The major averages rose on Thursday, but much lighter volume totals were reported in comparison to the prior session totals on the NYSE and on the Nasdaq exchange, revealing a lack of serious buying demand from the institutional crowd.  Advancers led decliners by about a 3-to-2 ratio on the NYSE while the mix was nearly even on the Nasdaq exchange. There were 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 2 issues that appeared on the prior session.

Thursday's light volume totals were typical of the "Summer doldrums", and trading activity ordinarily does not show any great expansion until after Labor Day. Over the next few weeks it is imperative to watch how companies performed in the latest quarter, and just as importantly or more, see how the stock prices react to the numbers.  The market remains highly skeptical amid plenty of evidence, including weak retail sales and record high unemployment, which suggest that any rebound in growth could be feeble and take longer than investors originally thought.

PICTURED: The NYSE Composite Index halted a 4-day slide with a small gain on lighter volume.  In recent weeks it has found support at its 200-day moving average (DMA) line -which is still sinking. Technically, even though its 50 DMA line rallied above its 200 DMA line a couple of weeks ago, it now needs to reclaim its 50 DMA line and rally above its recent chart highs for the market outlook to really improve meaningfully.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor ($SOX +2.79%) was a standout gainer, helped by big gains from Micron Technology Inc. (MU +6.78%), SanDisk Corp. (SNDK +5.18%), KLA-Tencor Corporation (KLAC +4.89%).  None of those companies listed has a strong history of sales revenues and earnings growth, so they are low-ranked and they do not make good buy candidates based upon the investment system's guidelines.

A classic example of the success enjoyed by many CANSLIM.net readers usually starts when an investor reads a CANSLIM.net report and buys a featured stock before it has risen above the pivot point by greater than 5%.  After a stock breaks out above its pivot point, there is only a +5% window that investors have to purchase the stock under the proper guidelines. Once a stock rises above the "maximum buy price" the risk of a shake out balloons, meaning that even a normal retracement in the stock might force you to employ the 7-8% loss cutting rule.  Much can be told by the stock's daily action in the weeks and months that follow a breakout. Typically, a light volume and orderly pullback suggests that the bulls remain in control.  However, high volume pullbacks that violate support paint a totally different picture.

Capella Education Co. (CPLA -$0.58 or -0.96% to $59.69) negatively reversed for a loss with above average volume after it was featured in yellow in today's mid-day report (read here). It has quietly been rallying in recent weeks, and is now perched within -5% of its 52-week high. The group has shown some leadership, yet currently has a D for a Relative Strength Rating (see red circle). CPLA is a high-ranked leader in the Commercial Services-Schools Group. Its small supply of only 13.9 million shares in the float could contribute to greater price volatility in the event of institutional accumulation or distribution. The number of top-rated funds owning an interest rose from 91 in Sept '08, to 129 as of March '09, which is reassuring with respect to the I criteria. It has a very good earnings history that satisfies the C & A criteria, while recent quarters showed steady sales revenues increases in the +17-18% range.

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.