The major averages collectively rallied for their 5th consecutive gains on Thursday. The Dow Jones Industrial Average, S&P 500 Index, and the Nasdaq Composite Index ended near their session highs and unanimously marked fresh 2009 highs. Advancers trumped decliners by a 3-to-1 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. Volume totals above average were a welcome sign while compared to the prior session volume was reported higher on the NYSE and very near the prior session total on the Nasdaq exchange.  There were 33 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down slightly from the 36 issues that appeared on the prior session. New 52-week highs still outnumbered new 52-week lows on both exchanges while new lows were in the single digits yet again.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX +3.37%) has rallied +110.6% from its March 2009 low.

Green Mountain Coffee Roasters (GMCR +$0.20 or +0.34% to $59.62) has been hovering in a tight trading range for the past 4 weeks under its 50-day moving average (DMA) line with volume drying up. As previously noted, "a violation of its prior chart low ($54.32 on 8/18/09) would complete a bearish 'head-and-shoulders' pattern and may trigger more worrisome technical sell signals." It last appearance in this FSU section on 8/26/09 (read here) came under the headline, "Coffee Stock Cooling Off Since Share Offering Recently Completed", which described some current concerns that have arisen since GMCR traded up more than +168% 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).

After a stock slumps under its 50 DMA line its outlook becomes increasingly questionable the longer it stays trading under its 50 DMA line. That important short-term average can be a source of near-term technical resistance, so for its outlook to improve, GMCR now needs to produce gains to get back above it.  Meanwhile, the next support is at prior chart lows in the $54-53 area, where violations would trigger additional sell signals and raise more serious concerns. As previously noted, "Its gap down and considerable loss on 8/17/09 on heavy volume triggered technical sell signals."

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.