A considerable loss today followed the previously noted negative reversal. It has completely negated its 1/27/10 breakout. Color code was changed to green based on distributional action and technical damage while it quickly dove back toward its 50 DMA line. That short-term average and recent chart lows near $32.50 define important technical support, where violations would trigger more worrisome sell signals. Negative market conditions (M criteria) are currently an overriding concern prompting great caution, since a follow-through day is still needed to confirm a new rally. After a hiatus from the Featured Stocks list, PEGA was featured again in the January 2010 issue of CANSLIM.net News (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 1/25/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
VIT - NYSE
Vanceinfo Tech Inc Ads
COMPUTER SOFTWARE & SERVICES - Business Software & Services 		$16.03 -1.69 601,847
102% DAV
588,700 		12/24/2009
(Date Featured)		 $20.07
(Price Featured)		 PP = $21.17
MB = $22.23
Most Recent Note - 1/29/2010 6:42:03 PM
G - Considerable loss today with average volume, slumping back to $16.00, perfectly matching its 11/19/09 low. The 1/22/10 violation of its 50 DMA line triggered a technical sell signal. Distributional pressure raised concerns as it abruptly reversed under its pivot point following its big 1/06/10 gain on heavy volume and 1/11/10 gain on +36% above average volume.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/1/2010. click here.
C A N S L I M | StockTalk | News | Chart | Daily Graphs Online Stock Checkup IBD Graphs SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS


New CANSLIM.net Loyality Program Coming
Frank DeBold

As we prepare to enter the 14th year of providing information and support to the many members we have supported during these years, we would like to take this time to thank the many loyal, long-term members.  You have helped us make this service the premium service independently supporting followers of the proven successful investing program explined in How To Make Money In Stocks by William J. O’Neil. Your input and questions have enabled us to continue to develop and improve the website from the original concept envisioned by Kenneth Gruneisen, our site's founder.

Over this past month, our technical staff has made much progress in organizing the CANSLIM.net archive pages as to make it much easier to access and study market history and our coverage of it. Many members have expressed an interest in studying past articles as a tool in understanding history, so as to better be able to predict the future. After all, such study is one of the tenants of the process used by Mr. O’Neil as he first developed and published the book about the methodology. The new and improved access to the archives is located here -> http://premium.canslim.net/canslimnewservicehome.asp .

As a reward to the many loyal and long-term members of www.CANSLIM.net, we will be announcing shortly a special "Loyalty Program" to offer special bonuses and discounts to any active CANSLIM.net member that renews their membership prior to the actual expiration of their membership. Please keep an eye out for the forthcoming announcement in the next 2 weeks! We will make this program applicable to all members that renew as of January 31, 2010 or later and the adjustments will be made at the time of announcement. As always, any extensions to a membership are added to the end of your membership to ensure you do not lose any membership time to which you are entitled.

As always, we here at www.CANSLIM.net remain dedicated to your investing success!

The recommendations made by CAN SLIM® Certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil + Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil + Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.

Copyright © 1996-2010 Gruneisen Growth Corp. d/b/a www.canslim.net  All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties.  The names "CANSLIM" and "CAN SLIM®" are service marks and trade names of Investor's Business Daily, Inc., a California corporation, and are used by Gruneisen Growth Corp., a Florida corporation, under license. GGC is solely responsible for the operation of and opinions expressed in this Website. Daily Graphs® and Daily Graphs Online® are registered trademarks of William O'Neil + Co. Incorporated and are used with permission.