Stocks pared their early gains on renewed concerns over the fiscal cliff. Senate Majority Leader Harry Reid halted the rally by saying that democrats would not offer spending cuts and that a deal before Christmas was unlikely. 

The Dow Jones Industrial Average, S&P 500 Index, and the Nasdaq Composite Index have collectively rallied above their respective 50-day moving average (DMA) lines and the market direction (M criteria) remains in a "confirmed uptrend".  New buying efforts may be justified only in worthy high-ranked leaders. See the noteworthy companies included on the Featured Stocks Page.

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PICTURED: The Nasdaq Composite Index has rallied above its 50 and 200 DMA lines. This is an encouraging improvement in its technical stance and a reassuring sign that the tech sector is providing some backbone for the market's current rally.

The Semiconductor Index ($SOX +1.88%) was a standout gainer and led the tech sector higher while the Internet Index ($IIX +1.39%), Biotechnology Index ($BTK +1.25%  ), and the Networking Index ($NWX +0.84%) posted unanimous gains. Gains in the influential financial groups also helped underpin the rally as the Bank Index ($BKX +0.43%) and Broker/Dealer Index ($XBD +0.89%) posted gains.The Retail Index ($RLX -0.15%) lagged with a small loss. Defensive groups were mixed as the Gold & Silver Index ($XAU -0.29%) edged lower and the Healthcare Index ($HMO +0.23%) edged higher.  Energy-related shares had a slightly positive bias as the Oil Services Index ($OSX +0.10%) and the Integrated Oil Index ($XOI +0.39%) posted small gains while rounding out the mostly positive session.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +0.43%) rallied above its 50-day moving average (DMA) line improving its technical stance.  That is an encouraging sign for the broader market since financials are a reliable leading indicator all regular readers should recognize.

Often, when a leading stock is setting up to breakout of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report. Sometimes stocks are highlighted shortly after a technical breakout, yet while the potential buy candidate may still be considered action-worthy. The most relevant factors are noted in the report which alerts prudent CANSLIM oriented investors to place the issue in their watch list. After doing any necessary backup research, the investor is prepared to act after the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover) but before it gets too extended from a sound base. In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list. Disciplined investors know to buy as near as possible to the pivot point and avoid chasing stocks after they have rallied more than +5% above their pivot point. It is crucial to always limit losses whenever any stock heads the wrong direction, and disciplined investors sell if a struggling stock ever falls more than -7% from their purchase price.

Neustar Inc (NSR +$0.69 or +1.68% to $41.85) was highlighted in yellow with pivot point cited based on its 10/05/12 high plus 10 cents in the earlier mid-day report (read here) and its strong finish on heavy volume +172% above average clinched a technical buy signal. It hit a new 52-week high today, rising from a 10-week base during which it found support at its 200-day moving average (DMA) line. Quarterly comparisons through Sep '12 showed 3 consecutive increases of more than the +25% minimum earnings guideline (C criteria).

The number of top-rated funds owning its shares rose from 404 in Dec '11 to 422 in Sep '12, a slightly reassuring trend concerning the I criteria.  Its Return On Equity is reported at 29%, well above the 17% minimum guideline. Leadership from a couple of other high-ranked leaders in the Telecom - Infrastructure group is a reassuring sign (concerning the L criteria) although its Group Relative Strength Rating of 61 is mediocre. Its small supply of 65 million shares (S criteria) outstanding can lead to greater price volatility if the institutional crowd rushes to accumulate shares, or if they decide to leave.

Disciplined investors know to avoid chasing extended stocks more than +5% above their pivot point, and they always sell if ever any stock falls more than -7% from their purchase price to properly manage risk under the fact-based system's guidelines.

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
CELG - NASDAQ Celgene Corp DRUGS - Drug Manufacturers - Major	$82.08	+1.58 1.96%	$82.78	6,100,981 228.16% of 50 DAV 50 DAV is 2,674,000	$81.24 1.03%	12/11/2012	$82.24	PP = $81.34
								MB = $85.41
Most Recent Note - 12/11/2012 6:30:18 PM Y - Finished above its pivot point with a volume-driven gain for a new 52-week high today triggering a technical buy signal. It was highlighted in yellow with pivot point cited based on its 10/05/12 high plus 10 cents in today's mid-day report (with the annotated graph included below). Maintained a strong earnings history (C and A criteria) and rebounded impressively from a deep consolidation since dropped from the Featured Stocks list on 5/04/12. >>> The latest Featured Stock Update with an annotated graph appeared on 3/26/2012. 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
CFNL - NASDAQ Cardinal Financial Corp BANKING - Regional - Southeast Banks	$16.00	+0.23 1.46%	$16.19	335,222 172.35% of 50 DAV 50 DAV is 194,500	$16.21 -1.30%	12/3/2012	$15.20	PP = $16.31
								MB = $17.13
Most Recent Note - 12/11/2012 6:33:40 PM Y - Traded above average volume today, but the gain was not big enough to help it rally above its pivot point to trigger a proper new (or add-on) technical buy signal. >>> The latest Featured Stock Update with an annotated graph appeared on 12/10/2012. 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
CMCSA - NASDAQ Comcast Corp Cl A MEDIA - CATV Systems	$37.40	+0.15 0.40%	$37.55	11,711,188 99.56% of 50 DAV 50 DAV is 11,763,500	$37.96 -1.48%	12/3/2012	$37.08	PP = $38.06
								MB = $39.96
Most Recent Note - 12/7/2012 5:37:35 PM Y - Perched -2.5% off its 52-week high. Subsequent volume-driven gains above the pivot point may trigger a new (or add-on) technical buy signal. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 12/7/2012. 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
LKQ - NASDAQ L K Q Corp WHOLESALE - Auto Parts	$21.52	-0.03 -0.14%	$21.76	1,535,244 72.16% of 50 DAV 50 DAV is 2,127,600	$22.29 -3.43%	8/9/2012	$18.97	PP = $18.72
								MB = $19.66
Most Recent Note - 12/11/2012 6:25:18 PM G - Volume totals have been cooling while consolidating. Previously noted a worrisome "negative reversal" on 11/26/12 followed by additional losses on above average volume. Results below the +25% minimum earnings guideline (C criteria) for Sep '12 recently raised fundamental concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 11/30/2012. 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
MIDD - NASDAQ Middleby Corp MANUFACTURING - Diversified Machinery	$129.43	+2.74 2.16%	$129.98	125,369 167.83% of 50 DAV 50 DAV is 74,700	$129.99 -0.43%	10/8/2012	$118.46	PP = $122.67
								MB = $128.80
Most Recent Note - 12/11/2012 7:00:05 PM G - Color code is changed to green after a volume-driven gain today above its "max buy" level. Earnings +23% on +18% sales for the Sep '12 quarter, below the +25% minimum earnings guideline (C criteria), raised concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 12/6/2012. 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
NSR - NYSE Neustar Inc TELECOMMUNICATIONS - Diversified Communication Serv	$41.97	+0.81 1.97%	$42.62	885,500 271.54% of 50 DAV 50 DAV is 326,100	$41.41 1.35%	12/11/2012	$41.85	PP = $41.41
								MB = $43.48
Most Recent Note - 12/11/2012 6:58:09 PM Y - After highlighted in yellow with pivot point cited based on its 10/05/12 high plus 10 cents in the earlier mid-day report its strong finish on heavy volume clinched a technical buy signal. Hit a new 52-week high today, rising from a 10-week base during which it found support at its 200 DMA line. Quarterly comparisons through Sep '12 showed 3 consecutive increases of more than the +25% minimum earnings guideline (C criteria). See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 12/11/2012. 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
RAX - NYSE Rackspace Hosting Inc INTERNET - Internet Software and; Services	$67.55	+0.02 0.03%	$68.34	954,279 62.58% of 50 DAV 50 DAV is 1,524,800	$70.00 -3.50%	11/26/2012	$66.26	PP = $67.18
								MB = $70.54
Most Recent Note - 12/10/2012 2:28:24 PM Y - Quietly perched within close striking distance of its 52-week high. Confirming gains above its pivot point with at least +40% above average volume would be a welcome reassurance. Disciplined investors may be wise to use a tactic called "pyramiding" to allow the market action to dictate their weighting in new buys while always limiting losses by selling if any stock ever falls more than -7% from their purchase price. >>> The latest Featured Stock Update with an annotated graph appeared on 11/27/2012. 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
RGR - NYSE Sturm Ruger & Co Inc CONSUMER DURABLES - Sporting Goods	$48.73	+0.13 0.27%	$49.09	970,839 196.45% of 50 DAV 50 DAV is 494,200	$60.11 -18.93%	11/20/2012	$52.23	PP = $52.65
								MB = $55.28
Most Recent Note - 12/11/2012 7:02:18 PM G - Managed a positive reversal today after early weakness. The current pullback may be a high handle forming on its larger 7-month cup shaped base, but the volume is supposed to be light in the handle portion of a cup-with-handle base. Instead, it has been enduring distributional pressure in recent days since trading ex-dividend 12/05/12 following its previously noted $4.50/sh special dividend. Prior highs and its 50 DMA line define near-term chart support. Patience may allow for an ideal new base and breakout to be noted. See additional details in the article "Ken's Mailbag Q&A 12/10/12 - Challenges of when to lock in a profit or accumulate more shares" >>> The latest Featured Stock Update with an annotated graph appeared on 11/21/2012. 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
RNF - NYSE Rentech Nitrogen Ptnr Lp CHEMICALS - Agricultural Chemicals	$39.12	+0.14 0.36%	$39.46	154,612 44.28% of 50 DAV 50 DAV is 349,200	$41.15 -4.93%	11/1/2012	$39.11	PP = $40.15
								MB = $42.16
Most Recent Note - 12/10/2012 2:29:18 PM Y - Still quietly perched within close striking distance of its 52-week high. Recent gains with below average volume indicate lackluster buying demand from the institutional crowd. Disciplined investors may watch for volume-driven gains for a new high close to trigger a technical buy signal. >>> The latest Featured Stock Update with an annotated graph appeared on 11/26/2012. 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
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$97.03	-2.50 -2.51%	$100.02	982,076 130.82% of 50 DAV 50 DAV is 750,700	$103.52 -6.27%	12/4/2012	$100.29	PP = $103.62
								MB = $108.80
Most Recent Note - 12/11/2012 7:05:33 PM Y - Damaging loss today on higher volume indicated distributional pressure against a mostly positive market backdrop, retreating from new its 52-week high. Disciplined investors will watch for volume-driven gains above the pivot point to trigger a new technical buy signal. >>> The latest Featured Stock Update with an annotated graph appeared on 12/4/2012. 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
VSI - NYSE Vitamin Shoppe Inc SPECIALTY RETAIL - Specialty Retail, Other	$57.10	-0.37 -0.64%	$58.12	202,371 83.52% of 50 DAV 50 DAV is 242,300	$61.89 -7.74%	12/3/2012	$59.06	PP = $61.99
								MB = $65.09
Most Recent Note - 12/10/2012 2:32:50 PM G - Sputtering below its 50 DMA line for the past week and it reversed today's early gain. Technically, the longer it lingers below its important short-term average the worse its outlook gets The $61 area has been a stubborn resistance level in recent months. >>> The latest Featured Stock Update with an annotated graph appeared on 12/3/2012. 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
WPI - NYSE Watson Pharmaceuticals DRUGS - Drugs - Generic	$89.78	+1.44 1.63%	$89.96	859,775 110.13% of 50 DAV 50 DAV is 780,700	$90.00 -0.24%	8/24/2012	$82.90	PP = $81.10
								MB = $85.16
Most Recent Note - 12/11/2012 6:26:59 PM G - Challenged its 52-week high today and finished at a best-ever close with a solid gain on slightly above average volume. No resistance remains due to overhead supply. Quarterly comparisons for sales revenues and earnings increases have shown sequential deceleration in its growth rate raising some fundamental concerns, as recently noted. >>> The latest Featured Stock Update with an annotated graph appeared on 11/23/2012. 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