The major averages ended higher after Greece received an international aid pledge to help it get through its worst financial crisis since WWII. Volume totals on the NYSE and on the Nasdaq exchange were reported mixed; slightly lower on the Nasdaq and slightly higher on the NYSE compared to Friday's totals. Breadth was positive as advancers led decliners by almost a 4-to-3 ratio on the NYSE and by a 5-to-4 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 61 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher from the 48 issues that appeared on the prior session.  A healthy crop of new leaders making new highs bodes well for any market rally, so the recent expansion in leadership has been a welcome post-holiday improvement.

Over the weekend, Greece received a promise of as much as 45 billion euros ($61 billion) in loans from the euro-region and International Monetary Fund to help the troubled nation remain solvent and avoid a default. The euro surged on the news helping offset some of its recent losses. In the US, the Dow Jones Industrial Average closed above the psychologically important 11,000 level and the S&P 500 approached the 1,200 level, an old floor of support, for the first time since September 2008 (when Lehman failed).

After the close, Alcoa Inc. (AA +1.25%) kicked off Q1 earnings season and reported a narrower Q1 loss, citing improving demand. Analysts believe that combined profit for S&P 500 companies will jump +30% from Q1 2009. Remember that companies will begin reporting Q1 earnings in droves over the next few weeks. It is imperative for investors to pay attention to the results and, just as importantly, how each stock reacts to its earnings news and guidance. 

The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, however, as each of the major averages actually ended Monday's session at new recovery highs. Additional distribution days in the near term, however, could raise a more worrisome caution flag.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX +0.97%) led the tech sector indices higher as it posted a gain today for a new recovery high.

Ctrip.com International, Ltd. (CTRP) posted a gain today on lighter volume, halting a streak of 4 consecutive losses. It stalled and has shown distributional action since 3/25/10 when a detailed Stock Bulletin with annotated graph and expert analysis was published (read here) and it triggered a proper technical buy signal.  Its reversal from its high on 4/01/10 was noted as encountered distributional pressure and quickly reversed a large part of its early gain to ultimately close in the lower part of its intra-day range. The subsequent pullback led to a violation of the $39.40 pivot point cited, which had the effect of technically negating its latest breakout, raising concerns. It had rallied on average volume to a new 52-week high when featured in the March 2010 issue of CANSLIM.net News (read here). Meanwhile, the broader market action (M criteria) turned definitively more bullish with a follow-through-day (FTD) and an increase in the number of stocks making it to the Breakouts Page.

There is not any great overhead supply now to act as resistance for CTRP.  Ideally, one would like to see significant volume show up behind a gain for a new high close to re-confirm a proper technical buy signal. The company and its subsidiaries provide travel services for hotel accommodations, airline tickets, and packaged tours in China. It also sells independent leisure travelers bundled package-tour products, which include transportation and accommodations, as well as guided tours covering various domestic and international destinations. The company was founded in 1999 and is headquartered in Shanghai, China. The stock resides in the Leisure-Services group which is presently ranked in the much-preferred top quartile of groups, easily satisfying the L criteria. The number of top-rated funds with an ownership interest has grown from 52 funds in Mar '09 to 130 funds as of Dec '09, a sign of increasing institutional interest (the I criteria). It has maintained a strong and steady annual earnings (A criteria) history. Fundamentally, its sales revenues and earnings increases have been strong in the most recent quarterly comparisons, above the +25% guideline (C criteria). Return On Equity is reported at 32%, well above the 17% minimum.

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.