Disciplined fans of this fact-based system would prefer to see a decisive "confirmation day" rather than rely upon a half-hearted day of gains as their sign of renewed institutional buying demand. So, the newspaper surprised more than one analyst by calling the prior session a follow-through day (FTD). Regular readers of this commentary may note that Wednesday's session was not recognized as a proper follow-through day (FTD). Normally a far bigger gain from at least one of the major indices is expected, however the major averages had each gained less than +1% as they advanced further above their respective 50-day moving average (DMA) lines with higher (but still below average) volume. 

Time will tell if stocks can manage a sustained advance or not.  The best course of action for now may be for investors to let the activity in individual issues guide their decision making. Risk can be best managed by making sure that any new buying efforts are limited to high-ranked stocks breaking out of sound base patterns, not chased more than +5% above prior chart highs. Disciplined investors also know to manage risk by selling if a stock falls more than 7% from their purchase price to prevent the opportunity for small losses to become larger and potentially devastating setbacks.

JP Morgan Chase & Co (JPM -4.82%) issued a cautious outlook and reported profits fell less than expected compared to a year ago. Trading results were modestly worse than anticipated, and the bank's provision for loan losses was higher than forecast. Comments from the European Central Bank also weighed on the financial sector. The ECB said forcing investors to take losses in bailouts is a risk to financial stability and would have “direct negative effects” on the banking sector. The euro lost ground against most major peers, and costs to insure against default on European sovereign bonds rose.

Yahoo! Inc (YHOO +1.01%) edged higher on reports two private equity firms are preparing bids. Research in Motion Ltd (RIMM -1.13%) fell even after the company said it restored data service to its BlackBerry smartphones on the fourth day after disruptions began.  PetsMart Inc (PETM +1.86%) rose after the retailer raised its full-year earnings forecast for the second time in two months.

U.S. exporters may be active after Congress approved free-trade agreements with South Korea, Colombia and Panama. A Commerce Department report released this morning showed the U.S. trade deficit increased about 2% to $45.6 billion in August as the global economy cooled, prompting American companies to ship fewer goods abroad. Initial jobless claims fell 1,000 to 404,000 in the latest week, in line with expectations.

The market environment (M criteria) is now considered to be back in a "confirmed uptrend" following a heavy wave of distributional action that pushed the benchmark S&P 500 Index beyond the -20% Bear Market threshold. 

The October 2011 issue of our monthly newsletter CANSLIM.net News will be published soon.  The Q3 2011 Webcast (aired on September 28th) is now available "ON DEMAND" - (CLICK HERE) It provides an informative review of current market conditions, leading groups, and best buy candidates.  All upgraded members are eligible to access the webcast presentation at no additional cost!  Via the Premium Member Homepage links to all prior reports and webcasts are always available.

PICTURED: The S&P 500 Index's gain of +0.98% with higher but below average volume on 10/12/11 was termed a "follow-through day" on Day 7 of the latest rally attempt.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX +2.01%) led the tech sector higher on Thursday, approaching recent resistance after 7 gains in the span of 8 sessions.

When the number of stocks included on the Featured Stocks page is low, and those currently listed have all received recent analysis in this FSU section, we occasionally go back to revisit a previously featured stock that was dropped. Today we will have another look at a stock that was dropped from the Featured Stocks list back on 5/10/11. OPEN sank as much as -58.8% lower in less than 5 months after it was dropped from the Featured Stocks list. That serves as a reminder that losses should always be limited by selling if ever any stock falls more than -7% from your purchase price.  That is Rule #1 in the fact-based investment system CANSLIM.net supports.

Opentable Inc. (OPEN $51.65) was dropped from Featured Stocks list on 5/10/11 shortly after a noted technical breakdown. Regardless of all other criteria, technical action should always dictate investors' buying and selling decisions. The chart below illustrates how its 50-day moving average (DMA) line later acted as a resistance level while the stock subsequently slumped -58.8% in less than 5 months. The C criteria is still solidly satisfied as earnings and sales revenues increases have been strong in its latest quarterly comparisons versus the year ago period.  The number of top-rated funds owning shares rose from 326 in Dec '10 to 370 in Sep '11, a very reassuring sign concerning the I criteria. Favorable criteria today does little to ease the pain for investors who may have decided to hang in there following the decisive technical breakdown that was noted. Overhead supply is now a source of great resistance if the stock can find the means to rebound.  Meanwhile, any fundamental disappointment could hurt its chances of ever making a full recovery.

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
AAPL - NASDAQ Apple Inc COMPUTER HARDWARE - Personal Computers	$408.43	+6.24 1.55%	$408.43	15,167,739 65.19% of 50 DAV 50 DAV is 23,268,000	$422.86 -3.41%	9/16/2011	$399.14	PP = $404.60
								MB = $424.83
Most Recent Note - 10/11/2011 5:57:29 PM G - Rallied further above its 50 DMA line with near average volume today but it has not formed a sound base pattern. Found support at its longer-term 200 DMA line again last week. >>> The latest Featured Stock Update with an annotated graph appeared on 10/6/2011. 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
ALXN - NASDAQ Alexion Pharmaceuticals DRUGS - Drug Manufacturers - Other	$67.38	+1.41 2.14%	$67.98	1,182,542 69.39% of 50 DAV 50 DAV is 1,704,200	$70.20 -4.02%	9/15/2011	$63.20	PP = $60.81
								MB = $63.85
Most Recent Note - 10/12/2011 5:36:19 PM G - Pulled back today on slightly higher volume after reaching a new all-time high with a quiet gain on the prior session. This high-ranked Medical - Biomed/Biotech group leader is extended from its prior base. Support to watch includes prior resistance in the $59-60 area and its upwardly tilted 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 10/5/2011. 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
CELG - NASDAQ Celgene Corp DRUGS - Drug Manufacturers - Major	$66.36	+0.91 1.39%	$66.79	2,397,264 54.79% of 50 DAV 50 DAV is 4,375,100	$66.98 -0.93%	9/16/2011	$61.21	PP = $62.59
								MB = $65.72
Most Recent Note - 10/11/2011 6:03:04 PM G - Up today with light volume. No resistance remains due to overhead supply after a 10/10/11 gap up and rally to a new 52-week high. Color code was changed to green after getting extended from its prior base. >>> The latest Featured Stock Update with an annotated graph appeared on 10/4/2011. 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
MG - NYSE Mistras Group Inc DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services	$22.10	+1.62 7.91%	$22.20	354,732 150.63% of 50 DAV 50 DAV is 235,500	$21.18 4.34%	8/10/2011	$17.89	PP = $17.58
								MB = $18.46
Most Recent Note - 10/13/2011 12:53:59 PM G - No resistance remains due to overhead supply and it hit new 52-week and all-time highs with today's considerable gain. Recently reported earnings +83% on +34% sales revenues for the quarter ended August 31, 2011 versus the year ago period. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 10/12/2011. 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
OPNT - NASDAQ Opnet Technologies INTERNET - Internet Software and Services	$37.68	+0.38 1.02%	$38.33	127,850 71.75% of 50 DAV 50 DAV is 178,200	$42.51 -11.36%	10/11/2011	$38.45	PP = $42.02
								MB = $44.12
Most Recent Note - 10/12/2011 5:45:24 PM Y - Finished with a small loss on lighter volume today after encountering distributional pressure on the prior session. See the latest FSU analysis for more details and an annotated weekly graph. >>> The latest Featured Stock Update with an annotated graph appeared on 10/11/2011. 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
V - NYSE Visa Inc Cl A DIVERSIFIED SERVICES - Business/Management Services	$92.60	+1.43 1.57%	$92.93	3,298,226 52.15% of 50 DAV 50 DAV is 6,324,300	$94.75 -2.27%	9/20/2011	$93.91	PP = $90.93
								MB = $95.48
Most Recent Note - 10/12/2011 5:46:13 PM G - Up again today for a 3rd consecutive gain with lighter than average volume while rebounding further above its 50 DMA line. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 10/10/2011. 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