Stocks got smacked for the fourth consecutive week as the dollar rallied and fears spread that the economic recovery may slow. Volume was heavier than the prior session on the NYSE and near the prior session total on the Nasdaq exchange. Decliners led advancers narrowly on the NYSE while advancers slightly outnumbered decliners on the Nasdaq exchange. There were only 3 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 10 issues that appeared on the prior session. New 52-week lows outnumbered new 52-week highs on the NYSE and also on the Nasdaq exchange for the first time in many weeks.

Stocks rallied on Monday continuing the recent string of a strong start to the week before the bears show up and send stocks lower by Friday. This week was no exception. Stocks rose on Monday after several strong manufacturing reports in the US, Europe and China were released. The Institute for Supply Management said that US manufacturing enjoyed its largest gain since August 2004 which was a welcomed sign. On Tuesday, stocks and commodities rallied as the dollar fell after healthy news from the ailing housing front was released and the Australian central bank unexpectedly left interest rates steady.

Intuitive Surgical Inc. (ISRG +$4.21 or +1.31% to $325.41) positively reversed for a gain today on above average volume after pulling back near its prior chart highs and 50-day moving average (DMA) line intra-day. That area defines an important chart support level now, where any deeper losses would raise more serious concerns.  ISRG was featured again most recently in the 1/22/10 mid-day report (read here), returning after some time off the Featured Stocks list. More detailed analysis the evening of 1/22/10 appeared under the headline "Breakaway Gap Prompts Return To Featured Stocks Page" as an annotated graph illustrated its "breakaway gap" to a new 52-week high following 4-weeks of tight consolidation. It had just reported accelerating sales revenues and earnings increases for the period ended Dec 31, 2009, making its turnaround story all the more impressive. 

Breakaway gaps were noted previously as, "a rare exception in which chasing a stock as much as +10% above prior highs is permitted under the investment system's guidelines"  while we went on to say that "patience may allow investors to accumulate shares on ordinary pullbacks toward recent chart highs."  Its recent consolidation has taken it down to within less than +5% of its prior highs.  The heavier volume behind the latest gain indicates institutional (the I criteria) support and accumulation. Keep in mind that distribution days have recently been hurting the market outlook (M criteria), and 3 out of 4 stocks are likely to follow the direction of the major averages.  Always limit losses by selling any stock that falls more than -7% from your purchase price, following Rule #1 of the investment system - keep your losses small!

Its annual earnings history (the A criteria) has been very impressive. Although quarterly comparisons have not shown perfectly steady increases above the +25% guideline, the latest period ended December 31, 2009 showed an impressive acceleration in sales revenues and earnings growth.  ISRG rebounded impressively from its March low ($84.86) and may be on course for its all-time high ($359 in 2007). Notes outlined technical deterioration before and when it was last dropped from the Featured Stocks list on 6/10/08. ISRG traded up more than 13-fold since first featured in yellow in CANSLIM.net reports in the summer of 2004. 

Intuitive Surgical Inc. (ISRG +$4.21 or +1.31% to $325.41) positively reversed for a gain today on above average volume after pulling back near its prior chart highs and 50-day moving average (DMA) line intra-day. That area defines an important chart support level now, where any deeper losses would raise more serious concerns.  ISRG was featured again most recently in the 1/22/10 mid-day report (read here), returning after some time off the Featured Stocks list. More detailed analysis the evening of 1/22/10 appeared under the headline "Breakaway Gap Prompts Return To Featured Stocks Page" as an annotated graph illustrated its "breakaway gap" to a new 52-week high following 4-weeks of tight consolidation. It had just reported accelerating sales revenues and earnings increases for the period ended Dec 31, 2009, making its turnaround story all the more impressive. 

Breakaway gaps were noted previously as, "a rare exception in which chasing a stock as much as +10% above prior highs is permitted under the investment system's guidelines"  while we went on to say that "patience may allow investors to accumulate shares on ordinary pullbacks toward recent chart highs."  Its recent consolidation has taken it down to within less than +5% of its prior highs.  The heavier volume behind the latest gain indicates institutional (the I criteria) support and accumulation. Keep in mind that distribution days have recently been hurting the market outlook (M criteria), and 3 out of 4 stocks are likely to follow the direction of the major averages.  Always limit losses by selling any stock that falls more than -7% from your purchase price, following Rule #1 of the investment system - keep your losses small!

Its annual earnings history (the A criteria) has been very impressive. Although quarterly comparisons have not shown perfectly steady increases above the +25% guideline, the latest period ended December 31, 2009 showed an impressive acceleration in sales revenues and earnings growth.  ISRG rebounded impressively from its March low ($84.86) and may be on course for its all-time high ($359 in 2007). Notes outlined technical deterioration before and when it was last dropped from the Featured Stocks list on 6/10/08. ISRG traded up more than 13-fold since first featured in yellow in CANSLIM.net reports in the summer of 2004. 

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.