Credit Acceptance Corp (CACC -$0.90 or -2.15% to $40.90) has fallen sharply in the course of its current 7-session losing streak. Investors were prompted to consider locking in profits as worrisome action has transpired since its last FSU section appearance on 1/28/10 under the headline "Strong Leader Extended After Producing Big Gains." Damaging losses have quickly erased a large portion gains of as much as +61.2% since it was first featured in yellow at $33.48 in the 9/29/09 mid-day report (read here). After it was initially featured, it went on to later build a new sound base on top of its prior base. New pivot point and max buy levels were noted on 11/19/09, yet it stubbornly held its ground in a tight range for another month plus before finally blasting to new all-time highs with heavy volume on 12/16/09. 

Distributional action recently has raised concerns and triggered technical sell signals as it violated its 50-day moving average (DMA) line. Previous chart highs at $37 define the next important support level to watch. Right now, however, the M criteria is an overriding concern which discourages new buying efforts until a proper follow-through day emerges. This stock also needs time to build a new sound base before new buying efforts would be justifiable under the investment system's strict technical buying discipline. On Monday Jan 25th the company announced the pricing of $250 Million Senior Secured Notes. The Finance - Consumer/Commercial Loans firm has maintained a great track record of annual and quarterly sales revenues and earnings increases that satisfy the C and A criteria of the investment system.