The tech-heavy Nasdaq Composite posted a 7th consecutive gain and closed at a new 2009 high. The S&P 500 Index and the Dow Jones Industrial Average also posted their fourth straight gains, however lighter volume totals on the NYSE and Nasdaq revealed a lack of great institutional conviction behind Thursday's gains. Advancers led decliners by about a 2-to-1 ratio overall, yet the bias was more positive on the NYSE than on the Nasdaq. There were 28 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up nicely from the 20 issues that appeared on the prior session.

PICTURED: The Nasdaq Composite Index's 7-session winning streak is a feat that hadn't been made in more than one year.  It closed the session near its high after climbing to a new 2009 high with a gain on lighter volume.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +3.02%) was a standout gainer on Thursday.  A study published in the New England Journal of Medicine Thursday showed that Human Genome Sciences Inc. (HGSI +21.82%) anthrax treatment candidate ABthrax was effective in studies on animals, however the company's quarter ended March 31, 2009 was only its first profitable quarter after years of ongoing losses.  Historic studies show that the market's biggest winners typically had produced several strong quarters and a few good years of solid earnings prior to the stocks making their big advances.

Green Mountain Coffee Roasters (GMCR +$0.08 to $60.67) recently found support when consolidating above its 50-day moving average (DMA) line.  A violation of it and the recent chart low ($51.65) would raise concerns and trigger technical sell signals. Losses negated its latest breakout from a "high-tight flag" type pattern. It barely claimed its all-time high with a small gain on light volume as its 3:2 stock split took effect on 6/09/09, then subsequently slumped back into its prior base before finding support at its short-term average and rebounding.  Do not be confused by the effect of the split on share prices, GMCR traded up an astonishing +144% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News (read here).

Taking a closer look at the annotated chart below that shows its action since January, a breakout on February 3rd helped it reach $28.59, but then it struggled and slumped into its prior base. At best, it built a sort of base-on-base type pattern, and it was not until mid-March that it made progress above $29 and $30, with the confirmation of a follow-through-day of big gains on higher volume from the major averages as an important reasurrance concerning the M criteria (market direction).  Its big gap up on April 30th followed a short consolidation.  The stock's latest appearance in this Featured Stock Update section came under the headline "Consolidating Above 50 DMA; Late-Stage Breakout Failed" (read here).  Some have called it just a "second stage" base and questioned the characterization of GMCR as "late stage", however it is worth noting that the stock is currently trading more than +70% above its 200 DMA line.  In the Certification program, they teach that when a stock is trading 70-100% or more above its 200 DMA line investors should probably not be looking for buy signals or reasons to hold, they shoud be watching out for sell signals which might prompt them to lock in profits! 

Strong leaders tend to keep on leading, so this is not to say that another sound base might not form in due time.  Investors must be especially disciplined about their entries after a stock has rallied from the low $20 range to $60 in about 4 months, and always disciplined about limiting losses if a stock ever falls more than -7% from their buy price.

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.