Often, when a leading stock is setting up to breakout 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 alerts prudent CANSLIM oriented investors to place the issue in their watch list. After doing any necessary backup research, the investor is prepared to act after the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover) but before it gets too extended from a sound base. 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. Disciplined investors know to buy as near as possible to the pivot point and avoid chasing stocks after they have rallied more than +5% above their pivot point. It is crucial to always limit losses whenever any stock heads the wrong direction, and disciplined investors sell if a struggling stock ever falls more than -7% from their purchase price.

Qihoo 360 Technology Ads (QIHU +$2.07 or +6.32% to $34.82) was highlighted in yellow with pivot point based on its 1/24/13 high plus 10 cents in the earlier mid-day report (read here). The strong finish helped it technically break out from the previously noted base-on-base pattern being formed. However, it reported earnings +10% on +65% sales revenues for the Dec '12 quarter, below the +25% minimum earnings guideline (C criteria) after the close which raised fundamental concerns. As previously noted - "Volume and volatility often increase near earnings news."