The major averages ended higher after the Federal Reserve held rates steady as they concluded their two-day meeting on Wednesday. Volume totals reported on the NYSE and Nasdaq exchange were slightly higher than the prior session totals.  Advancers led decliners by nearly a 3-to-1 ratio on the NYSE and by over a 2-to-1 ratio on the Nasdaq exchange. There were 16 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 23 issues that appeared on the prior session. On both exchanges new 52-week highs still significantly outnumbered 52-week lows, and new lows were in the single digits again.

US stocks rallied nicely, rebounding from the market’s largest single day decline in a month. The Federal Reserve left the benchmark interest rate between zero and 0.25% and said economic conditions will remain "exceptionally low" for an "extended period." The decision to hold rates near steady was unanimous. As the economy begins to show small signs of recovering, the Fed said it will slow the pace of its $300 billion program to buy US Treasuries while the recession eases. In their post meeting commentary, the committee said, "To promote a smooth transition in markets as these purchases of Treasury securities are completed, the committee has decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October." Previously, the buying was scheduled to end in September.

In economic news, the US trade deficit widened less than forecast in June, which reflected a second consecutive gain in exports. Stronger exports are largely a two-fold function: a weaker dollar coupled with healthier economies around the world. The Commerce Department said the gap expanded 4% to $27 billion from $26 billion in May. This was the lowest reading in nearly a decade. Exports rose +2% while imports rose +2.3%, led by higher oil prices.

PICTURED:  The Nasdaq Composite Index has spent the past few days quietly consolidating its recent move below resistance (2015).

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX +4.03%) was a standout gainer as it rallied to a new 2009 high.  One of that index's components, mediocre ranked ADC Telecommunications Inc. (ADCT +29.28%), gapped up for a considerable gain after raising guidance, however its sub par fundamentals do not make it worthy for disciplined investors' watchlists.

Longtop Financl Tech Ads (LFT +$1.96 or +6.21% to $31.57) ended at a new high close today, following through with an additional gain above its pivot point backed by +55% above average volume. That was a sign of prompt support and institutional buying demand after a pullback toward prior chart highs on the prior session that had erased most of the considerable gap up gain with heavy volume from 8/10/09 which had helped it reach a new 52-week high. This previously featured high-ranked leader showed up in Monday's Mid-Day Breakouts Report (read here) with a note indicating " Y - Gapped up today and rallied for a considerable gain with heavy volume, reaching a new 52-week high, yet pulling back from intra-day highs. Color code is changed to yellow with new pivot point and max buy prices noted. It has repaired its 50 DMA violation and rebounded impressively since weak action it to be dropped from the Featured Stocks list on 7/08/09."   A technical issue, however, left it listed in the lower portion of the mid-day report without the usual highlighting in yellow and isolation at the top of the report, while it also did not get added to the Featured Stocks page where members may view all currently featured stocks and their latest notes. If you have feedback or questions for us at any time, please use the inquiry form here. Thank you to our attentive members who called the matter to our attention!

The number of top-rated funds owning an interest in its shares rose from 20 funds in Dec '08 to 31 funds in Jun '09, which is reassuring concerning the L criteria.  It has reported strong annual and quarterly earnings increases (good concerning the C & A criteria) backed by strong sales revenues increases. Return on Equity of +20% is above the +17% guideline. Keep in mind that the company is due to report earnings for the latest quarter after the market close on August 18th.  Additionally, its progress could be hindered by future share offerings. This Chinese Computer Software firm filed a registration of approximately 16 million shares for resale not long ago, yet there have been no subsequent headlines concerning a proposed offering.  LFT was first featured at $22.19 on Thursday, April 02, 2009 in the CANSLIM.net Mid Day Breakouts Report (read here).

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.