The major averages closed with modest gains after US consumer confidence rose more than forecast and national home prices rose for the first time in three years! Volume was lighter than the prior session levels on both exchanges, which signaled that large institutions were not aggressively accumulating stocks. Advancers led decliners by a 3-to-2 ratio on the NYSE but by a narrower 7-to-6 ratio on the Nasdaq exchange. There were 31 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, matching the 31 issues that appeared on the prior session. New 52-week highs solidly outnumbered new 52-week lows on both exchanges while new lows were in the single digits again.

President Barack Obama nominated Ben S. Bernanke to a second term (pending Senate approval) which is a strong vote of confidence in Bernanke's actions at the helm. Obama nominated Bernanke, who led the largest expansion of the Federal Reserve's power in its 95-year history to curb the worst financial crisis since the Great Depression, for a second four-year term starting January 31, 2010. In other economic news, the White House Office of Management and Budget released a forecast today that showed they believe the economy will grow +2% in 2010 which is less than the +3.2% forecast released in May. They also believe that unemployment will surpass the +10% level in 2009 and the budget deficit will swell to +$1.5 trillion next year, both higher than the prior estimates.

PICTURED: The Dow Jones Industrial Average posted 6 consecutive gains since finding support near old chart highs.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +2.83%) was a standout gainer as it rallied to a new 2009 chart high.

Longtop Financl Tech Ads (LFT -$0.13 or -0.47% to $27.71) is holding its ground after rebounding above its 50-day moving average (DMA) line.  Substantial losses on heavy volume indicative of distributional pressure negated its recent breakout a week after its considerable gap up gain with heavy volume on 8/10/09 had helped it reach a new 52-week high. It gapped down on 8/17/09 for a damaging loss, and after it technically negated its recent breakout  the stock's color code was changed to green. It gapped down again on 8/19/09 after reporting results for the quarter ended June 30, 2009, falling substantially on heavy volume 4 times average.

This high-ranked leader needs more time to form a new sound base before it might be considered an ideal buy candidate again, meanwhile investors have reasons for caution. The number of top-rated funds owning an interest in its shares rose from 20 funds in Dec '08 to 38 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. 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.