As Jobs Decelerate Gets Even Gloomier Economic SentimentBY VICTOR REKLAITIS INVESTOR'S BUSINESS DAILY Whilethecupwithhandleis the most common stock chart pat-tern among great winners,

HeMust Be JokingObama says climate changewill be his second-term focusISSUES & INSIGHTS A12-13

Top Young ScientistsNithin Tumma’s cancer findwins the Intel Talent SearchLEADERS & SUCCESS A3

Polaris IndustriesIts all-terrain vehicles leaverecessionary woes in the dustTHE NEW AMERICA A4

Getting Siri-ousApple talks up more uses forits voice-recognition featureINTERNET & TECHNOLOGY A5

Gold Up Or Down?Conflicting forces are at warto determine the metal’s fateMUTUAL FUNDS & ETFs A6-8

B Y J A S O N M AINVESTOR'S BUSINESS DAILY

Stalling job growth further dark-ened Americans’ views of theeconomy, despite cheaper gaso-lineprices, according to the latestIBD/TIPP Economic OptimismIndex.It fell to 46.7 in June from 48.5inMay,marking a six-month lowand the second straight decline.It was led by a steep drop in thesix-month outlook subindex,which swung to a pessimisticreadingof46.8 fromaslightlyop-timistic50.4.“Jobs are the key thing,” saidRaghavan Mayur, president ofTIPP, a unit of TechnoMetricaMarket Intelligence. “Withoutjobgrowth,youcannothaveposi-tive sentiment.”Other factors that contributedto the latest drop in morale in-clude a stock market correctionand uncertainty over the euro-zonecrisis,he said.

Troubling SlowdownMost of the polling, whose re-sults were released Tuesday,tookplaceafter theLaborDepart-ment’sMaypayroll report,whichshowed a gain of 69,000 jobs.That followed a rise of 77,000 inApril and 143,000 inMarch, rep-resenting a sharp drop from theaverage of more than 250,000fromDecember toFebruary.The poll found 54% believe theeconomyisslowingdown, inare-cession or in a depression, while43% say the economy is growing.The economy expanded 1.9% inQ1,downfrom3%growth inQ4.The gloom comes amid fallinggasprices.Regular gas costs$3.54a gallon vs. $3.73 amonth ago andmorethan$3.90inlateMarchandearlyApril,accordingtotheAmer-

icanAutomobileAssociation.Thedrop in fuel costsmay havecontributed to the personal fi-nance outlook gauge edgingdown just 0.2 point to 56.1, stillabove the break-even 50mark toindicateoptimism.But confidence in federal eco-nomic policies declined for thesecond straight month, falling to37.1 in June from 38.7 in May. Itwas the first back-to-back dropsince last summer’s debt-ceilingdebate, which was capped off byStandard & Poor’s stripping theU.S.of itsAAAcredit rating.At the end of this year, lawmak-ersmustreachdealstoavoidsteeptax hikes and spending cuts aswellas lift thedebtceilingagain.

Fiscal CliffWhile some economists andcentral bankers say “fiscal cliff”uncertainty is already hurtingbusiness hiring and investment,Mayur said it’snot yet at the fore-front enough to reflect the lowersentiment in federalpolicies.Meanwhile in June, investors’economicoptimismreadingtum-bled six points to 42.9, a seven-month low,withstocks falling forthe past two months. The 12.3%decline was the largest since lastAugust, as markets buckled amidthedebt-ceiling fight.Moraleamong small businessesis stagnating at historically lowlevels. The optimism index fromthe National Federation of Inde-pendent Business ticked down to94.4 in May from 94.5 in April,with little change in plans to hireand invest.Future sales, taxes, interestrates and credit availability aswellas costs for labor,healthcareand regulatory compliance areuncertain, saidNFIBChiefEcon-omistWilliamDunkelberg.“Most of this uncertainty is theresultofwhat ishappening—andnot happening — in Washing-ton,” he said. “Investments injobs or plants and equipment arenot the priority, while people arestillbracing for theworst.”

B Y J O H N M E R L I N EINVESTOR'S BUSINESS DAILY

President Obama’s claim Fridaythat “the private sector is doingfine” sparked a firestorm of at-tacks from Republicans andprompted a quick retraction, ofsorts, from Obama, who latersaid “it is absolutely clear thattheeconomyisnotdoing fine.”Butwhathasgonelargelyunno-ticed was Obama’s complaintthat it’s the government that’shurting these days. “Wherewe’re seeing weaknesses in oureconomy,” he said Friday, “havetodowithstateandlocalgovern-ment.”Even when he tried to walkback his comment later that day,Obama said that the private sec-tor is showing “some good mo-mentum” but the bigger prob-lem is state and local govern-mentcutbacks.And over the weekend,Obama’stopadviser,DavidAxel-rod, argued that the private sec-tor is “certainly doing betterthanthepublic sector.”Butareviewofdata fromsever-al government sources paints adifferent picture. State and localgovernment spending and reve-nues are up, and while state andlocal government jobs are downslightly, these lossespale incom-parisonwith thedamagedone toprivate-sector jobs over the pastfouryears.Here’sarundown:

00 State spending: Despite thedeep recession and the slow re-covery, annual state spendingoverall hasn’t dropped once. Infact, by fiscal 2011, total outlaysat the state level were 14% high-er than they were in 2008, ac-cording to theNationalAssocia-tion of State Budget Officers.00 State general-fund spend-ing: Meanwhile, states’ spend-ing from their general funds —which is more than a third oftotal state spending—climbedin2011 and2012, and is expected toclimb again in 2013. While stillnot back to 2008 levels, general-fund spending in 2012 will beslightly higher than 2007,NASBO reports.00 Midyear state budget cuts:Another sign of the improvinghealth of state governments is

the fact that thenumberof statesmaking cuts to their budgets inthe middle of the year has de-clined sharply. Last year, just 19states did. So far this year, onlyeighthave.00 Combined state and localspending: Annualized state andlocal current expenditures werealmost 10% higher in Q1 2012than justbefore theGreatReces-sionstarted, accordingto theBu-reau of EconomicAnalysis.00 State and local tax revenues:According to theCensusBureau,state and local tax revenuesclimbed 4.5% in 2011 — a yearwhen the overall economy grewjust 1.7%. Tax revenues are nowabove their previous peak of2008.00 Federal grants: Even as the$830billion stimulusprogram—which pumped huge sums intostate and local government cof-fers— runs out, federal grants tothese governments in 2012 willbe almost 23% higher than theywere in 2008, even after adjust-ing for inflation, according to theWhite House Office of Manage-ment andBudget.00 State and local jobs: WhilePresidentObamahas focusedonjob cuts at the state and locallevel, even this measure is lessdire than the president suggests.Overall, state and local jobs aredown just 490,000 — or 2.5% —from January 2008, the monthnationalemploymentpeaked,ac-cording to the Bureau of LaborStatistics.Bycontrast,private-sector jobsare still down 4.6 million — or4%—fromthatpeak, despite thefact that the recession endedthreeyears ago.What’s more, that recent dropin state and local governmentjobs came after eight years ofsharp increases, which sawthese jobs climb 10% — doubletheprivatesector’shiringpace.00 Education jobs: The sameholds true for education jobs.They’ve declined slightly overthe past four years — 1.2%. Butthose modest cutbacks cameafter a 12% jump from 2000 to2008, a timewhenpublic-schoolstudent enrollment climbed just4.4%, according to Departmentof Education data.As a result, even with the re-cent decline, the ratio of publiceducation jobs to students is stillhigher today than it was a de-cadeago.Of course, none of this touchesthe federal government, whichhasseenemployment(notcount-ing postal workers) climb by awhopping 11% since January2008.

Stocks Surge In Mixed Trade1 The Dow industrials climbed 1.3%,and theS&P500and theNasdaqeachrose 1.2%. But volume was mixed, risingon the Nasdaq and falling on the NYSE.Action in most leading stocks was dull.The 10-year Treasury yield rose 7 basispoints to 1.67%. July crude reversed a$2.25 loss intoa smallgain.MoreonB4

Spanish Yield At Record High2 The 10-year yield jumped 21 basispoints to 6.74% on fears the recentbank bailout eventually may lead to agov’t bailout. Fitch downgraded 18moreSpanish banks following lastweek’s sov-ereign cut. Also, Italian yields surged ondebt concerns raisedbyAustria’s financeminister.TheWorldBankwarnedtheeu-rozone crisis may slow global growthand worsen volatility, predicting slug-gishness in theU.S. andelsewhere.

Economic Views Fall On Jobs3 The IBD/TIPP Economic OptimismIndex fell to a 6-month lowof 46.7 inJune from 48.5 inMay, signaling deepergloom. The drop came on weaker jobgains, stock market volatility and uncer-tainty over Europe. The outlook subin-dex swung to pessimism fromoptimism,and confidence in federal policies fell fora2ndstraightmonth.Moreonthispage

Fed Dove Lifts Easing Hopes4 Comments from Chicago Fed Pres.CharlesEvansraisedhopesTue. thatmoremonetarystimulusmaycome.Afteraspeech lateMon.,hesaidmoreFedbuysof mortgage-backed securities wouldhelp housing, even with Treasury yieldsnear record lows. He’s not on the policypanel, buthis viewswere seenas aclue todiscussionsatnextweek’smeeting.

Russians Rally, U.S. Accuses5 Sec’yofStateHillaryClintonaccusedRussia of sending attack helicoptersto aid Syrian Pres. Bashar Assad’s brutalregime. Her comments came as tens ofthousands turned out inMoscow’s pour-ingrain toprotest allegedvoter fraudandcall forPres.VladimirPutin toresign.Po-lice earlier searched opposition leaders’homes, and websites trying to cover themarchwere takendown.

FDIC Backs New Capital Rules6 The FDIC joined the Fed in propos-ingthatbankshavetoholdcapital re-serves equal to at least 7% of assets vs.just 2% now and in line with Basel IIIint’l banking standards. But 2 new FDICboardmembers said the standardsmightbe too low. Banks have fought the rulesas too rigid, though nearly all alreadycomply. The FDIC also followed the Fedin finalizing new capital rules for bankswithat least$1bil incertainriskyassets.

Verizon Has New Pricing Tack7 Top U.S. wireless carrier VerizonWireless is pushing to get multipledevices, like tablets and smartphones, onits network. Its ShareEverything serviceplan will allow unlimited calls and textsfor up to 10wireless devices. Pricingwillvary with data volume and the numberandtypeofdevices.VerizonCommunica-tionsVZ rose 0.9% andVodafoneGroupVOD3%; they jointlyownthewireless firm.

Kors’ Q4 Earnings Soar 120%8 The fashion house reported Q4 EPSof 22 cents vs. 10 cents a year earlier,topping views by 6 cents. Revenue in-creased 58% to $380 mil. Same-storesales rose 13.6% in Europe and 37.2% inN. America. Michael KorsKORS sees Q1EPS of 18-20 cents, above analyst esti-matesof 17cents.Shares jumped8%.

Small-Business Morale Dips9 The sentiment index from the Nat’lFederation of Independent Businessslipped to94.4 inMay from94.5 inApril.The trade group blamed inaction inWashington for firms’ caution. Growinguncertainty over future sales, fiscal poli-cy, regulatory costs andmedical costs re-strained hiring and investment, it said.Most businesses surveyed said now is abadtimetoexpand.SeeVitalSignsonA2

India’s Economy Still Crawling10 Industrial output barely grew inApril, rising just 0.1% from a yearearlier after falling a revised 3.2% inMarch.Miningcontractedandmanufac-turing was slow. Analysts said the dataput more pressure on policymakers tocut interest rates at a June 18meeting toboost the economyand stave off a poten-tial cut in India’s credit rating, nowat thelowestS&Pinvestmentgrade.

IBD’S TOP 10

Economic SentimentGets Even GloomierAs Jobs DecelerateIndex Hits 46.7 From 48.5

Stock market correctionand eurozone uncertaintyadd to general malaise

Public Sector Ailing?Data Say OtherwiseGovernment spendingat state, local levels up;tax revenues rise 4.5%

RUSSIAN OPPOSITION ACTIVISTS march in Moscow, wheretensofthousandsofprotesterschanting“Russiawillbefree”flood-ed the streets Tuesday in the biggest protest against VladimirPutin since his inauguration as president in earlyMay.

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I B D / T I P P P O L L

S&P 500 INDEX1324.18+15.25 (+1.2%)Market continuingits erratic behavior

DOW JONES IND.12,573.80+162.57 (+1.3%)United Tech is onlycomponent down

NYSE VOL. (MIL)3,364-58 (-1.7%)Accumulation/Dist.Rating still a poor E

NASDAQ INDEX2843.07+33.34 (+1.2%)New sign that 2800is a support level

NASDAQ VOL. (MIL)

1562+106 (+7.3%)Fourth straight daybelow its average

10-YEAR T-NOTE1.67%+0.07 (+4.4%)Bond prices dropahead of auctions

DOLLAR-YEN79.52+0.12 (+0.2%)Haven currenciessteady; euro in focus

EURO1.2505+0.0020 (+0.2%)Spain yields rise tohighest of euro era

REUTERS CRB FUT.270.86+0.11 (0.0%)Corn fallsmore than1% 2nd straight day

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VOL. 29, NO. 47 W W W . I N V E S T O R S . C O M WEDNESDAY, JUNE 13, 2012 $2.00

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Stock EPSName Symbol Price Rtg








Boldfaced stocks show high EPS Rating 90or more. On Investors.com, see an IBD Chart,archived story and Stock Checkup before buy-ing. Stocks in each sector listed by % volumeincrease. Stocks under 10 a share or 60 EPS areomitted. †See chart in Stock Spotlight.

Comp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

Comp Closing Vol%Rtg Stock Name Symbol Price Chg ChgSector Leaders


Stocks Pulling Back to 10-Wk LineComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

B Y V I C T O R R E K L A I T I SINVESTOR'S BUSINESS DAILY

While the cup with handle is themost common stock chart pat-tern among great winners, thedouble bottom also pops up fre-quently—andhasa similar look.It initially resembles a cupwithhandle, but then the handleslants way, way down. So fardown that it no longer is a properhandle, and the overall structureinsteadtakesonaW-like shape.ThesecondpartoftheWactual-ly undercuts the first. Look at thedouble-bottom base that UltaBeautyULTA formed in 2010�, asshown in the chart accompany-ingthis column.In early August 2010 �, itmight have appeared as thoughUltawasenroute toetchingacupwithhandle. But the specialty re-tailer of cosmetics, beauty prod-ucts andhair salon servicesmadeanother move down, touching afresh six-month low at 20.67 onSept. 1, 2010.Sowhendodoublebottomsgen-erallyoccur?As with any base, they oftenbegintotakeshapewhenthegen-eral market itself experiences anintermediatecorrection.You frequently get the secondhalf of the pattern for a leading

stock when the market tries torally, then falls back into correc-tionmode.That’s exactly what happenedwith Ulta. The market was in anuptrend from early July throughearly August, as noted at thattime inIBD’sTheBigPicturecol-umnandMarketPulsegraphic.But the uptrend came underpressure inmid-August, and thenthemarket fell intoabriefcorrec-tion in late August. Ulta etchedthe second half of its double-bot-tomstructureduring thisperiod.The next confirmed uptrendbegan with a follow-through dayon Sept. 1, 2010. This turned intoa strong uptrend that helped un-leash plenty of big advances byhighly rated stocks, includingUlta.Ulta broke out on Sept. 3, a cou-ple of sessions after the follow-through day. It cleared a buypoint at 25.99. With any doublebottom, the entry comes fromthemiddle peak in the W-like pat-tern.ForUlta, themiddlepeakwasat25.89, so you just add a dime toget thebuypointat25.99.The breakout on Sept. 3 drewstrong turnover�, just like youwant to see. On a weekly basis,turnoverwas the strongest it hadever been for Ulta, which wentpublic in2007.

New Highs

UTILITY (5)WiscEngy WEC 38.90 67SouthwstGs SWX 44.01 83PinaclWst PNW 51.20 82NE Util NU 37.58 61IntgrysE TEG 55.96 64

RETAILFamlyDlr FDO 70.08 92†DunkinBrnds DNKN 33.81 82†Petsmrt PETM 66.45 93DollarTree DLTR 106.53 97

MEDICALPerrigo PRGO 109.84 97EdwdLfSci EW 90.54 82WstPhm WST 49.40 87†

BANKSHeartFin HTLF 20.15 66TaylorC TAYC 14.90 83MercBk MBWM 16.92 83

TELECOMArris ARRS 13.00 68Verizon VZ 42.99 62

SOFTWAREAthenhlt n ATHN 79.40 75

REAL ESTHealthRlty HR 22.17 83

MEDIAWaltDsny DIS 46.23 84†

INTERNETWeb.com WWWW 16.97 94†

FOOD/BEVBGFds n BGS 25.78 93†

FINANCEAdmFPrvd PVD 79.99 96

CONSUMER

KimbClark KMB 81.65 74

CHIPSMellanox MLNX 64.83 96

CHEMICALW D 40 WDFC 48.19 64

ALCOHL/TOBBeam BEAM 61.09 70

New Lows

SOFTWARE (7)Rovi Corp 21.46 77

AVG Tech 11.50 64SoleraHd n 41.57 87QualtySys 27.22 72Symantec 14.30 71Synchron 17.13 92Changyou 20.57 91

ENERGYPattUTI 13.76 73SouthwstEn 25.82 63ApcoO&G 20.02 70

RETAILBJSRest 38.40 95GmStpA 18.11 73

LEISURE

HomeAway 19.85 90Ctrip 16.47 80

FINANCEHighOne 10.47 91Green Dot A 20.22 96

AEROSPACEFLIR Systms 20.15 77AllintTch 46.77 66

TRANSPRTTwnDisc 17.26 66

TELECOMNortel Inv 14.18 95

MEDICALDrReddys 28.14 68

MACHINEGardnrDen 50.57 87

BUSINS SVCFTI Cnslt 28.87 77

AUTOGentex 20.54 64

APPARELDeckrsOut 48.96 78

94 87 94 B 52.01 FEI o FEIC 49.18 +0.62 541 +7498 89 92 B 57.92 HuntJB o JBHT 56.81 +0.53 1,325 +5999 98 88 B 24.48 BioRefLabs o BRLI 23.54 +0.53 348 +5299 98 95 C– 34.29 AlignTech o ALGN 31.10 +0.59 1,277 +4094 95 91 B– 43.05 Verisign o VRSN 41.16 +0.86 2,759 +32

98 96 92 D+ 59.10 Fresh Market o TFM 50.51 –1.53 9,548 +99993 84 78 A– 60.61 Caseys o CASY 52.18 –7.73 2,256 +80151 99 10 D– 32.18 CnstantC n o CTCT 16.62 –2.90 4,513 +75976 34 98 C+ 145.0 Regeneron o REGN 111.9 –16.0 4,387 +36465 95 19 E 56.64 BJSRest o BJRI 38.40 –2.54 1,889 +31133 62 24 D 49.97 VistaPrt o VPRT 30.12 –2.91 1,388 +20333 45 27 D+ 40.92 IntactInt o ININ 25.25 –0.61 191 +16894 90 94 C 92.00 WholeFd o WFM 89.90 –1.41 4,714 +16549 74 28 D+ 31.93 VirgnMd o VMED 22.15 –1.23 8,612 +13627 80 16 E 28.00 Schlmn o SHLM 18.02 –0.96 408 +10220 15 43 C– 35.65 Comtch o CMTL 27.61 –0.99 371 +10040 52 17 D– 33.67 SunHydrlcs o SNHY 21.07 –1.53 143 +8756 58 55 D 50.67 Garmin o GRMN 38.37 –1.14 1,782 +8667 49 79 B+ 44.62 PwrIntg n o POWI 38.65 –2.33 471 +8498 96 89 B– 100.6 MWIVet o MWIV 90.59 –0.86 109 +6979 84 67 C– 46.00 Woodwrd Inc o WWD 37.90 –0.67 501 +6647 77 6 E 59.31 Rovi Corp o ROVI 21.46 –0.89 1,823 +5990 89 82 C+ 40.04 NICE Sys o NICE 36.90 –0.87 323 +5399 96 99 A– 68.26 Mellanox o MLNX 64.83 –0.54 870 +4954 71 35 C– 39.32 RedRobin o RRGB 29.06 –1.02 350 +4887 90 90 B– 53.99 UnitdNaturl o UNFI 49.97 –0.90 431 +4616 34 16 E 98.17 ClayWEgy CWEI 52.81 –2.08 91 +4394 87 85 B– 22.62 AscenaRtl o ASNA 18.96 –0.67 3,057 +4293 99 86 E 101.2 TractorSupl o TSCO 84.07 –3.85 1,730 +4198 92 98 B+ 49.12 Expedia o EXPE 47.43 –1.30 6,324 +4145 78 6 C+ 118.9 DeckrsOut o DECK 48.96 –3.31 2,667 +3999 99 99 B+ 66.57 Liquidity o LQDT 58.53 –2.04 752 +3999 99 97 B 48.98 QustcrPhrm o QCOR 46.69 –1.87 2,553 +3673 14 99 B– 89.46 Medivation o MDVN 82.77 –3.67 927 +3483 55 98 D+ 47.46 ArctcCat o ACAT 31.96 –3.05 379 +3350 90 9 E 45.75 HomeAway o AWAY 19.85 –0.53 633 +3386 59 84 A+ 26.06 JackInBox o JACK 24.56 –0.51 543 +3380 24 93 B 47.80 OnyxPhrm o ONXX 45.58 –0.82 1,787 +3298 75 95 D+ 80.13 Athenhlt n o ATHN 79.40 –0.60 566 +2983 76 84 C+ 41.06 BobEvn o BOBE 38.03 –0.76 204 +2865 76 64 D 70.30 WPP Pl o WPPGY 58.18 –1.89 89 +278 18 20 D+ 50.00 BlueNile o NILE 30.58 –3.13 353 +27

86 94 80 D+ 69.72 Anlogic o ALOG 60.03 –0.72 88 +2699 99 83 D 81.09 Lululemon o LULU 61.92 –2.29 3,247 +2394 84 56 B+ 52.23 IPC n o IPCM 40.05 –0.85 147 +2368 88 58 B– 52.67 ViacomB o VIAB 46.16 –1.66 5,560 +23

“You Can Also Find Winners in IBD’s New High List”52-Week NewHighs & Lows

Stockswithhigh volumevs. 50-day avg.,showheavy institutional action. 80EPS&RSor better + closing price up areboldfaced.

I N V E S T O R ’ S C O R N E R

NYSE Stocks On The Move Nasdaq Stocks On The Move

88 87 91 B– 80.79 CmpSABESP o SBS 73.96 +1.23 440 +5897 92 93 B+ 70.15 FamlyDlr o FDO 70.08 +0.66 2,311 +5599 75 93 B 121.0 CocaCFmsa KOF 119.4 +1.06 170 +26

31 44 20 C 55.95 ScottMG o SMG 40.21 –2.84 8,740 +99952 37 64 B– 80.53 RenaisRe o RNR 73.38 –0.92 1,057 +17870 52 61 B+ 49.94 EnPro o NPO 37.32 –1.34 395 +16834 53 26 E 52.75 Harman o HAR 35.73 –0.80 2,800 +16596 98 94 C– 50.69 Michl Kors o KORS 38.84 –2.26 7,584 +15839 30 46 B 31.91 LANAirADS o LFL 25.61 –0.55 756 +15085 80 76 C– 114.8 Nike B o NKE 102.2 –5.38 5,465 +13974 99 38 E 60.55 Rackspce o RAX 41.33 –1.82 5,881 +13742 66 34 D 91.83 UntdTech o UTX 73.54 –0.81 7,971 +11867 90 22 D 53.93 GloblPay o GPN 40.48 –1.71 1,904 +11775 77 82 D 42.17 Macys o M 35.06 –1.8612,576 +10996 92 88 D– 83.63 Polaris o PII 68.63 –4.40 1,782 +10178 89 60 D 57.94 Timken o TKR 44.76 –2.51 2,477 +9769 91 31 D+ 39.02 MSCI o MSCI 31.67 –0.54 1,463 +8541 50 66 C+ 37.17 BritTele BT 31.94 –1.16 246 +821 37 6 D– 58.50 Navistar o NAV 25.93 –1.22 4,727 +82

19 16 27 D– 80.05 Autoliv o ALV 52.55 –1.89 1,341 +7588 97 72 B– 66.89 TriumphGp o TGI 58.25 –1.52 716 +6997 39 98 A– 33.33 ThreeDSys o DDD 29.56 –2.35 1,705 +6628 17 51 D 49.86 Mueller o MLI 40.52 –0.61 309 +5853 74 48 C 51.14 Aetna o AET 41.59 –1.29 6,748 +5498 93 89 C 49.32 BallyTech o BYI 45.01 –1.18 740 +5461 69 48 E 92.01 ParkHan o PH 78.93 –2.86 2,593 +5340 45 22 D+ 40.97 MnsWh o MW 28.14 –0.61 1,181 +5334 2 98 D+ 36.51 CobaltIEn n o CIE 21.67 –1.36 3,612 +5075 82 82 D+ 27.58 Penske o PAG 23.18 –0.61 838 +4899 90 88 A– 52.74 Ametek o AME 50.44 –1.54 1,152 +4631 49 32 E 27.82 Kaydon o KDN 21.40 –0.68 423 +3817 19 19 E 84.52 DevEngy o DVN 56.34 –1.21 5,573 +3866 75 61 D+ 68.19 Wesco Intl o WCC 53.99 –2.27 928 +3763 89 41 E 190.0 MettlerTole o MTD 153.4 –2.73 323 +3683 70 76 B– 30.77 CatoCp CATO 27.99 –1.07 190 +3545 70 34 E 81.90 Stanley Wrk o SWK 62.47 –1.06 2,982 +3485 72 90 C– 34.75 Discover n o DFS 32.12 –0.80 5,978 +3465 19 94 B+ 50.77 SixFlags o SIX 49.95 –0.64 440 +3444 16 64 C 23.41 Progresv o PGR 20.74 –0.96 7,682 +3442 66 19 E 47.82 Knnmtl o KMT 33.09 –1.46 1,227 +3256 65 51 D– 28.63 BarnesGrp o B 23.65 –0.55 473 +3058 75 36 C 46.00 HarrisTeeter HTSI 37.54 –1.18 337 +3099 87 97 C 133.2 ShrwnW o SHW 130.0 –3.02 1,941 +3078 93 41 D– 59.94 ValntPharm o VRX 45.15 –0.84 2,500 +3064 82 63 D– 98.66 Fedex o FDX 86.19 –1.50 2,553 +2975 69 58 B 49.45 Buenavt o BVN 39.75 –1.23 1,309 +29

99 Alexion Pharma ALXN 91.66 -2.06 -41%99 Align Tech ALGN 31.10 +0.59 +40%99 Buffalo Wild Wings BWLD 81.13 -0.07 -31%98 Chipotle Mex Grill CMG 395.80 -4.39 -38%99 Coinstar Inc CSTR 63.27 +0.18 -23%99 Monster Beverage Corp MNST 74.77 -0.62 -57%

95 Netease Inc Adr NTES 59.26 -1.49 +11%99 Priceline.com PCLN 646.50 -0.48 -41%99 Questcor Pharmac QCOR 46.69 -1.87 +36%99 S X C Health Solu SXCI 92.17 -0.34 -46%99 Solarwinds Inc SWI 43.02 -0.88 -62%98 Sourcefire Inc FIRE 49.98 -0.69 -46%99 Transdigm Group TDG 125.17 -1.67 -48%

96 Watson Pharmac WPI 67.92 -1.43 -12%

MAKING MONEY RELEVANT FACTS,RULES & SKILLS

What’s A Double Bottom?Ulta Serves Up A Model

CompEPS Rel Acc 52-Wk Stock Closing Vol Vol%Rtg Rnk Str Dis High Nasdaq Stock Symbol Price Chg (1000s) Chg

B Y V I C T O R R E K L A I T I S

INVESTOR'S BUSINESS DAILY

While highly rated stocks continued to hit new highsWednesday, some finished in weak form, closing near ses-sion lows. Themain averages also ended near their lowestlevelsof theday,witheach index losingground.Mellanox TechnologiesMLNX reached a fresh peak as ittriedtobreakoutpasta67.30cupbuypoint,but thenclosedbelowthat trigger.Israel-based Mellanox, which makes interconnection

products forcomputernetworks, behaved ina similar fash-ion Monday. Negative price reversals are not what youwant to seewithabreakout.Web.com GroupWWWW touched a new high, but closedwith a gain of less than 1% after being up nearly 4% intra-day.The stock remains in a possible buying range after clear-ing a 16.53 square-box buy point last week. But keep inmind it’s best not tobuy stockswhile themarket remains incorrectionmode.Web.com provides website services and domain nameregistration, targetingsmall tomidsizebusinesses.Dunkin’ BrandsDNKN also closed up less than 1%. It hit anewhigh,but thengaveupmostof itsgain for theday.

The franchiser of the Dunkin’ Donuts and Baskin Rob-bins brands is lifting off its 10-week moving average. It’sbeenhugging that key support level formanyweeks, all thewhile in light trading.Some other top-rated stocksmade the new highs list andfinishedwell, closing in theupperhalfof their tradingrang-es for theday.Low-fareairlineAllegiantALGTanddiscountretailerFami-lyDollarFDOwere inthis category.Allegiant has been hitting newhighs after rebounding offits 10-week line in fast trade lastweek.FamilyDollarhas beenwrestlingwith resistancenear 70,closing slightly above that level for the first timeWednes-day.

CompEPS Rel Acc 52-Wk Stock Closing Vol Vol%Rtg Rnk Str Dis High Nyse Stock Symbol Price Chg (1000s) Chg

96 Tangoe Inc TNGO 20.49 -0.09 -47%99 Transdigm Group TDG 125.17 -1.67 -48%

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New High List Analysis

Stocks Just Out Of BasesComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

99 Align Tech ALGN 31.10 +0.59 +40%99 Solarwinds Inc SWI 43.02 -0.88 -62%96 Tangoe Inc TNGO 20.49 -0.09 -47%

Supply/DemandComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

1113151719222630343846

Mar ’11Dec Sep Jun Mar ’10

400,000800,000

1,600,000Volume

Ulta Beauty (ULTA)

............................................................................................NYSE(n)–30 NewHighs,51LowsNASDAQ–30New Highs,44LowsAMEX(a)–2 NewHighs, 11 Lows

95 Cirrus Logic CRUS 27.98 -0.59 -38%94 Coinstar Inc CSTR 63.27 +0.18 -23%94 Expedia Inc EXPE 47.43 -1.30 +41%

INVESTOR'S BUSINESS DAILY THURSDAY, JUNE 14, 2012 B 1

Investor’s Corner Page

IBD teaches you essential investing strategies every day.

Appearing each day in IBD and at Investors.com, this is the best way to begin broadening your knowledge. This section serves as a tutorial on IBD’s unique tools and addresses investment questions on buying, selling, chart analysis, spotting market trends, and much more.

Online Resources: Visit our Investor’s Corner Archive on Investors.com/education for a huge library of previously published articles. They are grouped into seven main topics from chart reading to investor psychology.

NYSE & Nasdaq Stocks On The Move™ Side-by-Side!

IBD’s one-of-a-kind daily screens list stocks trading in much higher than normal volume, indicating institutional buying. This helps you spot leaders you won’t find on standard most active lists appearing in other newspapers. Stocks On The Move also shows you stocks that are down in higher than average volume, a sign of weakness and possible further price declines.

Online Resources: Our intraday version of this screen is on the homepage of Investors.com and updated throughout the day during trading hours!


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IBD Sector Leaders

IBD’s Smart NYSE + Nasdaq Tables present stocks in 33 industry sectors, from strongest to weakest, to help you focus on the leading sectors and the best stocks within those sectors. IBD Sector Leaders are the best of the best.

Stocks include a mini chart giving you critical fundamental and technical data, plus buy points!

MUST READ!

CHECK OUT IBD SECTOR LEADERS ON B1 EVERY DAY!

IBD SECTOR LEADERS


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Fin-mrtg&rel svc 27%Bldg-wood prds 25%Tobacco 22%Soap & clng preparat 17%Fnancepbl inv fdbnd 16%Utility-gas dstribtn 15%Utility-water supply 15%Retail-spr/mini mkts 14%Mdcal-whlsle drg 14%Retail-mjr dsc chns 14%

Top Fidelity SectorFundsYTD 4 Wk

% Chg | % Chg

Top SectorETFsYTD

Symbol | % Chg

99 Mellanox Tech MLNX 66.20 -4.1% +141%92 L T C Properties Inc LTC 35.67 +0.5% +99%96 N C R NCR 22.77 +2.7% +91%99 Air Methods Corp AIRM 96.37 -0.9% +89%99 Buffalo Wild Wings BWLD 83.10 +0.7% +86%96 Echo Global Logistcs ECHO 19.02 +0.1% +81%91 Wellcare Health WCG 64.06 +1.3% +69%94 Idexx Laboratories IDXX 95.32 +1.5% +56%94 Oiltanking Partners Lp OILT 31.90 +1.3% +52%93 Greenway Med Tech GWAY 16.05 -2.0% +52%

GroupsWithBest %OfNew HighStocks

98 Questcor Pharmac QCOR 44.12 -2.1% +342%99 Mellanox Tech MLNX 66.20 -4.1% +141%99 Buffalo Wild Wings BWLD 83.10 +0.7% +86%97 Cirrus Logic CRUS 26.13 +0.8% +35%96 American Tower Reit AMT 70.20 +0.4% +33%94 Heartland Pymnt Sys HPY 31.45 +2.8% +32%97 C F Industries Hldgs CF 194.69 +1.9% +21%97 Grand Canyon Edctn LOPE 21.21 -0.2% +14%95 Valspar VAL 51.15 -1.4% +11%99 Apple Inc AAPL 604.43 -0.6% +8%

B Y D A V I D S A I T O - C H U N GINVESTOR'S BUSINESS DAILY

TheNasdaq failed to halt its losingstreak Wednesday, but a reboundin the final 90 minutes of the ses-sion helped shave the leadingindex’s losses.Thelarge-capS&P500closedvir-tually flat. Strength among energy,paper and a few financial stocksoffset poor action among consum-ergoodsandcyclical issues.The NYSE composite, still thelaggard index among the three,eked out a 0.2%gain during a rela-tively range-bound session. It wasdown0.3% intheearlygoing.TheNasdaqcompositecuta1.2%intraday loss to less than0.5%.TheNasdaq100fell0.6%,indicat-ing that large-cap techs fared nobetter than the rest of the compos-ite’s sectors.By falling 3% over the past foursessions, the Nasdaq composite iscomingclose toerasingall its gainssince the S&P 500 staged a follow-throughonJune29.The Nasdaq marked a mild fol-low-through on June 15, closingthat session at 2872. The gainssincethatpointhavevirtuallyerod-edtoo.When amarket uptrend is underpressure, it’s tough to makemoney. Buy a stock too far extend-ed past the proper entry, and thesting of several 8% losses can hurtforquiteawhile.So, it’s not time to go full throttle,long or short. Volatility will likelyperk up next week, when hun-dredsofcompanies report second-quarterresults.Leadingstocksshowedmixedac-tion overall. Breakouts are few innumber, and quick round trips arebecomingmorecommon.Plus, theweaknesswithin the re-tail sector clearly broadened asMichaelKorsKORS andLululemonLULU fell more than the major aver-ages. The former slumped backbelow its 50-day moving averageand is 19% off its all-time high of50.69. The latter has sunk 31%belowits81.09all-timepeak.Mellanox Technologies’MLNXfour-day, 14% slide represents thefrustration one can have with abreakout inachoppymarket.

In theIBD50,25names fell 1%ormoreWednesday. Just five stocksgained at least 1%.However, basescontinue to form. CF Indus-triesCF,Dick’s SportingGoodsDKS,Heartland Payment SystemsHPYanddiabetesdruggiantNovoNor-diskNVO are all trading just 4% to7%below their 52-week peaks. Allfourare inWednesday’s IBD50.For technical analysts, theNYSEcomposite stands at an interestingcrossroad. The index finishedWednesday a hair above both its50- and 200-daymoving averages,and these two lines have virtuallyintertwined.

Is it a sign of support, or a pausebefore more declines? It’s proba-bly more useful for investors topay attention to how the leadersact.Theyalwaysmovemorequick-ly — to the upside or downside —thanthemajoraverages.Wednesday’s minutes of theJune 21-22 Federal Reserve meet-ing on interest rates didn’t seem tooffer big surprises. The centralbank chiefs acknowledged whathas clearly been evidenced by re-cent economic data — that theAmericaneconomicengine is sput-tering.“Most participants judged thatthepaceofeconomic recoverywaslikely to be somewhat slower overcomingquarters thantheyhadpro-jected inApril,” theFedwrote.

178 98 92 Telcom–Fibr Optcs .. –2.1 –3.4179 177 166 Wholesale–Elect .. –2.9 0.0180 186 190 Steel–Producers .. –8.2 +0.1181 144 130 Auto/Trck–OrgnlEqp 38 –5.4 –0.6182 187 177 Bldg–HeavyConstr .. –6.2 –0.6183 168 173 Trnsprt–EqpMfg .. –10.3 –1.5184 190 182 Oil&Gas–Royalty Trust .. –15.1 +0.8185 188 185 Cmp Sftwr–Gaming .. –29.4 –0.6186 178 179 Trucks&Parts–Hvy D .. –6.3 –1.2187 183 184 Retail–CnsmrElec .. –23.2 –9.6188 192 180 Auto/Trck–RplcPrts .. –0.3 +0.9189 193 192 Rtail Whlsle Offc Sup .. –12.0 –1.8190 189 186 Steel–SpcltyAlloys .. –14.6 +0.7191 191 189 Retail/Whlsle–Jwlry .. –16.4 –1.0192 184 193 Mining–MetalOres 59 –21.2 –0.6193 181 191 Mchinry–Cnstr/Mng .. –14.4 –1.4194 196 194 MetalPrds–Distribtr .. –13.9 +0.4195 195 195 Energy Coal .. –28.7 +0.4196 197 197 Oil&GascdnExpl Pro .. –33.7 +1.2197 194 196 EnergySolar .. –33.0 +2.1

94 Heartland Pymnt Sys HPY 31.45 +2.8% +32%99 Spirit Airlines Inc SAVE 22.15 +2.5% -12%97 C F Industries Hldgs CF 194.69 +1.9% +21%89 Shuffle Master SHFL 15.02 +1.3% -23%91 Francesca's Hldgs FRAN 29.55 +1.2% -60%97 Fleetcor Technologies FLT 35.68 +1.1% -26%99 Generac Hldgs Inc GNRC 22.11 +0.9% -18%97 Cirrus Logic CRUS 26.13 +0.8% +35%99 Buffalo Wild Wings BWLD 83.10 +0.7% +86%99 Davita DVA 97.40 +0.7% -33%

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Day’s best bolded, worst underlined.

1 2 3 Medical–Biomed/Bth 85 +34.7 –1.42 1 2 Fin–Mrtg&RelSvc 88 +79.1 +0.53 4 12 Food–Dairy Products .. +22.5 –1.94 9 9 Medical–Services 95 +25.5 +0.35 3 1 Bldg–Rsidnt/Comml 87 +29.5 –1.16 5 5 Banks–Midwest 90 +20.2 +0.27 13 22 Trnsprttin–Airlne 89 +20.6 +1.48 59 72 Mdcal–Outpnt/HmCr 94 +24.8 0.09 6 4 Banks–Wst/Sthwst 86 +21.6 +0.4

10 7 14 Medical–Products 88 +13.6 –0.211 23 27 Comml Svcs–Hlthcre 88 +19.7 +0.512 21 13 Bev–Non–Alcoholic 91 +17.5 –2.213 32 28 Retail–LeisurePrds 94 +19.4 –0.714 14 97 Internet–Content 86 +7.1 –1.315 11 35 ComptrSftwr–Mdcl 96 +23.0 –1.016 10 20 Media–Newspapers .. +25.5 –3.817 20 32 Retail–Discnt&Vari 94 +23.0 –1.218 39 64 Mdcal–Whlsle Drg .. +21.9 –0.119 28 43 ComptrSftwr–Fincl 92 +22.8 +0.320 22 19 Cmp–Hrdwre/Perip 75 +27.7 –0.3

Uptrendunder

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Worst 20 Groups (6 mos.)

Rank3 6 Subgroup %Chg Daily

This Wks Wks Industry Comp. Yr To %Wk | Ago | Ago | Name | Rating | Date | Chg

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pressure

Top 20 Groups (6 mos.)

Rank3 6 Subgroup %Chg Daily

This Wks Wks Industry Comp. Yr To %Wk | Ago | Ago | Name | Rating | Date | Chg

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IS DJ US Home Const ITB +38%Spdr S&P Biotech XBI +35%IS Nasdaq Biotech IBB +24%Spdr S&P Homebldrs XHB +22%Spdr DJ Wil Intl RE RWX +15%Spdr DJ Wil REIT RWR +13%IS FTSE Nareit Mort REM +13%VG Reit VNQ +13%HT Retail RTH +13%IS DJ US Real Est IYR +13%

MARKET PULSE

Wednesday’s action:Closesmixed in lower trade

Current outlook:Uptrend under pressure

Distribution days:2 forNasdaq andNYSE,1 for S&P 500

Leaders up in volume:Allegiant TravelALGT

AmgenAMGN CF IndustriesCF

Heartland PaymentsHPY

Leaders down in volume:LululemonLULU ValsparVAL

MellanoxMLNX QuestcorQCOR

ProceraNetworksPKT

Tractor SupplyTSCO

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1. Biotechnlgy + 29% + 9%2. ConsumerFin + 19% + 5%3. Banking + 17% + 6%4. Multimedia + 16% + 5%5. Retailing + 16% + 2%6. Const & Hse + 15% + 5%7. Financl Svcs + 14% + 4%8. Chemicals + 13% + 3%9. Consmr Disc + 13% + 2%10. Health Care + 13% + 4%

98 Amer Natl Bnksh AMNB 23.25 +3.4% -59%97 Select Medical Hldgs SEM 10.87 +2.8% -11%94 Heartland Pymnt Sys HPY 31.45 +2.8% +32%96 N C R NCR 22.77 +2.7% +91%99 Spirit Airlines Inc SAVE 22.15 +2.5% -12%92 Viewpoint Financial VPFG 16.35 +2.3% -6%97 C F Industries Hldgs CF 194.69 +1.9% +21%95 Healthsouth Corp HLS 23.79 +1.7% +1%99 Cardtronics Inc CATM 30.70 +1.7% -22%93 Omniamerican Bcrp OABC 21.37 +1.5% -60%

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IBD 50’s Best Price % ChgComp Closing Price VolRtg Stock Name Symbol Price % Chg % Chg

Best Price % Chg of Other Lists

Comp Closing Price VolRtg Stock Name Symbol Price % Chg % Chg

IBD 50’s Most Volume % ChgComp Closing Price VolRtg Stock Name Symbol Price % Chg % Chg

Most Vol % Chg of Other Lists

Comp Closing Price VolRtg Stock Name Symbol Price % Chg % Chg

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Full Group List on Page B7

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Market in correction

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T H E B I G P I C T U R E

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Other Lists are: Top Sector Stocks, Stocks Just Out of Bases and IBDWeekly Review.

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Nasdaq Off 4th Day In RowAs Most Leaders StruggleD

B2 THURSDAY, JULY 12, 2012 WHAT'S THE MARKET TREND? INVESTORS.COM

The Big Picture

Three out of four stocks follow the market’s direction. So should you. The Big Picture gives you a daily briefing on market direction and objective analysis on the price action of leading stocks. This is not personal opinion; rather, IBD editors help you understand the market’s direction and its key indicators, which are vital to your investing success. The Big Picture has helped observing readers get in the market at the start of a new uptrend and out when the market begins a correction.

Online Resources: IBD’s market editors cover the action every hour during market hours. It’s the top story on Investors.com.

How’s The Market Page

The correct time to buy the next potential big new leader that has accelerating earnings and sales is when a key general market index finally rallies. The signal occurs on a fourth or later day of its attempted rally, when the index has a follow-through day up a huge percentage in price on a volume increase from the day before. Once this happens, the best stocks typically move up in price and emerge from properly formed bases.

Therefore, you need to learn to read charts and track IBD’s market indexes. IBD’s The Big Picture column will help you by pointing out follow-through days as well as periods of excessive distribution (selling) days over any 4 or 5 week period.

MUST READ!

HOW’S THE MARKET TREND


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1. Boldfaced Composite Rating: Any stock with Composite Rating 95 or higher. . . making it easy for you to scan for top-rated stocks.

2. Volume % Change: IBD’s unique supply and demand indicator when combined with a stock’s price change is the truest measure of trading in a stock. A quality stock up in price with a big volume % change could be the first hint big investors (mutual funds, etc.) may be moving into a stock, which is likely to push up the price over time.

3. Underlined Stocks: Stock closed at a new 52-week low or price is down at least $1.00.

4. Boldfaced Stocks: Stock closed at a new 52-week high or price is up at least $1.00.

5. Boldfaced 52-Week High: The stock’s price is within 10% of its 52-week high.

6. Stocks With a Dot: Denotes that a New America or IBD 50 story was written about the company in the past six months.

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IBD’s New Research Tables Help You See Top Performers in Seconds!

SUCCESSFUL INVESTORS READ INVESTOR’S BUSINESS DAILY®

IBD’s Research Tables Help You Save Time and Spot Leading Stocks!IBD’s Research Tables revolutionize how vital stock data is presented and dramatically cut the time it takes you to find winning stocks.

1 Stocks are first filtered by the best-performing 33 broad economic industry sectors.

2 The Group Ranking from previous weeks is indicated, so you know whether the group is moving up or down.

3 We show you up to 10 fundamentally and technically superior stocks alphabetically at the top of each sector list. Additional key data is given on these stocks.

4 Tables have wide columns and are in large type, making them easier for you to read.

5 NYSE and Nasdaq stocks are combined into one table to further save you time. At least 2,500 stocks are listed -- 1,000 more than other leading business dailies.

With this exclusive format, you can do a quick 30-second scan of IBD’s first several sectors and immediately spot up to 30 high-rated stocks in the best market sectors!

IBD’s Key Ratings No Other Source Gives You

We rate and compare all domestically traded stocks our database to give you a fast assessment of a stock’s health overall potential. You have daily updates on the most relevant and vital performance measurements. No other daily financial paper offers you this data!

1. COMPOSITE RATING: The IBD SmartSelect® Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on Earnings Per Share & Relative Strength. Stock’s percent off its 52-week high is also included in the formula.

2. EARNINGS PER SHARE GROWTH RATING (EPS): Compares short- and long-term profit growth of every publicly traded company and ranks them from 1 to 99. A stock with an EPS Rating of 99 has delivered profit growth better than 99% of all other companies.

3. RELATIVE PRICE STRENGTH RATING (RS): Looks at how much a stock has gained or lost in the past 12 months and compares its performance with every other publicly traded company (1 to 99).

4. SALES+MARGINS+RETURN ON EQUITY RATING (SMR)®: Graded on an A to E scale; lets you spot companies with superior Sales Growth, Profit Margins, and % Return on Equity.

5. ACCUMULATION / DISTRIBUTION RATING®: This important rating, unavailable elsewhere, accurately tracks the relative degree of professional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks. Updated daily, stocks are rated on an A+ to E scale.

A = Heavy buying to E = Heavy selling Online Resources: You can use the Stock Quotes & News investing tool on Investors.com for a quick view of SmartSelect Ratings for any stock!


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Boldfaced stocks show high EPS Rating 90or more. On Investors.com, see an IBD Chart,archived story and Stock Checkup before buy-ing. Stocks in each sector listed by % volumeincrease. Stocks under 10 a share or 60 EPS areomitted. †See chart in Stock Spotlight.

Sector LeadersComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg


Stocks Pulling Back to 10-Wk LineComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

New Highs

MEDICAL (23)Surmodics SRDX 16.73 64GenProbe GPRO 82.04 79Cantel CMN 27.21 98AlignTech ALGN 34.73 98Idexx Labs IDXX 94.15 91Cyberonics CYBX 44.44 97SXCHlth SXCI 98.55 99†WstPhm WST 49.86 87BioRefLabs BRLI 25.58 98HenrySchn HSIC 79.73 91Amsurg A AMSG 29.38 85UtdhlthG UNH 60.26 81EdwdLfSci EW 102.48 82AlexionPhr ALXN 98.70 99†DaVita DVA 93.54 97

SalixPh SLXP 53.29 82Parexel PRXL 28.46 65Amgen AMGN 73.02 79BiognIdec BIIB 143.09 81Perrigo PRGO 114.74 97QustcrPhrm QCOR 51.52 99CatalystH CHSI 92.78 95McKessn MCK 92.81 89

RETAIL (18)Frischs FRS 28.28 71Zumiez ZUMZ 41.16 87†UnitdNaturl UNFI 54.47 90DunkinBrnds DNKN 36.78 82†BedBath BBBY 74.72 93SallyBty SBH 28.00 98†eBay EBAY 43.50 85RossSts ROST 67.91 97LumberL LL 33.10 96†

TJX Cos TJX 43.48 96†Petsmrt PETM 69.36 93CVSCare CVS 46.25 85DollarGn n DG 52.20 97LKQ Corp LKQ 37.00 97HomeDp HD 52.97 86DollarTree DLTR 113.49 97WholeFd WFM 95.68 90Costco COST 91.86 85

UTILITY (10)ArtsRs ARTNA 19.72 90Cleco CNL 42.14 77PinaclWst PNW 51.80 82IntgrysE TEG 57.31 64NV Energy NVE 17.52 74AmrStWt AWR 38.65 90SouthwstGs SWX 44.40 83HawaiiEl HE 28.61 87

NE Util NU 38.57 61NextEraEn NEE 67.84 80

FOOD/BEV (9)Sanfilippo JBSS 15.84 77BGFds n BGS 27.29 93J&JSnack JJSF 57.48 75McCorm MKC 58.88 66MeadJh MJN 86.34 65Dean Fds DF 16.51 81Hershey HSY 70.25 88CocaCFmsa KOF 124.56 75MCormV MKCV 58.70 66

SOFTWARE (8)QAD Inc A QADA 13.54 83GrnwyMed GWAY 16.58 92UltimtStwr ULTI 90.99 73QuestSoft QSFT 26.52 90

Athenhlt n ATHN 85.44 75Cerner CERN 86.91 97LivePrsn LPSN 18.83 81Verisign VRSN 43.44 95

BANKS (7)BarHarbor BHB 37.60 73CentrBc CNBC 10.70 95GrtSoBcp GSBC 24.82 73PeBcOH PEBO 20.35 75TaylorC TAYC 15.39 83TxCapBsh TCBI 40.00 94†HeartFin HTLF 22.50 66

TRANSPRT (6)Celadon Grp CGI 16.95 78HuntJB JBHT 60.34 89Saia SAIA 22.77 83UnionPac UNP 118.41 95

RailAmer n RA 24.41 81Allegiant ALGT 68.70 80

TELECOM (6)TWTelcom TWTC 25.19 94CrownCstl CCI 57.76 70Arris ARRS 13.51 68Amer Tower AMT 68.99 99CmstA CMCSA 31.31 97CctSp CMCSK 30.78 97

REAL EST (5)Ntl Hlth Inv NHI 51.47 79SelctIncmReit SIR 23.44 91OmegaHlth OHI 22.12 79HealthRlty HR 23.39 83LTC Ppty Inc LTC 34.87 85

FINANCE

Altisrce n ASPS 71.77 99TrianglCp TCAP 21.61 86Vantiv A VNTV 24.03 67AlliancDta ADS 131.75 91

CONSUMEREcolab ECL 67.35 87KimbClark KMB 83.21 73SpectrmB SPB 35.28 73

ColgPlmv CL 101.30 76

BUILDINGRylandGp RYL 23.74 69ShrwnW SHW 131.84 87SmithAO AOS 48.81 80Snap On SNA 64.24 86

ENERGY

4 ALEXION PHARMA (ALXN) Group 1 o$98.70184.4M Shares 99 Comp. Rating 99 EPS 96 RS 27% ROE

DEVELOPS THERAPEUTICS TO TREAT CANCER, AUTOIMMUNE DISORDERS, TRANS-PLANT REJECTION, HEMATOLOGIC AND NEUROLOGIC DISEASES.

Ann. EPS Growth +48% PE 65 Avg. Daily Vol 2,110,700 Debt 0%Last Qtr Eps +55%aNext Qtr Eps Est +28% Last Qtr Sales +47%3 Q's Avg Eps +53% PreTax Mgn 36%Eps Due 7/21R&D 18%

Acc/Dis B-UpDown Vol 1.7Sup/Demand 76

Breaks out, 4% past 95.11 entry; accumulation in pattern.

8 APPLE INC (AAPL) Group 31 o$587.41925.7M Shares 98 Comp. Rating 99 EPS 94 RS 42% ROE

MANUFACTURES PERSONAL COMPUTERS, MOBILE COMMUNICATION DEVICES ANDPORTABLE DIGITAL MUSIC PLAYERS.


Acc/Dis DUpDown Vol 0.5Sup/Demand 90

Climbing back above 10-week line as it keeps forming base.

12 CIRRUS LOGIC (CRUS) Group 41 o$30.3461.9M Shares 97 Comp. Rating 97 EPS 98 RS 20% ROE

DESIGNS ANALOG/MIXED-SIGNAL ICS AND EMBEDDED SOFTWARE FOR CONSUMER/COMMERCIAL AUDIO, INDUSTRIAL AND ENERGY MARKETS.

Ann. EPS Growth +109% PE 22 Avg. Daily Vol 2,892,700 Debt 0%Last Qtr Eps +64%`Next Qtr Eps Est -13% Last Qtr Sales +21%3 Q's Avg Eps +24% PreTax Mgn 22%Eps Due 7/21R&D 20%

Acc/Dis B+UpDown Vol 1.4Sup/Demand 95

In 5% chase-zone range after rebound from 10-week line.

1 LIQUIDITY SERVICES (LQDT) Group 13 o$57.3422.8M Shares 99 Comp. Rating 99 EPS 98 RS 21% ROE

PROVIDES ONLINE AUCTION SERVICES FOR WHOLESALE, SURPLUS AND SALVAGEASSETS FOR PROFESSIONAL BUYERS AND SELLERS.

Ann. EPS Growth +58% PE 40 Avg. Daily Vol 555,800 Debt 0%Last Qtr Eps +100%`Next Qtr Eps Est +59% Last Qtr Sales +41%3 Q's Avg Eps +88% PreTax Mgn 16%Eps Due 8/2

Acc/Dis C+UpDown Vol 1.3Sup/Demand 87

Meets resistance at 10-week line as late-stage base builds.

5 ALIGN TECH (ALGN) Group 39 o$34.7358.7M Shares 99 Comp. Rating 98 EPS 97 RS 18% ROE

DEVELOPS A PROPRIETARY SYSTEM FOR TREATING MALOCCLUSION, OR THE MIS-ALIGNMENT OF TEETH.


Acc/Dis BUpDown Vol 1.6Sup/Demand 79

Cleared buy points at 33 and 34.39 in huge trade.

9 ULTA SALON COS & FRA (ULTA) Group 11 o$96.7649.1M Shares 99 Comp. Rating 98 EPS 94 RS 24% ROE

OPERATES 467 BEAUTY STORES IN 43 STATES OFFERING HAIRCARE, C OSMETICSAND OTHER PRODUCTS, AS WELL AS SALON SERVICES.

Ann. EPS Growth +71% PE 47 Avg. Daily Vol 1,105,700 Debt 0%Last Qtr Eps +46%aNext Qtr Eps Est +34% Last Qtr Sales +23%3 Q's Avg Eps +55% PreTax Mgn 11%Eps Due 9/8

Acc/Dis A-UpDown Vol 1.1Sup/Demand 86

Just past 96.75 buy point in cup base.

13 MONSTER BEVERAGE CORP (MNST) Group 25 o$76.15156.8M Shares 99 Comp. Rating 96 EPS 97 RS 32% ROE

MANUFACTURES ALTERNATIVE BEVERAGES INCLUDING ENERGY DRINKS, FRUITJUICES, SMOOTHIES AND NATURAL SODAS.

Ann. EPS Growth +36% PE 46 Avg. Daily Vol 2,071,200 Debt 0%Last Qtr Eps +41%`Next Qtr Eps Est +36% Last Qtr Sales +28%3 Q's Avg Eps +32% PreTax Mgn 26%Eps Due 8/4

Acc/Dis AUpDown Vol 1.1Sup/Demand 78

56% over 48.75 buy point from flat base.

2 QUESTCOR PHARMAC (QCOR) Group 70 o$51.5254.8M Shares 99 Comp. Rating 99 EPS 98 RS 49% ROE

DEVELOPS PRESCRIPTION DRUGS TO TREAT DISEASES AND DISORDERS OF THECENTRAL NERVOUS SYSTEM.

Ann. EPS Growth +45% PE 31 Avg. Daily Vol 1,950,400 Debt 0%Last Qtr Eps +205%aNext Qtr Eps Est +148% Last Qtr Sales+161%3 Q's Avg Eps +197% PreTax Mgn 55%Eps Due 7/26R&D 8%


Up 10% from 46.94 entry after June 12 breakout in big trade.

6 SOLARWINDS INC (SWI) Group 44 o$46.7259.1M Shares 99 Comp. Rating 97 EPS 98 RS 35% ROE

DEVELOPS NETWORK MANAGEMENT SOFTWARE USED BY COMPANIES TO IDENTI-FY AND SOLVE NETWORK PERFORMANCE ISSUES.

Ann. EPS Growth +32% PE 42 Avg. Daily Vol 1,009,600 Debt 0%Last Qtr Eps +43%`Next Qtr Eps Est +23% Last Qtr Sales +39%3 Q's Avg Eps +37% PreTax Mgn 52%Eps Due 8/3R&D 11%


Extended after finding support at 10-week line.

10 DOLLAR TREE (DLTR) Group 17 o$113.49111.3M Shares 98 Comp. Rating 97 EPS 96 RS 35% ROE

OPERATES 4,351 DISCOUNT VARIETY STORES IN 48 STATES AND CANA DA, OFFER-ING MERCHANDISE AT THE FIXED PRICE OF $1.00.



Extended and at new high after rebound from 10-week average.

14 WEB.COM GROUP (WWWW) Group 44 o$18.7542.4M Shares 99 Comp. Rating 94 EPS 98 RS 19% ROE

PROVIDES WEBSITE PUBLISHING AND MANAGEMENT SOFTWARE AND SERV ICESTO SMALL AND MEDIUM-SIZED BUSINESSES.

Ann. EPS Growth +18% PE 16 Avg. Daily Vol 699,700 Debt 263%Last Qtr Eps +67%`Next Qtr Eps Est +38% Last Qtr Sales+132%3 Q's Avg Eps +43% PreTax Mgn 17%Eps Due 8/3


Rises 13% past 16.53 buy point from square-box base.

“You Can Also Find Winners in IBD’s New High List”52-Week NewHighs & Lows (Continues on page B3)

3 S X C HEALTH SOLU (SXCI) Group 5 o$98.5567.5M Shares 99 Comp. Rating 99 EPS 98 RS 17% ROE

PROVIDES PHARMACY BENEFIT MANAGEMENT SERVICES AND HEALTHCARE INFOR-MATION TECHNOLOGY SYSTEMS.



Breaks out in big volume, ends 2% below 100.60 buy point.

7 MELLANOX TECH (MLNX) Group 41 o$72.1523.1M Shares 99 Comp. Rating 96 EPS 99 RS 13% ROE

ISRAELI DESIGNER OF ADAPTER, GATEWAY AND SWITCH ICS FOR SERV ERS,TELECOM INFRASTRUCTURE EQUIPMENT, AND STORAGE SYSTEMS

Ann. EPS Growth +18% PE 52 Avg. Daily Vol 628,400 Debt 0%Last Qtr Eps +113%`Next Qtr Eps Est +170% Last Qtr Sales +61%3 Q's Avg Eps +67% PreTax Mgn 18%Eps Due 7/20R&D 36%


Extended after sailing past 67.30 buy pt from cup base.

11 ROSS STORES INC (ROST) Group 20 o$67.91217.5M Shares 98 Comp. Rating 97 EPS 96 RS 47% ROE

OPERATES 1,125 ROSS DRESS FOR LESS AND DD'S DISCOUNTS RETAIL STORES IN29 STATES AND GUAM

Ann. EPS Growth +33% PE 22 Avg. Daily Vol 2,116,400 Debt 10%Last Qtr Eps +26%`Next Qtr Eps Est +20% Last Qtr Sales +14%3 Q's Avg Eps +24% PreTax Mgn 12%Eps Due 8/18


5% over 64.89 flat-base buy point; volume kicks in late.

15 TRANSDIGM GROUP (TDG) Group 125 o$127.3249.0M Shares 98 Comp. Rating 99 EPS 93 RS 34% ROE

MANUFACTURES ACTUATORS, CONTROLS, IGNITION SYSTEMS, GEAR PUMPS, ANDOTHER COMPONENTS FOR THE AEROSPACE INDUSTRY.

Ann. EPS Growth +20% PE 22 Avg. Daily Vol 554,400 Debt 385%Last Qtr Eps +72%`Next Qtr Eps Est +41% Last Qtr Sales +39%3 Q's Avg Eps +59% PreTax Mgn 29%Eps Due 8/9


Forming cup with handle with 128.96 buy point.

99 Alexion Pharma ALXN 98.70 +4.64 +32%99 Align Tech ALGN 34.73 +1.48 +120%98 Apple Inc AAPL 587.41 +1.63 -38%99 Buffalo Wild Wings BWLD 87.26 +0.40 -48%99 Chipotle Mex Grill CMG 416.54 +2.08 -42%99 Coinstar Inc CSTR 65.65 +0.89 +1%97 Intuitive Surgical ISRG 548.58 +3.34 -30%

99 Monster Beverage Corp MNST 76.15 -2.57 +14%95 Netease Inc Adr NTES 63.81 +2.74 -18%99 Priceline.com PCLN 680.11 +6.61 -28%99 Questcor Pharmac QCOR 51.52 +1.41 -14%99 S X C Health Solu SXCI 98.55 -0.01 +73%99 Solarwinds Inc SWI 46.72 +0.16 -11%99 Sourcefire Inc FIRE 54.15 +1.18 -3%98 Transdigm Group TDG 127.32 +0.32 -45%95 Watson Pharmac WPI 70.41 +1.19 -22%

B Y D A V I D S A I T O - C H U N G

INVESTOR'S BUSINESS DAILY

As to beexpectedwhenanewmarketuptrendgains steam,the new-highs list should expand. That’s what happenedTuesday.The number of Nasdaq-listed issues reaching all-time or52-week highs on Tuesday hit the triple-digit level for thefirst timesinceMay.The sectors crowding the top of the new highs list aren’talldefensive innature.

Utilitycontinues tobeabigmagnet formoney.Numerousrealestate investment trustsalsoscorednewhighs.Transla-tion:The thirst foradividendhasnotdiminished.But the money is also flowing into sectors that havegrowthstripes.The vast medical sector is gaining upward momentumahead of a decision expected next week in which the U.S.Supreme Court may scuttle ObamaCare legislation as un-constitutional.Judging by the types of medical stocks lifting to newhighs, it may or may not make much a difference whetheran increasingly socialized program of medicine will givethe industrymoreheft.Americanssimplywant to live long-er, especially thegiganticBabyBoomergeneration.

Questcor PharmaceuticalsQCOR rose 1.41 to an all-timehigh of 51.52. Volume was light after two straight up ses-sions in feverish trade.Thestock lastweekscaledpastasix-weekbase that sitsnext toa longercupbase.HealthcareRealtyTrustHR logged its sixth straight gain,up 0.23 to 23.39, 4% past a 22.58 double-bottom buy point.The owner and manager of hospital properties recentlypaidadividendof30 cents a shareonJune 1; that translatesintoanannualizedyieldof5.1%.Eli LillyLLY is powering out of a cup-with-handle base.The ethical-drug firm rose 0.25 to 42.29. Its poor EPS Rat-ing reflects four quarters in a row of falling profit. But thethree-year earnings stability factor of 4 is strong. Salesgrew5%to9%ineachof thepast fouryears.

99 Alexion Pharma ALXN 98.70 +4.64 +32%99 Align Tech ALGN 34.73 +1.48 +120%98 Transdigm Group TDG 127.32 +0.32 -45%

New High List Analysis

Stocks Just Out Of BasesComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

99 Sourcefire Inc FIRE 54.15 +1.18 -3%

Supply/DemandComp Closing Vol%Rtg Stock Name Symbol Price Chg Chg

50

© 2012 Investor’s Business Daily, Inc. Investor’s Business Daily, IBD and CAN SLIM and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc.

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............................................................................................NYSE(n)–101NewHighs,8LowsNASDAQ–111NewHighs, 12LowsAMEX(a)–5NewHighs,4Lows

95 Coinstar Inc CSTR 65.65 +0.89 +1%95 Cirrus Logic CRUS 30.34 -0.29 -6%94 Buffalo Wild Wings BWLD 87.26 +0.40 -48%94 Expedia Inc EXPE 48.49 -1.47 +33%

INVESTOR'S BUSINESS DAILY WEDNESDAY, JUNE 20, 2012 B 1

SUCCESSFUL INVESTORS READ INVESTOR’S BUSINESS DAILY®

IBD® 50

The IBD 50 is our proprietary index of leading stocks trading in the U.S., showing superior earnings, strong price performance and leadership within their industry. Since its inception, the IBD 50 Index has vastly outperformed the S&P 500. (Published in every Monday and Wednesday issues.)

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IPO LEADERS

IPO Leaders

IBD’s newest stock list, IPO leaders, features new issues that have been trading less than three years. These stocks are new companies that are displaying the characteristics of winning stocks. They must have a record of strong recent earnings and sales growth as well as sponsorship among top-rated mutual funds.

Special consideration is given to brand new companies that haven’t yet established robust Relative Strength or Accumulation/Distribution.

Check out IPO Leaders in Section B every Tuesday and Thursday!

Stocks Just Out Of Bases Here, you’ll find leading stocks that have recently broken out of a base, but are still within the buying range. Many leaders have appeared on this list.

MUST READ!


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IBD Stock Checkup

IBD Stock Check Up is one of our most popular tools. The Checkup is simple to use and gives you one overall rating on any stock, plus crucial fundamental and technical data. The Stock Checkup also compares a stock’s performance to others in the group so you know if you’re looking at the true leader. Plus, you get a quick checklist to help you determine the strength of your stock on key criteria. The Stock Checkup does the research for you and evaluates your stock easily and quickly.

IBD Charts

IBD charts give you the price and volume action to help you spot buy points. You’ll also see 10 & 50 moving aver-age lines, the Relative Strength line and rating, and can view daily or weekly charts. Every stock chart is displayed full screen, making it easy to read all of the data.

Stocks on the Move

IBD’s research has found that when it comes to picking stocks, volume is just as important as price. Stocks moving up and down on unusually high volume typi-cally indicate institutional (mutual funds & banks) buying and selling. Stocks on the Move shows you such stocks throughout the day. This powerful feature will help you find newer and cutting edge stocks that you’d miss otherwise.

Education Support

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Focus on stocks with each of the last three years’ earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.

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Recent quarterly earnings and sales should be up 25% or more.

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Avoid cheap stocks. Buy higher-quality stocks selling at $15 a share and higher.

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Learn how to use charts to see sound base patterns and exact buy points.

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Cut every loss when it’s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. Never average down in price.

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Follow selling rules on when to sell and take profit on the way up.

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Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.

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Read IBD’s Investor’s Corner and Big Picture columns to learn how to recognize important tops and bottoms in market indexes.

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Buy stocks with a Composite Rating of 90 or more and a Relative Price Strength Rating of 85 or higher in the IBD SmartSelect® Corporate Ratings.

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Pick companies with management ownership of stock.

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Buy mostly in the top six broad industry sectors in IBD’s New Highs List.

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Select stocks with increasing institutional sponsorship in recent quarters.

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Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock’s industry.

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Don’t buy because of dividends or P-E ratios.....................................................................................................................................

Pick companies with a superior new product or service.

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Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the past 8 years.

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Check into companies buying back 5% to 10% of their stock and those with new management.

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Don’t try to bottom-guess or buy on the way down. Never argue with the market. Forget your pride and ego.

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Find out if the market currently favors big-cap or small-cap stocks.

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Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.

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The 20 Rules are based on decades of research into how the market actually works -- and they’re the foundation for all the features, screens and tools you will get with Investor’s Business Daily and Investors.com. If you get serious and carefully follow all of these historically proven rules, your investment results can substantially improve. You can do it if you make up your mind!

IBD’S 20 Rules For Investment Success

The American Association of Individual Investors 15-year study of over 50 leading investment strategies found IBD’s CAN SLIM® System to be the Top-Performing Growth Strat-egy. The CAN SLIM System produced an average of 23.9% a year - versus 4.1% average for the S&P 500. AAII’s indepen-dent study was performed in real-time, from January 1, 1998 to December 31, 2013. IBD’s Investing System achieves these results by focusing on stocks that have the most potential for huge growth.

Investing System

AAII’s independent study was performed in real time, from January 1, 1998 to December 31, 2013.

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As Jobs Decelerate Gets Even Gloomier Economic SentimentBY VICTOR REKLAITIS INVESTOR'S BUSINESS DAILY Whilethecupwithhandleis the most common stock chart pat-tern among great winners,