The S&P 500 Index extended its best three-day rally since 2009, and the major averages rose above levels last reached before S&P downgraded America's debt rating. The volume totals on Monday were lighter on the NYSE and on the Nasdaq exchange versus the prior session, however, while the major averages closed with solid gains. The lighter volume revealed a lack of conviction on the buy side from the institutional crowd. Advancing issues beat decliners by nearly 10-1 on the NYSE and by more than 4-1 on the Nasdaq exchange. The new 52-week lows totals have dwindled from Tuesday's inflated total of 1,282 on the NYSE and 725 on the Nasdaq exchange. New 52-week highs edged out new 52-week lows on the NYSE while on the Nasdaq exchange the new 52-week lows total was greater than new highs. Only 10 high-ranked companies from the CANSLIM.net Leaders List made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session's total of 6 stocks. Gains were posted by 5 of the 7 high-ranked leaders currently included on the Featured Stocks Page.

Buying enthusiasm returned to Wall Street, with mergers setting the table for a sharp advance. Monday's quiet session completed Day 5 of a new rally effort after the Dow and S&P 500 hit 11-month lows last Tuesday. Google Inc’s (GOOG -1.16%) $12.5 billion acquisition of Motorola Mobility Holdings Inc (MMI +55.78%) took top billing.

Bank of America Corp (BAC +7.93%) announced it will sell its $8.6 billion card business in Canada. Its gain helped drive financial stocks higher, along with an absence of negative headlines from Europe.  Meanwhile, the Federal Reserve said banks loosened credit standards on most types of loans in the second quarter.

A report that Japan's gross domestic product shrank less than expected in the second quarter revived hopes for the global economy. The report signaled the country is rebounding from the earthquake disaster in March. 

Energy stocks gained along with the price of crude oil. Oil settled up almost +3% in New York, near $88 per barrel.

Disciplined investors are maintaining a watchlist and waiting for a new rally confirmed by a solid follow-through day (FTD) before any new buying efforts are considered. A considerable higher-volume gain between Day 4 and Day 7 from at least one of the major averages is the ideal FTD confirmation that institutional buying demand has returned in a meaningful way.  Meanwhile, the market environment (M criteria) argues for investors to remain cautious and preserve cash on the safe sidelines, staying away from potential harm!

The August 2011 issue of CANSLIM.net News will be published soon! Links to all prior reports are available on the Premium Member Homepage.

PICTURED: The Dow Jones Industrial Average posted a gain on lighter volume marking Day 5 of its current rally attempt.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +4.19%) recently slumped well below its 50-day and 200-day moving average (DMA) lines.

Exlservice Holdings Inc (EXLS -$0.32 or -1.31% to $24.11) suffered a loss today that led to a close below its high closes in May, negating its 8/03/11 breakout and raising more concerns. Its 50-day moving average (DMA) line (now $23.29) defines important support to watch. It was last shown in this FSU section on 8/02/11 with an annotated graph under the headline, "Finish In Lower Half Of Intra-Day Range Indicates Distribution", as it finished in the lower half of its intra-day range and below its pivot point, a sign it was encountering distributional pressure following a considerable gap up gain for a new 52-week high. Although it powered higher on the next session and technically triggered a buy signal, and no resistance remains due to overhead supply, the weak action in the broader market (M criteria) has been noted as an overriding concern arguing against new buying efforts until a new rally confirmed with a solid follow-through day occurs.

Its Accumulation/Distribution rating fell from B- to C- (see small red circle) since August 2nd when it was first featured, raising some concerns. It reported earnings +52% on +40% sales revenues for the quarter ended June 30, 2011 versus the year ago period. Quarterly comparisons (C criteria) have shown mostly impressive sales and earnings increases. Downturn in its FY '08 earnings was previously noted as a small flaw with respect to the A criteria of the fact-based investment system.

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
EXLS - NASDAQ Exlservice Holdings Inc DIVERSIFIED SERVICES - Business/Management Services	$24.11	-0.32 -1.31%	$24.41	90,347 111.68% of 50 DAV 50 DAV is 80,900	$26.46 -8.88%	8/2/2011	$24.85	PP = $24.85
								MB = $26.09
Most Recent Note - 8/15/2011 4:08:20 PM Y - Loss today led to a close below its high closes in May, negating its recent breakout and raising more concerns. Its 50 DMA line (now $23.29) defines important support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/15/2011. 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
FCFS - NASDAQ First Cash Financial Svs SPECIALTY RETAIL - Specialty Retail, Other	$46.07	-0.72 -1.54%	$47.80	473,454 169.64% of 50 DAV 50 DAV is 279,100	$47.13 -2.25%	5/31/2011	$42.00	PP = $40.23
								MB = $42.24
Most Recent Note - 8/15/2011 4:09:48 PM G - Reversed into the red today after hitting another new 52-week high, breaking a streak of 4 consecutive volume-driven gains. Prior chart lows near $37-38 define support to watch above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 8/9/2011. 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
JCOM - NASDAQ J 2 Global Communication INTERNET - Internet Software and Services	$29.36	+0.47 1.63%	$29.45	225,886 70.72% of 50 DAV 50 DAV is 319,400	$31.72 -7.44%	8/8/2011	$30.38	PP = $29.31
								MB = $30.78
Most Recent Note - 8/15/2011 4:11:10 PM G - Quietly consolidating above its 50 and 200 DMA lines. Last week it churned a lot of volume without making progress since its 8/03/11 gap up. >>> The latest Featured Stock Update with an annotated graph appeared on 8/8/2011. 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
MA - NYSE Mastercard Inc Cl A DIVERSIFIED SERVICES - Business/Management Services	$335.00	+6.93 2.11%	$338.50	1,491,484 102.47% of 50 DAV 50 DAV is 1,455,600	$340.42 -1.59%	8/3/2011	$324.82	PP = $322.38
								MB = $338.50
Most Recent Note - 8/15/2011 4:14:29 PM G - Gain today with near average volume, approaching its 8/03/11 all-time high, rallying further above the previously cited pivot point. >>> The latest Featured Stock Update with an annotated graph appeared on 8/3/2011. 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
MG - NYSE Mistras Group Inc DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services	$19.58	+0.59 3.11%	$19.85	198,360 154.97% of 50 DAV 50 DAV is 128,000	$19.42 0.85%	8/10/2011	$17.89	PP = $17.58
								MB = $18.46
Most Recent Note - 8/15/2011 12:16:00 PM G - Hit another new 52-week high with today's 5th consecutive gain backed by above average volume. It is extended from its prior base, and previous resistance in the $17-18 area now defines important chart support to watch on pullbacks. >>> The latest Featured Stock Update with an annotated graph appeared on 8/11/2011. 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
MKTX - NASDAQ Marketaxess Holdings Inc FINANCIAL SERVICES - Investment Brokerage - Nationa	$24.69	+0.53 2.19%	$24.84	101,902 63.89% of 50 DAV 50 DAV is 159,500	$27.21 -9.26%	7/29/2011	$25.87	PP = $26.35
								MB = $27.67
Most Recent Note - 8/15/2011 4:15:42 PM G - Small gain above its 50 DMA line with light volume today. Recent lows and its 200 DMA define the next support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2011. 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
PCLN - NASDAQ Priceline.Com Inc INTERNET - Internet Software and Services	$514.35	+11.24 2.23%	$514.93	1,064,028 91.25% of 50 DAV 50 DAV is 1,166,000	$561.88 -8.46%	7/29/2011	$539.46	PP = $552.15
								MB = $579.76
Most Recent Note - 8/15/2011 4:16:37 PM G - Quiet gain today, inching back above its 50 DMA line. The 200 DMA line and recent chart lows define the next important support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/12/2011. 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