The major indices ended with slight losses across the board on Wednesday. The volume total on the NYSE was reported a bit higher than the prior session total while volume was lower on the Nasdaq exchange. Decliners outnumbered advancing issues on the NYSE and on the Nasdaq exchange by about a 3-to-2 ratio. There were 20 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 26 issues that appeared on the prior session. On both exchanges new 52-week highs outpaced new 52-week lows, while new lows remained in the single digits.

The Fed released its latest Beige Book which showed a moderated economic decline, leading pundits to suggest that the market is getting ahead of itself with its recovery hopes.  Durable goods orders for June made their worst drop since January by falling -2.5%, which was worse than expected. However, orders less autos made a surprisingly strong increase of +1.1% which was better than expected and the first back-to-back increase since March and April of 2008.  The US dollar reportedly made its best move in more than one month, gaining +0.9% against a basket of major foreign currencies, however that put pressure on commodity-linked areas.

Earnings news included better-than-expected results and an increased outlook from McKesson (MCK +8.93%) which helped the medical group, but that was largely offset by a disappointing report from WellPoint (WLP -5.70%). Meanwhile, ConocoPhillips (COP -3.53%) and Hess Corp (HES -3.45%) fell despite better-than-expected results from those energy-related firms.

Charts courtesy www.stockcharts.com

PICTURED: The Oil Services Index ($OSX -3.31%) violated its 50-day moving average (DMA) line on Wednesday as crude prices were adversely impacted by an unexpected inventory build and a stronger dollar.

Pegasystems Inc  (PEGA +$2.18 or +8.28% to $28.50) was featured in yellow in today's mid-day report (read here) during the course of its considerable gain on heavy volume 3 times its average for a new 52-week high. There were no news headlines to be found as this software firm triggered a technical buy signal by breaking out from a third stage, 8-week "double bottom" type base.  The second low was a "lower low" which provided a necessary "shakeout" which is an important characteristic of a proper double bottom pattern.  The heavy volume behind its breakout easily met the minimum +50% above average volume guideline of the investment system for a proper breakout.  The high-ranked Computer Software - Financial firm has shown solid sales revenues increases and +25% earnings increases and 3 of last 4 quarterly comparisons versus the year ago period. The previously noted downturn in annual earnings (the A criteria) from 2003 to 2006 has been followed by a solid turn around and big earnings increases in '07 and '08, and Street expectations for '09 are calling for well above +25% growth.  As always, disciplined investors avoid chasing stocks extended more than +5% above their pivot point, and once any new buys are made, those stocks are quickly sold if they fall more than -7% from the buy price. Being ultra-careful in regard to entries and exits provides no guarantee that investors will reap huge profits, however, undisciplined buying and selling decisions will obviously hurt your chances of great success.

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.