Ten years ago, the Nasdaq Composite Index hit a record high of 5,132.50 points which marked the top of the dot-com bubble. By October 2002, the index had plunged a whopping -78.41% before hitting a bottom and turning higher. The Nasdaq closed at 2,358.95 today which means that it is still down -54% from its record high. This illustrates how difficult the 00's were for US equities and reinforces the importance of following a proven investment system which works in both bull and bear markets to help investors achieve "above average" returns.

Stocks closed with modest gains on Wednesday after the government said the US budget deficit widened to a record last month. Government spending was the primary culprit as the government continues to try and revive the economy. Since last the March 1, follow-through-day (FTD) the market and a batch of leading stocks steadily rallied. The fact that we have not seen any serious distribution days since the FTD bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data.

Remember that now that a new rally has been confirmed, the window is open to start buying high quality breakouts. Trade accordingly.

PICTURED: The NYSE Composite Index is only -2% off its recovery high after a streak of 9 consecutive gains.

The tech sector's gains helped the tech-heavy Nasdaq Composite Index lead its peers as the Networking Index ($NWX +1.04%), Internet Index ($IIX +1.11%), Semiconductor Index ($SOX +2.16%) set a positive tone while the Biotechnology Index ($BTK +5.46%) was a standout gainer.  A solid gain from the Bank Index ($BKX +2.16%) and modest gains from the Broker/Dealer Index ($XBD +0.30%) and Retail Index ($RLX +0.45%) were also among the session's positive influences. The Healthcare Index ($HMO +0.53%) rose and energy-related shares' gains boosted the Oil Services Index ($OSX +0.66%) and Integrated Oil Index ($XOI +0.88%) slightly higher, meanwhile the Gold & Silver Index ($XAU -1.42%) was standout laggard.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +5.46%) has rallied +50% from its November 2009 low.

Priceline.com Inc. (PCLN +$2.66 or +1.12% to $240.99) posted a small gain today with lighter than average volume. That leaves this high-ranked Leisure-Services firm perched above its pivot point but below its max buy level. No resistance remains due to overhead supply. Meanwhile, recent chart lows in the $218 area and its 50-day moving average (DMA) line are important support levels to watch on pullbacks. It has held its ground since last appearing in this FSU section on 2/18/10 under the headline "Big Gap Up Gain On 4 Times Average Volume" when triggering a technical buy signal while rising from a 9-week base.

In the most current (C criteria) quarter ended December 31, 2009 its sales revenues and earnings showed impressive acceleration yet again with increases well above the +25% minimum guideline. A summary of CANSLIM.net's past coverage and the stock's subsequent action was published on 11/07/08 under the headline "Multiple Sell Signals Preceded Big Price Decline."  That write-up explained the stock's weak action after it had been dropped from the Featured Stocks list after its 200 DMA violation on July 2, 2008.  PCLN was first featured on Friday, November 09, 2007 in the CANSLIM.net Mid Day Breakouts Report after gapping up over the $100 threshold (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.