The major averages plunged on Friday after Citigroup (C -6.25%) and Bank of America (BAC -9.16%) released their latest quarterly results, meanwhile consumer confidence and consumer prices both fell. The losses erased what would have been another positive week on Wall Street. Volume was reported higher than Thursday's session on both exchanges due to options expirations. There were only 4 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 16 issues that appeared on the prior session. Decliners trumped advancers by almost a 4-to-1 ratio on the NYSE and over a 7-to-1 ratio on the Nasdaq exchange. New 52-week highs solidly outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange.  For the rally to have ongoing success it will be critical for a healthy crop of leaders to continue showing up hitting new 52-week highs.

The major averages ended slightly higher on Monday after spending most of the day trading between positive and negative territory ahead of Alcoa Inc's. (AA -3.97%) Q2 results. After Monday's closing bell, the largest US aluminum company kicked off earnings season and reported a profitable Q2 and said sales rose +22%. Stocks enjoyed hefty gains on Tuesday after the government said the trade deficit topped $1 trillion. Technically, it was encouraging to see the Dow Jones Industrial Average rally above its 50-day moving average (DMA) line and rise above a downward trendline. Tuesday's gain also helped the S&P 600 Small Cap Index rally above the April - June downward trendline which was shown on the graph included in Friday evening's commentary (read here). The benchmark S&P 500 Index is now challenging its 50 DMA line, yet it faces resistance at its short-term average and it also remains trading under its 200 DMA line. The Nasdaq Composite Index has rallied very near its 50 and 200 DMA lines which have now converged.  The NYSE Composite Index, which was noted in this commentary recently as the first major index to violate its 50 DMA line and the see its 50 and 200 DMA lines form a "death cross", rallied for its first close above its 50 DMA since May 3rd.

On Wednesday, the major averages ended mixed to slightly higher as they consolidated Tuesday's large move.The benchmark S&P 500 Index snapped a streak of 6 straight gains after retail sales fell last month and the Fed released the minutes of its latest meeting. The Commerce Department said retail sales fell -0.5% last month which topped the Street's estimate and followed a -1.1% decline in May. Most of the decline came from the ailing automobile sector, excluding auto dealers, demand fell -0.1% which matched the median estimate. Elsewhere, the Federal Reserve released the minutes of its latest meeting which showed a less than stellar economic outlook. Fed officials said the economy has “softened” which sparked concern of a double dip recession.

On Thursday, stocks erased earlier losses and closed near their intra-day highs as investor's digested a slew of important data: JP Morgan (JPM -3.61%) reported their latest quarterly result, weekly jobless claims and producer prices fell, Goldman Sachs (GS +0.65%) settled with the SEC for $550 million, BP (BP-4.68%) plugged the broken well, the Senate sent President Obama the largest financial regulatory bill since the Great Depression, and the latest read on the manufacturing industry was disappointing. It was somewhat encouraging to see the market shrug off earlier weakness and close near its intra-day highs even though the Nasdaq Composite Index and the Dow Jones Industrial Average snapped 7-day winning streaks.

Over the next few weeks, it will be very interesting to see how companies fared last quarter and, equally important, to see how the market reacts to the numbers. Analysts believe that Q2 earnings for S&P 500 companies rose +34%.

Looking forward, the window remains open for disciplined investors to carefully buy high-ranked stocks. Since the current rally began on July 1, the major averages have rallied on suspiciously light volume for the most part.  It is ideal to see volume expand as the major averages break above resistance and see a new batch of high-ranked leaders trigger fresh technical buy signals.  These latest improvements are helping to confirm this nascent rally and provide a reassurance that odds are more favorable for successful investing using the fact-based system.

PICTURED: The Dow Jones Industrial Average sank under its 50 DMA line on Friday after encountering resistance this week at its 200 DMA line.

The Retail Index ($RLX -3.31%) and financial shares had a negative influence as the Bank Index ($BKX -5.71%) and Broker/Dealer Index ($XBD -2.35%) erased a fair part of their recent gains.  The tech sector was zapped by unanimous losses for the Networking Index ($NWX -3.58%), Internet Index ($IIX -3.42%), Semiconductor Index ($SOX -3.30%), and the Biotechnology Index ($BTK -3.15%).  Energy-related shares were weak as the Oil Services Index ($OSX -2.97%) and Integrated Oil Index ($XOI -2.72%) both fell. Defensive groups offered no benefit to "safe haven" investors as the Healthcare Index ($HMO -3.29%) and Gold & Silver Index ($XAU -3.28%) also endured large losses.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX -5.71%) was a standout decliner on Friday while Bank of America Corporation (BAC -9.16%) and Citigroup, Inc. (C -6.25%) shares dived. Although it started the week making encouraging progress above its 50-day moving average (DMA) line, the damaging loss caused the BKX to end the week back under its 50 and 200 DMA lines once again.

Thoratec Corp (THOR -$1.94 or -4.31% to $43.03) suffered a considerable loss today on light volume, just barely violating its 50-day moving average line amid widespread market weakness. Its recent low ($41.27 on 7/01/10) defines the next important chart support level to watch now. It struggled initially after breaking out from a choppy 5-week base with a considerable gain on 6/02/10 backed by above average volume. Then it posted a solid gain on 6/16/10 for a new high on above average volume, reconfirming the earlier technical buy signal.  On 6/16/10 it marked its $47.93 high, and its short-term average acted as support since it was last reviewed in this FSU section on 6/23/10 with an annotated graph under the headline "Medical Products Firm Showing Resilience."

Recent quarterly comparisons showed impressive acceleration in its sales revenues increases while earnings above the +25% minimum guideline satisfied the C criteria. Based on weakness it was dropped from the Featured Stocks list on 2/23/09, yet it has shown especially bullish action since its breakout on 3/05/10. It was mentioned long ago in a 12/15/08 interview on WBBM 780AM - (listen here) and it was featured in yellow in the 12/05/08 Mid-Day Breakouts Report (read here).  THOR had rebounded impressively after being featured in the past, then subsequently dropped from the CANSLIM.net Featured Stocks list on 2/2/2006.

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
AAPL - NASDAQ Apple Inc COMPUTER HARDWARE - Personal Computers	$249.90	-1.55 -0.62%	$254.95	37,083,601 127.72% of 50 DAV 50 DAV is 29,036,000	$279.01 -10.43%	6/17/2010	$270.95	PP = $272.56
								MB = $286.19
Most Recent Note - 7/16/2010 5:04:14 PM G - Its 50 DMA line is now acting as resistance. Recent lows in the $242-243 area define important chart support to watch while the company's defective phone product fix competes with swirling headlines BP has finally plugged its leaking oil well. Disciplined investors ignore headlines and let technical analysis dictate their decision-making. >>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2010. 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
ABV - NYSE Comp De Bebidas Adr FOOD and BEVERAGE - Beverages - Brewers	$106.56	+0.13 0.12%	$107.00	888,436 118.38% of 50 DAV 50 DAV is 750,500	$109.33 -2.53%	6/29/2010	$104.74	PP = $109.33
								MB = $114.80
Most Recent Note - 7/16/2010 12:41:35 PM Y - This Brazil-based beverage firm is quietly perched within close striking distance of its 52-week high. It found support near its 50 DMA line recently and has not yet traded above its pivot point since featured in the 6/29/10 mid-day report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 6/29/2010. 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
BIDU - NASDAQ Baidu Inc Ads INTERNET - Internet Information Providers	$73.53	-2.11 -2.79%	$75.70	10,377,710 71.65% of 50 DAV 50 DAV is 14,483,300	$82.29 -10.65%	7/14/2010	$75.03	PP = $78.59
								MB = $82.52
Most Recent Note - 7/16/2010 5:05:46 PM Y - Disciplined investors avoid the temptation to get in "early" and watch for a proper technical buy signal. Color code was changed to yellow with new pivot point cited based on 6/21/10 high after a proper double-bottom pattern of sufficient length. >>> The latest Featured Stock Update with an annotated graph appeared on 7/14/2010. 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
CRM - NYSE Salesforce.Com Inc INTERNET - Internet Software and Services	$92.05	-3.94 -4.10%	$95.29	1,751,055 59.29% of 50 DAV 50 DAV is 2,953,600	$97.94 -6.01%	6/2/2010	$88.44	PP = $89.60
								MB = $94.08
Most Recent Note - 7/16/2010 5:06:45 PM G - Considerable loss today on light volume ended a streak of 11 consecutive gains. >>> The latest Featured Stock Update with an annotated graph appeared on 7/15/2010. 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
DECK - NASDAQ Deckers Outdoor Corp CONSUMER NON-DURABLES - Textile - Apparel Footwear	$44.79	-1.52 -3.28%	$46.28	1,017,729 65.99% of 50 DAV 50 DAV is 1,542,200	$56.12 -20.18%	6/11/2010	$52.45	PP = $52.86
								MB = $55.50
Most Recent Note - 7/16/2010 5:10:10 PM G - Loss today leaves it -20% off its 52-week high and struggling below its 50 DMA line which has recently acted as resistance. Based on weak action it will be dropped from the Featured Stocks list tonight. Do not be confused, as the most recent Featured Price, Pivot Point and Max Buy levels have been adjusted to account for a stock split 3:1 effective as of 7/06/10. >>> The latest Featured Stock Update with an annotated graph appeared on 7/1/2010. 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
FFIV - NASDAQ F 5 Networks Inc INTERNET - Internet Software and Services	$76.37	-2.33 -2.96%	$78.52	1,384,243 81.17% of 50 DAV 50 DAV is 1,705,400	$79.21 -3.59%	6/16/2010	$74.50	PP = $74.10
								MB = $77.81
Most Recent Note - 7/16/2010 5:13:18 PM Y - Pulled back today below its "max buy" level. Color code is changed to yellow. Prior highs in the $74-77 area may now serve as chart support levels above its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 7/7/2010. 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
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$58.10	-4.18 -6.71%	$60.85	1,172,067 122.58% of 50 DAV 50 DAV is 956,200	$62.46 -6.98%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 7/16/2010 5:14:56 PM G - Gapped down today and suffered considerable loss with above average volume after it wedged to new 52-week high territory with quiet volume behind its recent gains. >>> The latest Featured Stock Update with an annotated graph appeared on 6/30/2010. 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
NEM - NYSE Newmont Mining Corp METALS and MINING - Gold	$58.90	-1.80 -2.97%	$59.95	7,801,723 77.50% of 50 DAV 50 DAV is 10,066,800	$63.38 -7.07%	6/22/2010	$59.60	PP = $59.67
								MB = $62.65
Most Recent Note - 7/16/2010 5:18:25 PM Y - Pulling back on light volume this week and sinking under its pivot point again. Its 50 DMA and prior chart highs define support to watch. It is virtually clear of all overhead supply. >>> The latest Featured Stock Update with an annotated graph appeared on 7/9/2010. 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
ROVI - NASDAQ Rovi Corp COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services	$42.02	-0.71 -1.66%	$42.74	569,101 38.19% of 50 DAV 50 DAV is 1,490,300	$43.67 -3.78%	6/3/2010	$38.70	PP = $40.16
								MB = $42.17
Most Recent Note - 7/16/2010 5:22:32 PM Y - Color code is changed to yellow while quietly consolidating under its "max buy" level and closing -3.8% off its 52-week high following volume-driven gains above prior resistance in the $40 area. Old highs define support above its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 6/28/2010. 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
THOR - NASDAQ Thoratec Corp HEALTH SERVICES - Medical Instruments and Supplies	$43.03	-1.94 -4.31%	$44.95	490,599 45.65% of 50 DAV 50 DAV is 1,074,700	$47.93 -10.22%	6/3/2010	$44.38	PP = $45.35
								MB = $47.62
Most Recent Note - 7/16/2010 5:23:00 PM Y - Considerable loss on light volume led to a 50 DMA line violation today amid widespread market weakness. Recent low ($41.27 on 7/01/10) defines the next important chart support level. >>> The latest Featured Stock Update with an annotated graph appeared on 7/16/2010. 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
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$22.77	-0.53 -2.27%	$23.06	563,938 81.64% of 50 DAV 50 DAV is 690,800	$26.75 -14.88%	5/28/2010	$25.58	PP = $25.86
								MB = $27.15
Most Recent Note - 7/16/2010 4:04:43 PM G - Down today for a 3rd consecutive loss on light volume. Its 50 DMA line has acted as resistance recently. Its May - June chart lows in the $21 area define the next support level just above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2010. 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
VIT - NYSE Vanceinfo Tech Inc Ads COMPUTER SOFTWARE and SERVICES - Business Software and Services	$25.00	-0.22 -0.87%	$25.26	434,728 64.55% of 50 DAV 50 DAV is 673,500	$26.90 -7.06%	7/8/2010	$25.20	PP = $26.58
								MB = $27.91
Most Recent Note - 7/16/2010 4:05:56 PM Y - Held its ground today after a positive reversal on the prior session. It has formed a handle on the right side of its 11-week cup shaped pattern now. It did not trigger a buy signal with respect to the pivot point cited after gapping up on 7/08/10, when it briefly matched its all-time high and appeared in the mid-day report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/8/2010. 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