A slew of high profile companies released their Q2 results since Tuesday's close and nearly all of them are trading lower which suggests investors are not happy with their results. In other news, President Obama signed the FinReg bill into law today and Ben Bernanke made it clear that the Fed will continue to help the US economy recover from the worst financial crisis since the Great Depression. Bernanke also said that the economic outlook remains "unusually uncertain" without offering additional measures to stimulate growth.

To help keep the current action in proper perspective it is of the utmost importance to filter out the "noise" and focus on how the major averages are performing right now. At this point, all the major averages closed below resistance (their two-month downward trendlines and important moving averages). By definition, the major averages are in a "downtrend" until they close above resistance. Until then, odds favor lower/choppy prices will continue. In addition it is important to note that one of the best ways to determine how the market feels about a specific event (earnings, political, economic, etc.) is to simply analyze how the market reacts to the data. That said, the fact that the major averages can not rally during an otherwise positive earnings season bodes poorly for this nascent rally.

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 has recently encountered resistance at its 50-day and 200-day moving average lines.  New leadership will be a necessary element if we are to see a subsequent rally above those moving averages, and above its June high. The Nasdaq Composite Index and S&P 500 index are in similar shape at present, and as such, any improvements for the major indices would technically help the overall market outlook turn more bullish.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU -0.23%) was last shown in this Industry Group Watch section on 7/01/10 as it abruptly violated its 50-day and 200-day moving average lines (read here). It has recently been struggling after encountering resistance near its 50 DMA line. Any subsequent violation of its May-July lows would not bode well for gold-related issues including at least one high-ranked leader from the Mining - Gold/Silver/Gems industry group currently listed on the Featured Stocks page.

Volume and volatility often increase near earnings news, and investors should be especially watchful during earnings season.  It is important to watch the market's reaction to the latest earnings news and guidance.  Fundamental news of significance can lead to great and immediate impact on the price and volume of trading.

Rovi Corp (ROVI -$0.07 or -0.16% to $42.42) has announced that earnings results for the quarter ended June 30, 2010 will be released on 7/29/10 after the close, not on the date indicated on the annotated graph below. Volume totals have cooled while it has been holding its ground stubbornly just -3% off its 52-week high. Now consolidating slightly above its "max buy" level, its color code was changed to green.  Support is defined by prior chart resistance in the $40 area and its 50-day moving average (DMA) line.  When last shown in this FSU section under the headline "Outlook Better For High-Ranked Computer Software Firm" on 6/28/2010 we observed - "not a great deal of resistance due to overhead supply. Disciplined investors will await a convincing gain above its pivot point with heavy volume to trigger a new buy signal."  A streak of powerful gains soon followed, including its 7/07/10 gain with heavy volume that triggered the latest technical buy signal.  Its annual earnings growth (see red circle) has not been especially strong over a 5-year span. Earnings per share increases in 3 of the past 4 quarterly comparisons versus the year ago period showed better than +25% growth.   

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	$254.24	+2.35 0.93%	$265.15	42,291,056 144.39% of 50 DAV 50 DAV is 29,289,000	$279.01 -8.88%	6/17/2010	$270.95	PP = $272.56
								MB = $286.19
Most Recent Note - 7/21/2010 5:22:18 PM G - Gapped up today following strong earnings news but it encountered distributional pressure, closing near the session low and below its 50 DMA line. Its recent low near $240 defines an important chart support level to watch, where any subsequent deterioration would raise greater concerns and might trigger a more worrisome technical sell signal. >>> 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	$106.31	-0.77 -0.72%	$107.92	691,153 93.25% of 50 DAV 50 DAV is 741,200	$109.33 -2.76%	6/29/2010	$104.74	PP = $109.33
								MB = $114.80
Most Recent Note - 7/20/2010 4:12:42 PM Y - This Brazil-based beverage firm is trading in a tight range, 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 7/20/2010. 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	$73.31	-0.73 -0.99%	$76.56	18,625,597 130.63% of 50 DAV 50 DAV is 14,258,200	$82.29 -10.91%	7/14/2010	$75.03	PP = $78.59
								MB = $82.52
Most Recent Note - 7/20/2010 4:15:04 PM Y - Gain today with light volume helped it close above its 50 DMA line near the session high. Disciplined investors avoid the temptation to get in "early" and watch for a proper technical buy signal. >>> 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	$92.16	-0.96 -1.03%	$94.48	1,492,850 51.20% of 50 DAV 50 DAV is 2,915,500	$97.94 -5.90%	6/2/2010	$88.44	PP = $89.60
								MB = $94.08
Most Recent Note - 7/20/2010 4:18:52 PM G - Gapped down today then positively reversed and closed near the session high for a small gain on light volume. >>> 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
FFIV - NASDAQ F 5 Networks Inc INTERNET - Internet Software and Services	$73.11	-3.68 -4.79%	$77.74	3,195,598 190.11% of 50 DAV 50 DAV is 1,680,900	$79.21 -7.70%	6/16/2010	$74.50	PP = $74.10
								MB = $77.81
Most Recent Note - 7/21/2010 4:25:35 PM Y - Following the close it reported strong results for the latest quarter ended June 30, 2010. Volume and volatility often increase near earnings news. It gapped up today and then negatively reversed and closed near the session low with a large loss on volume nearly twice its average. Concerns were raised as it undercut prior highs in the $74-77 area, quickly falling toward its 50 DMA line and upward trendline. >>> 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
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
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$58.92	-1.08 -1.80%	$60.70	449,321 46.80% of 50 DAV 50 DAV is 960,100	$62.46 -5.67%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 7/20/2010 4:29:53 PM G - Gains with lighter volume have followed a considerable 7/16/10 loss with above average volume. Recently it was noted as it wedged to new 52-week high territory with quiet volume behind its 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	$58.17	-0.82 -1.39%	$59.58	6,338,040 64.49% of 50 DAV 50 DAV is 9,827,900	$63.38 -8.22%	6/22/2010	$59.60	PP = $59.67
								MB = $62.65
Most Recent Note - 7/20/2010 4:32:12 PM G - Posted a small gain today with lighter volume, sputtering near its 50 DMA line and prior chart highs that define support to watch. >>> 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	$42.42	-0.07 -0.16%	$42.98	830,841 58.43% of 50 DAV 50 DAV is 1,421,900	$43.67 -2.86%	6/3/2010	$38.70	PP = $40.16
								MB = $42.17
Most Recent Note - 7/21/2010 5:03:58 PM G - Earnings news is due 7/29/10 after the close. Volume totals have cooled while holding its ground stubbornly just -3% off its 52-week high. Slightly above its "max buy" level, its color code is changed to green while consolidating above support defined by prior resistance in the $40 area and its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 7/21/2010. 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	$41.16	-1.43 -3.36%	$42.88	827,788 83.35% of 50 DAV 50 DAV is 993,200	$47.93 -14.12%	6/3/2010	$44.38	PP = $45.35
								MB = $47.62
Most Recent Note - 7/21/2010 4:38:47 PM G - Closed at the session low today and concerns have increased due to technical damage. A streak of 4 consecutive losses with below average volume included violations of its 50 DMA line and prior chart low. A prompt rebound above its short-term average would help its outlook, meanwhile the path of least resistance may lead this high-ranked Medical Products firm lower. >>> 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
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$22.86	-0.29 -1.25%	$23.31	321,639 45.81% of 50 DAV 50 DAV is 702,100	$26.75 -14.54%	5/28/2010	$25.58	PP = $25.86
								MB = $27.15
Most Recent Note - 7/20/2010 4:52:32 PM G - Holding its ground in a tight trading range with light volume. Its 50 DMA line has acted as resistance recently, meanwhile 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 7/19/2010. 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
VIT - NYSE Vanceinfo Tech Inc Ads COMPUTER SOFTWARE and SERVICES - Business Software and Services	$25.51	+0.15 0.59%	$26.24	339,336 52.97% of 50 DAV 50 DAV is 640,600	$26.90 -5.17%	7/8/2010	$25.20	PP = $26.58
								MB = $27.91
Most Recent Note - 7/20/2010 4:58:34 PM Y - Gapped down and then closed near the session high with a small gain on light volume, making a "positive reversal" today. It did not yet trigger a technical 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