Reports raised concerns about the global economy and European sovereign debt contagion. Morgan Stanley (MS -4.76%) said the U.S. is "dangerously close to recession." The firm criticized policymakers in Washington and Europe for not acting more decisively to contain the sovereign debt crisis. The Wall Street Journal said regulators are stepping up scrutiny of European banks' U.S. operations on concerns about possible funding problems. Shares of Deutsche Bank AG (DB -6.99%) took a beating.

As investors moved away from equities, bonds and gold prices were sharply higher. Gold rallied +2% to a new high above $1,820 an ounce. The yield on the 10-year Treasury briefly dipped below 2%. When the stock market closed, the 10-year Treasury note was up 24/32 to yield 2.08%.

A steady stream of bad news drove stocks sharply lower. Economic reports deepened the pain, with the real shocker coming from the mid-Atlantic region. Manufacturing in the Philadelphia region contracted in August by the most in more than two years as orders plunged and factories shed workers. July existing home sales slumped 3.5%, a bigger drop than expected. Initial jobless claims increased to the highest total in a month. Only July leading economic indicators provided relief. The Conference Board said its index of leading indicators rose 0.5%.

For now, the market environment (M criteria) still argues for investors to remain cautious and preserve cash on the safe sidelines, staying away from potential harm!  Any FTD that comes later may still be sufficient confirmation for a new rally, but it may indicate a weaker rally. Meanwhile, any losses undercutting the major averages' Day 1 lows (8/09/11 lows) would end the current rally attempt which may lead to a longer and deeper market correction.

The August 2011 issue of CANSLIM.net News will be published soon! Links to all prior reports are available on the Premium Member Homepage.

PICTURED: The Dow Jones Industrial Average fell less severely than the other major averages on Thursday. As long as the Day 1 lows (8/09/11) are not exceeded the current rally effort remains valid.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX -6.01%) sank to a new 2011 low intra-day.

When the number of stocks included on the Featured Stocks page is low, and those currently listed have all received recent analysis in this FSU section, we occasionally go back to revisit a previously featured stock that was dropped. Today we will have another look at a stock that was dropped from the Featured Stocks list on August 5, 2011.

Fossil Inc (FOSL) was last noted 8/5/2011 6:23:44 PM - "Down again today with above average volume, finishing in the middle of its intra-day range after slumping near the $107 area previously noted as the next important support level to watch. Damaging losses this week with above average volume violated its 50 DMA line and triggered a technical sell signal. It will be dropped from the Featured Stocks list tonight."  It also was included in the FSU section that evening with an annotated graph under the headline, "Sell Signals Prompt Profit Taking."

After months of trading at higher levels there is now a large amount of overhead supply that will act as resistance whenever it tries to rebound. Its apparently strong fundamentals failed to prevent a slide from $110.56 to today's close at $74.24, a -32.8% decline from when it was dropped less than 2 weeks ago!  This serves as a vivid reminder to all members that recognizing technical sell signals is very important and can prevent large gains from slipping away and becoming damaging losses!  

From the stock's Company Profile page members can review all prior notes and analysis, in this case going back to when this Retail/Wholesale - Jewelry firm was first featured at $45.54 highlighted in yellow in the 8/10/10 mid-day report (read here).  On 2/01/11 the last pivot point was cited after a sound base. Following a subsequent breakout it later re-tested prior resistance and found support near prior highs and its 50 DMA line. Approximately 40% of successful breakouts pull back and test support like FOSL did before continuing higher for substantial gains.

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
EXLS - NASDAQ Exlservice Holdings Inc DIVERSIFIED SERVICES - Business/Management Services	$23.76	-0.68 -2.78%	$24.13	111,027 132.49% of 50 DAV 50 DAV is 83,800	$26.46 -10.20%	8/2/2011	$24.85	PP = $24.85
								MB = $26.09
Most Recent Note - 8/18/2011 3:32:52 PM Y - Small gap down today. Technically, several closes below its old high close negated the recent breakout as it sank into the prior base while consolidating above its 50 DMA line (now $23.39). Deterioration leading to a violation of that important short-term average would raise greater concerns and trigger a technical sell signal. >>> The latest Featured Stock Update with an annotated graph appeared on 8/15/2011. 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
FCFS - NASDAQ First Cash Financial Svs SPECIALTY RETAIL - Specialty Retail, Other	$43.05	-1.71 -3.82%	$44.13	374,485 128.95% of 50 DAV 50 DAV is 290,400	$47.80 -9.94%	5/31/2011	$42.00	PP = $40.23
								MB = $42.24
Most Recent Note - 8/18/2011 3:29:39 PM G - Pulling back today for a 4th consecutive loss since its 52-week high and a negative reversal on Monday. Prior chart lows near $37-38 define support to watch above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 8/9/2011. 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
JCOM - NASDAQ J 2 Global Communication INTERNET - Internet Software and Services	$27.95	-0.66 -2.31%	$28.12	584,398 184.47% of 50 DAV 50 DAV is 316,800	$31.72 -11.89%	8/8/2011	$30.38	PP = $29.31
								MB = $30.78
Most Recent Note - 8/18/2011 3:30:34 PM G - Gapped down today, slumping under its 50 and 200 DMA lines and again struggling amid a widely negative market (M criteria). Last week it churned a lot of volume without making progress since its 8/03/11 gap up. >>> The latest Featured Stock Update with an annotated graph appeared on 8/8/2011. 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
MA - NYSE Mastercard Inc Cl A DIVERSIFIED SERVICES - Business/Management Services	$304.91	-21.31 -6.53%	$320.00	2,109,910 141.54% of 50 DAV 50 DAV is 1,490,700	$340.42 -10.43%	8/3/2011	$324.82	PP = $322.38
								MB = $338.50
Most Recent Note - 8/18/2011 11:09:35 AM Y - Gapped down today amid widespread market weakness, slumping -9.2% off its 8/03/11 all-time high and sinking below the previously cited pivot point again, raising concerns. Its 50 DMA line defines important support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/16/2011. 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
MG - NYSE Mistras Group Inc DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services	$17.91	-1.53 -7.87%	$18.98	175,365 130.58% of 50 DAV 50 DAV is 134,300	$19.85 -9.77%	8/10/2011	$17.89	PP = $17.58
								MB = $18.46
Most Recent Note - 8/18/2011 11:11:25 AM G - Gapped down today, retreating from its 52-week high amid widespread market (M criteria) weakness. Previous resistance in the $17-18 area defines important chart support to watch on pullbacks. >>> The latest Featured Stock Update with an annotated graph appeared on 8/11/2011. 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
MKTX - NASDAQ Marketaxess Holdings Inc FINANCIAL SERVICES - Investment Brokerage - Nationa	$27.35	-0.10 -0.36%	$27.60	834,648 411.77% of 50 DAV 50 DAV is 202,700	$30.25 -9.59%	7/29/2011	$25.87	PP = $26.35
								MB = $27.67
Most Recent Note - 8/17/2011 12:16:41 PM G - Gapped up today for a considerable gain with heavy volume, hitting a new 52-week high on news this operator of an electronic trading system for fixed-income securities is exploring a sale of the company. >>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2011. 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
PCLN - NASDAQ Priceline.Com Inc INTERNET - Internet Software and Services	$458.80	-33.05 -6.72%	$476.85	2,011,513 168.09% of 50 DAV 50 DAV is 1,196,700	$561.88 -18.35%	7/29/2011	$539.46	PP = $552.15
								MB = $579.76
Most Recent Note - 8/18/2011 11:03:54 AM Gapped down today, violating its 200 DMA line and recent chart low, raising concerns with its technical deterioration. Based on recent weakness it has slumped -17% off its 52-week high, and it will be dropped from the Featured Stocks list tonight. Its June low ($451.75) defines the next important chart support level to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/12/2011. 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