Stockscom Report for Sunday Feb 26 2006

Publisher: Colin Alexander Editor: Ken Wilson (450-691-4617)

Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)

· A bounce for stocks

Technically Speaking

While the bullish trend remains generally in place, several dark clouds loom on the horizon and threaten to end this early in the year party. The tech sector is specifically targeted and if we were to be even more specific, we would point to the Nasdaq-100, home of the 100 largest firms trading on Nasdaq, as being the weakest link in the chain. The last ten trading sessions have seen a marked withdrawal of players as volumes have shrunk appreciably. On a technical basis, the decreasing volumes signify the lack of confidence with the prevailing direction and, in this particular case, that direction has tended to be upward. Nevertheless, no technical damage has occurred to the bullish direction of equities as yet.

Unlike the Nasdaq-100, the Nasdaq Composite has demonstrated more internal strength evidently relying on the smaller partners of the index for that force. Still, in order to signal a continuation of the bullish trend, a move above 2300 is a must, for this level would top the peak of Feb 16 and set up a test of the late Jan highs. For now, the index is mired in a limited price range, which could eventually provoke a technical sell signal were the index to fall below 2250.

All of this apparent weakness contrasts sharply with the broader large cap indexes: the S&P-500 and the DJ-30. Both of these indexes have seen some slimming of volumes, however these instances have characteristically been down days, which technically constitute a bullish scenario. For the SP, the high reached in Jan rests less than 5 points north while the DJ, for its part, succeeded in marking a new four and a half year high on Wednesday of this week. Given their proximity to new highs, they don’t share the same traits as the Nasdaq and few would argue the bullishness in their charts.

Casting a glance at the smaller companies, the Russell small caps closed on Friday at a new high and the S&P Midcap market index is within range of an identical new high therefore it is perhaps ironic that the engine that was responsible for the parabolic rise in Nasdaq not so long ago, is in the shop for repairs. The largest companies on Nasdaq are the weakest links in the equities chain with the likes of Intel, Microsoft, and Dell all possible sells or, at best, moving laterally.

New Buy Recommendations (in order of preference):

Stereotaxis Inc. (STXS) – This small medical equipment firm has developed an advanced system for cardiology treatment that has been accepted in Europe and Canada and recently received much needed approval from the FDA. The chart experienced a strong rise in the month of Jan, but by the middle of the month, a retracement had begun. Thursday and Friday saw price action jump on very large volumes in response to news of its use and the upbeat forecast for the corporation in 2006. Together, these moves mark the end of the retracement and a resumption of the upward trend in price.

New Short Sales

None.

Stock Positions to Sell/Exit:

None.

Portfolio Comments:

New stops have been added to the list while others have been modified. Those that have blanks, are being carried unstopped for now. Please see our complete list of stops in the table below.

List of Current Stock Recommendations:

Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S where positions should be retained. S+ and S++ indicate stocks for which there is a technical case to add to the positions with plusses adding weight similar to long positions. The maximum number of plus signs is 2.

N.B. There are no longer restrictions on foreign stocks held in Canadian retirement savings accounts.

Date of Entry	Name	Symbol	Entry Price	Current Price	Stop	Action Rating
11/21/05	Amer Sci & Eng	ASEI	71.08	74.91		B+
11/14/05	Birch Mtn Resour.	BMD	6.65	6.65		B
02/21/06	Cdn Natural Res	CNQ	58.00	56.12		H
01/09/06	Englobal Corp	ENG	10.86	10.62		H
01/17/06	Miramar Mining	MNG	2.50	2.72		B
01/30/06	Nasdaq Stock Mkt	NDAQ	45.98	41.04		H
01/09/06	Nuvelo Inc.	NUVO	12.95	17.57		B
01/09/06	Progenics Pharma	PGNX	29.70	29.20		H
12/12/05	Radiant Systems	RADS	13.78	14.60		B
11/07/05	Redback Networks	RBAK	11.78	19.40		B
01/09/06	Seabridge Gold	SA	9.49	7.79		H
01/09/06	Sierra Wireless	SWIR	13.60	11.97		H
11/21/05	Sigma Designs	SIGM	13.10	14.07		B
11/14/05	Tom Online	TOMO	20.66	22.09		B
03/08/04	Transcanada Corp	TRP	21.34	30.53	27.50	B

New stops in BOLD

* Stop on a closing basis

** Buy if above entry price

*** Split-adjusted price