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Profit Taking Pressures Mount As Distribution Troubles Market
Tuesday, October 27, 2009   CANSLIM.net
 

Salesforce.com, Inc. (CRM -$2.06 or -3.47% to $59.36) suffered a loss today with above average volume, raising some concerns.  Prior chart highs in the $59 area coincide with an upward trendline connecting its July, August and October chart lows, helping define an important technical support level currently being tested. Its 50-day moving average (DMA) line is the next important support level to watch. The weak action in the stock coupled with the broader market deterioration (M criteria) suggests that it might be appropriate for investors to lock in profits under the investment system guidelines, especially if more worrisome losses lead to violations at the above mentioned levels.

CRM stubbornly held its ground and stayed well above its important short-term average since its "breakaway gap" for a considerable gain on 8/21/09 with more than 5 times average volume.  The number of top-rated funds owning its shares rose from 269 in Sept '08 to 294 in Jun '09, which is reassuring news concerning the I criteria. Additional weakness may lead to more definitive technical sell signals, while it otherwise needs more time to possibly form a new sound base. Market action will largely dictate the outcome, since 3 out of 4 stocks typically follow the direction of the broader market averages.

About : Kenneth J. Gruneisen - Passed the CAN SLIMĀ® Master's Exam
Kenneth J. Gruneisen started out as a licensed stockbroker in August 1987, a couple of months prior to the historic stock market crash that took the Dow Jones Industrial Average down -22.6% in a single day. He has published daily fact-based fundamental and technical analysis on high-ranked stocks online for two decades. Through FACTBASEDINVESTING.COM, Kenneth provides educational articles, news, market commentary, and other information regarding proven investment systems that work in good times and bad.


Comments contained in the body of this report are technical opinions only and are not necessarily those of Gruneisen Growth Corp. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities.
You can contact Kenneth J. Gruneisen - Passed the CAN SLIMĀ® Master's Exam at kengruneisen@gmail.com

 
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Kenneth J. Gruneisen founded Gruneisen Growth Corp. (2003), which prior to May 11, 2015, operated CANSLIM.net and CANSLIM.com both under license from Data Analysis Inc. / Investor's Business Daily. Kenneth has passed the CAN SLIM® Master's Exam. Gruneisen Growth Corp. now continues over two decades of fact based market analysis via FactBasedInvesting.com.

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