The major averages ended lower on as volume totals exceeded Monday's levels on the 12th day of the current rally attempt. Decliners led advancers by near a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. New 52-week highs outnumbered new lows on both exchanges. There were 10 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 24 issues that appeared on the prior session. 

The two major catalysts which sent stocks lower on Tuesday were a weaker than expected reading on consumer confidence and German business. The Conference Board’s index of US consumer confidence slid to 46 which was the weakest reading in 10 months and below the lowest forecast in a Bloomberg survey. It is important to note that consumer spending currently makes up approximately +75% of the US economy and the disappointing reading on consumer confidence bodes poorly for the economic recovery. Elsewhere, the Ifo institute’s German business climate index fell in January as the coldest winter in 14 years hurt retail sales and German construction. The ominous economic reports suggest that the 11-month global recovery may be in jeopardy and increased the odds of a double dip recession. The disconcerting news also sent the US dollar higher which added pressure on dollar denominated assets (i.e. stocks and commodities).

Losses were widespread on Tuesday and the commodity-linked areas were among the day's worst decliners as the Gold & Silver Index ($XAU -3.42%) out paced the Oil Services Index ($OSX -1.86%) and Integrated Oil Index ($XOI -1.58%) to the downside. Financial shares were a negative influence on the major averages as the Bank Index ($BKX -2.36%) and Broker/Dealer Index ($XBD -1.53%) slumped.  Healthcare Index ($HMO -0.83%)   Retail Index ($RLX -0.45%) were hit with smaller losses. Meanwhile, the Networking Index ($NWX -2.03%), Biotechnology Index ($BTK -1.34%), and Internet Index ($IIX -1.22%) ended unanimously lower as tech shares also were zapped with losses.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX -2.83%) led the tech sector lower on Tuesday.  It recently encountered resistance near its 50-day moving average line.

Green Mountain Coffee Roasters (GMCR -$1.48 or -1.80% to $81.12) is a high-ranked leader that continues consolidating in a very tight trading range near all-time highs with volume totals cooling off in recent weeks. Since hitting a $88.65 high on 1/29/10 it has been base building for a few weeks above its 50-day moving average (DMA) line.  That short-term average and recent chart lows that define an important technical support level to watch now.  It is within close striking range of its 52-week and all-time highs, however it has not formed a sound new base of sufficient length. Also, until a follow-through day from one of the major market averages, the M criteria argues against any new buying efforts under the rules of the investment system.

GMCR has shown mostly healthy action since showing up on 12/28/09 in the mid-day report (read here), returning the previously featured favorite to the Featured Stocks page at CANSLIM.net. Weak action had led it to be dropped from the Featured Stocks list on 12/01/09, but the repair of its prior 50-day moving average (DMA) line violation improved its outlook. Do not be confused by the 3-for-2 split that occurred in the interim, as GMCR has traded up as much as +240% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News (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.