Often, when a leading stock is setting up to breakout of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report.  The most relevant factors are noted in the report which allows prudent CANSLIM oriented investors to place the issue in their watch list.  After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list.

F5 Networks Inc. (FFIV +$1.72 or +2.36% to $74.69) posted a gain today with +55% above average volume that helped it reach a new all-time high and trigger a technical buy signal with its breakout from a flat base of about 5-weeks. It was featured in today's mid-day report (read here) as its color code was changed to yellow with a pivot point based upon its 5/13/10 high plus ten cents. When stocks clear all prior chart highs they are free of resistance due to overhead supply, and then the path of least resistance is more likely to lead them even higher.  As always, stocks should be sold if the price ever falls 7-8% below your purchase price, as that is the "max loss" guideline for properly protecting your capital.  

The company currently sports a very healthy Earnings Per Share (EPS) rating of 97 and a Relative Strength (RS) rating of 94.  It resides in the Internet-networking Solutions group which is an Industry Group showing lots of leadership, satisfying the "L" criteria. In recent months FFIV made a number of appearances in the mid-day report as its quarterly sales and earnings results showed impressive acceleration in the Mar '10 and Dec '09 periods, but it was also noted that it had not formed an ideal base pattern and patience was needed. The high-ranked Internet- Network Solutions industry group leader maintained a good annual earnings (A criteria) history. This stock was first featured in the January 2004 edition of CANSLIM.net News (read here) with a $26.85 pivot point. During the past 6 years, FFIV has built several bases, and it has also been through some tough consolidation periods.