The major averages ended mixed as volume rose on the NYSE compared to the prior session but Nasdaq volume was reported down from Thursday's total. Advancers led decliners by a 8-to-7 ratio on the NYSE but trailed by a 6-to-7 ratio on the Nasdaq exchange. There were 58 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 35 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

Stocks ended mixed on Monday as President Obama gave what appeared to be a final push to overhaul our troubled health-care system.   Tuesday marked the one year anniversary of the March 2009 closing low in the benchmark S&P 500. A follow-through day (FTD) was produced on March 12, 2009 which helped confirm the rally which sent the benchmark average soaring +68% in the span of 12 months. Stocks edged higher on Wednesday which marked the tenth anniversary of 2000's dot-com bubble. 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.

Stocks rose on Thursday after China said inflation rose +2.7% in February, up from +1.5% in January. For the past few months, China has taken several steps to curb inflation and its robust economy. Their actions sent stocks lower as many people were concerned about what the ramifications would be for the ongoing economic recovery. Therefore, the higher reading on inflation could cause China to raise interest rates which could, in turn, hinder the economic recovery. In the US, two important economic reports were released: weekly jobless claims and the latest trade data. The Labor Department said weekly jobless claims fell by 6,000 to 462,000 which was a positive sign. Elsewhere, the Commerce Department said the trade deficit contracted in January due to a large drop in imported oil and cars. The report showed that US exports slid -0.3% which was concerning because the drop in overseas sales could slow the recovery.

Looking at the market, since 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.

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PICTURED: The Dow Jones Industrial Average posted a small gain on Friday and led its peers, but its Relative Strength has been waning in recent weeks while small-caps have shown leadership.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX +0.57%) is at a new recovery high after 17 gains in the past 21 sessions.  Apparently the consumer is still alive!

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.