The major averages closed near five-year highs amid a batch of encouraging profit tallies. Overseas economic data added to the positive tone. China’s services industries expanded in January at the fastest pace in four months and a survey of euro zone business optimism advanced to a 10-month high.

All sectors were higher led by gains in technology. Dell Inc (DELL +1.33%) rose after agreeing to be taken private in the largest leveraged buyout in over five years. Computer Sciences Corp (CSC +9.16%) led S&P 500 gainers after boosting its full-year profit forecast. Apple Inc (AAPL +3.51%) also helped lift the market. Financials and health care were also notable performers as Bank of America Corp (BAC +3.48%) and Pfizer Inc (PFE +1.25%) rose. Shares of The McGraw-Hill Companies Inc (MHP -10.70%) faced more pressure after the Department of Justice filed a civil suit against the company's Standard & Poor's unit related to its mortgage bond ratings prior to the 2007 financial crisis. YUM! Brands Inc (YUM -2.91%) fell after its earnings release.

Earnings results remained in focus after the closing bell with The Walt Disney Co (DIS +0.72%), Chipotle Mexican Grill Inc (CMG -1.67%), Panera Bread Co (PNRA -0.26%) and Zynga Inc (ZNGA +7.03%) all reporting.

In fixed-income, Treasury prices were lower as the 10-year note lost 13/32 to yield 2.00%.

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: The Nasdaq Composite Index is perched -0.8% off its 2012 high now.

Gains from the Retail Index ($RLX +1.43%) and financial indexes were positive influences on the major averages as the Broker/Dealer Index ($XBD +1.39%) and the Bank Index ($BKX +1.55%) rallied higher.  The Healthcare Index ($HMO +2.38%) was a standout gainer.  The tech sector was strong with unanimous gains from the Semiconductor Index ($SOX +1.57%), Biotechnology Index ($BTK +1.43%), Networking Index ($NWX +1.26%), and the Internet Index ($IIX +0.84%). Meanwhile, commodity-linked groups were little changed as the Gold & Silver Index ($XAU -0.03%) finished flat, and the Integrated Oil Index ($XOI +0.31%) posted a small gain while the Oil Services Index ($OSX -0.27%) edged lower.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +1.43%) is perched at multi-year highs after a strong rally to start 2013.

Netsuite Inc (N +$1.23 or +1.83% to $68.46) posted a gain today with above average volume after slumping toward its 50-day moving average (DMA) line, and it finished the session -9.6% off its 52-week high. There was a worrisome "negative reversal" noted on 2/01/13 after gapping up for a new 52-week high as the mid-day report cautioned - "Reported earnings +20% on +33% sales revenues for the Dec '12 quarter, below the +25% minimum earnings guideline (C criteria) raising fundamental concerns." 

Netsuite was last shown in this FSU section on 1/18/13 with an annotated graph under the headline, "Encountering Mild Distributional Pressure". It held its ground and on 1/31/2013 a gain with +48% above average volume lifted it near its "max buy" level and gave investors a reassuring hint that institutional buying demand was lurking. However, after the disappointing earnings news, the negative reversal and high volume with lack of meaningful price progress was a sign that it encountered more serious distributional pressure.

Most of the recent gains above its pivot point were marked by below average volume, and it was observed - "That kind of action is technically termed 'wedging' and it does not have the look of hearty buying demand coming from the institutional crowd.  Disciplined investors know that volume must be at least +40% above average behind gains above the pivot point to trigger a proper technical buy signal. Without heavy volume behind a stock's breakout investors have little reason to believe sufficient buying demand is lurking to allow for it to make a meaningful and sustained advance in price."

Netsuite Inc was highlighted in yellow in the 12/12/12 mid-day report with a pivot point cited based on its 10/26/12 high plus 10 cents (read here). The high-ranked Computer Software -Enterprise firm had reported earnings increases above the +25% minimum earnings guideline (C criteria) in the 5 prior quarterly comparisons. Its annual earnings (A criteria) history improved from losses prior to FY '09. The number of top-rated funds owning its shares rose from 201 in Jun '11 to 303 in Dec '12, a reassuring sign concerning the I criteria. The Computer Software -Enterprise group has a Group Relative Strength Rating of B, a somewhat reassuring sign concerning the L criteria.

Disciplined investors watch out when fundamental flaws develop, and they always limit losses by selling if any stock falls more than -7% from the purchase price, if not selling sooner. Following strict selling rules is what keeps an investor from letting a small loss become a more devastating loss.

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	$99.76	+1.17 1.19%	$100.10	2,717,198 74.05% of 50 DAV 50 DAV is 3,669,600	$102.29 -2.47%	12/11/2012	$82.24	PP = $81.34
								MB = $85.41
Most Recent Note - 2/4/2013 6:19:32 PM G - Perched near its all-time high, very extended from its prior base. See latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 2/4/2013. 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	$16.42	+0.35 2.18%	$16.50	139,776 63.88% of 50 DAV 50 DAV is 218,800	$16.90 -2.84%	12/3/2012	$15.20	PP = $16.31
								MB = $17.13
Most Recent Note - 2/5/2013 3:49:27 PM Y - Rebounding today with below average volume while rising back above its pivot point and still consolidating just above its 50 DMA line defining important near-term support. 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 1/31/2013. 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	$39.24	+1.05 2.75%	$39.48	16,350,839 141.02% of 50 DAV 50 DAV is 11,595,100	$40.28 -2.58%	12/3/2012	$37.08	PP = $38.06
								MB = $39.96
Most Recent Note - 2/5/2013 3:39:08 PM Y - Rallying up from support near prior highs and its 50 DMA line with a solid volume-driven gain today. A subsequent violation of the latest low ($37.81 on 2/04/13) would trigger a technical sell signal. >>> The latest Featured Stock Update with an annotated graph appeared on 1/29/2013. 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	$55.38	+0.47 0.86%	$55.90	7,641,982 225.33% of 50 DAV 50 DAV is 3,391,400	$60.00 -7.70%	1/23/2013	$54.98	PP = $58.72
								MB = $61.66
Most Recent Note - 2/5/2013 3:54:39 PM Y - Managed an impressive "positive reversal" with a gain on heavy volume after a weak start today that tested support at its 50 DMA line following 6 consecutive losses. It slumped since a noted "negative reversal" after touching a new 52-week high on 1/28/13, and it was previously noted with caution - "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	$147.52	+4.91 3.44%	$148.40	170,942 193.59% of 50 DAV 50 DAV is 88,300	$146.46 0.72%	10/8/2012	$118.46	PP = $122.67
								MB = $128.80
Most Recent Note - 2/5/2013 3:36:13 PM G - Volume is above average while rallying and hitting another new all-time high today, getting even more extended from any sound base. Prior highs and its 50 DMA line define important near-term chart support in the $132-134 area. >>> The latest Featured Stock Update with an annotated graph appeared on 1/30/2013. 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	$68.46	+1.23 1.83%	$68.70	481,969 132.88% of 50 DAV 50 DAV is 362,700	$75.75 -9.62%	12/12/2012	$64.75	PP = $67.12
								MB = $70.48
Most Recent Note - 2/5/2013 5:48:32 PM G - Posted a gain today after slumping toward its 50 DMA line. Following a worrisome "negative reversal" on 2/01/13 after initially gapping up for a new 52-week high, the mid-day report cautioned - "Reported earnings +20% on +33% sales revenues for the Dec '12 quarter, below the +25% minimum earnings guideline (C criteria) raising fundamental concerns." See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 2/5/2013. 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	$30.44	-0.39 -1.27%	$31.15	86,622 112.06% of 50 DAV 50 DAV is 77,300	$32.57 -6.54%	1/25/2013	$31.80	PP = $31.76
								MB = $33.35
Most Recent Note - 2/4/2013 6:39:09 PM Y - Remains below its pivot point today, consolidating following a spurt of volume-driven losses. A "negative reversal" for a loss on heavy volume after hitting a new 52-week high on 1/25/13 was noted as a worrisome sign of distributional pressure as it failed to finish strong and did not clinch a technical buy signal. >>> 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	$45.00	+0.04 0.09%	$45.65	562,918 132.45% of 50 DAV 50 DAV is 425,000	$46.49 -3.20%	12/11/2012	$41.85	PP = $41.41
								MB = $43.48
Most Recent Note - 2/5/2013 3:42:48 PM G - Holding its ground today after another worrisome "negative reversal" on the prior session, finishing with a volume-driven loss after early gains touching another new 52-week high. Extended from its prior base. Its 50 DMA line defines near-term support above its prior base.. >>> The latest Featured Stock Update with an annotated graph appeared on 2/1/2013. 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	$75.64	+0.71 0.95%	$76.05	1,432,919 125.35% of 50 DAV 50 DAV is 1,143,100	$81.36 -7.03%	12/18/2012	$71.88	PP = $70.10
								MB = $73.61
Most Recent Note - 2/5/2013 3:43:54 PM G - Still consolidating above important support at its 50 DMA line, tallying another small gain today on slightly above average volume. Recently noted with caution - "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." >>> 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	$47.73	+0.08 0.17%	$48.40	525,346 172.70% of 50 DAV 50 DAV is 304,200	$49.18 -2.95%	11/1/2012	$39.11	PP = $40.15
								MB = $42.16
Most Recent Note - 2/5/2013 3:47:45 PM G - Retreating from its 52-week high today with its 2nd loss on above average volume in the span of 3 sessions, a sign it is encountering more distributional pressure. Previously noted - "Extended from its prior base. Prior highs and 50 DMA line coincide near $41 defining important chart support to watch on pullbacks." >>> 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	$66.64	+0.23 0.35%	$67.30	1,030,862 67.10% of 50 DAV 50 DAV is 1,536,400	$67.65 -1.49%	12/20/2012	$60.24	PP = $61.21
								MB = $64.27
Most Recent Note - 2/4/2013 6:35:07 PM G - Retreated from its 52-week high with higher (near average) volume behind today's loss. It is extended from its prior base, and its 50 DMA coincides with prior highs near $61 defining near-term chart support to watch on pullbacks. >>> 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