The major averages showed little conviction and ended mixed but in the lower half of their intra-day range as investors digested the latest round of economic data. Volume, an important indicator of institutional sponsorship, was lighter than Tuesday's levels on both major exchanges which helped offset the weak close. Advancers led decliners by almost a 2-to-1 ratio on the NYSE and by a 3-to-2 ratio on the Nasdaq exchange. There were 46 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, one more than the total of 45 issues that appeared on the prior session. Leadership among high-ranked growth stocks had dried up in recent weeks, so the expansion in new highs this week has been a welcome improvement.  New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU +2.22%) continued rallying to new 2009 highs.

Smartheat Inc (HEAT +$0.92 or +6.15% to $15.87) posted a 3rd consecutive gain today on very heavy volume leaving it well beyond its "may buy" level at all-time highs. It found support near its pivot point during its recent consolidation, giving investors an opportunity to accumulate shares without chasing it and buying it "extended" from its latest base.  Healthy stocks commonly retrace and test support before continuing higher, but they rarely fall under their pivot point by more than 7%. If ever a stock falls moire than 7% from your buy price, the investment system's rules say you should always limit the damage and sell the stock.

Since it rose more than 20% in the first 2-3 weeks there is another investment system rule which could now apply to investors who may have made recent buys within proper guidelines.  The rule is designed to help investors capture exceptional gains from the market's biggest winners, and it says to hold a stock for a minimum of 8 weeks if it rises more than 20% from your buy price in the first 2-3 weeks.

The 11/17/09 Featured Stock Update write-up with an annotated graph under the headline "Close Near Pivot Point Equaled Best Ever" suggested that, "Pyramiding into the stock might allow careful investors to accumulate shares methodically without paying more than the $13.24 "max buy" price, which is 5% above its $12.61 pivot point." HEAT was first featured in yellow in the 11/17/09 mid-day report (read here) when technically rising from a "double bottom" base, reaching a new all-time high.

Note that on 9/18/09 it completed an additional share offering. There is limited history for this small Chinese firm in the Pollution Control - Equipment group, however its reported annual earnings (A criteria) history has been strong. The 3 latest quarters show sales revenues and earnings increases well above the +25% guideline, satisfying the C criteria.

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.