A positive report on durable goods orders gave stocks an early lift. Orders jumped 4% in July, the most in three months, led by a surge in demand for aircraft and autos. But the early rally fizzled at mid-session, with the major averages turning lower after a volatile morning on Wall Street. The Congressional Budget Office said the U.S. budget deficit will be less than it expected in April because of curbs on federal spending. The market appeared less convinced the Federal Reserve will announce a new round of quantitative easing at its annual retreat in Wyoming on Friday.

Gold was another big story of the day as prices plunged over $100 per ounce in New York, the biggest drop since March of 2008, as demand for stocks increased at the expense of the precious metal. Gold traded below $1,790 per ounce after hitting a record over $1,900 Tuesday. Meanwhile, the 10-year Treasury note dropped over a point to yield 2.29%. The U.S. sold $35 billion in five-year notes at a record low auction yield before a sale of $29 billion of seven-year notes expected Thursday.

Investors did some bargain hunting in beaten-down financial shares as analysts defend the stocks. Bank of America Corp (BAC +10.95%) rose, and so did The Goldman Sachs Group Inc (GS +3.23%). Homebuilders rebounded after an index of home prices increased 0.9% in June following a 0.4% gain in May. Toll Brothers Inc (TOL +4.61%) rose after reporting that it saw some stabilization in the upscale housing market in the third quarter.

The market environment (M criteria) was labeled as back in a "confirmed uptrend" in the newspaper after Tuesday's big gains on higher volume. However, one shortcoming to the follow-through day (FTD) which we previously noted is the dearth of leadership (few stocks hitting new 52-week highs) which suggests that there may not be a healthy crop of leaders showing sufficient strength to allow the major averages to sustain a meaningful advance. The indices also remain well below their respective 200-day moving average (DMA) lines, and to be considered truly "healthy" they would need to rebound above their long-term averages.

The August 2011 issue of CANSLIM.net News is now available (click here). Links to all prior reports are available on the Premium Member Homepage.

PICTURED: The S&P 500 Index rose 15 points to 1,177, exceeding the index's closing levels following rallies on August 9 and August 11.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX +1.26%) is still below its 50-day and 200-day moving average (DMA) lines which are close to converging.

Mistras Group Inc (MG +$0.02 or +0.10% to $19.39) finished flat after touching a new all-time high earlier today. There is no resistance remaining due to overhead supply.  Previous resistance in the $17-18 area defined important chart support after encountering mild distributional pressure following its recently noted technical breakout. Typically about 40% of successful breakouts pull back and test support at prior resistance before continuing higher.

The Accumulation/Distribution rating has improved from a D+ to a B since its last appearance in the FSU section on 8/11/11 with an annotated weekly graph included below the headline, "Management Motivated, But Market Remains Concern". At that time it was holding its ground after highlighted in yellow in the 8/10/11 mid-day report (read here) which included an annotated daily graph showing its considerable gain driven by heavy volume, rallying from a base formed since the previously noted Public Offering on 5/05/11. MG found support well above its 200 DMA line after it was dropped from the Featured Stocks list on 6/14/11. It has maintained its solid earnings history concerning the C and A criteria. 

The Building - Maintenance Services group has a Group Relative Strength Rating (61) that is mediocre, but up from 51 when last summarized, whereas the L criteria calls for leadership in the industry group. The number of top-rated funds owning its shares rose from 99 in Sep '10 to 151 in Jun '11, a very reassuring sign concerning the I criteria. Management's large 59% ownership interest keeps them very motivated to look after and build shareholder value.  The small supply (S criteria) of only 27.7 million shares outstanding and 11.3 million in the public float can contribute to greater price volatility in the event of institutional buying or selling.  Disciplined investors avoid chasing extended stocks more than +5% above their pivot point, and always limit losses at 7-8% if ever a stock falls that much after purchased. That is the only way to remove the chance of a small loss growing to become a much more painful and damaging loss.

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	$25.37	+0.51 2.05%	$25.85	146,888 166.16% of 50 DAV 50 DAV is 88,400	$26.46 -4.12%	8/2/2011	$24.85	PP = $24.85
								MB = $26.09
Most Recent Note - 8/24/2011 12:22:07 PM Y - Rallying up from its 50 DMA line and above its pivot point, perched within close striking distance of its 52-week high. Recent low and 50 DMA line define important support to watch above its 200 DMA line. >>> 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	$43.85	+0.56 1.29%	$44.98	358,493 115.01% of 50 DAV 50 DAV is 311,700	$47.80 -8.26%	5/31/2011	$42.00	PP = $40.23
								MB = $42.24
Most Recent Note - 8/24/2011 12:23:37 PM G - Off today's earlier highs and slipping into the red. Recently finding support near its 50 DMA line. Prior chart lows near $37-38 define support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 8/22/2011. 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	$30.08	+0.49 1.66%	$30.43	324,230 98.64% of 50 DAV 50 DAV is 328,700	$31.72 -5.17%	8/8/2011	$30.38	PP = $29.31
								MB = $30.78
Most Recent Note - 8/24/2011 6:07:35 PM G - Today's 3rd consecutive gain led to a close just 20 cents below its 8/03/11 close after a considerable gap up. Little resistance remains due to overhead supply. >>> 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	$325.20	+2.81 0.87%	$329.81	1,170,629 78.60% of 50 DAV 50 DAV is 1,489,300	$340.42 -4.47%	8/3/2011	$324.82	PP = $322.38
								MB = $338.50
Most Recent Note - 8/24/2011 6:09:04 PM Y - Posted a 3rd consecutive gain on lighter than average volume today and finished -4.5% off its 8/03/11 all-time high. Recently found support near 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	$19.39	+0.02 0.10%	$20.10	301,666 210.96% of 50 DAV 50 DAV is 143,000	$19.85 -2.32%	8/10/2011	$17.89	PP = $17.58
								MB = $18.46
Most Recent Note - 8/24/2011 6:05:06 PM G - Finished flat after touching a new all-time high earlier today. Previous resistance in the $17-18 area defined important chart support after encountering mild distributional pressure. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 8/24/2011. 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	$29.53	+0.10 0.34%	$29.64	301,701 126.50% of 50 DAV 50 DAV is 238,500	$30.25 -2.38%	7/29/2011	$25.87	PP = $26.35
								MB = $27.67
Most Recent Note - 8/24/2011 4:10:50 PM G - Finished near the session high today, inching up for another new high close. Extended from its prior base. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 8/23/2011. 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