There was a muted reaction to Friday's report on jobs from the Labor Department. The government reported non-farm payrolls in the U.S. grew more than expected in September and gains in previous months were revised higher. The September increase was 103,000. Analysts were looking for a gain of 60,000. Revisions of July and August data added 99,000 jobs. The September unemployment rate remained at 9.1%, in line with expectations.

A report released a half hour after the open showed inventories at U.S. wholesalers rose less than forecast in August as distributors kept stockpiles in line with sales. Shares of utilities and consumer goods companies were higher as investors appeared to gravitate toward dividend-paying stocks. Treasury yields rose for the fourth straight day. The 10-year Treasury note was down 21/32 to yield 2.06%. 

Technology and financial stocks were dragging. Financial stocks lost ground after Fitch Ratings Agency cut credit ratings for Italy and Spain. JP Morgan Chase (JPM -5.19%) fell and subtracted nine points from the Dow. The Travelers Companies Inc (TRV -2.37%) and American Express Co (AXP -2.25%) also sank. Retail stocks got a boost from the jobs report, with modest gains for The Home Depot Inc (HD +1.62%) and Wal-Mart Stores Inc (WMT +1.80%). Sprint Nextel Corp (S -19.93%) slumped badly on concerns the company may have to raise capital to upgrade its network.

The market environment (M criteria) is still uncertain. A heavy wave of distributional action pushed the benchmark S&P 500 Index beyond the -20% Bear Market threshold at the week's lows, yet it finished Friday +7.5% above Tuesday's intra-day low. Disciplined investors are now watching for a follow-through day (FTD) of solid gains on higher volume from at least one of the major averages coupled with an expansion in the number of stocks hitting new highs. That could confirm a new rally and signal that odds are again favorable for making new buying efforts.  Historic studies suggest that it is most ideal for a FTD to come between Day 4-7 of a new rally attempt. Monday's session will mark Day 5 of the current rally attempt.

The Q3 2011 Webcast (aired on September 28th) is now available "ON DEMAND" - (CLICK HERE) It provides an informative review of current market conditions, leading groups, and best buy candidates.  All upgraded members are eligible to access the webcast presentation at no additional cost!  Via the Premium Member Homepage links to all prior reports and webcasts are always available.

PICTURED: The Dow Jones Industrial Average posted a gain for the week after dipping to lows not seen since September 2010. 

Charts courtesy www.stockcharts.com

PICTURED 1: The Bank Index ($BKX -2.80%) has a worrisome series of lower highs and lower lows while remaining well below its important moving averages.

PICTURED 2: The Broker/Dealer Index ($XBD -3.21%)  has a worrisome series of lower highs and lower lows while remaining well below its important moving averages.

When the number of stocks included on the Featured Stocks page is low, and those currently listed have all received recent analysis in this FSU section, we occasionally go back to revisit a previously featured stock that was dropped. Today we will have another look at a stock that was dropped from the Featured Stocks list back on 4/28/11. CTCT sank as much as -53% lower in a little more than 3 months after it was dropped from the Featured Stocks list. That serves as a reminder that losses should always be limited by selling if ever any stock falls more than -7% from your purchase price.  That is Rule #1 in the fact-based investment system CANSLIM.net supports.

Constant Contact Inc (CTCT -$0.55 or -3.10% to $17.22) made its last appearance in this FSU section with an annotated graph on 4/19/11 under the headline, "Damaging Distributional Action Negated Recent Breakout, as it was down considerably with a 2nd damaging loss with heavy volume in the span of 3 sessions. It had slumped below its 50-day moving average (DMA) line and finished near the session low, raising concerns and triggering worrisome technical sell signals.  We observed that distributional pressure had completely negated its prior breakout from a choppy 13-week base, hurting its near-term chances of going on for much greater gains. From there it held its ground for another week, but it failed to rebound above the 50 DMA line. Then it was noted while being dropped from the Featured Stocks list as it reported earnings after the close on Thursday, April 28th. Earnings results for the quarter ended March 31, 2011 were disappointing, -33% from the year ago period despite a +27% increase in sales revenues. The stock gapped down badly the next day and since then it has continued to struggle.

It was previously noted that its sales revenues increases showed steady sequential deceleration from +55%, +49%, +47%, +43%, +40%, +37%, +34%, to +30% from the Mar '09 through the Dec '10 quarterly comparison(s) versus the respective year(s) earlier. Earnings increased by +245% on +24% sales revenues for the quarter ended June 30, 2011, maintaining its track record of steady sales revenues deceleration.  Disciplined investors following the fact-based system would have a problem now with the flaw in its earnings track record. Additionally, increasing ownership by top-rated funds is normally a reassuring sign (I criteria) that disciplined investors look for in superior buy candidates. However, the number of top-rated funds owning CTCT shares has fallen from 314 in Mar '11 to 281 in Sep '11, not a very reassuring trend. 

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	Last	Chg.	Vol % DAV	Date  Featured	Price Featured	Latest Pivot Point Featured	Status
						Latest Max Buy Price
AAPL - NASDAQ Apple Computer Inc COMPUTER HARDWARE - Personal Computers	$369.80	-7.57	19,124,274 82% DAV 23,462,900	9/16/2011 (Date Featured)	$399.14 (Price Featured)	PP = $404.60	G
						MB = $424.83
Most Recent Note - 10/7/2011 6:45:16 PM G - Its 50 DMA line acted as a resistance level. Damaging losses triggered a technical sell signal and it tested support at its longer-term 200 DMA line this week. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 10/6/2011. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
ALXN - NASDAQ Alexion Pharmaceuticals DRUGS - Drug Manufacturers - Other	$65.18	-0.46	1,028,028 61% DAV 1,694,300	9/15/2011 (Date Featured)	$63.20 (Price Featured)	PP = $60.81	G
						MB = $63.85
Most Recent Note - 10/7/2011 6:49:06 PM G - Holding its ground with lighter volume following volume-driven gains for this high-ranked Medical - Biomed/Biotech group leader. Support to watch includes prior resistance in the $59-60 area and its upwardly tilted 50 DMA line. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 10/5/2011. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CELG - NASDAQ Celgene Corp DRUGS - Drug Manufacturers - Major	$62.95	-0.40	3,171,155 71% DAV 4,462,000	9/16/2011 (Date Featured)	$61.21 (Price Featured)	PP = $62.59	Y
						MB = $65.72
Most Recent Note - 10/7/2011 6:51:01 PM Y - Small losses on lighter volume followed a prompt rebound above its pivot point. Managed a positive reversal on 10/04/11 after lows testing near its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 10/4/2011. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
MG - NYSE Mistras Group Inc DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services	$19.60	-0.20	167,772 77% DAV 218,200	8/10/2011 (Date Featured)	$17.89 (Price Featured)	PP = $17.58	G
						MB = $18.46
Most Recent Note - 10/7/2011 6:52:55 PM G - Pulling back after it touched a new all-time high this week. It tried to rise without great volume conviction from a 5-week consolidation that may be considered a "base-on-base" type pattern, however no new pivot point was cited. Additionally, the M criteria argues against new (or add-on) buying efforts in otherwise worthy buy candidates until the nascent new rally effort is confirmed by a solid follow-through day. >>> The latest Featured Stock Update with an annotated graph appeared on 9/30/2011. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
V - NYSE Visa Inc DIVERSIFIED SERVICES - Business/Management Services	$86.25	-0.88	4,388,251 69% DAV 6,320,400	9/20/2011 (Date Featured)	$93.91 (Price Featured)	PP = $90.93	G
						MB = $95.48
Most Recent Note - 10/7/2011 6:54:32 PM G - Perched near its 50 DMA line which recently began sloping downward. It recently stalled after rallying to a new all-time high. Mastercard Inc (MA), its peer in the Finance - Credit Card/Payment Processing group, remains below its 50 DMA line after recently dropped from the Featured Stocks list. >>> The latest Featured Stock Update with an annotated graph appeared on 9/21/2011. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS

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