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Nvidia Corporation (NVDA - NASDAQ) - Was featured the CANSLIM.net Mid-Day BreakOuts Report on August 12th, 2005 at $29.41 right as this leader was breaking out of a nearly six month base on more than 3 times its average daily volume.  That report included an annotated DailyGraph(R) (read here) that showed how institutional investors were piling all over each other to accumulate their positions, best evidenced by the explosive volume that accompanied the breakout. Also it was impressive for this issue to blast to new highs even while the major indices closed lower on that day, especially while the tech sector was facing pressure due to a disappointing report by Dell. Nvidia's fundamentals were stellar, as the company had impressively increased its earnings per share by +50%, +93%, +200%, and +999% in Oct '04, Jan '05, Apr '05 and Jul '05 ended quarters versus the year earlier. Its annual earnings history, the "A" in CAN SLIM(R) had been erratic, which was definitely a concern we pointed out, however, at that time we noted that several CANSLIM.net featured stocks in the past were less than perfect in that respect, yet they had still traded up considerably.

NVIDIA Corp. (NVDA -0.40 or -1.24% to $31.82) closed in the lower half of its range for a loss on below average volume on Tuesday.  It has declined in the past 6 consecutive sessions, however, there are at least two important bullish factors that need to be recognized.  First, this issue still remains above critical levels of support such as prior chart highs and its 50-day moving average (DMA) line near $31. Second, the recent decline has occurred on lighter or near average volume. Pullbacks in a leading stock such as this should be expected, especially in an overall market environment that has turned particularly negative.  Low volume pullbacks toward support help to ensure that the overall health of a rally is intact, so the dips are tolerable.  However, it is important to note that things can change quickly. If chart support is breached on a pick up in volume then we might say "all bets are off".  It makes no sense to fight the tape when faced with hard evidence that institutional investors are not supporting a stock with additional buying near its 50 DMA, instead abandoning at a critical juncture.  So, watch out for the worst, but meanwhile be reminded to trade intelligently based upon what you actually see happening, not what you fear will happen.

Nvidia Corp (NVDA +1.04 or +3.59% to $30.01) was recently featured in August 12, 2005  CANSLIM.net's Mid-Day Breakouts Report (read here) as it was breaking out of a near six month base on more than 3 times average daily volume.  This issue experienced a very strong sign of relative strength on Tuesday as it managed to move higher while the major indices declined. Prudent investors should take note whenever a leading stock is able to rally on above average volume.  When a leading stock manages to rally on above average volume on days when the major indices end lower on above average volume, the stocks action is all the more impressive.  

DailyGraphs(R) defines Relative Strength - "a measure of each stock's price performance over the latest twelve months compared to all other stocks."  A stock's relative strength (RS) is an important factor to use when making investment decisions.  Generally, it is preferable to see not only an 80+ RS rank, but also see a stock's relative strength line breaking new highs before or as the stock breaks new highs.  When this occurs the odds of success are considered to be in your favor more than when the RS line does not confirm.  By definition a stock's relative strength increases when that stock manages to outperform its peers.  Nvidia's performance was a perfect example of how leading stocks should act.  After recently consolidating quietly, today it posted a considerable gain on better than average volume.

Nvidia Corp (NVDA +6.02%) broke out of a nearly six month base on more than 3 times its average daily volume on Friday, and the stock was featured in CANSLIM.net's Mid-Day breakouts report at $29.41, one cent above its pivot point (based on adding ten cents to its July 14th chart high of significance). It was impressive for this issue to blast to new highs even while the major indices closed lower on the day and especially while the tech sector was facing pressure due to Dell's disapppointing report.   Nvidia's fundamentals are stellar by some of the more current criteria, such as the impressive numbers the company has shown while it increased its earnings per share by +50%, +93%, +200%, and +999% in Oct '04, Jan '05, Apr '05 and Jul '05 versus the year earlier.  Its annual earnings history (the A in CANSLIM) has been erratic, which is definitely a concern (see the top left data block) to investors, however, several CANSLIM.net featured stocks have been less than perfect in some repects yet still traded up. 

Institutional investors were piling over each other to accumulate their positions on Friday, best evidenced by the explosive volume that accompanied this breakout.  This issue is still below its maximum buy price of $30.87 (which is +5% above its pivot point). Be careful not to chase stocks beyond that guideline, otherwise you greatly increase your chances of being forced to stop out and sell the stock later for a 7-8% loss on an ordinary pullback that would otherwise not be a concern.