Stocks rallied for a second day as each of the major averages jumped +1.8%. The volume totals on the NYSE and on the Nasdaq exchange were higher than the prior session, a sign of better buying demand from the institutional crowd. Breadth was positive as advancers led decliners by a 3-1 margin on the NYSE and on the Nasdaq exchange.  There were 69 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up nicely from the prior session total of 36 stocks. New 52-week highs outnumbered new 52-week lows on the NYSE on the Nasdaq exchange. There were gains for 11 of the 13 high-ranked companies currently on the Featured Stocks Page. 

The Dow Jones Industrial Average, S&P 500 Index, and Nasdaq Composite Index collectively rebounded above respective 50-day moving average (DMA) lines while leadership improved. However, the market (M criteria) recently earned the label of a "correction" and caution is still very important.  New buying efforts should not be made in stocks, even if meeting all fundamental and technical guidelines of the fact-based investment system, until the broader market shows renewed strength with a convincing follow-through day or a move into new high territory from at least one of the major averages.

PICTURED: The S&P 500 Index rebounded above its 50-day moving average (DMA) line helping its technical stance improve. 

Disciplined investors know that new buying efforts should only be made in stocks when all fundamental and technical guidelines are met. This should be done as the stock is breaking out of a sound base pattern. Historic studies have shown that odds are not as favorable for investors when buying stocks on pullbacks. 

The Semiconductor Index ($SOX +2.91%) led the tech sector while the Networking Index ($NWX +1.92%) and the Biotechnology Index ($BTK +1.18%) followed with solid gains. Energy-related shares rallied as the Integrated Oil Index ($XOI +2.63%) and the Oil Services Index ($OSX +1.55%) both rose. Financial shares also underpinned the major averages' rebound as the Bank Index ($BKX +1.76%) and the Broker/Dealer Index ($XBD +1.83%) rose, and the Retail Index ($RLX +1.15%) also was a positive influence. The Gold & Silver Index ($XAU -1.72%) was a standout decliner as it lost ground.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX +1.92%) recently found support at its 50-day moving average (DMA) line.

Palo Alto Networks (PANW +$1.68 or +1.34% to $127.21) posted a 2nd consecutive gain today with much lighter than average volume. Disciplined investors avoid chasing extended stocks more the +5% above prior highs and they always limit losses by selling any stock that falls more than -7% from their purchase price.  PANW is currently extended from any sound base pattern, and prior reports cautioned members - "It has not formed a sound base. The 50 DMA line defines near-term support to watch below recent lows."  The Computer Software - Security firm  was last shown in this FSU section with annotated graphs on 12/18/14 under the headline, "Latest Consolidation Was Not a Base of Sufficient Length".  

The number of top-rated funds owning its shares rose from 246 in Jun '13 to 527 in Sep '14, a reassuring sign concerning the I criteria. Its small supply (S criteria) of 66.9 million shares in the public float is another favorable characteristic. Its current Up/Down Volume Ratio of 1.7 is an unbiased indication its shares have been under accumulation over the past 50 days.  

It recently reported earnings +88% on +50% sales revenues for the Oct '14 quarter. It has an Earnings Per Share (EPS) Rating of 80. Reviewing prior reports with annotated graphs carefully, it appears that the Apr '14 quarter now shows a -71% earnings comparison versus the year ago period. Previous annotated graphs published showed a more favorable comparison with strong sales revenues increases and earnings above the +25% minimum guideline satisfying the C criteria. It is unclear what prompted the apparent adjustment in the numbers as reported by the graph provider. Members are reminded that the fact-based investment system suggests waiting for the right time to buy, and only buying stocks showing strong quarterly and annual earnings (A criteria) increases.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.

***Last / Change / Volume data in this table is the closing quote data***

Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
ACT - NYSE Actavis plc Medical-Generic Drugs	$268.96	+3.73 1.41%	$270.05	2,978,195 96.69% of 50 DAV 50 DAV is 3,080,000	$272.75 -1.39%	12/29/2014	$260.22	PP = $272.85
								MB = $286.49
Most Recent Note - 1/7/2015 7:50:15 PM Y - Tallied a volume-driven gain today while rallying from support at its 50 DMA line. Subsequent volume-driven gains above the pivot point may trigger a technical buy signal. >>> FEATURED STOCK ARTICLE : Formed New Base Above Prior Highs and 50-Day Moving Average - 12/29/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
AFSI - NASDAQ Amtrust Financial Svcs INSURANCE - Property and; Casualty Insurance	$52.05	-1.95 -3.61%	$52.05	3,577,479 353.51% of 50 DAV 50 DAV is 1,012,000	$59.31 -12.24%	10/17/2014	$45.24	PP = $46.02
								MB = $48.32
Most Recent Note - 1/8/2015 1:52:27 PM G - Proposed a new Public Offering and gapped down today, violating its 50 DMA line with a damaging loss raising some concerns. >>> FEATURED STOCK ARTICLE : Finding Support Near Prior Highs - 12/24/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
ALXN - NASDAQ Alexion Pharmaceuticals DRUGS - Drug Manufacturers - Other	$183.80	-4.13 -2.20%	$188.50	1,980,282 187.88% of 50 DAV 50 DAV is 1,054,000	$203.30 -9.59%	10/23/2014	$184.01	PP = $185.53
								MB = $194.81
Most Recent Note - 1/8/2015 12:31:03 PM G - Concerns remain since it negated the prior technical breakout. Needs gain above its 50 DMA line ($190.29) which may act as resistance while trying to rebound. The recent low ($176.01 on 12/17/14) acted as a support level. Faces resistance due to overhead supply up through the $203 level. >>> FEATURED STOCK ARTICLE : 50-Day Moving Average Acted as Resistance After Damaging Losses - 1/2/2015 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
AMBA - NASDAQ Ambarella Inc ELECTRONICS - Semiconductor - Specialized	$60.00	+0.00 0.00%	$60.00	3,279,423 162.91% of 50 DAV 50 DAV is 2,013,000	$60.00 0.00%	1/7/2015	$54.96	PP = $58.10
								MB = $61.01
Most Recent Note - 1/8/2015 12:32:48 PM Y - Pulling back today following a considerable volume-driven gain. Finished strong after highlighted in yellow with pivot point cited based on its 12/04/14 high plus 10 cents in the 1/07/15 mid-day report (read here). The volume-driven gain above the pivot point triggered a technical buy signal, however new buying efforts are discouraged under the fact-based investment system until more convincing strength returns to the broader market (M criteria). See the latest FSU analysis for more details and annotated graphs >>> FEATURED STOCK ARTICLE : Strong Finish Triggered a Technical Buy Signal - 1/7/2015 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
BIDU - NASDAQ Baidu Inc Ads INTERNET - Internet Information Providers	$229.21	+4.86 2.17%	$232.14	2,639,096 82.45% of 50 DAV 50 DAV is 3,201,000	$251.99 -9.04%	10/30/2014	$234.08	PP = $231.51
								MB = $243.09
Most Recent Note - 1/8/2015 1:45:49 PM G - Today's 3rd consecutive gain has it rebounding near its 50 DMA line which may act as resistance. Recent lows in the $216-217 area define important near-term support where subsequent losses would raise more serious concerns. >>> FEATURED STOCK ARTICLE : Rebound Above 50-Day Moving Average Helped Technical Stance - 12/19/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
EPAM - NYSE Epam Systems Inc COMPUTER SOFTWARE and SERVICES - Information Technology Service	$48.67	+1.38 2.92%	$48.78	562,322 129.27% of 50 DAV 50 DAV is 435,000	$52.89 -7.98%	10/23/2014	$45.21	PP = $46.09
								MB = $48.39
Most Recent Note - 1/8/2015 1:47:45 PM G - Rebounding near its 50 DMA line with today's 3rd consecutive gain. Subsequent losses below its recent low close ($46.24 on 12/16/14) would raise concerns and trigger a more worrisome technical sell signal. >>> FEATURED STOCK ARTICLE : Halted Slide at 50-Day Moving Average - 12/31/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
FB - NASDAQ Facebook Inc Cl A INTERNET	$78.18	+2.03 2.66%	$78.23	23,932,888 82.07% of 50 DAV 50 DAV is 29,161,000	$82.17 -4.86%	12/22/2014	$81.79	PP = $81.26
								MB = $85.32
Most Recent Note - 1/8/2015 1:54:15 PM Y - Halted its slide after quietly retreating near its 50 DMA line. Little resistance remains due to overhead supply up through the $82 level, however, convincing volume-driven gains above the pivot point are still needed to clinch a proper new (or add-on) technical buy signal. >>> FEATURED STOCK ARTICLE : Gains for New Highs Backed By Lighter Volume - 12/22/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
ILMN - NASDAQ Illumina Inc DRUGS - Biotechnology	$196.82	+1.90 0.97%	$199.47	1,741,210 166.46% of 50 DAV 50 DAV is 1,046,000	$197.37 -0.28%	12/30/2014	$186.26	PP = $196.00
								MB = $205.80
Most Recent Note - 1/8/2015 12:58:47 PM Y - Touched a new high earlier today while adding to a spurt of volume-driven gains. Attempting to rally from a "double bottom" base, it was previously noted - "Subsequent volume-driven gains above the pivot point cited may trigger a new (or add-on) technical buy signal. Faces very little resistance due to overhead supply up through $197." >>> FEATURED STOCK ARTICLE : Forming New Base And Fundamentals Remain Favorable - 12/30/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
NXPI - NASDAQ Nxp Semiconductors N V ELECTRONICS - Semiconductor - Broad Line	$77.84	+3.51 4.72%	$78.10	2,670,878 87.92% of 50 DAV 50 DAV is 3,038,000	$78.34 -0.64%	1/5/2015	$76.43	PP = $78.44
								MB = $82.36
Most Recent Note - 1/8/2015 1:43:29 PM Y - Found prompt support at its 50 DMA line and its color code is changed to yellow while rebounding near its 52-week high. Recent weakness in the broader market (M criteria) remains an overriding concern arguing against new buying efforts until a new uptrend is confirmed by the major indices. Highlighted in yellow with pivot point based on its 11/28/14 high plus 10 cents in the 1/05/15 mid-day report (read here). Subsequent volume-driven gains above the pivot point may trigger a new technical buy signal. See the latest FSU analysis for more details and annotated graphs. >>> FEATURED STOCK ARTICLE : Little Resistance Remains Due to Overhead Supply - 1/5/2015 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
PANW - NYSE Palo Alto Networks Computer Sftwr-Security	$127.21	+1.68 1.34%	$127.62	714,809 47.78% of 50 DAV 50 DAV is 1,496,000	$128.20 -0.77%	7/30/2014	$84.21	PP = $85.88
								MB = $90.17
Most Recent Note - 1/8/2015 6:07:45 PM G - Posted a 2nd consecutive gain today with even lighter volume. Prior reports cautioned members - "It has not formed a sound base. The 50 DMA line defines near-term support to watch below recent lows." See the latest FSU analysis for more details and new annotated graphs. >>> FEATURED STOCK ARTICLE : Tech Firm Still Extended From Any Sound Base Pattern - 1/8/2015 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
RH - NYSE Restoration Hardware Hld RETAIL - Home Furnishing Stores	$94.85	+1.16 1.24%	$96.68	824,710 91.03% of 50 DAV 50 DAV is 906,000	$100.66 -5.77%	12/11/2014	$98.66	PP = $94.60
								MB = $99.33
Most Recent Note - 1/6/2015 1:08:35 PM Y - Pulling back from its high to a 3-week low. Prior reports cautioned members - "Subsequent losses leading to a close below its old high close ($93.05 on 6/30/14) would completely negate the recent breakout and raise concerns." >>> FEATURED STOCK ARTICLE : Consolidating Above Prior Highs With Volume Totals Cooling - 12/26/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
UIHC - NASDAQ United Insurance Holding Insurance-Prop/Cas/Titl	$21.75	+0.73 3.47%	$21.87	114,990 52.27% of 50 DAV 50 DAV is 220,000	$22.44 -3.07%	12/5/2014	$20.64	PP = $20.31
								MB = $21.33
Most Recent Note - 1/8/2015 1:50:33 PM G - There was a "negative reversal" after touching a new 52-week high on 1/02/15. Color code is changed to green after inching back above its "max buy" level with a quiet gain. Prior highs and its 50 DMA line ($19.87) define near-term support to watch. >>> FEATURED STOCK ARTICLE : Recent Streak of Gains Lacked Volume Conviction - 12/23/2014 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M
VRX - NYSE Valeant Pharmaceuticals DRUGS - Drug Manufacturers - Other	$154.10	+8.98 6.19%	$156.60	5,817,995 278.91% of 50 DAV 50 DAV is 2,086,000	$153.10 0.65%	1/5/2015	$144.84	PP = $149.90
								MB = $157.40
Most Recent Note - 1/8/2015 1:24:47 PM Y - Gapped up today hitting new 52-week and all-time highs with a considerable volume-driven gain, rallying above the new pivot point and triggering a technical buy signal. Went through a deep consolidation below its 200 DMA line then rebounded since dropped from the Featured Stocks list on 4/04/14. See the latest FSU analysis for more details and an annotated daily graph. >>> FEATURED STOCK ARTICLE : Formed a Big Cup-With-Handle Base Setup - 1/6/2015 View all notes | Set NEW NOTE alert | CANSLIM.net Company Profile | SEC News | Chart | Request a new note C A N S L I M