Stocks rallied across the globe as the dollar fell and the Dubai World concerns continued to ease. As the major indices rose, volume was lighter than Monday's total reported on the NYSE, yet the volume total was reported higher on the Nasdaq exchange.  Advancers trumped decliners by almost a 4-to-1 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. There were 45 high-ranked companies from the CANSLIM.net Leaders List making a new 52-week high and appearing on the CANSLIM.net BreakOuts Page, more than triple the total of 13 issues that appeared on the prior session. Leadership among high-ranked growth stocks had dried up in recent weeks, so the expansion in new highs was a welcome improvement.  New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Stocks closed higher on the first trading day of the month as news spread that Dubai World entered talks to restructure nearly half its debt. Dubai World is trying to restructure $26 billion as a deadline for repayment nears. Last week, news broke that Dubai World might default on its debt and rattled capital markets around the globe. Currently, the financial world has lost over $1.7 trillion since the credit crisis began in 2007. If Dubai World defaults it will be the latest high profile default to hurt investors' psyche.

Elsewhere, HSBC said its index, which measures China’s manufacturing, rose in November and echoed the Institute for Supply Management (ISM)'s manufacturing index. The ISM said US manufacturing rose in November for a fourth consecutive month which is a healthy data point for the global recovery. Chinese manufacturing experienced its largest increase in five years as the global economy continues "recovering." The National Association of Realtors said the number of contracts to buy previously owned homes in the US unexpectedly rose +3.7% in October.

The weaker dollar sent stocks and a slew of commodities higher on Tuesday. Gold rallied for the 11th time in 12 sessions and hit a fresh all time high above $1,200 an ounce as investors continue buying the yellow metal. Gold stocks have benefited handsomely from gold's impressive rise in recent months, and the group of gold miners/producers continues to be an area of strength in this market. Other leadership can be found in Chinese stocks and large cap US technology names. 

PICTURED: The Dow Jones Industrial Average enjoyed a fresh 2009 high close on Tuesday!

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX +3.06%) gapped and rallied above its 50-day moving average (DMA) line, leading the tech sector's widespread gains.

Ctrip.com International (CTRP +$2.20 or +3.00% to $21.51) gapped up today and was highlighted in yellow in the mid-day report (read here) as it hit a new all-time high. It triggered a technical buy signal as it rose with more than +50% above average volume from a brief consolidation resembling a "high-tight-flag" pattern, an advanced chart pattern which it formed after repairing a late-October breach of its 50-day moving average (DMA) line and sprinting higher. Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

The stock's last appearance in this section was actually a follow-up study on 12/29/08 that included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 112 in Dec '09, which helps satisfy the I criteria.

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.