US stocks rose after a slew of stronger-than-expected economic data was released on Wednesday. Volume totals were reported lower on the NYSE and on the Nasdaq exchange, which signaled a lack of buying from the institutional crowd. Advancers led decliners by nearly a 3-to-1 ratio on the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. There were 15 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 7 issues that appeared on the prior session.  There has been a welcome improvement in recent days, yet an even greater expansion in the new highs list in the weeks ahead would offer more encouraging news for growth oriented investors.

The latest round of economic data released helped reaffirm the notion that the brunt of the recession is over. Before Wednesday's opening bell, the country's largest employment services firm, ADP, said employers cut -473,000 in June. This was about the same as May's adjusted reading of a -485,000 cut. The Labor Department is slated to release June's non-farm payrolls report on Thursday since the Market will be closed on Friday in observance of Independence Day.

A separate report showed that factory orders rose +0.7% in April. Elsewhere, the Institute for Supply Management's (ISM) manufacturing index continued to rise toward positive territory. The index rose to 42.8 in May from 40.1 in April. The good news for the economy is that as manufacturing expands inventories are falling which is a net positive for the economy. The National Association of Realtors released a report which showed that pending home sales was little changed in May, at 90.7. However, the index did rise on a year-over-year basis, gaining +3.2%. A pending sale is one in which a contract for a new home was signed, but not yet closed. Normally, it takes approximately four to six weeks to close a contracted sale.

Looking forward, earnings season is right around the corner and will officially begin next week. Remember that stocks during earnings season can be very volatile. A very simple, yet effective, way to gauge your stocks' health is to see how it reacts to its quarterly earnings. Historically, the best stocks produce strong sales and earnings every quarter, which translates into higher stock prices.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU +3.82%) has recently found support near its 50-day moving average (DMA) line, and it has generally trended higher since its 50 & 200 DMA lines crossed over in April.

Longtop Financl Tech Ads (LFT +$0.22 or +0.90% to $24.78) recently slumped under its 50-day moving average (DMA) line, and its outlook gets increasingly questionable the longer it remains trading below that important short-term average. Any subsequent losses leading to deterioration below its multi-month upward trendline would raise additional concerns and trigger a more worrisome technical sell signal. Keep in mind that its progress could be hindered by future share offerings. This Chinese Computer Software firm recently filed a registration of approximately 16 million shares for resale, and it also revealed a planned acquisition of another Chinese service provider.

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.