The major averages ended nicely higher after the government reported a stronger than expected jobs report. Volume was reported higher on the NYSE and Nasdaq exchange.  Advancers led decliners by more than a 3-to-1 ratio on the NYSE and by more than a 2-to-1 ratio on the Nasdaq exchange. There were 23 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 19 issues that appeared on the prior session. On both exchanges new 52-week highs still significantly outnumbered 52-week lows, and new lows were in the single digits again.

Before Friday's opening bell, the Labor Department said that employers slashed -247,000 jobs in July which was stronger than the Street's estimate of a -325,000 decline.  The unemployment rate ticked lower to 9.4% which was the first decline in over a year. June's -9.5% unemployment rate was the highest reading since the early 1980's.  In April, US employers slashed a whopping 663,000 jobs which was the lowest level in more than 60 years! Since then, the job losses have been smaller which has been considered a "good" sign by Wall Street.

One of the strongest catalysts for sending the market higher this quarter has been earnings. Not only have earnings exceeded the average analyst's estimates companies have also raised guidance.  Companies have lowered guidance in each of the past 3 quarters so the fact that they stopped lowering guidance is another net "positive" for stocks.  Earnings so far have not been stellar as the main driver for higher numbers has been cutting costs, not higher sales. However, the massive influx of world wide government stimulus is starting to kick in which is starting to trickle down.

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PICTURED: The S&P 500 Index closed the week above the psychologically important 1,000 level.

Charts courtesy www.stockcharts.com

PICTURED: The Internet Index ($IIX +1.00%) has been consolidating in a tight range in recent weeks above prior chart highs.

Universal Travel Group (UTA -$0.55 or -3.81% to $13.81) has been encountering distributional pressure, pulling back toward prior chart highs that are a very important support level now. The Chinese provider of airline tickets and travel related services gapped up on 7/28/09 when rising from a choppy 6-week base above its 50-day moving average line. Strong action prompted it to be featured in yellow at $12.87 in that day's mid-day breakouts report (read here), and it has subsequently traded as much as +33.64% higher.  Its considerable gain above its pivot point came with very heavy volume nearly 6 times its average daily trading total. Heavy volume, well above the minimum +50% above average volume guideline, has accompanied many of the market's biggest historic winners. 

Keep in mind that the investment system has a rule that says whenever a stock rises +20% or more in 2-3 weeks or less from when it was bought, that stock should be held for at least 8 weeks and be given a chance to produce bigger gains.  The rule was created because the market's most explosive winners often got off to a strong start.  It could be worth giving UTA the benefit of the doubt, but also keep in mind that there is a lot of risk after its many-fold run from its March lows.  The fact that it is trading more than +100% above its 200-day moving average line gives investors another reason to be especially disciplined about making proper entries and exits.  Always limit losses if any stock falls more than -7% from your buy point.  Subsequent deterioration leading to any closes back under its prior high closes would raise concerns by negating its latest bullish breakout.

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.