The Dow Jones Industrial Average posted a 6th straight gain while the Nasdaq Composite made its 9th straight advance, the tech-heavy index closing the session up +21% year-to-date. The reported volume total on the NYSE was slightly lower while the volume on the Nasdaq exchange actually rose above the prior session total. Advancers led declines by a 3-to-1 ratio on the NYSE and by more than a 2-to-1 ratio on the Nasdaq. There were 40 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 solidly from the 30 issues that appeared on the prior session. New 52-week highs greatly outnumbered new lows. 

Stocks carried over their upward momentum after the prior week's big gains, rising across the board on Monday. A majority of the overseas markets posted strong gains, and Goldman Sachs (GS +2.03%) raised the firm's 2009 target for the S&P 500 Index to 1,060. Incidentally, the S&P 500 closed at its best level of the year.

Weakness in the U.S. dollar helped commodity linked groups.  A slew of companies are set to report earnings news, and volume and volatility can be expected as surprises create certain hotbeds of activity. The noticeable increase in the number of stocks hitting new highs continued to show signs of meaningful technical improvement in the market's (the M criteria) health.

PICTURED: The blue chip Dow Jones Industrial Average rose on light volume and got back into positive territory for the year (+0.82%), approaching its June chart high.  Volume totals have been light or average behind its streak of 6 consecutive gains. It would be encouraging to see heavier volume behind gains, as heavy volume would be indicative of institutional buying taking place as mutual fund and other large portfolio managers actively "accumulate" shares and bid up stocks.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +16.31%) bolted higher, helped substantially by Human Genome Sciences, Inc. (HGSI +276.81%) surprised analysts by reporting that its lupus drug met a study goal.  Another standout in the 20-stock index was Affymetrix, Inc. (AFFX +17.33%).

Capella Education Co. (CPLA +$1.12 or +1.81% to $62.03) hit a new 52-week high today with a 4th consecutive gain on only average volume, closing just shy of its pivot point. It has not yet triggered a technical buy signal since first featured in yellow in the 7/09/09 Mid-Day BreakOuts Report (read here). The group has shown some leadership, yet currently has a D- for a Relative Strength Rating. CPLA is a high-ranked leader in the Commercial Services-Schools Group. Its small supply of only 13.9 million shares in the float could contribute to greater price volatility in the event of institutional accumulation or distribution. The number of top-rated funds owning an interest rose from 91 in Sept '08, to 129 as of March '09, which is reassuring with respect to the I criteria. It has a very good earnings history that satisfies the C & A criteria, while recent quarters showed steady sales revenues increases in the +17-18% range.

Volume should be at least +50% above average behind a breakout under the investment system's guidelines. Heavy volume behind gains is a critical sign of heavy buying demand from the large institutional investors - demand which can fuel a sustained rally. 

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.