The major averages negatively reversed (opened higher but closed lower) on Monday after encountering resistance near their respective 50-day moving average (DMA) lines. Volume reported on the NYSE and the Nasdaq exchange fell on Monday compared to Friday's levels which was a somewhat welcoming sign. Decliners led advancers by about a 3-to-2 ratio on the NYSE and by almost a 3-to-1 ratio on the Nasdaq exchange. New 52-week lows outnumbered new 52-week highs on the NYSE but trailed on the Nasdaq exchange. There were 25 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 9 issues that appeared on the prior session.

Stocks opened higher but turned lower (negatively reversed) after encountering resistance near their respective 50 DMA lines. From a technical perspective, this is not healthy action. Not only are the major averages below their respective downward sloping 50 DMA lines, their 50 DMA lines, are still below their longer term 200 DMA lines. This ominous pattern is known as a "death cross" and usually suggests lower, not higher prices, will follow. Later this week, the latest read on the ailing housing market will be released: existing home sales and new home sales. This should give investors the latest look into this troubled sector.

The technical action in the major averages continues to weaken. Currently, resistance for the the major averages are their 50 DMA lines, then their longer term 200 DMA lines. It is also disconcerting to see the action in several leading stocks remain questionable as evidenced by the dearth of high-ranked leaders breaking out of sound bases. Monday's negatively reversal emphasizes the importance of remaining cautious until the rally is back in a confirmed uptrend. Put simply, we can expect this sideways/choppy action to continue until the market breaks out above resistance or below support (recent chart lows). The first scenario will have bullish ramifications while the second will be clearly bearish. Trade accordingly.

Charts courtesy www.stockcharts.com

PICTURED: The Internet Index ($IIX -1.07%) is trading above its 50-day and 200-day moving average lines within -5.6% of its 2010 high. It is one of the stronger acting groups among those regularly followed in this report, and the recent resilience and strength bodes well for Internet related firms.

Warner Chilcott Plc  (WCRX +$1.31 or +4.66% to $29.43) reported huge sales revenues and earnings increases in the Mar and Jun '10 quarters, so fundamentals are currently strong. It was featured in yellow in the mid-day report while hitting a new all-time high today (read here).  The close above its pivot point with volume more than 3 times average helped trigger a technical buy signal as it rose from a cup shaped base formed since it was noted in the 5/06/10 mid-day report - "Earnings and sales revenues history has been below guidelines of the fact-based system, yet showed drastic increases in the quarter ended Dec 31, 2009. It encountered stubborn resistance in the $29 area since the high-ranked firm hailing from the Medical - Ethical Drugs industry was noted in a handful of Q4 2009 mid-day reports after announcing plans to buy Procter & Gamble Co's prescription drug business in a deal first announced 8/24/09."  It is now clear of resistance due to overhead supply and poised to rally further. Broader market action may be expected to weigh substantially on the ultimate outcome as the M criteria if the investment system argues that 3 out of 4 stocks tend to follow along in the direction of the major averages. 

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
ABV - NYSE Comp De Bebidas Adr FOOD and BEVERAGE - Beverages - Brewers	$109.02	-1.00 -0.91%	$111.10	918,337 141.85% of 50 DAV 50 DAV is 647,400	$112.60 -3.18%	6/29/2010	$104.74	PP = $109.33
								MB = $114.80
Most Recent Note - 8/23/2010 12:32:25 PM G - This Brazil-based beverage firm is perched near its all-time high. Color code was changed to green despite its recent resilience, as fundamental concerns were raised as for the quarter ended June 30, 2010 it reported +19% earnings on +16% sales revenues, below the +25% guidelines. >>> The latest Featured Stock Update with an annotated graph appeared on 8/18/2010. 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	$79.37	-2.80 -3.41%	$81.39	10,218,533 92.07% of 50 DAV 50 DAV is 11,098,600	$88.32 -10.13%	7/14/2010	$75.03	PP = $78.59
								MB = $82.52
Most Recent Note - 8/23/2010 5:04:03 PM G - Loss today on near average volume, slumping further below its "max buy" level, however more time is needed for it to form a sound new base. Volume totals have been cooling while it consolidates above prior highs that define technical support along with its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 8/13/2010. 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
CACC - NASDAQ Credit Acceptance Corp FINANCIAL SERVICES - Credit Services	$59.13	+0.01 0.02%	$60.34	13,021 24.02% of 50 DAV 50 DAV is 54,200	$61.41 -3.71%	7/29/2010	$52.04	PP = $54.07
								MB = $56.77
Most Recent Note - 8/20/2010 4:39:44 PM G - Rebounded and closed near the session high today. Extended from its prior base, previous resistance near $54 defines initial chart support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2010. 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	$112.28	-0.47 -0.42%	$113.40	6,783,707 281.93% of 50 DAV 50 DAV is 2,406,200	$112.99 -0.63%	6/2/2010	$88.44	PP = $89.60
								MB = $94.08
Most Recent Note - 8/23/2010 12:36:57 PM G - Pulling back today after a gap up on 8/20/10 for a considerable gain and new all-time high. It reported sales +25% and earnings +0% versus the year ago period ended July 31st, marking its second consecutive quarterly comparison with earnings per share below the +25% guideline. >>> The latest Featured Stock Update with an annotated graph appeared on 8/16/2010. 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
EGO - NYSE Eldorado Gold Corp METALS and MINING - Gold	$18.29	-0.13 -0.71%	$18.47	1,921,727 46.06% of 50 DAV 50 DAV is 4,172,600	$19.07 -4.09%	8/19/2010	$18.25	PP = $19.17
								MB = $20.13
Most Recent Note - 8/20/2010 4:44:55 PM Y - Quietly consolidating, this Canada-based mining firm has built a longer base-on-base type pattern. It was featured in the 8/19/10 mid-day report (read here) in yellow with a pivot point based on its 52-week high plus ten cents. EGO reported great sales and earnings increases in Mar and Jun '10 quarterly comparisons. >>> The latest Featured Stock Update with an annotated graph appeared on 8/19/2010. 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
FFIV - NASDAQ F 5 Networks Inc INTERNET - Internet Software and Services	$89.27	-1.77 -1.94%	$91.60	1,271,534 74.87% of 50 DAV 50 DAV is 1,698,300	$92.70 -3.70%	6/16/2010	$74.50	PP = $74.10
								MB = $77.81
Most Recent Note - 8/20/2010 4:48:24 PM G - Closed at a new high on its weekly chart with this week's gain on light volume. Recently noted as -"extended from any sound base after recent volume-driven gains, it could go on to produce more climactic gains." >>> The latest Featured Stock Update with an annotated graph appeared on 8/4/2010. 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
FOSL - NASDAQ Fossil Inc CONSUMER DURABLES - Recreational Goods, Other	$44.36	+0.21 0.48%	$45.04	731,214 86.65% of 50 DAV 50 DAV is 843,900	$46.30 -4.19%	8/10/2010	$45.54	PP = $42.69
								MB = $44.82
Most Recent Note - 8/20/2010 4:56:18 PM Y - Consolidating quietly in a tight range since its considerable "breakaway gap" on 8/10/10 for a new 52-week high and all-time high. >>> The latest Featured Stock Update with an annotated graph appeared on 8/11/2010. 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
GMCR - NASDAQ Green Mtn Coffee Roastrs FOOD and BEVERAGE - Processed and Packaged Goods	$32.75	+0.29 0.89%	$33.17	1,618,366 68.78% of 50 DAV 50 DAV is 2,352,800	$33.98 -3.62%	8/17/2010	$33.62	PP = $33.30
								MB = $34.97
Most Recent Note - 8/20/2010 4:58:27 PM Y - Quietly consolidating since featured in yellow again in the 8/17/10 mid-day report as it hit a new 52-week high, rising from a 19-week cup shaped pattern without forming a handle. It showed great resilience in rebounding from lows since it was dropped from the Featured Stocks list on 4/28/10. The number of top-rated funds owning its shares rose to 124 in Jun '10 from 111 in Mar '10. GMCR rallied more than 5-fold from its November '08 low. >>> The latest Featured Stock Update with an annotated graph appeared on 8/17/2010. 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
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$68.09	-1.57 -2.25%	$70.80	688,163 65.60% of 50 DAV 50 DAV is 1,049,000	$70.32 -3.17%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 8/23/2010 5:06:31 PM G - Hit a new 52-week high today after a gap up, then negatively reversed. It has been noted - "Extended from any sound base. Prior highs in the $62 area define initial chart support." >>> The latest Featured Stock Update with an annotated graph appeared on 7/23/2010. 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
MRX - NYSE Medicis Pharmaceut Cl A DRUGS - Biotechnology	$26.88	-0.18 -0.67%	$27.44	649,308 57.89% of 50 DAV 50 DAV is 1,121,700	$28.15 -4.51%	8/12/2010	$26.88	PP = $26.71
								MB = $28.05
Most Recent Note - 8/23/2010 5:07:46 PM Y - Small gap up today was erased as it reversed and ended with a loss on light volume. The high-ranked Medical - Ethical Drugs firm is holding its ground above prior chart highs since its 8/06/10 breakout from a sound base. >>> The latest Featured Stock Update with an annotated graph appeared on 8/12/2010. 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
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
MWIV - NASDAQ M W I Veterinary Supply HEALTH SERVICES - Medical Instruments and; Supplies	$53.21	+0.95 1.82%	$53.74	90,789 118.52% of 50 DAV 50 DAV is 76,600	$54.48 -2.33%	7/29/2010	$52.05	PP = $52.09
								MB = $54.69
Most Recent Note - 8/23/2010 5:09:16 PM Y - Gapped up for a gain today with above average volume and very little resistance remains. Repaired its 50 DMA line violation with solid gains on volume last week, bringing an impressive technical improvement. Recent lows in the $46 area define an important chart support level. >>> The latest Featured Stock Update with an annotated graph appeared on 7/30/2010. 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	$57.58	-0.44 -0.76%	$58.05	3,688,866 47.93% of 50 DAV 50 DAV is 7,696,100	$63.38 -9.15%	6/22/2010	$59.60	PP = $59.67
								MB = $62.65
Most Recent Note - 8/20/2010 5:11:34 PM Y - Near its 50 DMA line now after a few weeks of consolidation with volume totals cooling since it was hit with heavy distribution in late July. >>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2010. 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
NEOG - NASDAQ Neogen Corp DRUGS - Diagnostic Substances	$28.56	+0.19 0.67%	$28.92	78,624 94.96% of 50 DAV 50 DAV is 82,800	$30.39 -6.02%	7/22/2010	$27.19	PP = $27.87
								MB = $29.26
Most Recent Note - 8/20/2010 5:14:11 PM Y- Color code is changed to yellow while consolidating in a healthy fashion just above its 50 DMA line and prior highs in the $27 area defining important technical support. >>> The latest Featured Stock Update with an annotated graph appeared on 8/20/2010. 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
NFLX - NASDAQ Netflix Inc SPECIALTY RETAIL - Music and Video Stores	$126.90	-3.06 -2.35%	$132.44	3,838,349 86.72% of 50 DAV 50 DAV is 4,426,300	$140.90 -9.94%	8/10/2010	$124.05	PP = $124.00
								MB = $130.20
Most Recent Note - 8/23/2010 5:11:22 PM Y- After a small gap up today it reversed into the red for a loss on below average volume. Last week it found support near its prior high of $124 noted as an important support level to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2010. 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	$43.30	+0.21 0.49%	$43.81	668,469 59.56% of 50 DAV 50 DAV is 1,122,300	$44.96 -3.69%	6/3/2010	$38.70	PP = $40.16
								MB = $42.17
Most Recent Note - 8/20/2010 5:18:50 PM G - Today it gapped down then managed a positive reversal and closed at the session high. Prior highs in the $40 area and its 50 DMA line define chart support. >>> 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
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
SHOO - NASDAQ Steven Madden Limited CONSUMER NON-DURABLES - Textile - Apparel Footwear	$35.73	-0.60 -1.65%	$37.03	263,179 61.39% of 50 DAV 50 DAV is 428,700	$40.98 -12.81%	8/5/2010	$39.55	PP = $41.08
								MB = $43.13
Most Recent Note - 8/20/2010 5:21:28 PM G -Consolidating just above its 50 DMA line with volume totals cooling, finishing -11.5% off its 52-week high. >>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2010. 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
VIT - NYSE Vanceinfo Tech Inc Ads COMPUTER SOFTWARE and SERVICES - Business Software and Services	$27.77	+0.43 1.57%	$28.12	640,802 121.11% of 50 DAV 50 DAV is 529,100	$27.96 -0.68%	7/8/2010	$25.20	PP = $26.58
								MB = $27.91
Most Recent Note - 8/23/2010 5:17:53 PM Y - Hit a new 52-week high today with its gain backed by +21% above average volume. No resistance remains due to overhead supply. Found support near its 50 DMA line last week after enduring distributional pressure. >>> The latest Featured Stock Update with an annotated graph appeared on 7/26/2010. 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
WCRX - NASDAQ Warner Chilcott Plc DRUGS - Drug Manufacturers - Other	$29.43	+1.31 4.66%	$29.81	5,536,810 370.33% of 50 DAV 50 DAV is 1,495,100	$29.40 0.10%	8/23/2010	$29.54	PP = $29.34
								MB = $30.81
Most Recent Note - 8/23/2010 4:57:00 PM Y - Reported huge sales revenues and earnings increases in the Mar and Jun '10 quarters, so fundamentals are currently strong. It was featured in yellow in the mid-day report while hitting a new all-time high today (read here), rising from a cup shaped base formed since it was noted in the 5/06/10 mid-day report - "Earnings and sales revenues history has been below guidelines of the fact-based system, yet showed drastic increases in the quarter ended Dec 31, 2010. It encountered stubborn resistance in the $29 area since the high-ranked firm hailing from the Medical - Ethical Drugs industry was noted in a handful of Q4 2009 mid-day reports after announcing plans to buy Procter & Gamble Co's prescription drug business in a deal first announced 8/24/09." >>> The latest Featured Stock Update with an annotated graph appeared on 8/23/2010. 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