Date:  Mar. 22, 2009

Charts provided by Bigcharts.com

Fundamental Data provided by Investors Business Daily  

 F.I.T. STOCKS

Finding High Quality Growth Stocks to Build Healthy Investment Habits.  

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- MARKET HEALTH:

MARKET CONFIRMS RALLY! 

Now that the market confirmed a new rally on March 12, 2009, what do we do now?  Now we must monitor the major indexes for their state of health.  After all, the bears almost had this market flat lining just two weeks ago, it will take some time for this stock market to show some real healthy signs again.  Just as when we are sick or injured, it takes some time to get our strength back to normal.  It takes a little rehabilitation and hard work before we feel 100% again.  The same can be said for the stock market.

When we have a confirmation of a new rally, we next want to monitor the health of the new rally.  We do this through price and volume movement.  A healthy market or stock will move up in price on strong volume showing conviction behind the move.  A healthy market or stock will move down in price in light or weak volume.  A market that may have a relapse or go back on life support, will move down in price on big volume just as it will increase in price on light or weak volume suggesting there is not mush conviction behind the brief move up in price.

Be disciplined in your efforts to monitor the daily price and volume movements of your stocks and the stock market itself.  You will be rewarded for this discipline as you will always feel you have a pulse on what is happening in the markets.

In our first full trading week since the market confirmed a new rally, this rally is NOT showing the signs of a rally that wants to continue up.  That is not to say that it won't continue up, it is only to say that it has already shown some signs of weakness.  Since the new market rally follow through, we have already seen two distribution days in the S&P, one in the DOW, and one in the NASDAQ.  A distribution day is any day prices fall in price on volume higher than the previous day's volume.

It is hard to tell in the beginning of a new market rally whether big institutions are buying back into stocks or whether traders that have sold short are buying back their positions, thus driving the market up for a brief time.  This is why it is so important to monitor the price and volume movements.  Another possible scenario is that big buyers are stepping in when they feel the markets and specifically the financial sector are completely oversold.  Big institutions step in for a run at bargain shopping for bank and insurance stocks, driving the market and the financial sector up for a week or two and then taking their profits off the table.  This scenario is what appears to have happened in the past two weeks.

The most important aspect in becoming a healthy investor is to keep a daily pulse on the health of the market and your stocks.  Price and volume will always tell you the truth as to the conviction behind and movement in the markets or your stock.  This daily routine will also keep your senses keenly tuned in and responsive as you build your healthy investment habits.

 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- STOCK MARKET NEWS:

NASDAQ leaps up for the week by 1.8%.  The S&P bounces 1.6% and the DOW hurdles .8%.

Fed looks to buy over $1trillion in U.S. Debt.

AIG hands out bonuses and Congress reacts. 

Credit Card defaults are on the rise.

IBM looks to buy Sun Micro for $6.5 billion.  

---------------------------------------------------------------------------------------------------------- Index Charts

DOW JONES: 6 Month Chart with Daily Price Bars.    

So far in the DOW we continue to hit lower highs in price movement.  Also the 50 day moving average continues to be a major road block as each time prices race to this level in the DOW, the 50 day moving average acts as resistance.  Notice the 2 heavy days of distribution in the DOW, prices moved down on these days on stronger volume than the previous day's volume.For the DOW to remain positive we need to see prices shoot through the 50 day moving average and remain above the 7500 level.

---------------------------------------------------------------------------------------------------------- NASDAQ:

6 Month chart, daily price bars.   

The NASDAQ has had only one distribution day.  Friday we closed just below the 50 day moving average.  The 50 day moving average has acted as severe resistance for the NASDAQ as it now has crossed up through this line 4 different times since last December and has been unable to remain above it.  This 50 day moving average is the first step in positive reinforcement for the NASDAQ.  Prices need to move above this level and remain above it.  If the prices can remain above this 50 day moving average we would then like to see this level act as a strong support level by holding prices above the 50 day line.  If prices continue to fall below the 50 day line again we may have just had a quick bounce in this rally before we continue back lower and testing the lows of November 2008.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Top 10 Industries:

1. Metal Ores-Gold/Silver
2. Food Flour and Grain
3. Retail Wholesale Autoparts
4. Medical Genetics
5. Commercial Services Schools
6. Computer Software Medical
7. Financepbl Inv. Fdbnd
8. Oil/Gas Trans/pipeline
9. Retail Discount Variety
10. Oil and Gas Refining and Marketing

Important Message: Please remember as you build your portfolio, you are trying to find the best player for each position, find the best stock in a leading industry.  DO NOT buy two leading stocks in one industry.  We are trying to build the dream team.  One stock, one industry, then fill another position depending on your portfolio size and money management guidelines.  When you list your F.I.T. Stocks selections, please make sure as you enter in your trades that you have not already filled that position or industry.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- F.I.T. Stock Break Outs 2009 

Please review the entry prices and set your stop loss limits.

Symbol	Newsletter	Breakout	Base	Buy	Current	%	Exit	Exit	Profit/
	Date	Date	Pattern	Point	Price	Change	Date	Price	Loss
THOR	12/7/2008	12/16/2008	C/H	29.93	27.84	-7%	2/3/2009	$27.84	-2.09
HMSY	11/23/2008	12/15/2008	U	27.53	34.29	25%	2/6/2009	$34.29	6.76
TWGP	12/21/2008	12/31/2008	U	27.73	25.79	-7%	1/12/2009	$25.79	-1.94
GMCR	12/21/2008	12/29/2008	C/H	38.63	45.27	17%			6.64
SJI	12/7/2008	12/30/2008	C/H	39.13	36.4	-7%	1/15/2009	$36.40	-2.73
QSII	12/21/2008	12/24/2008	D/B	43.63	40.58	-7%	1/5/2009	$40.58	-3.05
DV	1/18/2009	1/21/2009	FB	60.63	56.39	-7%	1/28/2009	$56.39	-4.24
GILD	2/1/2009	2/3/2009	C/H	52.53	48.86	-7%	2/17/2009	$48.86	-3.67
SGP	3/8/2009	3/9/2009	C/H	20.23	24.21	20%	3/13/2009	$24.27	3.98
GMCR	3/15/2009	3/16/2009	C/H	43.03	45.27	5%			2.24
TOTAL x 100 Shares:									190

 

** MONITOR THE FOLLOWING F.I.T. STOCKS HIGHLIGHTED IN YELLOW CLOSELY FOR PRICE AND VOLUME MOVEMENT! Look for light volume on down days and heavy volume on up days.  FOLLOW YOUR SELL RULES.  As you can see we went from lots of green last week to lots of red this week suggesting the BEARS are trying to take over again.

----------------------------------------------------------------------------------------------------------

F.I.T. STOCKS Showing some Muscle
Below are some F.I.T. Stocks that are showing signs of institutional buying as they build the right side of their chart patterns
These stocks have passed the F-Fundamentals and I -Industry test, but we must wait for the T -Technical Chart pattern to form
and the market direction to begin to rally once again.
Please review the charts and save this as a watch list.
F.I.T. STOCKS Showing Accumulation
STAR
SVR
SNDA
BWLD
SXL
INT
SPH
BMC
CPSI
EPIQ
PZZA
AAP
AIPC
WW
ACM
GVA
IBM
CHKP
AMZN
DEP
PCG
SJI

 

**IMPORTANT**- AIPC  looks ready to burst.  Check out a 1 year chart on this stock and you will see some nice accumulation that has taken place.  AIPC also rest in the number 2 industry of food Flour and Grain - they basically provide 2oo varieties of pasta.  It has been consolidating for the past 3 weeks, but if it can break above a buy point of $33.63 it looks like a nice opportunity.  Set your stop loss at -7%.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The F.I.T. STOCK PLAN  

This week we have 1 NEW  F.I.T stocks meeting our F.I.T. Stock Plan criteria.  To make our list of High Quality Growth Stocks a company must show

 F- Fundamentals that are Superior

 I - Industry Leader or Strong Institutional Buying

T - Technical Charts exhibiting Strong Base Patterns 

F.I.T. Stocks Ready to RUN!

**IMPORTANT NOTICE**  This week we are listing 2 F.I.T. Stocks as buy candidates.   Please remember to go lightly at first.  At this time we only want to buy one or two F.I.T. Stocks at half of our normal position size.  If normally you buy 200 shares, only purchase 100 shares.  Most importantly be very disciplined in your sell rules.  If a F.I.T. Stocks hits the 7% sell rule get out with no questions asked. * All Charts are One year time frames with weekly price bars *

 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Stock:  American Italian Pasta 

Symbol: AIPC  

Fundamentals:  9.9 out of 10

 Industry:  Food Flour and Grain                          Industry Strength: 2

Technical Pattern: Flat Base                                         Avg. Volume: 422,100

Pivot or Buy Point: $33.63

Stop Loss: $31.28 or 7%

Profit 1: $36.99 or 10%

Profit 2: $40.35 or 20%  

 American Pasta's earnings soared last quarter with an enormous 1,657% profit.  Sales were up 53%.  AIPC also rest within the number 2 industry group.  AIPC broke out of a cup base in late Nov. 2008 on huge volume.  It then consolidated in a flat base for 8 weeks before breaking out again on huge volume.  Now the stock has come down to touch its 10 week moving average as it consolidates in another 6 week flat base.  If this new rally holds up, let us look for AIPC to break out of this Flat Base with a buy point of $33.63 and confirm the move with another strong volume surge. 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------     Please remember to stick with your Investment business plan, be disciplined, monitor price and volume daily and make money.

Happy and Healthy Investing,

Steve Martin

Founder www.fitstocks.com