Friday marked the S&P 500 Index's highest close since December 10, 2007. The latest rally has produced a few action worthy candidates meeting all of the fact-based investment system's criteria. Selectivity and discipline are required, as always. Investors may consider new buying efforts in stocks meeting all key criteria, as the market's (M criteria) confirmed uptrend has been comprised by great leadership (stocks hitting new 52-week highs) in the broader market. Widespread gains helped all of the major averages blast higher, and the benchmark S&P 500 Index is perched at its best level in more than five years.

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PICTURED 1: The Nasdaq Composite Index is perched -1.3% off its 9/21/12 high. Many have noted the weakness in the tech sector due to leader Apple Inc (AAPL) which has created a drag lately on the tech-heavy index. We suggest members take time to revisit the prior coverage CANSLIM.net published on the much-talked-about company including - "Ken's Mailbag Q&A 4/26/12 - Why is Apple Inc (AAPL) not on the Featured Stocks list?" On Thursday, April 26, 2012 we answered this question from a member concerning the very popular tech stock, explaining why it was not highlighted in a favorable manner due to concerns with respect to the fact-based system's guidelines. 

As illustrated by the annotated graph below, the company's fundamentals have deteriorated further since it was last noted in the mid-day report on 10/8/2012 11:54 AM - "Violated its 50-day moving average (DMA) line and closed near the session low with a loss on above average volume on the prior session, then it gapped down today suffering more damage while slumping under its April highs. Noted in the 9/27/12 mid-day report - 'Encountered distributional pressure this week, retreating from its all-time high. Reported earnings +20% on +23% sales for the Jun '12 quarter, sequentially decelerating and below the +25% minimum earnings guideline of the fact-based system. Companies currently on the 'Featured Stocks' list are the most ideal candidates fitting the fact-based investment system's guidelines before becoming too heavily owned by the institutional crowd.'" 

PICTURED 2: Apple Inc (AAPL) is now -36% off its 52-week high and slumping deep below its 50-day and 200-day moving average (DMA) lines which recently converged. It has a great deal of influence on the tech-heavy Nasdaq Composite Index due to its heavy weighting as a percentage of the index.

The Retail Index ($RLX -1.01%) pulled back and created a drag on the major averages on Monday. Defensive shares also drifted lower as the Gold & Silver Index ($XAU -1.07%) and Healthcare Index ($HMO -0.55%) also lost ground. Financial shares were mixed as the Bank Index ($BKX -0.42%) edged lower and the Broker/Dealer Index ($XBD +0.34%) posted a small gain. The tech sector saw modest weakness in the Internet Index ($IIX -0.61%) and the Biotechnology Index ($BTK -0.29%), meanwhile the Networking Index ($NWX -0.06%) ended flat and the Semiconductor Index ($SOX +0.17%) posted a small gain.  The Integrated Oil Index ($XOI +0.18%) and Oil Services Index ($OSX +0.54%) edged higher as energy-related shares had a slightly positive bias.

Charts courtesy www.stockcharts.com

PICTURED: The 3-year chart of the Bank Index ($BKX -0.42%) above shows the influential index approaching 2-year highs.

Prior articles reminded members that in the Certification they teach a tactic called "pyramiding" that allows investors to let the market action dictate how heavily they position themselves in fresh buy candidates.  The wedging action of late is not as bullish as a solid burst of volume behind gains into new high territory would be, meanwhile, investors employing the pyramiding technique may have accumulated positions.

Quarterly earnings increases (C criteria) have been strong and well above the +25% guideline. A downturn in FY '07 and '08 earnings (A criteria) has been followed by a strong earnings rebound in recent years. The number of top-rated funds owning its shares rose from 818 in Mar '12 in to 899 in Dec '12, a reassuring trend concerning the I criteria. Its current Up/Down Volume Ratio of 1.9 is also an unbiased indication that its shares have been under accumulation over the past 50 days. Although it is of some concern that the Medical - Ethical Drugs group's Relative Strength rating is weak, there have been a couple of strong performers in the group which offer reassuring signs concerning the L criteria.

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
CELG - NASDAQ Celgene Corp DRUGS - Drug Manufacturers - Major	$98.95	-0.81 -0.81%	$99.43	3,130,948 85.14% of 50 DAV 50 DAV is 3,677,500	$100.12 -1.17%	12/11/2012	$82.24	PP = $81.34
								MB = $85.41
Most Recent Note - 1/24/2013 2:59:35 PM G - Hovering in a tight range near its all-time high, very extended from its prior base. See the recent Featured Stock Update (FSU) analysis for the latest annotated graph and more details under the headline, "Rule Suggests Letting Explosive Winners Have Time For Greater Gains - Thursday, January 17, 2013 ". >>> The latest Featured Stock Update with an annotated graph appeared on 1/17/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
CFNL - NASDAQ Cardinal Financial Corp BANKING - Regional - Southeast Banks	$16.35	+0.34 2.12%	$16.36	206,393 92.26% of 50 DAV 50 DAV is 223,700	$16.90 -3.25%	12/3/2012	$15.20	PP = $16.31
								MB = $17.13
Most Recent Note - 1/24/2013 3:04:06 PM Y - Found support at its 50 DMA line recently. That important short-term average acted as support throughout its ongoing ascent. Subsequent losses leading to a damaging violation and a slump below the recent low ($15.74 on 1/18/13) would raise concerns and trigger technical sell signals. >>> The latest Featured Stock Update with an annotated graph appeared on 1/15/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
CMCSA - NASDAQ Comcast Corp Cl A MEDIA - CATV Systems	$39.57	-0.19 -0.48%	$39.91	9,767,412 87.37% of 50 DAV 50 DAV is 11,178,900	$40.28 -1.76%	12/3/2012	$37.08	PP = $38.06
								MB = $39.96
Most Recent Note - 1/24/2013 3:05:36 PM Y - Color code is changed to yellow while quietly consolidating just under its "max buy" level. Perched near its 52-week high with no resistance remaining due to overhead supply. Prior highs in the $38 area define initial support to watch on pullbacks. >>> The latest Featured Stock Update with an annotated graph appeared on 1/11/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
KORS - NYSE Michael Kors Hldgs Ltd RETAIL - Apparel Stores	$57.75	-0.33 -0.57%	$60.00	5,135,101 139.54% of 50 DAV 50 DAV is 3,679,900	$58.62 -1.48%	1/23/2013	$54.98	PP = $58.72
								MB = $61.66
Most Recent Note - 1/28/2013 12:14:10 PM Y - Touched a new 52-week high today but reversed into the red. Recently tallied gains with ever-increasing volume as it approached its 52-week high and pivot point. Disciplined investors may watch for volume-driven gains above the pivot point to trigger a proper technical buy signal before taking action. See the latest FSU analysis under the headline, "High-Ranked Luxury Apparel Firm Worthy For Watchlist - Wednesday, January 23, 2013", for more details and an annotated weekly graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/23/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
MIDD - NASDAQ Middleby Corp MANUFACTURING - Diversified Machinery	$141.58	-0.42 -0.30%	$144.70	123,860 144.19% of 50 DAV 50 DAV is 85,900	$143.18 -1.12%	10/8/2012	$118.46	PP = $122.67
								MB = $128.80
Most Recent Note - 1/25/2013 4:16:32 PM G - Rallied for a 6th consecutive gain today and further into new all-time high territory. Prior mid-day reports noted - "Disciplined investors may watch closely for sell signals if holding it and giving it a chance to produce more climactic gains. Its 50-day moving average (DMA) line defines near-term chart support to watch where any violation would trigger a technical sell signal." Earnings +23% on +18% sales for the Sep '12 quarter, below the +25% minimum earnings guideline (C criteria), raised concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 1/14/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | 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
N - NYSE Netsuite Inc DIVERSIFIED SERVICES - Business/Management Services	$70.54	-0.02 -0.03%	$71.51	165,243 47.05% of 50 DAV 50 DAV is 351,200	$70.80 -0.37%	12/12/2012	$64.75	PP = $67.12
								MB = $70.48
Most Recent Note - 1/25/2013 4:18:10 PM G - Gain today lifted it above its "max buy" level and its color code is changed to green. Recent gains above its pivot point were marked by sub par volume, still leaving questions concerning the level of institutional buying demand lurking. >>> The latest Featured Stock Update with an annotated graph appeared on 1/18/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
NP - NYSE Neenah Paper Inc CONSUMER NON-DURABLES - Paper and Paper Products	$31.01	-0.65 -2.05%	$31.66	112,292 152.78% of 50 DAV 50 DAV is 73,500	$32.57 -4.79%	1/25/2013	$31.80	PP = $31.76
								MB = $33.35
Most Recent Note - 1/25/2013 6:49:34 PM Y - Its "negative reversal" for a loss on heavy volume after hitting a new 52-week high today was noted as is a worrisome sign of distributional pressure. It was highlighted in yellow with pivot point cited based on its 3/19/12 high plus 10 cents in the mid-day report while noted - "A strong close above its pivot point backed by at least +40% above average volume may clinch a technical buy signal. Recent gains lacked great volume conviction while wedging above previously stubborn resistance in the $31 area. Quarterly earnings increases above the +25% guideline satisfy the C criteria. Annual earnings (A criteria) have been improving steadily after a worrisome downturn in FY '08. Its small supply of 15.9 million shares could contribute to greater price volatility." See the latest FSU analysis for more details and annotated daily and weekly graphs. >>> The latest Featured Stock Update with an annotated graph appeared on 1/25/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
NSR - NYSE Neustar Inc TELECOMMUNICATIONS - Diversified Communication Serv	$44.68	+0.42 0.95%	$44.77	240,422 59.45% of 50 DAV 50 DAV is 404,400	$45.49 -1.78%	12/11/2012	$41.85	PP = $41.41
								MB = $43.48
Most Recent Note - 1/24/2013 2:55:30 PM G - Volume totals have been cooling while consolidating well above its 50 DMA line defining chart support to watch. After hitting a new 52-week high on 1/17/13 there was a worrisome "negative reversal". >>> The latest Featured Stock Update with an annotated graph appeared on 1/16/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
RAX - NYSE Rackspace Hosting Inc INTERNET - Internet Software and; Services	$78.40	-0.53 -0.67%	$79.95	701,721 61.40% of 50 DAV 50 DAV is 1,142,800	$81.36 -3.64%	12/18/2012	$71.88	PP = $70.10
								MB = $73.61
Most Recent Note - 1/24/2013 1:57:26 PM G - Powering to a new all-time high today with above average volume behind a considerable gain. It is extended from the previously noted base. Company will announce its fourth quarter 2012 financial results on Tuesday, February 12, 2013 after the close. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/22/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
RNF - NYSE Rentech Nitrogen Ptnr Lp CHEMICALS - Agricultural Chemicals	$46.72	+1.35 2.98%	$47.05	431,900 134.42% of 50 DAV 50 DAV is 321,300	$48.19 -3.05%	11/1/2012	$39.11	PP = $40.15
								MB = $42.16
Most Recent Note - 1/24/2013 6:43:36 PM G - Encountering more distributional pressure today with higher volume behind its loss. Prior highs in the $40 area define near-term support to watch. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/24/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | 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
VRX - NYSE Valeant Pharmaceuticals DRUGS - Drug Manufacturers - Other	$65.55	-0.09 -0.14%	$65.94	818,236 53.83% of 50 DAV 50 DAV is 1,520,100	$65.69 -0.21%	12/20/2012	$60.24	PP = $61.21
								MB = $64.27
Most Recent Note - 1/24/2013 5:58:48 PM G - It is extended from a sound base and posted another small gain today, rallying further above its "max buy" level without great volume conviction. >>> The latest Featured Stock Update with an annotated graph appeared on 1/28/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M