Stocks closed lower on a very busy day on Wall Street. Volume, a critical component of institutional demand, was mixed compared to Monday's levels; higher on the Nasdaq and lower on the NYSE. That marked a distribution day for the Nasdaq but the lower volume helped the NYSE indices avoid distribution day. Decliners led advancers narrowly on the NYSE and by approximately a 3-to-2 ratio on the Nasdaq exchange. There were 12 high-ranked companies from the CANSLIM.net Leaders List making a new 52-week high and appearing on the CANSLIM.net BreakOuts Page, higher from the 41 issues 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. 

Stocks opened lower after five of China’s largest banks announced plans to regulators to raise additional capital. The led many people to question how long the economic recovery will fare in China. Elsewhere, the Commerce Department said the US economy grew at a +2.8% annual rate last quarter which was less than the government's initial reading last month. The downtick illustrates a strained consumer and leads many to question the strength of the upcoming holiday shopping season. The government released a separate report that showed that US consumer spending, which accounts for over +70% of the world’s largest economy, increased at a +2.9% pace in the third quarter. This was lower than the initial estimate of a +3.2% expected by economists.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +2.70%) was another standout gainer, but even after its considerable gain today it remains below its 50-day moving average line.

AsiaInfo Holdings, Inc. (ASIA -$0.34 or -1.33% to $25.32) suffered a small loss today with lighter than average volume. It is still extended from its latest sound base. Gains with above average volume helped it rally to new 2009 highs following a 10/29/09 gap up for a big gain after reporting solid earnings for the period ended Sept 30, 2009 that beat expectations as it also raised guidance. It found prompt support near its 50-day moving average (DMA) line, a textbook chart support level, after a 7 session losing streak with losses on high volume triggered technical sell signals and briefly negated its latest breakout.

ASIA was featured 10/14/09 in the mid-day report (read here) as it gapped up for a new 52-week high with 5 times average volume, triggering a technical buy signal by blasting above its pivot point.  Disciplined entries and exits are critical to investors' success with the investment system. ASIA was first featured in the August 2009 CANSLIM.net News (read here).

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.