Roper Industries Inc. (ROP -0.77 or -2.01% to $37.55) violated its 50-day moving average (DMA) line on Wednesday,  then proceeded to move lower on Thursday as it took out its six-month upward trendline.  In a weak market it is very important to raise the bar on technical failures. This stock was first featured on May 2nd, 2005 in the CANSLIM.net Mid Day Breakouts Report as it was breaking out from a decent base on above average volume.  The issue went on to rally nearly +10% and traced out a solid upward trend during the ensuing time frame.  After holding up and making a decent fight near its 50 DMA in recent weeks, the bears overpowered the bulls on Wednesday to send this issue below its 50 DMA, paving the way for Thursday's breach of its trendline. Chart lows in August may act as support, however further declines on high volume should not be tolerated by anyone with an interest.

Roper Industries (ROP +$1.90 or +2.50% to $77.79) has traded up +13.94% since first featured on May 2, 2005 in CANSLIM.net's Mid-Day Breakouts Report at $68.27 (see here). The very next day it gapped higher for gains on explosive volume, then it spent the next 10 weeks consolidating in a tight trading range while its daily trading volume generally quieted down.  After building a new base-on-base pattern (prior base is partially obscured by the datablock) this stock was featured again on July 12, 2005 at $74.42 as it was blasting to new highs on above average turnover. 

This issue is now trading too far above the ideal entry point for disciplined CANSLIM investors, as the normal guideline for proper purchases is to not pay up more than 5% above the pivot point.  Earnings are scheduled to be released on July 28, 2005. As always, expect increased volume and volatility and be sure to keep a close eye on how stocks react to earnings news.