The major averages closed mixed and little changed while the volume totals were lighter than Tuesday's levels. Advancers and decliners were evenly mixed on both exchanges. There were 36 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 48 issues that appeared on the prior session. New 52-week highs still outnumbered new 52-week lows on both exchanges.

Overnight the US dollar advanced, which put pressure on a slew of stocks and commodities. Gold remained strong as it hit another fresh all-time high overnight at $1,049.70 per ounce.  The direction of the US dollar continues to play a pivotal role in global capital markets. Stocks and commodities, which are priced in dollars, continue to rally when dollar denominated assets become more attractive to foreign investors. In our new age of financial and economic interdependence it is very important to pay attention to other markets to fully understand what happens at home.

A flurry of homebuilders and other real-estate firms slid as speculation spread that Congress will not extend a tax credit for first-time home buyers. Deutsche Bank AG (DB +0.67%) released a report which said housing stocks will likely drop if Congress does not extend the $8,000 tax credit employed after the housing meltdown in recent years. Alcoa (AA +2.23%) officially kicked off the third quarter earnings season when they reported a Q3 profit of $77 million. Analysts believe that this earnings season will mark the ninth consecutive quarterly decline in corporate profits as the economy begins showing signs of a recovery. Now that earnings season has officially begun, it is imperative to watch how your stocks react to their Q3 results. Remember, if a stock ever drops more than -8% below your purchase price the investment system's rules say to quickly sell it before the loss gets out of control. 

PICTURED: The Nasdaq Composite Index's near-term trading range is narrowing. It recently found support near its 50-day moving average (DMA) line. An upward trendline now connects three prior chart lows, making it a meaningful uptrend worth watching.

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Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +1.16%) recently bounced at its 50-day moving average line and other chart support at recent lows coinciding with an earlier resistance level.

Baidu.com, Inc. (BIDU +$12.80 or +3.09% to $413.80) blasted to a new 2009 today with a second consecutive gain on above average volume, action indicative of more institutional buying demand (the I criteria). Its latest consolidation was too short to be considered a new sound base pattern, however. The number of top-rated funds owning its shares rose from 112 in Sept '08 to 156 in Jun '09, clear evidence its shares were being accumulated. When last reviewed in this FSU section on 9/21/09 under the headline "Baidu's Bullish Gains Viewed On Weekly Graph" it was noted for having gotten too extended from its latest sound base, and for being, "difficult to impossible for disciplined investors to buy properly within the investment system's guidelines."  General market weakness and some moderate distributional pressure afterward led to a pullback that tested support at prior chart highs, however, offering investors a more ideal opportunity to accumulate shares in the high-ranked Internet - Content firm without chasing it more than +5% above its pivot point.

Its pullback raised some concerns which were noted, while its color code was changed to yellow on 10/01/09 and remained so in its 10/02/09 and 10/05/09 report appearances. The color code is not a recommendation, and it does not work like a traffic light!  It is an indication that a Featured Stock is considered by CANSLIM.net's investment system experts to be among the "better buy candidates" if yellow, or "no longer buyable under the guidelines" if green. When you use the "view all notes" links to review prior analysis on any given stock, the Y or G designations at the front of the notes allow members to quickly determine what shape that Featured Stock was in at the time the note was entered.  Once a stock is noted and dropped from the Featured Stocks list it is no longer color coded, unless it meets the criteria and is featured again later. In its previous FSU appearance we described extensive prior coverage BIDU has received (read here).

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.