The major averages just ended their sixth consecutive monthly gain, helping send the benchmark S&P 500 Index to one of its largest six-month sprints in history! From our point of view, the current rally was confirmed with a follow-through day on March 12, 2009, and it is currently 26 weeks old. The rally came under pressure (which we promptly noted on August 17, 2009- here) then was back on track the very next day. Meanwhile, the paper had a different take- they said the rally ended on August 17, 2009 then a new rally began four days later on August 21, 2009. To argue over the semantics is pointless, instead we shall note that the market is still in a confirmed rally, yet leadership has contracted significantly, which does not bode well for the current rally. However, stocks deserve the bullish benefit of the doubt until a definitive technical sell signal is triggered.  

PICTURED: The Nasdaq Composite Index is currently encountering resistance near its multi-year downward trendline.

Since early March, the small cap Russell 2000 Index has emerged as the standout winner, surging a stunning +72%! The tech-heavy Nasdaq Composite is a close second, having vaulted +63%. Meanwhile, the S&P 500 Index has raced +56% higher, and the Dow Jones Industrial Average rose +48.8%. It is important to note that the vast majority of stocks that helped the major averages rally were beaten down low-ranked stocks that bounced from egregiously oversold levels. Stocks such as Citigroup (C) which bounced from $0.97 to just over $5.00, or Bank of America (BAC) which rose from $2.53 to over $18 a share, helped send the major averages soaring -not fresh leadership! In recent months, it has been encouraging to see more high-ranked stocks trigger fresh technical sell signals as this market continues moving higher. Even after the market's robust rally, the major averages continue trading below long-term downward trendlines which serve as formidable resistance going forward. By definition, if the market is going to move substantially higher from here then the major averages will have to trade above their respective downward sloping trendlines. That said, it will be very interesting to see how the market performs in the near future.

Political Data: C+

The Obama administration has been in power for the past 8 months, tackling issues on both the foreign and domestic front. August was not a particularly good month for the administration since they lost a fair amount of political capital trying to push their health care package. People across the country showed up at town hall meetings and fired back, expressing their concerns with the plan. In other political news, President Obama nominated Federal Reserve Chairman Ben Bernanke to a second term as he helps navigate the country through one of the worst financial downturns since the Great Depression.  The market has rallied smartly since the March lows, largely due to the strong economic stimulus packages that the current administration and other developed countries signed into law. The rest of the month was a wash, since Obama and most of Washington went on vacation. On the economic front, we have seen a slew of economic and housing data suggesting that the brunt of the recession is behind us (more on that below). 

Economic Data: B-

Ever since the March lows there has been an unspoken theme that any data that is "not so bad" is the new "good" as the major averages continually reacted in a healthy fashion to somewhat questionable economic data. At the beginning of the month, the Labor Department announced that US employers cut a lower-than-expected -247,000 jobs in July, which was better than the Street's forecast for over a -325,000 decline. The report showed that the unemployment rate ticked lower to +9.4%, down from June's reading of +9.5%. In April, US employers slashed a whopping 663,000 jobs, which was the lowest level in more than 60 years! Since then, the job losses have been smaller, which has been considered a "good" sign by Wall Street. July was the 19th consecutive month of job cuts in the US, which pushed the total number of jobs lost during this recession (which began in December 2007) to over 6.2 million! This is the largest decline of any recession going back to the Great Depression. 

Investors found some good news from the ailing housing sector which has been in its own private depression since 2006. New and pending home sales rose sharply last month which is a net positive. In addition, national home prices ticked higher which was the first increase since the recession began. The Commerce Department said that new home sales jumped +9.6% in July which was the largest gain in four years, rising to an annual rate of +433,000. The stronger than expected housing report reinforces our notion that the bear market in housing is over. This conclusion is made by studying the price/volume action in the housing stocks. Even though technically their action might be impressive, one would need to see their fundamentals improve markedly before these stocks meet the guidelines of this powerful investment system.

Elsewhere, one of the strongest catalysts for sending the market higher this quarter has been earnings. Not only have earnings exceeded the average analyst's estimates, companies have also raised guidance.  Companies have lowered guidance in each of the past 3 quarters, so the fact that they stopped lowering guidance is another net "positive" for stocks.  Earnings so far have not been stellar, as the main driver for higher numbers has been cutting costs, not higher sales. However, the massive influx of world-wide government stimulus plans is starting to kick in and trickle down. Again, earnings seasons will be interesting when companies begin reporting in early October.

Market Action (Price, Volume & Leadership): B

The underlying health of the major averages has improved markedly in recent months. However, high-quality leadership has dried up in recent weeks. This has been the single largest problem for the current rally- a dearth of high quality leadership. Yes, the indices have enjoyed very healthy gains over the past 26 weeks, but unfortunately, high-quality leadership has been spotty at best (although improved nicely in recent months). The vast majority of the recent move was dominated by low-ranked stocks bouncing from egregiously oversold levels. History shows us that healthy bull markets begin when a new batch of high-quality leaders break out powerfully from sound bases. Currently, leadership is flimsy at best, as evidenced by the IBD 100 Index (a great proxy for leading stocks) which continues to woefully under perform the major averages. A few leading stocks are working out, and some early leaders in the rally are building second-stage bases. Disciplined investors will look for fresh technical buy signals to be triggered if they manage to break above resistance in the next few weeks.

Commodity markets consolidated their recent moves as the dollar leveled off last month.  While hope spread that the brunt of the recession is over, crude oil traded above $75 a barrel last month.  Investors who rotated funds into crude-linked investments benefited as the dollar fell, with the impact of the currency weakness, and the movement of money, both giving a hearty boost to oil prices. Other commodities fared well, also helped by the one-two punch of a stronger economy and a weaker dollar. In today's world of 24 hour news and instant information, it is imperative to follow markets outside of US equities for a complete investment outlook.

Remember that the ongoing Bear Market is one of the worst in history, and it has been 22 months since the major averages topped out (Oct '07).  Handle the decisions on a stock-by-stock basis, and if you see the right kind of leadership begin to emerge, take a small position and keep a close stop. Conversely, if leadership does not emerge, do not force a trade. Remaining patient and flexible has served us extremely well over the years. 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.

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Usually companies producing the strongest sales revenues and earnings increases are the best performers in the market.  However, in recent months the point has been reiterated continually that what has helped the major averages rebound and rally impressively from their March 2009 lows has been a load of badly beaten down stocks bouncing back from deeply oversold levels.  While that scenario presented many great opportunities for bottom fishers and bargains hunters, it did not do much but frustrate the disciplined followers of the investment system described in "How to Make Money in Stocks" by William J. O'Neil. Over time, the normal market forces will always prevail, so I remain confident that this system will serve investors well in the years ahead. 

While we have grown accustomed to seeing some of the newspaper's proprietary indexes linked to high-ranked leaders outperforming the major averages in recent years, we cannot hide the fact that in recent times the market has simply not been smiling upon these companies which have better earnings track records than most.  Consider the IBD 100 Index, which is currently up less than +4% from its May 6th, 2009 intra-day high, far short of the +12% rally over the same period from the Russell 2000 Small Cap Index or the +11.5% rally from the "stodgy" Dow Jones Industrial Average.  Helping to further illustrate the lagging performance of high-ranked stocks, the IBD 85/85 index is another great proxy for the high-ranked area of the market where we put our focus, and yet it is actually down a fraction of a point over the same time span.

Yes, any 10-fold winner under the sun would make an investor happy.  However, historic studies have proven that the odds of finding such winners are normally far better when focusing on companies with very strong sales revenues and earnings growth.  By choosing companies with great underlying fundamental growth, investors have a good opportunity to find another big winner like past examples such as Research in Motion Ltd (RIMM), Qualcomm Inc (QCOM), Hansen Natural Corp (HANS), or Eresearch Technology Inc (ERES).

 

Arcsight Inc.
Ticker Symbol: ARST (NASDAQ)	Industry Group: Computer Software-Security	Shares Outstanding:  33,200,000
Price: $19.91 8//01/09 12:02PM	Day's Volume: 638,500  9/01/09 12:02PM	Shares in Float:  17,600,000
52 Week High: $20.80 7/20/2009	50-Day Average Volume: 743,900	Up/Down Volume Ratio: 1.3
Pivot Point: $20.90  7/20/09 high plus .10	Pivot Point +5% = Max Buy Price: $21.95	Web Address: http://www.arcsight.com

graph below is as of 8/31/09 close

CANSLIM.net Profile: ArcSight, Inc. provides compliance and security management solutions that protect enterprises and government agencies. It markets and sells its software directly, as well as through value added resellers and systems integrators. The company was formerly known as Wahoo Technologies, Inc. and changed its name to ArcSight, Inc. in March 2001. ArcSight, Inc. was founded in 2000 and is headquartered in Cupertino, California. It hails from the Computer Software - Security group which is presently ranked 102nd on the 197 Industry Groups list, which does not place it in the top quartile of industry groups. However, there are several other strong software stocks that are performing very well, which helps satisfy the L criteria. There were 21 top-rated funds with an ownership interest in September '08, yet that number jumped to 61 as of June '09, offering a very strong sign of increasing institutional interest (I criteria). Also, the stock has less than 20 million shares in the float, and having a small supply of shares (the S criteria) is a characteristic that most of the greatest stock market winners exhibited before they enjoyed explosive moves up.  Its annual earnings growth history has been good, although there is some concern over the fact that Street estimates for FY '10 are not especially strong. Quarterly sales and earnings increases in the 4 latest quarterly comparisons were well above the +25% guideline needed to satisfy the C criteria.  Return On Equity stands at +26%, which is above the +17% guideline.

What to Look For and What to Look Out For: Disciplined investors will look for the stock to first confirm a new technical buy signal by breaking out and closing above its $20.90 pivot point with gains on heavy volume in the coming days and weeks. Remember that buyable breakouts require three important components: the stock must clear its pivot point with considerable gains, those gains must be backed by at least +50% above average volume, and the overall market environment must improve and produce a new batch of leadership.   As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. Watch its 50-day moving average (DMA) line and recent lows in the $16 area as important chart support levels where any violations would raise concerns and trigger technical sell signals. The small supply of outstanding shares could lead to dramatic price volatility, especially if the institutional crowd rushes in or out. The market conditions are healthy as long as the current rally remains intact which makes it an ideal environment conducive for accumulating shares. This high-ranked leader should remain on an active watchlist and could be considered as a new buy candidate in the event it closes above its pivot point on the necessary volume needed to trigger a technical buy signal.

Technical Analysis:  ARST has spent the past six weeks building a flat base while consolidating in a very tight range above its 50 DMA which is considered a healthy sign. The stock is now trading very near its pivot point. There have been only mild signs of institutional selling (distribution) in recent weeks. It found great support near its 50 DMA line during this year's impressive ascent while it rose almost 5-fold from its November '08 low. It could be capable of continuing much higher, but before new buying efforts are justified within the investment system guidelines remember that it is imperative to see volume surpass the necessary threshold needed to trigger a new technical buy signal as the stock trades and closes above its pivot point. Until then, this high-ranked stock should remain on an active watchlist while consolidating this year's big gains.

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
ARO - NYSE Aeropostale Inc RETAIL - Apparel Stores	$39.12	-0.58	2,185,236 72% DAV 3,047,900	8/21/2009 (Date Featured)	$39.21 (Price Featured)	PP = $38.84
						MB = $40.78
Most Recent Note - 8/31/2009 4:07:57 PM Y - High-ranked leader in the Retail - Clothing/shoe group now consolidating below its max buy level and above initial cgart support at prior highs in the $38 area. A gap up gain for a new all-time high on 8/21/09 helped trigger a technical buy signal as it rose from a flat base pattern with almost 3 times average volume. It was featured in yellow with new pivot point and max buy levels noted in the 8/21/09 Mid-Day BreakOuts Report (read here). It has a good annual earnings history (the A criteria), and the 2 latest quarterly comparisons showed +81% and +84% earnings increases, well above the investment system's +25% guideline. >>> The latest Featured Stock Update with an annotated graph appeared on 8/21/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
ARST - NYSE Aeropostale Inc RETAIL - Apparel Stores	$39.12	-0.58	2,185,236 72% DAV 3,047,900	8/21/2009 (Date Featured)	$39.21 (Price Featured)	PP = $38.84
						MB = $40.78
Most Recent Note - 8/31/2009 4:07:57 PM Y - High-ranked leader in the Retail - Clothing/shoe group now consolidating below its max buy level and above initial cgart support at prior highs in the $38 area. A gap up gain for a new all-time high on 8/21/09 helped trigger a technical buy signal as it rose from a flat base pattern with almost 3 times average volume. It was featured in yellow with new pivot point and max buy levels noted in the 8/21/09 Mid-Day BreakOuts Report (read here). It has a good annual earnings history (the A criteria), and the 2 latest quarterly comparisons showed +81% and +84% earnings increases, well above the investment system's +25% guideline. >>> The latest Featured Stock Update with an annotated graph appeared on 8/31/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
ASIA - NASDAQ Asiainfo Holdings Inc INTERNET - Internet Software & Services	$15.95	-1.03	658,053 N/A	8/2/2009 (Date Featured)	$19.27 (Price Featured)	PP = $22.19
						MB = $23.30
Most Recent Note - 8/17/2009 Gapped down today, sinking deeper below its 50 DMA line which is now downward sloping. It is testing prior lows in the $15 area that are the next chart support level above its 200 DMA line. Based on weak action it will be dropped from the Featured Stocks list tonight. It would need to rally above its recent highs in the $20 area for its outlook to improve. Recently featured in the August 2009 CANSLIM.net News here >>> The latest Featured Stock Update with an annotated graph appeared on 8/17/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CPLA - NASDAQ Capella Education Co DIVERSIFIED SERVICES - Education and Training Services	$63.35	-0.68	58,972 31% DAV 189,700	7/9/2009 (Date Featured)	$59.69 (Price Featured)	PP = $62.06
						MB = $65.16
Most Recent Note - 8/31/2009 4:10:15 PM Y - Still quietly consolidating in a tight range on light volume, less than 4% from its 52-week high. The Commercial Services-Schools Group has shown some isolated leadership which is somewhat reassuring for the L criteria, but the groups still has low ranks and CPLA's Relative Strength rank has slumped to 55, under the 80+ guideline. Its small supply of only 13.9 million shares in the float could contribute to greater price volatility in the event of institutional accumulation or distribution. The number of top-rated funds owning an interest rose from 91 in Sept '08, to 137 as of June '09, which is reassuring with respect to the I criteria. It has a very good earnings history that satisfies the C & A criteria. >>> The latest Featured Stock Update with an annotated graph appeared on 8/19/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CRM - NYSE Salesforce.com Inc INTERNET - Internet Software & Services	$51.87	-0.38	1,695,303 88% DAV 1,930,100	8/16/2009 (Date Featured)	$47.12 (Price Featured)	PP = $45.59
						MB = $47.87
Most Recent Note - 8/31/2009 4:11:40 PM Y - Stubbornly holding its ground in a very tight range since its "breakaway gap" for a considerable gain on 8/21/09 with more than 5 times average volume. A Stock Bulletin was published with detailed analysis and an annotated graph on 8/16/09 (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 8/31/2009. click here.
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EBIX - NASDAQ Ebix Inc COMPUTER SOFTWARE & SERVICES - Business Software & Services	$49.36	+1.18	186,463 216% DAV 86,300	8/28/2009 (Date Featured)	$45.86 (Price Featured)	PP = $45.35
						MB = $47.62
Most Recent Note - 8/31/2009 4:18:48 PM G - Gain with higher volume, rising above its max buy level today. Its color code was changed to green. Triggered a technical buy signal as it blasted to a new all-time high on 8/28/09, rising from a big cup-with-high-handle shaped pattern. It has rebounded impressively and was re-featured in yellow at $45.86 with new pivot point and max buy levels noted in the 8/28/09 Mid-Day BreakOuts Report (read here). Sales and earnings increases in quarterly comparisons have been strong, but they have shown steady sequential deceleration. This high-ranked leader had traded up more than +59% after it was first featured in the March 2008 CANSLIM.net News (read here), but weak action later in the year subsequently prompted it to be dropped from the Featured Stocks list. Do not be confused by the 3:1 split that took effect on 10/09/08. >>> The latest Featured Stock Update with an annotated graph appeared on 8/28/2009. click here.
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GMCR - NASDAQ Green Mountain Coffee Roasters FOOD & BEVERAGE - Processed & Packaged Goods	$60.19	-0.18	829,204 50% DAV 1,661,000	7/17/2009 (Date Featured)	$60.15 (Price Featured)	PP = $63.79
						MB = $66.98
Most Recent Note - 8/31/2009 4:20:31 PM G - Still trading under its 50 DMA line which is now downward sloping and a source of technical resistance, with the next support at prior chart lows in the $54-53 area. As previously noted, "its gap down and considerable loss on 8/17/09 on heavy volume triggered technical sell signals." GMCR traded up more than +168% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 8/26/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
HMSY - NASDAQ Hms Holdings Corp COMPUTER SOFTWARE & SERVICES - Healthcare Information Service	$35.83	-0.16	244,962 N/A	2/20/2009 (Date Featured)	$34.08 (Price Featured)	PP = $38.38
						MB = $40.30
Most Recent Note - 8/10/2009 On track for a 5th consecutive loss today on ever decreasing volume. It has slumped well below its 50 DMA line, and it would need to repair that violation for its outlook to improve. This high-ranked Commercial Services - Healthcare firm's Relative Strength rank has slumped to 68, well below the 80+ guideline. Based on its deterioration it will be dropped from the Featured Stocks list. >>> The latest Featured Stock Update with an annotated graph appeared on 8/4/2009. click here.
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LFT - NYSE Limited Brands Apparel Stores	$24.70	-0.67	801,089 103% DAV 776,900	8/10/2009 (Date Featured)	$31.49 (Price Featured)	PP = $30.57
						MB = $32.10
Most Recent Note - 8/31/2009 4:23:22 PM G - Gapped down today for a loss on average volume, violating a multi-month upward trendline connecting February, July, and August chart lows, raising more serious concerns and triggering additional technical sell signals. Volume behind recent gains has been very light since previously noted "substantial losses on heavy volume indicative of distributional pressure." It would need to rally back above its 50 DMA and recent chart highs for its outlook to improve. >>> The latest Featured Stock Update with an annotated graph appeared on 8/25/2009. click here.
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NTES - NASDAQ Netease.com Inc INTERNET - Internet Information Providers	$41.99	-0.06	1,323,608 58% DAV 2,270,900	7/17/2009 (Date Featured)	$39.29 (Price Featured)	PP = $38.74
						MB = $40.68
Most Recent Note - 8/31/2009 4:25:19 PM G - Quietly consolidating in a tight range above support at its 50 DMA line and above prior chart highs in the $38 area. Deterioration below those levels would raise more serious concerns and triggger additional sell signals. As previously noted, "a 8/13/09 gap down for a considerable loss on nearly 4 times average volume triggered a technical sell signal." >>> The latest Featured Stock Update with an annotated graph appeared on 8/27/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
NVEC - NASDAQ Nve Corp ELECTRONICS - Semiconductor - Specialized	$53.20	-1.03	56,612 61% DAV 93,300	8/26/2009 (Date Featured)	$55.32 (Price Featured)	PP = $57.60
						MB = $60.48
Most Recent Note - 8/31/2009 4:28:02 PM Y - Posted its 4th consecutive loss today on below average volume, yet it is still hovering within 7.5% of all-time highs and its latest pivot point. Basing for 5 weeks above important initial support at its 50 DMA line and prior chart highs. Quarterly sales revenues in the 6 million dollar range are still rather minuscule, leaving concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 9/1/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
NVEC - NASDAQ Nve Corp ELECTRONICS - Semiconductor - Specialized	$53.20	-1.03	56,612 61% DAV 93,300	8/26/2009 (Date Featured)	$55.32 (Price Featured)	PP = $57.60
						MB = $60.48
Most Recent Note - 8/31/2009 4:28:02 PM Y - Posted its 4th consecutive loss today on below average volume, yet it is still hovering within 7.5% of all-time highs and its latest pivot point. Basing for 5 weeks above important initial support at its 50 DMA line and prior chart highs. Quarterly sales revenues in the 6 million dollar range are still rather minuscule, leaving concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 9/1/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
PEGA - NASDAQ Pegasystems Inc COMPUTER SOFTWARE & SERVICES - Business Software & Services	$30.63	-0.67	387,495 107% DAV 362,700	7/29/2009 (Date Featured)	$27.53 (Price Featured)	PP = $27.49
						MB = $28.86
Most Recent Note - 8/31/2009 4:29:22 PM G - Pulled back today, falling for a 4th consecutive session on near average volume after an impressive 6 session winning streak. Recently found support at its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 8/24/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
TNDM - NASDAQ Neutral Tandem Inc TELECOMMUNICATIONS - Wireless Communications	$25.25	-1.58	1,730,465 N/A	3/2/2009 (Date Featured)	$18.89 (Price Featured)	PP = $32.67
						MB = $34.30
Most Recent Note - 8/14/2009 Gapped down today, falling on higher volume indicative of more distributional pressure. Based on weak action it will be dropped from the Featured Stocks list tonight. Color code was changed to green after the technically damaging action negated its 8/03/09 breakout, raising concerns and triggering sell signals. It traded up as much as +82.95% since first featured at $18.89 in the 3/02/09 Mid-Day BreakOuts Report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
UTA - AMEX Universal Travel Group DIVERSIFIED SERVICES - Consumer Services	$10.06	-1.27	1,095,904 N/A	7/28/2009 (Date Featured)	$12.87 (Price Featured)	PP = $12.70
						MB = $13.34
Most Recent Note - 8/28/2009 Considerable loss today on above average volume violated its 8/18/09 low ($10.91), raising more serious concerns. Based on weak technical action it will be dropped from the Featured Stocks list tonight. It violated its 50 DMA line on 8/27/09 triggering a technical sell signal. There has been a lack of volume behind gains since its negative reversal on 8/13/09 for a loss on very heavy volume was noted as "a clear sign of worrisome distributional pressure." Strong action prompted it to be featured in yellow with pivot point and max buy levels noted in the 7/28/09 mid-day breakouts report (read here), with additional analysis included in the after market update (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 8/20/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS

The goal of investing is to make money, and we need to ensure we keep this in mind with every stock transaction that we consider. Some of the choices we consider and choose not to buy may be as important, or more important, to our overall financial success as the stocks we choose to buy. Although all can probably recall a few "I should have pulled the trigger on that one" selections, and we can put a dollar number on what we might have made; we tend to forget the "Thank goodness I did not buy that one" selections and are not as inclined to recognize the money saved by not making those purchases.

Here at CANSLIM.net, we provide the tools and expert analysis of the market and of individual stocks as it relates to making money using the investment system as developed and refined by William O’Neil. Using CAN SLIM.net and the investment system successfully focuses on 3 major areas; picking potential winning stocks, minimizing our losses on all transactions, and selling stocks to lock in profits.

As we look at our CANSLIM.net customer base, we find a number of different types of investors. I would characterize the basic breakdown of members into four categories; namely, Beginning to Intermediate investors, Experts, Professional Investors that use this investment strategy for their clients, and what we characterize as "Tout Followers".

The "Tout Followers" are basically people that are looking for stock symbols to buy and make money on. They are not generally knowledgeable about the method we support and do not want to invest the time and effort to understand the investment system. "Tell me what stocks to buy, when to buy them and then when to sell them" characterizes what they expect from CANSLIM.net. We do not target this type of investor with our services, and basically they tend to be the fastest people to leave us and go follow the next "Expert".

The Beginning to Intermediate investors are the largest target audience for the services and reports we provide. Typically, these are members that have at least read the book "How to Make Money in Stocks" by William O’Neil, and may have read one or several of his other books. These are investors who wish to increase their knowledge of the investment system! They understand that CANSLIM.net provides high-ranked ideas for their own personal Watch List, and they investigate the issues highlighted in the Mid-Day Reports and make their buy and sell decisions based on the principles of the methodology. They also review the CLOSING MARKET COMMENTARY and INDUSTRY GROUP WATCH sections of the CANSLIM.net After Market Report each day to gain an insight into the day's market activity from the investment system perspective. They review the FEATURED STOCKS UPDATE section of the same report, understanding that these reviews help them track and interpret the day-to-day action and learn smart trading tactics that can be applied to recently featured stocks.

The system experts are the subscribers that help us by asking the technical "Why" or "Why not" type questions about our selections, reports and notes. We appreciate the input they provide to help ensure we keep true to the methodology, and we learn from their questions on how to better present the information for the less experienced subscribers. They tend to analyze the market and individual stocks themselves and match our selections against their own personal Watch List. They are many times using our service as a confirmation of their analysis.

The Professional Investors are generally a mix of the Beginning to Intermediate investors and Experts, typically not just managing money for themselves, but also for others for a fee. They are expecting assistance in the implementation of the methodology for their clients, and we will continue providing this assistance.

Our goal at CANSLIM.net remains to support all of the above, except for the "Tout Followers". Not that we mean to exclude them; but we do not target our services to this audience.

CANSLIM.net provides support to investors that desire to manage their own portfolios and those who do not yet have the assets required to establish a relationship with a professional manager.

Supporting your goal of making money in the markets, we will continue to help you pinpoint winners, provide you with the information needed to recognize when "Technical Buy Signals" are triggered, and provide on-going information about Featured Stocks. Buying is easy, but selling is trickier for many investors! So, in the notes for each currently Featured Stock we help you know when to sell as "Technical Sell Signals" emerge. That can help you save your profits and most effectively limit losses. When using this methodology, it remains your responsibility to limit your losses to 7-8% on each and every stock you purchase. You alone can determine how well the information provided suits your personal investment strategies and risk aversion requirements for stock purchases and sales.

DON'T MISS THE OPPORTUNITY TO ATTEND CANSLIM.NET'S 3rd QUARTER 2009 WEBCAST

We are proud to announce that Adam Sarhan will present the next quarterly CANSLIM.net WebCast, Wednesday, September 23rd, 2009 from 8 to 9 PM, Eastern Standard Time (click here to sign up at the very best discount rate). Mr. Sarhan has completed the Masters program, and will be sharing much of his valuable expertise with all participants during this information-packed event. This is another opportunity to improve your mastery and build upon your existing knowledge of successful investing techniques. The seminar includes educational content to familiarize you with the skills and important tools for utilizing this proven investment program in today’s market. The WebCast also includes detailed analysis of the current market conditions, leading industry groups, and leading stocks. The WebCast is an example of a premium service/product offering which goes beyond the scope of the usual services included with a CANSLIM.net membership. There are expenses directly related to the number of people we provide these extra services/products to, thus, they are available only to those choosing to participate. Please note that, any time we offer additional services such as these informative quarterly Webcasts, we make sure that all loyal members are invited to participate at the lowest price available.

We look forward to assisting you in your financial success. Please send any requests on how we may better serve you to customercare@canslim.net.