Apple Computer Inc. (AAPL +$1.20 or +2.09% to $56.14) closed at a new all-time high on above average volume while the major indices closed decidedly lower.  On October 12th Apple's shares pulled back in price, retesting its 50-day moving average (DMA) line after reporting its latest quarterly financial results.  Despite solid earnings, sales failed to meet analysts expectations.  On the very next day, however, the company reported the release of a new i-Pod that plays videos as well as music.  The news of a new product created enthusiasm that helped send the stock higher.

This stock was most recently featured in yellow at $46.82 on 8/24/2005 in the CANSLIM.net Mid Day Breakouts Report and has rallied +20% since.  Since retesting its 50 DMA the stock has been advancing with great volume conviction, and it broke out to a new 52-week high today. The Relative Strength line confirmed the recent move and broke out to new highs before the stock followed through to new highs on above average volume.  It is encouraging to see a stock move to new highs on volume while the major indices face widespread distribution and close lower, as was the case today.   Of course, leading stocks tend to keep on leading, and Apple has certainly been a market leader in the past couple of years.