Stocks ended higher on Monday after the National Association of Home Builders/Wells Fargo confidence index slid to 14 in July which is the the lowest reading since April 2009 and down from last month's reading of 16. Any reading below 50 means that respondents consider the current environment as poor. Over the next few weeks, it will be very interesting to see how companies fared last quarter and, equally important, to see how the market reacts to the numbers. Analysts believe that Q2 earnings for S&P 500 companies rose +34%. So far, the reaction has been positive.

Stocks ended higher on Tuesday after several high profile companies released their Q2 results. Initially, stocks opened lower due to a general disappointment with their numbers but the bulls showed up in the second half of the session which was an encouraging sign. A slew of housing stocks rallied after building permits rose last month. However, housing starts, which measure new production, fell in June to their lowest level since October after the government tax incentive expired. 

Stocks got hit on Wednesday after President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act while Federal Reserve Chairman Ben Bernanke testified on Capitol Hill and a slew of earnings were released. On Thursday, the major averages vaulted above their two month downward trendlines and their respective 50 DMA lines which was a very healthy sign. The large rally was sparked after healthy economic data was released from Europe. The strong economic data helped allay concerns that an economic slowdown may derail the global recovery. Stocks ended higher on Friday after the latest round of large cap earnings were released and the results of the European "stress test" were mild. 

It was a very constructive week on Wall Street as all the major averages traded above their respective 2-month downward trendlines and their respective 50-day moving average (DMA) lines. It was also encouraging to see the Dow Jones Industrial Average & and the tech-heavy Nasdaq Composite rally for closes above their longer term downward sloping 200 DMA lines. There is no point in fighting the tape, as the bulls deserve the bullish benefit of the doubt for now. Trade accordingly.

PICTURED: The Nasdaq Composite Index saw volume increase to an above average total as the tech-heavy index rallied to close above its 200 DMA after clearing its 50 DMA and downward trendline on the prior session.

Influential gains from the Broker/Dealer Index ($XBD +0.75%) and Bank Index ($BKX +0.61%) helped underpin the major averages' gains on Friday.  The Retail Index ($RLX +0.88%) and tech shares also rose as the Biotechnology Index ($BTK +1.53%) and Internet Index ($IIX +1.61%) outpaced the Semiconductor Index ($SOX +0.52%) and Networking Index ($NWX +0.64%).  Defensive areas showed relatively sluggish performances as the Healthcare Index ($HMO +0.22%) and Gold & Silver Index ($XAU +0.63%) posted modest gains. Meanwhile, energy-related shares were mixed with the Oil Services Index ($OSX -0.32%) edging lower and Integrated Oil Index ($XOI +0.71%) finishing higher.

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +0.75%) closed just above its 50-day moving average (DMA) line.  Keep in mind that the Bank Index ($BKX +0.61%) is still struggling below its 50 and 200 DMA lines today.  When financial stocks are in technically weak shape, the broader market has a greater tendency to get into trouble.

Mercadolibre Inc. (MELI +$1.42 or +2.36% to $61.47) finished at its second highest close of the year. Gains with light volume have followed a considerable 7/16/10 loss with above average volume. Recently it was noted as it wedged to new 52-week high territory with quiet volume behind its gains. Its current chart pattern has a sloppy "V" shape and is not a sound base of sufficient length, so patience is needed to see if a proper base will form. Meanwhile, the number of top-rated funds owning an interest fell from 95 in Mar '10 to 89 in Jun '10, a somewhat discouraging sign concerning the I criteria.

It found prompt support near its 50-day moving average (DMA) line, an encouraging sign after it encountered distributional pressure in late June.  Worrisome action had erased all of its gains since it was shown in this FSU section on 6/10/10 under the headline Strong Finish On High Volume Triggers Technical Buy an annotated graph illustrated the bullish action as it "surged in the final hour of today's session and hit a new 52-week high with a considerable gain above its pivot point on volume backed by +79% above average, triggering a technical buy signal." 

The Latin American Internet - eCommerce firm was featured in yellow in the 5/13/10 mid-day report (read here). It found great support at its long-term 200-day moving average (DMA) line on pullbacks this year, an encouraging sign. Its strong quarterly earnings and annual earnings history satisfy the C and A criteria.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.

***Last / Change / Volume data in this table is the closing quote data***

Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
AAPL - NASDAQ Apple Inc COMPUTER HARDWARE - Personal Computers	$259.94	+0.92 0.35%	$260.38	19,038,341 65.97% of 50 DAV 50 DAV is 28,859,700	$279.01 -6.83%	6/17/2010	$270.95	PP = $272.56
								MB = $286.19
Most Recent Note - 7/23/2010 4:11:22 PM G - Gains with light volume helped it close the week above its 50 DMA line. Its recent low near $240 defines an important chart support level to watch, where any subsequent deterioration would raise greater concerns and might trigger a more worrisome technical sell signal. >>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
ABV - NYSE Comp De Bebidas Adr FOOD and BEVERAGE - Beverages - Brewers	$108.61	-1.05 -0.96%	$109.70	734,045 100.44% of 50 DAV 50 DAV is 730,800	$109.78 -1.07%	6/29/2010	$104.74	PP = $109.33
								MB = $114.80
Most Recent Note - 7/23/2010 4:13:06 PM Y - This Brazil-based beverage firm pulled back today after reaching a new 52-week high with its prior gain on light volume. It found support near its 50 DMA line recently after it was featured in the 6/29/10 mid-day report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/20/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
BIDU - NASDAQ Baidu Inc Ads INTERNET - Internet Information Providers	$78.06	+3.61 4.85%	$78.20	13,306,302 94.30% of 50 DAV 50 DAV is 14,111,300	$82.29 -5.14%	7/14/2010	$75.03	PP = $78.59
								MB = $82.52
Most Recent Note - 7/23/2010 3:46:53 PM Y - Considerable gain with near average volume today has it rallying near its best close ever after recently finding support near its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 7/14/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
CRM - NYSE Salesforce.Com Inc INTERNET - Internet Software and Services	$99.77	+3.84 4.00%	$100.30	3,135,653 108.93% of 50 DAV 50 DAV is 2,878,600	$97.94 1.87%	6/2/2010	$88.44	PP = $89.60
								MB = $94.08
Most Recent Note - 7/23/2010 3:50:39 PM G - Rising to a new 52-week high today with a considerable gain on near average volume, clearing a choppy 7-week base. >>> The latest Featured Stock Update with an annotated graph appeared on 7/15/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
FFIV - NASDAQ F 5 Networks Inc INTERNET - Internet Software and Services	$87.21	+3.81 4.57%	$87.35	2,952,572 178.09% of 50 DAV 50 DAV is 1,657,900	$83.85 4.01%	6/16/2010	$74.50	PP = $74.10
								MB = $77.81
Most Recent Note - 7/23/2010 1:01:02 PM G - Hitting another new 52-week high and getting more extended from a sound base today following a considerable 7/22/10 gap up gain on very heavy volume after reporting strong results for the latest quarter ended June 30, 2010. As we have often noted in the past, volume and volatility increase near earnings news. Be sure to check headlines via the "News" links for greater visibility or contact the companies directly if pending earnings news is not otherwise noted. >>> The latest Featured Stock Update with an annotated graph appeared on 7/7/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$61.47	+1.42 2.36%	$61.55	789,055 83.17% of 50 DAV 50 DAV is 948,700	$62.46 -1.59%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 7/23/2010 4:01:49 PM G - Finished at its second highest close of the year. Gains with light volume have followed a considerable 7/16/10 loss with above average volume. Recently it was noted as it wedged to new 52-week high territory with quiet volume behind its gains. >>> The latest Featured Stock Update with an annotated graph appeared on 7/23/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
NEM - NYSE Newmont Mining Corp METALS and MINING - Gold	$59.05	+0.04 0.07%	$59.59	5,926,841 61.39% of 50 DAV 50 DAV is 9,654,000	$63.38 -6.83%	6/22/2010	$59.60	PP = $59.67
								MB = $62.65
Most Recent Note - 7/23/2010 4:02:23 PM G - Posted yet another small gain today with lighter volume, sputtering just above its 50 DMA line and prior chart highs that define support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 7/9/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
NEOG - NASDAQ Neogen Corp DRUGS - Diagnostic Substances	$28.31	+0.72 2.61%	$28.35	115,388 133.09% of 50 DAV 50 DAV is 86,700	$27.90 1.47%	7/22/2010	$27.19	PP = $27.87
								MB = $29.26
Most Recent Note - 7/23/2010 4:04:58 PM Y - Today's gain helped it rise above its pivot point but the volume total was below guidelines for a proper technical buy signal. Featured in yellow the 7/22/10 mid-day report (read here). Since noted in the mid-day report on 6/18/10 it had been churning near all-time highs. It faces no resistance due to overhead supply. NEOG has a history of slow steady annual earnings growth (A criteria). The 2 most recent quarterly comparisons have shown improving sales revenues growth with earnings per share increases above the investment system's +25% guideline. >>> The latest Featured Stock Update with an annotated graph appeared on 7/22/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
ROVI - NASDAQ Rovi Corp COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services	$43.54	+0.45 1.04%	$44.02	874,689 64.11% of 50 DAV 50 DAV is 1,364,300	$43.67 -0.30%	6/3/2010	$38.70	PP = $40.16
								MB = $42.17
Most Recent Note - 7/23/2010 4:06:10 PM G - Hit a new 52-week high today. Earnings news is due 7/29/10 after the close. Support is defined by prior resistance in the $40 area and its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 7/21/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
THOR - NASDAQ Thoratec Corp HEALTH SERVICES - Medical Instruments and Supplies	$42.81	+1.32 3.18%	$43.02	633,865 64.96% of 50 DAV 50 DAV is 975,800	$47.93 -10.68%	6/3/2010	$44.38	PP = $45.35
								MB = $47.62
Most Recent Note - 7/23/2010 4:08:35 PM G - This high-ranked Medical Products firm has posted gains on light volume after recent violations of its 50 DMA line and prior chart low. A prompt rebound above its short-term average would help its outlook. >>> The latest Featured Stock Update with an annotated graph appeared on 7/16/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$24.74	+0.62 2.57%	$24.76	423,844 60.09% of 50 DAV 50 DAV is 705,300	$26.75 -7.51%	5/28/2010	$25.58	PP = $25.86
								MB = $27.15
Most Recent Note - 7/23/2010 4:10:06 PM G - Gains with light volume helped it close the week above its 50 DMA line. Its May - June chart lows in the $21 area define the next support level just above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
VIT - NYSE Vanceinfo Tech Inc Ads COMPUTER SOFTWARE and SERVICES - Business Software and Services	$27.40	+1.23 4.70%	$27.59	566,912 89.87% of 50 DAV 50 DAV is 630,800	$26.90 1.86%	7/8/2010	$25.20	PP = $26.58
								MB = $27.91
Most Recent Note - 7/23/2010 3:58:25 PM Y - Hit a new 52-week high today with a considerable gain, however volume is near average, not sufficient (+50% above average volume or greater is required) to trigger a proper technical buy signal. It did not yet trigger a technical buy signal with respect to the pivot point cited after gapping up on 7/08/10, when it briefly matched its all-time high and appeared in the mid-day report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/8/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M