The group ranking is low but  I think the fundamentals and the technicals are more important  when judging a stock. I have purchased a stock in the past that had a low group rating and it ended up working out.  

Abe,

My Notes for the L in CAN SLIM

    Strengths.  Sector is strong, it's rank moved from 30 on 10/31 to 4 on 1/9, an overall improving trend.  The sector has been near the top of the 52-wk New High table. It's industry A/D rating is B-, which is great.

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    Weaknesses. No sector leading stocks listed in the IBD research tables. The industry Subgroup Composite rating is 72, meaning there are a number of laggards dragging the industry down. It's industry rank is 136 and trending higher (Higher is bad).  But the industry has a number of stocks near new highs.

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    My interpretation of this.  The sector is strong, but IBD research shows that only accounts for 12% of a stocks price move.  The industry accounts for 37%, with it's poor ranking and subgroup composite score is like swimming with weights - if the other stocks in the industry begin to participate, it will be like dropping the weight, giving the stock a nice pop.  I like the fact that the Industry A/D rating is a B- and a several stocks are making new highs, indicating it is at least not alone, reflecting split price action, with a few leaders moving away from the pack.  I will be watching the other leading stocks in the industry, If I see a few of them rolling over, it won't be long before CFX follows if has not already.  I would also take profits sooner as the high industry rank and low composite score will give muted returns - instead of 20%-25%, more like 12%-16% (reflecting the 37% influence that the industry has).

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    Some of the other sector leaders to watch: DCI, LECO, PLL.  For industry leaders watch WWD & SHS for their price actions.  If you see them rolling over, CFX may not be far behind.  Laggard GDI just rolled over.

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    I would be buying, with the above caveats, if I did not already have a full plate of alternatives.

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Robert

Abe/Robert

       I agree with your comments about the industry weakness yet the 50 DMA vol has been strong over the last qtr with lots of blue wks.  I took a small taste when it started the pocket pivot move with a tight S/L.

That Jan 12 volume is really hard to ignore. I read it as very significant that it is higher volume than any day since the IPO. I believe that will overwhelm any of the negatives.  I think high volume pushing up above 32.5 would be a buy.

Be aware that GDI has lost the 50 day and it's in the same Industry group.