The major averages scored a follow-through day (FTD) after the Group of 20 largest industrial nations agreed to maintain their economic stimulus package as the global economy continues to recover. This sent the US dollar tumbling and a slew of stocks and commodities higher. Volume, a critical component of institutional demand, was higher than Friday's levels as the major averages rallied. Advancers trumped decliners by over a 5-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. There were 52 high-ranked companies from the CANSLIM.net Leaders List making a new 52-week high and appearing on the CANSLIM.net BreakOuts Page, higher than the 30 issue that appeared on the prior session. In terms of new leadership, it was encouraging to see new 52-week highs outnumber new 52-week lows on the NYSE and Nasdaq exchange. 

Make no mistake about it, this market is strong. On every rally since the initial lows in March 2009, each pullback has been less than -8% and the bulls have promptly showed up to quell the bearish pressure. The latest correction began on October 28, 2009 and ended on (today) November 9, 2009 when this rally-attempt was confirmed. To avoid any confusion, the official status of the market changed from "rally attempt" to "confirmed rally." Now that the market is back in a confirmed rally, growth investors have a green light for buying stocks when they trigger fresh technical buy signals and break out of sound bases.

The falling dollar sent gold to a fresh record high above $1,100 an ounce and sent the Dow Jones Industrial Average to a fresh 2009 high and a 13-month high. A slew of gold stocks surged as gold rallied to fresh highs and the dollar fell. The stock market remains strong as long as the US dollar continues to fall and the global economic stimulus package continues. Bloomberg.com reported that U.K. Chancellor of the Exchequer Alistair Darling, hosted the meeting where finance ministers from the 20 largest industrialized nations met to discuss keeping interest rates low as the global economy continues to recover.

PICTURED: The Dow Jones Industrial Average surged to a fresh 2009 high and scored a FTD which confirmed its latest rally attempt.

Charts courtesy www.stockcharts.com

PICTURED 1: The Bank Index ($BKX +3.55%) rallied back above its September-October lows, which is an encouraging sign that bank stocks are showing resilience. The gain today also put it in positive territory for 2009.

Charts courtesy www.stockcharts.com

PICTURED 2: The Broker/Dealer Index ($XBD +2.68%) rallied to a close back above its 50-day moving average line, an impressive sign of strength after recent deterioration below that important short-term average had raised concerns.

Salesforce.com, Inc. (CRM +$2.48 or +4.06% to $63.49) posted a gain today and equaled its best 2009 high close as it posted a 6th consecutive gain on near average volume.  Gains last week on quiet volume helped it find support and rally up from its 50-day moving average (DMA) line. Volume was not extremely heavy behind any of the recent losses, however deterioration had nonetheless led to technical sell signals as it briefly violated its 50 DMA line, prior chart highs in the $59 area, and an upward trendline.  Now, any violation of its recent chart lows in the $56 area would raise more serious concerns and trigger more worrisome technical sell signals. The number of top-rated funds owning its shares rose from 269 in Sept '08 to 297 in Jun '09, which is reassuring news concerning the I criteria.

In its last FSU section appearance on 10/27/09 under the headline, "Profit Taking Pressures Mount As Distribution Troubles Market" it was said that - "The weak action in the stock coupled with the broader market deterioration (M criteria) suggests that it might be appropriate for investors to lock in profits under the investment system guidelines, especially if more worrisome losses lead to violations at the above mentioned levels."  The resilience shown by the stock, coupled with the market's latest follow-through- day (today), bodes well for investors who may still be holding any existing positions even after the recent pullback raised concerns.  It has not formed a sound new base, but patience may allow for additional disciplined entry points to show up eventually.

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.