A classic example of the success enjoyed by many CANSLIM.net readers usually starts when an investor reads a CANSLIM.net report and buys a featured stock before it has risen above the pivot point by greater than 5%.  After a stock breaks out above its pivot point, there is only a +5% window that investors have to purchase the stock under the proper guidelines. Once a stock rises above the "maximum buy price" the risk of a shake out balloons, meaning that even a normal retracement in the stock might force you to employ the 7-8% loss cutting rule.  Much can be told by the stock's daily action in the weeks and months that follow a breakout. Typically, a light volume and orderly pullback suggests that the bulls remain in control.  However, high volume pullbacks that violate support paint a totally different picture.

CSX Corp. (CSX +$1.60 or +2.54% to $64.55) rose on light volume to yet another new all-time high. CSX sports strong ranks; an Earnings Per Share (EPS) rating of 96, and a Relative Strength (RS) rating of 96.  The number of top-rated funds owning an interest rose from 252 in Jun '07 to 269 in Mar '08, which shows increasing institutional demand (the I criteria).  Concerns would be raised by any weakness leading to a close under its old chart highs near the $59 area which would have the effect of technically negating its latest breakout.