What to Look For and What to Look Out For: The stock recently found support at its 50 DMA line for the first time since triggering its latest technical buy signal on April 4, 2008. Concerns would be raised by subsequent weakness leading to price deterioration is below its 50 DMA line, which then may act as resistance. It would be encouraging to see MT surge into new high territory on heavy volume after a sound follow-through day is produced by at least one of the major market averages. Disciplined investors would avoid chasing this issue above its maximum buy price of $110.11, where it would be too extended from a sound price base to be considered buyable under the proper guidelines. As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. Typically, 3 out of 4 growth stocks will decline during market corrections, which creates ugly odds for the near term.  The major averages are presently in a correction.  New buying efforts are discouraged until a new rally is confirmed by at least one of the major averages producing a new follow-through day of at least +1.7% gains with heavier volume.

Technical Analysis: A sharp pullback with above average volume during the week ended 6/13/08 led to the violation of a 5 month upward trendline, which may be considered an early sign of deterioration in its previously strong upward trend.  Technically, shares of MT can be accumulated between its 50 DMA line and its $110.11 maximum buy price after a new follow-through day is produced. The stock has performed very well over the past few months as the major averages have declined. This is best illustrated by the stock's 95 Relative Strength rating. A look at its weekly chart shows limited downward action with volume in recent months, as it has not encountered distributional pressure.