Often, when a leading stock is setting up to break out of a solid base, it is highlighted in CANSLIM.net's Mid-Day Breakouts Report.  The most relevant factors are noted in the report which allows prudent CAN SLIM oriented investors to place the issue in their watch list.  After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list.

Altra Holdings Inc (AIMC +$0.12 or +1.26% to $9.61) was first featured on Tuesday, August 19, 2008 in the CANSLIM.net Mid Day Breakouts Report (read here) when it was setting up for a possible breakout.  Shortly after that appearance, on 8/28/08 it was noted after it - "Jumped above its $18.26 pivot point however volume failed to reach the necessary threshold needed to trigger a fresh technical buy signal."  Detailed analysis with an annotated graph was included in the Featured Stock Update section on Monday, September 8, 2008 under the headline "Machinery Firm Still Perched Near Pivot Point".  However, the stock subsequently violated its 50-day and 200-day moving average lines.  It was dropped from the Featured Stocks list on 9/24/08, and it went on to fall as much as -47.85% from that day's close.  In this case, disciplined investors would not have bought the stock.  The dramatic decline that followed may also serve as an educational example of precisely why losses should always be limited whenever a stock falls 7-8% from your purchase price.  Members can use the "View all notes" links in CANSLIM.net reports to review prior coverage on Featured Stocks.

Often, when a leading stock is setting up to break out of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report.  The most relevant factors are noted in the report which allows prudent CANSLIM oriented investors to place the issue in their watch list.  After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point with a gain backed by more than +50% above average daily volume). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list.

Altra Holdings Inc (AIMC  +$0.07 or +0.40% to $17.37) held its ground today after pulling back last week toward its 50-day moving average (DMA) line, an important chart support level.  Its 8/28/08 gain above its $18.26 pivot point was noted as it failed to reach the necessary volume threshold to trigger a proper technical buy signal. This high-ranked leader from the Machinery - General Industrial group was first featured on Tuesday, August 19, 2008 in the CANSLIM.net Mid Day Breakouts Report (read here).  It remains perched near multi-year highs in the $18 area with little resistance remaining due to overhead supply.   Market conditions (the M criteria) need to improve and the stock would need to produce gains above its pivot point backed by at least +50% above average volume to trigger a technical buy signal.  Meanwhile, it makes a strong candidate for investors' active watch lists.

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