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AFTER MARKET UPDATE - TUESDAY, SEPTEMBER 7TH, 2010
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Indices NYSE Nasdaq
DOW  -107.24 10,340.69 -1.03% Volume 830,302,140 -12% Volume 1,632,166,080 +1%
NASDAQ -24.86 2,208.89 -1.11% Advancers 799 26% Advancers 601 22%
S&P 500 -12.67 1,091.84 -1.15% Decliners 2,219 71% Decliners 2,066 75%
Russell 2000 -14.07 629.29 -2.19% 52 Wk Highs 164   52 Wk Highs 41  
S&P 600 -7.03 336.79 -2.04% 52 Wk Lows 15   52 Wk Lows 30  

Leadership Wanes As Major Averages Pull Back Following Holiday

Stocks fell around the world as concern spread that the European debt crisis may worsen. Tuesday's post-holiday volume totals were reported lighter on the NYSE while the Nasdaq exchange volume was near but slightly above Friday's total. Decliners trumped advancers by nearly a 3-to-1 ratio on the NYSE and they led by more than a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and they still held a small lead over new lows on the Nasdaq exchange. There were 31 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, considerably lower than the 71 issues that appeared on the prior session.

Stocks were closed on Monday in observance of the Labor Day holiday. On Tuesday, stocks slid amid fresh concerns that the EU debt crisis may derail the global economic recovery. Normally, it is healthy to see the major averages pullback on light volume shortly after a new follow-through day (FTD) emerges. Last Wednesday, the market confirmed its latest rally attempt and spent the rest of the week advancing. Therefore, a modest decline after a four day rally is considered healthy as it offers investors a chance to accumulate high-ranked stocks near appropriate buy points. The Dow Jones Industrial Average fell after encountering resistance near its 200 DMA line but managed to close above its 50 DMA line. The other major averages also closed above their short term 50 DMA lines which is an encouraging sign.

Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases in recent sessions. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines.  It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.

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PICTURED: The S&P 500 Index faces near-term resistance at its 200 DMA line and prior chart highs.




Financial Group's Pullback Worth Watching

Financial shares were among the influential groups pushing the major averages lower on Tuesday as the Bank Index ($BKX -3.17%) and Broker/Dealer Index ($XBD -1.92%) pulled back.  The Retail Index ($RLX -1.64%) and tech shares also sank as the Semiconductor Index ($SOX -1.95%), Networking Index ($NWX -1.83%), Biotechnology Index ($BTK -1.57%), and Internet Index ($IIX -1.09%) ended unanimously lower.  The Integrated Oil Index ($XOI -2.08%) and Oil Services Index ($OSX -1.08%) lost ground and the Healthcare Index ($HMO -0.97%) sank. Meanwhile, the Gold & Silver Index ($XAU +0.30%) bucked the market's mostly negative bias with a small gain. 

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD -1.92%) slumped back under its 50-day moving average line on Tuesday. The Bank Index (shown in Friday's IGW section - click here) stalled before ever reaching its respective short-term average line, and its latest lows undercut the July lows.  Both financial indexes serve as an important leading indicator, and continued improvement would bode well for the major averages.  Meanwhile, more damaging losses in the financial group would hurt the broader market outlook.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  179.72 -1.97 -1.08% -7.80%
Healthcare $HMO  1,508.35 -14.84 -0.97% +2.40%
Integrated Oil $XOI  969.31 -20.54 -2.08% -9.26%
Semiconductor $SOX  322.31 -6.40 -1.95% -10.45%
Networking $NWX  233.51 -4.36 -1.83% +1.06%
Internet $IIX  256.01 -2.82 -1.09% +9.47%
Broker/Dealer $XBD  102.54 -2.01 -1.92% -10.87%
Retail $RLX  418.90 -6.99 -1.64% +1.89%
Gold & Silver $XAU  187.37 +0.56 +0.30% +11.36%
Bank $BKX  45.15 -1.48 -3.17% +5.71%
Biotech $BTK  1,105.23 -17.67 -1.57% +17.31%


Volume Totals Cooling While Perched Near Highs

M W I Veterinary Supply (MWIV -$1.23 or -2.22% to $54.12) suffered a small loss on light volume today, quietly consolidating under its "max buy" level. Its color code was changed to yellow. No overhead supply remains to act as resistance.  Recent lows in the $46 area define an important chart support level.  It was last shown in this FSU section on 7/30/10 under the headline "Recent Breakout Encountering Some Distributional Pressure" when negatively reversing for a loss on heavy volume, encountering distributional pressure. It subsequently negated its breakout and slumped below its 50-day moving average (DMA) line before rebounding to new highs.  However, since repairing its 50 DMA violation its gains have lacked great volume conviction. Normally gains backed by at least +50% above average volume are considered to be indicative of serious buying demand from the institutional (I criteria) crowd that is more likely to fuel a sustained advance into new high ground.

It was featured in the 7/29/10 mid-day report (read here). Its weekly chart still has bullish characteristics and little signs of distribution throughout the past year. It has a good annual earnings (A criteria) history, and the latest quarter ended June 30, 2010 showed more impressive sales and earnings acceleration after prior earnings comparisons showed improvement above the guidelines of the fact-based investment system. Its small supply (S criteria) of only 12.3 million shares outstanding could contribute to greater volatility in the event of institutional buying or selling. An earlier breakout attempt in July failed after its gains above its May highs lacked great volume conviction.  Although it briefly slumped under its 50-day moving average line, it again found impressive support above prior chart lows in the $45-46 area.


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.

***Last / Change / Volume data in this table is the closing quote data***
Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
ABV - NYSE
Comp De Bebidas Adr
FOOD and BEVERAGE - Beverages - Brewers  
$113.35 +0.77
0.68%

$114.37

336,087
51.76% of 50 DAV
50 DAV is 649,300
$114.23
-0.77%
6/29/2010 $104.74 PP = $109.33
MB = $114.80
Most Recent Note - 8/31/2010 3:54:13 PM
G - This Brazil-based beverage firm is poised for a new high close with today's gain. Found support near its 50 DMA line recently.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/18/2010. Click here.

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ARUN - NASDAQ
Aruba Networks Inc
COMPUTER HARDWARE - Networking andamp; Communication Dev  
$19.43 -0.06
-0.31%

$19.92

2,384,970
132.31% of 50 DAV
50 DAV is 1,802,500
$19.56
-0.66%
8/30/2010 $18.12 PP = $18.51
MB = $19.44
Most Recent Note - 9/7/2010 12:34:19 PM
Y - Reversed into the red after early gains for another new 52-week high today. Confirming gains and a follow-through day on 9/01/10 (M criteria) helped trigger a technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/2/2010. Click here.

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BIDU - NASDAQ
Baidu Inc Ads
INTERNET - Internet Information Providers  
$82.27 -2.03
-2.41%

$84.59

6,768,626
64.99% of 50 DAV
50 DAV is 10,415,600
$88.32
-6.85%
7/14/2010 $75.03 PP = $78.59
MB = $82.52
Most Recent Note - 9/7/2010 5:17:51 PM
Y - Pulled back today on light volume after 4 consecutive gains with below average volume. Gains helping it recently rally from its 10-week average may be considered a secondary buy point, however, it may be considered "late-stage" and riskier than fresh breakouts.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/13/2010. Click here.

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CACC - NASDAQ
Credit Acceptance Corp
FINANCIAL SERVICES - Credit Services  
$58.79 -0.70
-1.18%

$59.90

13,954
26.48% of 50 DAV
50 DAV is 52,700
$61.41
-4.27%
7/29/2010 $52.04 PP = $54.07
MB = $56.77
Most Recent Note - 9/1/2010 3:36:35 PM
G - Gain today on light volume. Consolidating well above its 50 DMA and old highs near $54 that define support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2010. Click here.

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CMG - NYSE
Chipotle Mexican Grill
LEISURE - Restaurants  
$164.78 +1.27
0.78%

$164.99

608,378
85.57% of 50 DAV
50 DAV is 711,000
$166.52
-1.04%
9/1/2010 $158.31 PP = $155.52
MB = $163.30
Most Recent Note - 9/7/2010 6:10:21 PM
G - Gain today with light volume, closing above its "max buy" level. Color code is changed to green after getting extended from prior chart highs. Technically, it broke out on 9/01/10, rallying to multi-year highs with a considerable gain backed 2 times average volume.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/1/2010. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
CRM - NYSE
Salesforce.Com Inc
INTERNET - Internet Software and Services  
$119.65 +0.02
0.02%

$120.45

1,992,735
75.29% of 50 DAV
50 DAV is 2,646,700
$121.45
-1.48%
6/2/2010 $88.44 PP = $89.60
MB = $94.08
Most Recent Note - 9/3/2010 12:52:00 PM
G - Gain today for yet another new all-time high. It is extended from a sound base, not currently buyable under the investment system guidelines.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/16/2010. Click here.

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EGO - NYSE
Eldorado Gold Corp
METALS and MINING - Gold  
$19.29 +0.19
0.99%

$19.50

7,334,242
175.58% of 50 DAV
50 DAV is 4,177,100
$20.06
-3.84%
8/19/2010 $18.25 PP = $19.17
MB = $20.13
Most Recent Note - 9/7/2010 5:35:12 PM
Y - Gain today even heavier above average volume lifted it back above its pivot point.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/19/2010. Click here.

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FFIV - NASDAQ
F 5 Networks Inc
INTERNET - Internet Software and Services  
$93.52 -0.28
-0.30%

$94.43

1,029,025
62.15% of 50 DAV
50 DAV is 1,655,800
$94.48
-1.02%
6/16/2010 $74.50 PP = $74.10
MB = $77.81
Most Recent Note - 9/3/2010 6:00:15 PM
G - Gapped up today and rallied to a new all-time high. It has not recently formed a sound base, and an upward trendline defines near-term support above its 50 DMA line and prior low ($80).
>>> The latest Featured Stock Update with an annotated graph appeared on 8/4/2010. Click here.

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FOSL - NASDAQ
Fossil Inc
CONSUMER DURABLES - Recreational Goods, Other  
$49.43 -0.77
-1.53%

$50.33

688,507
77.00% of 50 DAV
50 DAV is 894,200
$50.49
-2.10%
8/10/2010 $45.54 PP = $42.69
MB = $44.82
Most Recent Note - 9/3/2010 6:02:21 PM
G - Closed a big up week at a new all-time high. Extended from any sound base after a recent streak of gains. Prior high in the $46 area defines support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/11/2010. Click here.

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GMCR - NASDAQ
Green Mtn Coffee Roastrs
FOOD and BEVERAGE - Processed and Packaged Goods  
$31.21 -0.76
-2.38%

$31.99

1,239,355
55.88% of 50 DAV
50 DAV is 2,217,900
$33.98
-8.15%
8/17/2010 $33.62 PP = $33.30
MB = $34.97
Most Recent Note - 9/7/2010 5:19:02 PM
Y - Closed -8.2% off its all-time high, quietly consolidating above its 50 DMA line. It has formed a handle after the previously noted cup shaped pattern. Confirming gains for a new high close are needed to trigger a buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/17/2010. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
HS - NYSE
Healthspring Inc
HEALTH SERVICES - Health Care Plans  
$22.00 -0.22
-0.99%

$22.46

677,308
110.15% of 50 DAV
50 DAV is 614,900
$22.34
-1.52%
8/27/2010 $19.91 PP = $19.75
MB = $20.74
Most Recent Note - 9/7/2010 5:20:11 PM
G - Hit another new 52-week high today, then reversed to close with a small loss. Extended from its prior base, support to watch now is prior chart highs in the $19-20 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/27/2010. Click here.

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MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$70.24 -0.13
-0.18%

$71.34

492,247
49.79% of 50 DAV
50 DAV is 988,600
$72.87
-3.61%
5/13/2010 $54.21 PP = $55.85
MB = $58.64
Most Recent Note - 9/2/2010 11:18:23 AM
G - Hit a new 52-week high today, getting extended from any sound base. Prior highs in the $62 area and its 50 DMA line define chart support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/26/2010. Click here.

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MRX - NYSE
Medicis Pharmaceut Cl A
DRUGS - Biotechnology  
$29.13 -0.67
-2.25%

$29.73

622,339
51.35% of 50 DAV
50 DAV is 1,212,000
$30.00
-2.90%
8/12/2010 $26.88 PP = $26.71
MB = $28.05
Most Recent Note - 9/7/2010 5:21:46 PM
G - Pulling back from its 52-week high today with a loss on lighter than average volume. Color code was changed to green after volume-driven gains beyond its "max buy" level. Prior highs in the $28 area define an initial chart support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/12/2010. Click here.

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MWIV - NASDAQ
M W I Veterinary Supply
HEALTH SERVICES - Medical Instruments and; Supplies  
$54.12 -1.23
-2.22%

$55.29

29,909
37.96% of 50 DAV
50 DAV is 78,800
$55.93
-3.24%
7/29/2010 $52.05 PP = $52.09
MB = $54.69
Most Recent Note - 9/7/2010 5:24:11 PM
Y - Small loss on light volume today, quietly consolidating under its "max buy" level. Color code is changed to yellow. Recent lows in the $46 area define an important chart support level.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/7/2010. Click here.

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NEM - NYSE
Newmont Mining Corp
METALS and MINING - Gold  
$62.07 +1.20
1.97%

$62.55

5,204,219
72.81% of 50 DAV
50 DAV is 7,147,400
$63.38
-2.07%
8/31/2010 $61.32 PP = $63.48
MB = $66.65
Most Recent Note - 9/7/2010 5:25:52 PM
Y - Gap up gain today with light volume for a new high close. Color code was changed to yellow with new pivot point cited based on its 52-week high plus ten cents. Disciplined investors will watch for a confirming gain above its pivot with heavy volume. Leadership in the Mining - Gold/Silver/Gems group (L criteria) is a nice reassurance.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2010. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
NEOG - NASDAQ
Neogen Corp
DRUGS - Diagnostic Substances  
$31.41 -0.36
-1.13%

$31.92

114,640
113.96% of 50 DAV
50 DAV is 100,600
$31.80
-1.23%
9/1/2010 $30.79 PP = $30.49
MB = $32.01
Most Recent Note - 9/7/2010 5:27:38 PM
Y- Reversed its early gain today after touching a new all-time high. Technically, its 9/01/10 gain above the new pivot point cited triggered a buy signal after an orderly 5-week base-on-base pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/20/2010. Click here.

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NFLX - NASDAQ
Netflix Inc
SPECIALTY RETAIL - Music and Video Stores  
$141.79 +3.31
2.39%

$142.95

4,628,230
100.55% of 50 DAV
50 DAV is 4,602,700
$142.50
-0.50%
8/10/2010 $124.05 PP = $124.00
MB = $130.20
Most Recent Note - 9/7/2010 5:29:16 PM
G- Hit another new all-time high today with its 5th consecutive gain. No resistance remains to hinder its progress. It has risen beyond its "max buy" level after holding its ground and finding recent support near its pivot point.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2010. Click here.

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PAY - NYSE
Verifone Systems Inc
COMPUTER HARDWARE - Transaction Automation Systems  
$26.50 -0.06
-0.23%

$26.66

1,506,566
117.18% of 50 DAV
50 DAV is 1,285,700
$26.72
-0.82%
8/25/2010 $24.30 PP = $23.74
MB = $24.93
Most Recent Note - 9/7/2010 5:31:01 PM
G - Holding its ground at its 52-week high. Disciplined investors may watch for chances to accumulate shares on pullbacks toward prior highs in the $23 area defining chart support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/30/2010. Click here.

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ROVI - NASDAQ
Rovi Corp
COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services  
$43.37 -0.51
-1.16%

$44.06

728,826
64.01% of 50 DAV
50 DAV is 1,138,700
$44.96
-3.54%
8/31/2010 $43.31 PP = $45.06
MB = $47.31
Most Recent Note - 9/7/2010 5:32:57 PM
Y - Volume totals have been mostly quiet while consolidating above support at its 50 DMA line, now only -3.5% off its 52-week high. Color code was changed to yellow with new pivot point cited while building a base-on-base type pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/24/2010. Click here.

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SHOO - NASDAQ
Steven Madden Limited
CONSUMER NON-DURABLES - Textile - Apparel Footwear  
$36.65 -0.73
-1.95%

$37.49

211,853
49.17% of 50 DAV
50 DAV is 430,900
$40.98
-10.57%
8/5/2010 $39.55 PP = $41.08
MB = $43.13
Most Recent Note - 9/3/2010 6:16:41 PM
Y - Gapped up today for a 4th consecutive gain. Color code is changed to yellow while subsequent gains above the pivot point previously cited are still needed to confirm a proper buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2010. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
SLW - NYSE
Silver Wheaton Corp
METALS and; MINING - Silver  
$24.16 +0.27
1.13%

$24.41

6,070,804
130.10% of 50 DAV
50 DAV is 4,666,400
$23.98
0.75%
8/25/2010 $21.40 PP = $21.99
MB = $23.09
Most Recent Note - 9/7/2010 12:51:13 PM
G - Hitting another new all-time high today. The M criteria has improved since the 9/01/10 follow-through day confirmed a new rally. Disciplined investors may be patient and watch for secondary buy points to develop. Previous highs in the $21 area are now a support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/25/2010. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$26.40 +0.10
0.38%

$26.74

858,703
138.30% of 50 DAV
50 DAV is 620,900
$26.75
-1.31%
9/3/2010 $26.36 PP = $25.89
MB = $27.18
Most Recent Note - 9/7/2010 5:37:47 PM

Y - Gain today helped it trade within a penny of its 52-week high. Color code was changed to yellow with new pivot point cited when featured in the 9/03/10 mid-day report. Based on weak action it was dropped from the Featured Stocks list on 8/13/10. In the interim it found support again near its 200 DMA line and prior lows in the $21-22 area.


>>> The latest Featured Stock Update with an annotated graph appeared on 9/3/2010. Click here.

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VIT - NYSE
Vanceinfo Tech Inc Ads
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$29.97 +0.19
0.64%

$30.05

432,090
76.53% of 50 DAV
50 DAV is 564,600
$29.96
0.03%
7/8/2010 $25.20 PP = $26.58
MB = $27.91
Most Recent Note - 9/2/2010 4:57:10 PM
G - Gain today with light volume for a new high close. Patient investors may watch for secondary buy points. Recent gains lifted it more than +5% above its old chart highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/31/2010. Click here.

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WCRX - NASDAQ
Warner Chilcott Plc
DRUGS - Drug Manufacturers - Other  
$29.49 +0.21
0.72%

$29.51

1,724,800
99.80% of 50 DAV
50 DAV is 1,728,300
$30.57
-3.53%
8/23/2010 $29.54 PP = $29.34
MB = $30.81
Most Recent Note - 9/1/2010 2:10:08 PM
Y - Volume totals have been cooling while it remains perched near its pivot point. It was featured in yellow in the mid-day report on 8/23/10 rising from a cup shaped base.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/23/2010. Click here.

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