In recent weeks we have taken the opportunity to use this section to revisit some of the previously featured stocks that were dropped some time ago based on technical and fundamental weakness.  Studying what happened afterwards should hopefully allow investors to get a better understanding of the importance of having a sell discipline. If you are a new investor, or simply forgot how ugly the last Bear Market was for most stocks; the current Bear Market is offering everyone another lesson on how it works.  Those who might otherwise still be tempted to say, "But its a good company", and hold a losing stock after it falls more than 7-8% from their buy price have an opportunity to learn why limiting losses while they are small is so important.  These well-known, high-profile companies serve now as perfect examples that will hopefully allow investors in the future to recognize the warning signs and technical sell signals so they will know when it is time to lock in profits or minimize losses per the investment system's sell rules.

Apple Inc. (AAPL +$6.32 or +7.01% to $96.44) bounced today, but it faces a tremendous amount of resistance due to overhead supply, which makes the stock unlikely to be a market leader in the near term. It failed to trigger a fresh technical buy signal and the major averages began a correction shortly it was featured in the June 2008 issue of CANSLIM.net News (read here). Based on weak technical action it was dropped from the Featured Stocks list on June 27, 2008 when it pulled back near its 200-day moving average line, as it was then observed - "It has been repeatedly noted that no volume conviction was behind its recent gains. Color code was changed to green after recent deterioration pressured it from its highs. Signs of weakness, especially due to poor market conditions, make it a less compelling buy candidate. Concerns were raised by recent distributional pressure and noted several times since it was featured" (read here). 

AAPL went on to fall -50% in less than 4 months after it was dropped from the Featured Stocks list.  AAPL was first featured in yellow at $46.82 with an annotated graph on Wednesday, August 24, 2005 in the CANSLIM.net Mid Day Breakouts Report (read here).

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Is there a previously featured stock you would like to see revisted in this section?  Members are welcome and encouraged to write in and request that we take another detailed look at any of CANSLIM.net's previously featured stocks (click here).

Through the daily market commentaries provided at CANSLIM.net, we believe there has been a very clear message communicated to investors concerning the M criteria.  Hopefully, you got it!  If so, you reduced exposure and avoided being set back badly, saving yourself more than enough to justify the cost of your membership.