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AFTER MARKET UPDATE - THURSDAY, AUGUST 5TH, 2010
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Indices NYSE Nasdaq
DOW  -5.45 10,674.98 -0.05% Volume 875,747,290 -10% Volume 1,748,807,750 -12%
NASDAQ -10.51 2,293.06 -0.46% Advancers 1,283 41% Advancers 887 32%
S&P 500 -1.43 1,125.81 -0.13% Decliners 1,745 56% Decliners 1,761 64%
Russell 2000 -7.89 655.07 -1.19% 52 Wk Highs 253   52 Wk Highs 54  
S&P 600 -4.34 349.92 -1.23% 52 Wk Lows 19   52 Wk Lows 31  

Quiet Volume Totals Typical Of Summer Doldrums

The major averages edged lower on quieter volume totals after weekly jobless claims unexpectedly jumped. Volume totals were reported lighter on the NYSE and on the Nasdaq exchanges versus the prior session. Decliners led advancers by almost a 3-to-2 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and the Nasdaq exchange. There were 24 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 35 issues that appeared on the prior session.

Before Thursday's open, the Labor Department said initial jobless claims rose by +19,000 to 479,000 which is the highest reading since April and topped analysts estimates. Before Friday's open, the Labor Department is slated to release July's non-farm payrolls report which is expected to decline by -65,000. Analysts believe that the data will show the unemployment rate rose to +9.6%. Elsewhere, a slew of retailers reported same store sales fell short of the Street's estimates for July. This put early pressure on the market and a slew of retailers.  However, optimism as we enter the back-to-school shopping season helped the Retail Index close higher and helped the major averages close well above their session lows.

The Dow Jones Industrial Average and the NYSE Composite Index have traded above resistance at their long term 200-day moving average (DMA) lines and recent chart highs. The tech-heavy Nasdaq Composite, benchmark S&P 500, and small-cap Russell 2000 index still remain slightly below their recent chart highs. However, the fact that all of the major averages are trading above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.

PICTURED: The S&P 500 Index is quietly holding its ground above its 50 DMA and 200 DMA lines, perched near its June highs.  Lighter than average volume totals are typical of the summer months, and trading activity historically tends to pick up following Labor Day.




Retail Index Rises With Back To School Sales Hopes

There was not a lot of decisive group action on Thursday as the Bank Index ($BKX -0.57%) ended with a small loss and the Broker/Dealer Index ($XBD +0.19%) and Retail Index ($RLX +0.57%) posted small gains.  Healthcare Index ($HMO -0.90%) backpedaled and its 5-session winning streak shown in the prior commentary's IGW section (read here) came to an end.  The tech sector saw modest weakness across the board as the Semiconductor Index ($SOX -0.64%), Biotechnology Index ($BTK -0.34%), Networking Index ($NWX -0.23%), and Internet Index ($IIX -0.22%) fell less than -1% each. Commodity-linked areas were also quiet as the Integrated Oil Index ($XOI +0.46%) and Oil Services Index ($OSX +0.16%) edged higher and the Gold & Silver Index ($XAU -0.06%) finished virtually flat.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX +0.57%) closed above its 50-day moving average (DMA) line amid moderate optimism over back-to-school sales strength. Subsequent gains above the 200 DMA line would be a very reassuring sign from this influential group.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  190.48 +0.30 +0.16% -2.28%
Healthcare $HMO  1,545.13 -14.01 -0.90% +4.90%
Integrated Oil $XOI  1,029.20 +4.72 +0.46% -3.65%
Semiconductor $SOX  352.44 -2.27 -0.64% -2.08%
Networking $NWX  244.75 -0.58 -0.23% +5.93%
Internet $IIX  251.44 -0.55 -0.22% +7.52%
Broker/Dealer $XBD  110.49 +0.21 +0.19% -3.96%
Retail $RLX  416.80 +2.35 +0.57% +1.38%
Gold & Silver $XAU  173.80 -0.11 -0.06% +3.30%
Bank $BKX  49.12 -0.28 -0.57% +15.01%
Biotech $BTK  1,110.91 -3.76 -0.34% +17.91%


Footwear Firm's Sales Growth Has Been Kicking

Steve Madden Ltd (SHOO +$0.05 or +0.13% to $39.61) ended today's session -3.3% of its 5/03/10 all-time high, now working on the right side of a 15-week cup shaped base without a handle. A proper "handle" forms over a minimum of 1 week and includes a pullback in the 10-12% range. This high-ranked Apparel - Shoes firm was featured in today's mid-day report (read here) and it was color coded yellow with the pivot point cited based on its 52-week high plus ten cents.  Sales revenues have shown impressive sequential acceleration and it has shown strong earnings. 

As noted in the 7/30/10 mid-day report - "It has the look of a big base-on-base type pattern now with prior resistance near $40. Recent quarters showed accelerating sales revenues and earnings increases since last noted in the 4/30/10 mid-day report. The high-ranked Apparel firm's quarterly earnings increases have been well above the +25% guideline, satisfying the C criteria. Its annual earnings history (A criteria) since FY '07 has been good."


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  
$261.70 -1.28
-0.49%

$263.15

10,324,749
38.75% of 50 DAV
50 DAV is 26,646,500
$279.01
-6.20%
6/17/2010 $270.95 PP = $272.56
MB = $286.19
Most Recent Note - 8/4/2010 5:26:38 PM
Y - Still quietly consolidating in a tight range above its 50 DMA line, it has been 7 weeks since its negative reversal on 6/21/10 at its all-time high. Recent chart low ($239) defines an important support level.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2010. Click here.

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ABV - NYSE
Comp De Bebidas Adr
FOOD and BEVERAGE - Beverages - Brewers  
$107.76 -0.81
-0.75%

$108.49

440,700
60.87% of 50 DAV
50 DAV is 724,000
$112.60
-4.30%
6/29/2010 $104.74 PP = $109.33
MB = $114.80
Most Recent Note - 8/4/2010 5:31:16 PM
Y - This Brazil-based beverage firm churned a lot of volume this week without making great price progress above prior chart highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/20/2010. Click here.

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BIDU - NASDAQ
Baidu Inc Ads
INTERNET - Internet Information Providers  
$85.57 -1.03
-1.19%

$86.46

8,036,352
67.10% of 50 DAV
50 DAV is 11,976,200
$86.91
-1.54%
7/14/2010 $75.03 PP = $78.59
MB = $82.52
Most Recent Note - 8/4/2010 5:37:03 PM
G - Gain today for a new all-time high above its "max buy" level. Steadily rose above prior highs in the $78 area and upward without great volume conviction. Color code is changed to green as it gets extended from prior chart highs. No overhead supply remains to act as resistance.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/14/2010. Click here.

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CACC - NASDAQ
Credit Acceptance Corp
FINANCIAL SERVICES - Credit Services  
$56.05 -2.52
-4.30%

$57.13

75,011
154.34% of 50 DAV
50 DAV is 48,600
$58.72
-4.55%
7/29/2010 $52.04 PP = $54.07
MB = $56.77
Most Recent Note - 8/5/2010 12:09:34 PM
Y - Gapped down today after a strong finish at a new all-time high. Now trading near below its "max buy" level, its color code is changed to yellow. Prior highs in the $54 area define initial chart support to watch. Recently reported +38% earnings on +21% sales revenues for the quarter ended June 30, 2010.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2010. Click here.

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CRM - NYSE
Salesforce.Com Inc
INTERNET - Internet Software and Services  
$102.69 -0.87
-0.84%

$103.46

1,160,529
45.52% of 50 DAV
50 DAV is 2,549,500
$103.77
-1.04%
6/2/2010 $88.44 PP = $89.60
MB = $94.08
Most Recent Note - 8/5/2010 4:44:39 PM
G - Edged lower on light volume today, showing no reaction to news that it settled a patent infringement suit brought by Microsoft Corp. Perched at its 52-week high, prior highs near $97 define near-term support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/15/2010. Click here.

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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
DTSI - NASDAQ
D T S Inc
CONSUMER DURABLES - Electronic Equipment  
$36.83 -0.34
-0.91%

$37.23

34,099
33.63% of 50 DAV
50 DAV is 101,400
$37.60
-2.05%
7/27/2010 $37.00 PP = $36.28
MB = $38.09
Most Recent Note - 8/4/2010 5:55:05 PM
Y - Quietly edged higher today and ended 6 cents off its best ever close after a considerable gain on 8/03/10 with above average volume. It will report earnings after the close on Monday, August 9th, and Street estimates calling for lower FY '10 earnings have been noted as a concern. Prior highs in the $35-36 area define support above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/27/2010. Click here.

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FFIV - NASDAQ
F 5 Networks Inc
INTERNET - Internet Software and Services  
$88.95 -0.87
-0.97%

$90.83

1,125,439
62.22% of 50 DAV
50 DAV is 1,808,900
$90.25
-1.44%
6/16/2010 $74.50 PP = $74.10
MB = $77.81
Most Recent Note - 8/4/2010 6:00:48 PM
G - New high close after a gain today with light volume. Extended from any sound base after recent volume-driven gains, it could go on to produce more climactic gains.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/4/2010. Click here.

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MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$63.97 +1.29
2.06%

$64.60

2,430,353
254.81% of 50 DAV
50 DAV is 953,800
$65.99
-3.06%
5/13/2010 $54.21 PP = $55.85
MB = $58.64
Most Recent Note - 8/5/2010 10:03:16 AM
G - It is up from early lows below its "max buy" level after a gap down today following its report showing earnings +125% on sales revenues +28% for the quarter ended June 30, 2010. Support to watch is at its 50 DMA line (now $57.36).
>>> The latest Featured Stock Update with an annotated graph appeared on 7/23/2010. Click here.

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MWIV - NASDAQ
M W I Veterinary Supply
HEALTH SERVICES - Medical Instruments and; Supplies  
$52.67 -0.65
-1.22%

$53.82

53,669
76.34% of 50 DAV
50 DAV is 70,300
$54.48
-3.32%
7/29/2010 $52.05 PP = $52.09
MB = $54.69
Most Recent Note - 8/4/2010 6:06:47 PM
Y - Holding its ground in a tight range near all-time highs since it rallied above its pivot point and finished strong after featured in the 7/29/10 mid-day report (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 7/30/2010. Click here.

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NEM - NYSE
Newmont Mining Corp
METALS and MINING - Gold  
$56.71 +0.46
0.82%

$56.74

5,252,208
61.22% of 50 DAV
50 DAV is 8,578,600
$63.38
-10.52%
6/22/2010 $59.60 PP = $59.67
MB = $62.65
Most Recent Note - 8/4/2010 6:09:10 PM
G - Halted its slide and held its ground in a tight range since its damaging gap down on 7/27/10. Technically, a rebound above its 50 DMA line would help its outlook improve.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/9/2010. Click here.

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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
NEOG - NASDAQ
Neogen Corp
DRUGS - Diagnostic Substances  
$29.10 -0.81
-2.71%

$29.73

42,142
44.50% of 50 DAV
50 DAV is 94,700
$30.39
-4.24%
7/22/2010 $27.19 PP = $27.87
MB = $29.26
Most Recent Note - 8/5/2010 4:38:43 PM
Y - Today's loss on light volume led to a close at its session low just under its "max buy" level. Color code is changed to yellow while consolidating above prior highs in the $27 area defining near-term chart support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/22/2010. Click here.

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NETL - NASDAQ
Netlogic Microsystems
ELECTRONICS - Semiconductor - Memory Chips  
$29.31 -0.42
-1.41%

$30.08

743,848
55.63% of 50 DAV
50 DAV is 1,337,200
$35.00
-16.26%
7/28/2010 $33.44 PP = $35.10
MB = $36.86
Most Recent Note - 8/4/2010 6:32:57 PM
G - Halted its slide and trading in a tight range above its 50 DMA line since its damaging 7/29/10 loss. It did not trigger a technical buy signal after it was featured in the 7/28/10 mid-day report. While consolidating, its 7/30/10 low ($28.27) now defines the only support above its 200 DMA and earlier chart lows.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/28/2010. Click here.

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ROVI - NASDAQ
Rovi Corp
COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services  
$43.77 +0.26
0.60%

$44.10

995,694
79.82% of 50 DAV
50 DAV is 1,247,400
$44.96
-2.65%
6/3/2010 $38.70 PP = $40.16
MB = $42.17
Most Recent Note - 8/4/2010 6:35:02 PM
G - Finished near its session high today with a solid gain. Support is defined by highs 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.

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SHOO - NASDAQ
Steven Madden Limited
CONSUMER NON-DURABLES - Textile - Apparel Footwear  
$39.61 +0.05
0.13%

$39.85

2,666,359
736.97% of 50 DAV
50 DAV is 361,800
$40.98
-3.34%
8/5/2010 $39.55 PP = $41.08
MB = $43.13
Most Recent Note - 8/5/2010 5:59:21 PM
Y - Closed -3.3% of its 5/03/10 all-time high today while working on the right side of a 15-week cup shaped base without a handle. A proper "handle" forms over a minimum of 1 week and includes a pullback in the 10-12% range. Color code was changed to yellow with pivot point cited based on its 52-week high plus ten cents when featured in the mid-day report (read here). As noted 7/30/10 - "It has the look of a big base-on-base type pattern now with prior resistance near $40. Recent quarters showed accelerating sales revenues and earnings increases since last noted in the 4/30/10 mid-day report. The high-ranked Apparel firm's quarterly earnings increases have been well above the +25% guideline, satisfying the C criteria. Its annual earnings history (A criteria) since FY '07 has been good."
>>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2010. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$24.89 -0.01
-0.04%

$24.97

329,398
45.34% of 50 DAV
50 DAV is 726,500
$26.75
-6.95%
8/4/2010 $24.90 PP = $26.85
MB = $28.19
Most Recent Note - 8/4/2010 6:41:45 PM
Y - Working on a near 8-week cup shaped base and perched above its 50 DMA and -7% off its 52-week high, its color code is changed to yellow with new pivot point cited based on its 6/21/10 high plus ten cents.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2010. Click here.

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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
VIT - NYSE
Vanceinfo Tech Inc Ads
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$27.48 +0.18
0.66%

$27.57

204,409
38.77% of 50 DAV
50 DAV is 527,300
$27.59
-0.40%
7/8/2010 $25.20 PP = $26.58
MB = $27.91
Most Recent Note - 8/4/2010 7:39:58 PM
Y - Gain today on very light volume helped it finish 10 cents off its best ever close. It has not produced a gain with above average volume or triggered a buy signal yet since featured in the 7/08/10 mid-day report. Its 7/19/10 low ($23.78) defines near-term support above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/26/2010. Click here.

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