Gold settled in New York above $1,850, a record high for the fourth straight day. Investors rotated toward bonds, precious metals, and cash over equities to close out another rough week on Wall Street. The S&P 500 Index posted its fourth straight weekly decline as the attraction of lower stock valuations failed to offset fears of a slowing global economy. Hewlett Packard (HPQ -20%) sank to a six-year low and subtracted 44 points from the Dow Industrials as the market turned thumbs down on the company's new strategy and a disappointing sales forecast. International Business Machines Inc (IBM -3.84%) subtracted 45 points from the Dow.

Consumer discretionary and health care stocks held up the best. The Gap Inc (GPS +1.1%) rose as cost-cutting allowed the retailer to beat analysts' earnings estimates. McDonald's Corp (MCD +1.9%) was the top performer in the Dow Industrials. Bank of America Corp (BAC -1.1%) sank after announcing plans to cut 3,500 jobs this quarter.

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 Nasdaq Composite Index finished at its lowest close since 9/23/10, yet it avoided undercutting its Day 1 (8/09/11) low by 7 points, barely keeping its sputtering rally attempt alive.

The Gold & Silver Index ($XAU +1.90%) tallied a gain on Friday while losses abounded. The Semiconductor Index ($SOX -1.78%), Internet Index ($IIX -1.78%), and Networking Index ($NWX -1.34%) led the tech sector lower while the Biotechnology Index ($BTK +0.03%) finished flat. There were losses for the Retail Index ($RLX -1.22%) and Healthcare Index ($HMO -1.77%), and the energy-related Integrated Oil Index ($XOI -1.45%) and Oil Services Index ($OSX -3.22%) fell.

The Broker/Dealer Index ($XBD -3.15%) and Bank Index ($BKX -2.93%) weak among Friday's weakest groups as financial stocks continued to lead the major averages lower. Long-time readers know the emphasis we have repeatedly given in this commentary to the financial groups recognizing them as a "leading indicator". We can certainly see and respect the historic role financial stocks have fulfilled once again in the current market correction.  Although the major averages avoided such a weak finish, the charts of the financial indexes, shown below sinking to new 2011 lows, may be considered an ominous warning sign.

Charts courtesy www.stockcharts.com

PICTURED 1: The Bank Index ($BKX -2.93%) slumped to a new 2011 low.

Its color code was changed to yellow in the 8/08/11 mid-day report with an annotated daily graph (read here) showing a pivot point based on its 7/07/11 high after a "double bottom" type base. Although it had rallied to a new high and showed explosive potential, the subsequent slump is an indication that many anxious sellers immediately wanted to head for the exit, rather than adding to the buying momentum and driving it even higher as it was breaking out. Technically, it has endured damaging distributional pressure after rising to challenge previously stubborn resistance in the $30 area. The many months it spent trading at higher levels is a source of resistance called "overhead supply" which may hinder its ability to rally for meaningful gains.

The 3 latest quarterly comparisons through June '11 show sales revenues and earnings acceleration and the high-ranked Telecom Services - Cable/Satellite firm has a strong annual earnings history, satisfying the C and A criteria. The weekly graph below is packed with a lot of additional data.  One concern we have highlighted is the waning ownership by top-rated funds, falling from 421 in Mar '11 to 398 in June '11. Normally, increasing interest from top-rated funds is preferred with respect to the I criteria.  

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	$23.62	-0.14 -0.59%	$23.80	97,212 113.57% of 50 DAV 50 DAV is 85,600	$26.46 -10.73%	8/2/2011	$24.85	PP = $24.85
								MB = $26.09
Most Recent Note - 8/19/2011 4:08:24 PM Y - Closed near the session high today after gapping down and trading under its 50 DMA line. Technically it negated its recent breakout, raising concerns while slumping under its pivot point and sinking back into its prior base. Its 200 DMA line defines the next important support level to watch >>> 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	$42.29	-0.76 -1.77%	$43.46	394,418 134.06% of 50 DAV 50 DAV is 294,200	$47.80 -11.53%	5/31/2011	$42.00	PP = $40.23
								MB = $42.24
Most Recent Note - 8/19/2011 4:11:40 PM G - Closed near its 50 DMA line today with its 5th consecutive loss since its 52-week high marked by a negative reversal. 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	$27.48	-0.47 -1.68%	$28.44	537,297 166.35% of 50 DAV 50 DAV is 323,000	$31.72 -13.37%	8/8/2011	$30.38	PP = $29.31
								MB = $30.78
Most Recent Note - 8/19/2011 4:17:22 PM G - Slumped under its 50 and 200 DMA lines with volume-driven losses, making no progress since its 8/03/11 gap up. Only a prompt rebound above those important moving averages would help its outlook. >>> The latest Featured Stock Update with an annotated graph appeared on 8/19/2011. 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	$300.16	-4.75 -1.56%	$310.30	1,561,157 106.09% of 50 DAV 50 DAV is 1,471,600	$340.42 -11.83%	8/3/2011	$324.82	PP = $322.38
								MB = $338.50
Most Recent Note - 8/19/2011 4:22:14 PM Y - Amid widespread market weakness it finished -11.6% off its 8/03/11 all-time high while slumping below the previously cited pivot point, also closing below its 50 DMA line. >>> 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	$17.74	-0.17 -0.95%	$18.13	200,651 148.63% of 50 DAV 50 DAV is 135,000	$19.85 -10.63%	8/10/2011	$17.89	PP = $17.58
								MB = $18.46
Most Recent Note - 8/19/2011 4:24:14 PM G - Encountered mild distributional pressure while retreating from its 52-week high amid widespread market (M criteria) weakness. It slumped near previous resistance in the $17-18 area that defines important chart support. >>> 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	$26.85	-0.50 -1.83%	$27.60	581,377 267.18% of 50 DAV 50 DAV is 217,600	$30.25 -11.24%	7/29/2011	$25.87	PP = $26.35
								MB = $27.67
Most Recent Note - 8/19/2011 4:25:21 PM G - Holding its ground since a considerable gain with heavy volume on 8/17/11, 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