The major averages traded between positive and negative territory all day as investors digested the latest headlines and the latest speech from President Obama. The final results for the major averages were mixed, and so were the volume totals on the exchanges.  Decliners outnumbered advancers by about a 3-to-2 ratio on the Nasdaq exchange with a higher volume total reported, yet the tally was closer to even on the NYSE with a lighter volume total reported. There were only 3 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 than the 5 issues that appeared on the prior session.  A further expansion in the new highs list would offer encouraging news for growth oriented investors.

The market averages ended mixed after President Obama defended the powers of the Federal Reserve in a speech on Tuesday. Obama explained his plan to allow the central bank to be in charge of monitoring broad risks facing the financial system. A mid-day press conference highlighted several important roles of the Fed and also defended the performance of Fed Chairman Ben Bernanke during and after the financial crisis, saying Bernanke has done a "fine job" and "performed well." The President also addressed those that disagree with expanding the Fed's power to monitor systemic risk.

In other news, the Federal Reserve began a two-day meeting on Tuesday. The Fed is expected to hold interest rates steady when it concludes its meeting Wednesday afternoon. The Street expects the central bank to hold rates steady on its plans for asset purchases. The S&P 500 Index's price/earnings (P/E) ratio fell to 10.1 in early March which was the lowest level since 1985!  The S&P 500 Index plunged nearly -58% from its October 2007 high of 1,576 to its March 2009 low of 666. 

PICTURED: The Nasdaq Composite Index closed back under its prior chart highs with a second loss on lighter volume, yet it remains trading above its 50-day moving average line.

The Gold & Silver Index ($XAU +4.06%) repaired a large part of the prior session's loss and was a standout gainer.  The Integrated Oil ($XOI +1.38%) and Oil Services ($OSX +1.40%) indexes posted modest gains as energy-related shares were on the rise. The Bank ($BKX +0.98%) and Broker/Dealer ($XBD +1.06%) indexes also posted gains.  However, weak action in the retail group, losses in the Healthcare ($HMO -0.68%) group, and lackluster action in the tech sector limited the major indices' ability to make progress as the Semiconductor ($SOX -0.37%), Biotechnology ($BTK +0.08%), Internet ($IIX +0.15%), and Networking ($NWX +0.30%) indexes showed no decisiveness in direction.

Charts courtesy www.stockcharts.com 
 

PICTURED: The Retail Index ($RLX -1.83%) fell further below its 50-day moving (DMA) line to its lowest close since early April.

NVE Corp (NVEC +$1.28 or +2.86% to $45.61) made a positive reversal today to end the session near its pivot point. Weak action promptly negated a large part of its 6/19/09 gain with volume more than 2 times average which helped it rise from an "ascending base" type pattern to a new 52-week high and multi-year high, triggering its latest technical buy signal. Its color code was changed to yellow with new pivot point and max buy prices noted in the 6/19 mid-day report (read here). The weekly chart below illustrates how it found support above its 10-week average line (the red line) in recent months, which is an encouraging sign. Its 10-week average line is an important support level to watch now, which coincides with prior chart highs in the $39 area. It has a very small supply of only 4.67 million shares outstanding.  A small supply is generally considered a good sign with respect to the S criteria, yet could contribute to great volatility in the event of institutional accumulation or distribution. NVEC has traded up as much as +41.51% since it was first featured in yellow at $33.85 in the Friday, March 13, 2009 Mid-Day Breakouts Report (read here).

Earnings per share rose +38% in the period ended March 31, 2009 versus the year ago quarter, yet sales were up just +14% and, as previously noted, the company's sales revenues thus far have been rather minuscule.  At less than $7 million per quarter in each of the past 8 quarters, sales have growing at a mostly lackluster pace percentage-wise. Companies reporting more substantial sales revenues generally make more reliable buy candidates, while companies with little "meat on the bone" can be particularly vulnerable to bad stumbles, fundamentally and technically.  Nonetheless, this high-ranked Electronics - Components leader has a good quarterly and annual earnings growth history (C & A criteria). No resistance remains due to overhead supply.

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.