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AFTER MARKET UPDATE - THURSDAY, SEPTEMBER 2ND, 2010
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Indices NYSE Nasdaq
DOW  +50.63 10,320.10 +0.49% Volume 959,756,570 -19% Volume 1,649,359,690 -24%
NASDAQ +23.17 2,200.01 +1.06% Advancers 2,104 68% Advancers 1,650 60%
S&P 500 +9.81 1,090.10 +0.91% Decliners 896 29% Decliners 958 35%
Russell 2000 +7.27 632.26 +1.16% 52 Wk Highs 167   52 Wk Highs 58  
S&P 600 +3.71 338.08 +1.11% 52 Wk Lows 13   52 Wk Lows 30  

Mid-Cap Index Ends Above Short-Term And Long-Term Averages

Stocks ended higher on Thursday as investors digested a slew of economic data. Thursday's reported volume totals were lower on the NYSE and Nasdaq exchange compared to Wednesday's levels. Advancers led decliners by over a 2-to-1 ratio on the NYSE and by a 3-to-2 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 47 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, one lower than the 48 issues that appeared on the prior session.

The European Central Bank (ECB) decided to hold interest rates steady, near record lows, when they met on Thursday. ECB president Jean Claude Trichet said the ECB is ready to extend emergency bank lending if needed. In the US, retail sales unexpectedly topped estimates thanks to holiday tax incentives, and pending sales of existing homes also beat estimates while rising +5.2% in July. Meanwhile, mortgage rates fell to +4.32% which is the lowest level in decades. The Labor Department said initial jobless claims fell by 6,000 to 472,000 last week which matched the Street's forecast. Investors are now waiting for August's official non-farm payrolls report to be released before Friday's open.

Looking forward, the window is now open for disciplined investors to begin carefully buying high-ranked stocks again. It was encouraging to see a flurry of high-ranked leaders trigger fresh technical buy signals and break out of sound bases. The next important level to watch for the major averages are their respective 200-day moving average (DMA) lines. It is important to note that approximately 75% of FTDs lead to new sustained rallies, while 25% fail. In addition, every major rally in market history has begun with a FTD, but not every FTD leads to a new rally. Trade accordingly.

Q2 Webcast Rewind: The Q2 2010 CANSLIM.net Webcast aired at 8PM on Wednesday, June 30, 2010. A link to the webcast has been added near the top on the Premium Membership Homepage .The Q3 webcast has been scheduled for 8PM EST on Wednesday, September 29, 2010.

PICTURED: The S&P 400 Mid-Cap Index is the first major index to rally above its 50 and 200 DMA lines. It is in close striking distance of a multi-month downward trendline.




Widespread Group Gains

The Retail Index ($RLX +2.19%) was among Thursday's best group gainers and the Broker/Dealer Index ($XBD +0.76%) and Bank Index ($BKX +1.17%) also posted influential gains. The tech sector had a positive bias as the Internet Index ($IIX +1.44%), Networking Index ($NWX +1.46%), Biotechnology Index ($BTK +1.69%), and Semiconductor Index ($SOX +2.07%) posted unanimous gains. Commodity-linked groups were also on the rise as the Gold & Silver Index ($XAU +1.17%), Integrated Oil Index ($XOI +1.32%), and Oil Services Index ($OSX +0.86%) chugged higher.  The Healthcare Index ($HMO +0.44%) was a relative laggard, yet it also posted a modest gain on the widely positive session.

Charts courtesy www.stockcharts.com

PICTURED: The Internet Index's ($IIX +1.44%) 50-day moving average (DMA) line stayed above its 200 DMA line, and today's close was its best since April.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  180.91 +1.55 +0.86% -7.19%
Healthcare $HMO  1,489.60 +6.47 +0.44% +1.13%
Integrated Oil $XOI  976.22 +12.71 +1.32% -8.61%
Semiconductor $SOX  323.32 +6.57 +2.07% -10.17%
Networking $NWX  234.33 +3.38 +1.46% +1.41%
Internet $IIX  255.60 +3.62 +1.44% +9.30%
Broker/Dealer $XBD  101.94 +0.76 +0.76% -11.40%
Retail $RLX  420.59 +9.00 +2.19% +2.30%
Gold & Silver $XAU  186.41 +2.15 +1.17% +10.79%
Bank $BKX  45.78 +0.53 +1.17% +7.19%
Biotech $BTK  1,111.95 +18.52 +1.69% +18.03%


High-Ranked Leader Attracting Institutional Interest

Aruba Networks Inc. (ARUN -$0.06 or -0.32% to $18.82) is holding its ground after recent gains for new 52-week highs backed by above average volume helped it rally above its pivot point from a base-on-base type pattern. Confirming gains and a follow-through day on 9/01/10 (M criteria) helped trigger a technical buy signal.  It returned to the Featured Stocks list as it was highlighted in yellow in the 8/30/10 mid-day report (read here).  It rebounded impressively and produced strong quarterly sales revenues and earnings increases in the quarterly reports since it was dropped from the Featured Stocks list in early-May at the time of the "flash crash."

The number of top-rated funds owning an interest in its shares rose from 45 in Mar '09 to 101 in Jun '10 providing a nice reassurance with respect to the investment system's I criteria. Return On Equity reported at 21% is now above the 17% guideline, an encouraging sign. Management's 26% ownership interest keeps the directors' focus on maintaining and growing shareholder value.


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  
$113.21 +0.32
0.28%

$114.13

556,867
85.20% of 50 DAV
50 DAV is 653,600
$114.23
-0.89%
6/29/2010 $104.74 PP = $109.33
MB = $114.80
Most Recent Note - 8/31/2010 3:54:13 PM
G - This Brazil-based beverage firm is poised for a new high close with today's gain. Found support near its 50 DMA line recently.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/18/2010. Click here.

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ARUN - NASDAQ
Aruba Networks Inc
COMPUTER HARDWARE - Networking andamp; Communication Dev  
$18.82 -0.06
-0.32%

$19.06

2,519,671
144.63% of 50 DAV
50 DAV is 1,742,100
$19.32
-2.59%
8/30/2010 $18.12 PP = $18.51
MB = $19.44
Most Recent Note - 9/2/2010 12:26:41 PM
Y - Holding its ground today after recent gains for new 52-week highs backed by above average volume helped it rally above its pivot point from a base-on-base type pattern. Confirming gains and a follow-through day on 9/01/10 (M criteria) helped trigger a technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/2/2010. Click here.

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BIDU - NASDAQ
Baidu Inc Ads
INTERNET - Internet Information Providers  
$82.61 +0.77
0.94%

$83.40

5,592,703
52.60% of 50 DAV
50 DAV is 10,633,400
$88.32
-6.47%
7/14/2010 $75.03 PP = $78.59
MB = $82.52
Most Recent Note - 9/1/2010 2:01:57 PM
Y - Gapped up today, rallying from its 50 DMA line again amid widespread leadership and solid gains from the major averages (better M criteria). Color code is changed to yellow as gains helping it rally from its 10-week average may be considered a secondary buy point. It may be considered "late-stage" and riskier than fresh breakouts.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/13/2010. Click here.

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CACC - NASDAQ
Credit Acceptance Corp
FINANCIAL SERVICES - Credit Services  
$59.49 +0.01
0.02%

$59.76

14,509
27.02% of 50 DAV
50 DAV is 53,700
$61.41
-3.13%
7/29/2010 $52.04 PP = $54.07
MB = $56.77
Most Recent Note - 9/1/2010 3:36:35 PM
G - Gain today on light volume. Consolidating well above its 50 DMA and old highs near $54 that define support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2010. Click here.

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CMG - NYSE
Chipotle Mexican Grill
LEISURE - Restaurants  
$164.19 +4.78
3.00%

$164.19

1,117,126
163.11% of 50 DAV
50 DAV is 684,900
$159.54
2.91%
9/1/2010 $158.31 PP = $155.52
MB = $163.30
Most Recent Note - 9/2/2010 12:31:19 PM

Y - Gapped up today and briefly traded above its "max buy" level. Technically, it broke out on 9/01/10, rallying to multi-year highs with a considerable gain backed 2 times average volume. See the last evening's Featured Stock Update section for detailed analysis and an annotated graph.


>>> The latest Featured Stock Update with an annotated graph appeared on 9/1/2010. Click here.

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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
CRM - NYSE
Salesforce.Com Inc
INTERNET - Internet Software and Services  
$119.12 +2.72
2.34%

$119.59

3,689,810
143.74% of 50 DAV
50 DAV is 2,567,000
$116.81
1.98%
6/2/2010 $88.44 PP = $89.60
MB = $94.08
Most Recent Note - 9/2/2010 4:36:48 PM
G - Gain today for another new all-time high. It is extended from a sound base, not currently buyable under the investment system guidelines.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/16/2010. Click here.

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EGO - NYSE
Eldorado Gold Corp
METALS and MINING - Gold  
$19.46 +0.20
1.04%

$19.60

3,468,564
84.47% of 50 DAV
50 DAV is 4,106,500
$20.06
-2.99%
8/19/2010 $18.25 PP = $19.17
MB = $20.13
Most Recent Note - 9/1/2010 12:54:31 PM
Y - Pulling back today near its pivot point following a recent streak of volume-driven gains to new 52-week highs amid strong leadership (L criteria) in the group. The Canada-based mining firm triggered a technical buy signal last week. Gains today for the major averages (M criteria) have the look of a solid follow-through day confirming a new rally.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/19/2010. Click here.

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FFIV - NASDAQ
F 5 Networks Inc
INTERNET - Internet Software and Services  
$91.11 +0.37
0.41%

$91.69

1,612,511
96.98% of 50 DAV
50 DAV is 1,662,700
$92.70
-1.72%
6/16/2010 $74.50 PP = $74.10
MB = $77.81
Most Recent Note - 9/1/2010 2:05:11 PM
G - Consolidating in a tight range in the past 3 weeks following a bout of heavy distribution. Its 50 DMA line and recent lows near $80 define support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/4/2010. Click here.

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FOSL - NASDAQ
Fossil Inc
CONSUMER DURABLES - Recreational Goods, Other  
$49.91 +1.11
2.27%

$50.37

1,142,052
126.68% of 50 DAV
50 DAV is 901,500
$49.50
0.83%
8/10/2010 $45.54 PP = $42.69
MB = $44.82
Most Recent Note - 9/2/2010 4:40:49 PM
G - Closed today at a new all-time high. Extended from any sound base after a recent streak of gains. Prior high in the $46 area defines support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/11/2010. Click here.

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GMCR - NASDAQ
Green Mtn Coffee Roastrs
FOOD and BEVERAGE - Processed and Packaged Goods  
$31.33 +0.49
1.59%

$31.45

1,281,468
56.42% of 50 DAV
50 DAV is 2,271,500
$33.98
-7.80%
8/17/2010 $33.62 PP = $33.30
MB = $34.97
Most Recent Note - 9/2/2010 4:45:47 PM
Y - Consolidating above its 50 DMA line, it has formed a handle after the previously noted cup shaped pattern, and its color code is changed to yellow. Confirming gains for a new high close are needed to trigger a buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/17/2010. Click here.

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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
HS - NYSE
Healthspring Inc
HEALTH SERVICES - Health Care Plans  
$21.73 +0.15
0.70%

$21.74

771,851
131.51% of 50 DAV
50 DAV is 586,900
$21.82
-0.41%
8/27/2010 $19.91 PP = $19.75
MB = $20.74
Most Recent Note - 9/2/2010 12:35:51 PM
G - Extended from its prior base, support to watch now is prior chart highs in the $19-20 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/27/2010. Click here.

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MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$69.89 +1.49
2.18%

$71.05

832,999
82.04% of 50 DAV
50 DAV is 1,015,300
$70.95
-1.49%
5/13/2010 $54.21 PP = $55.85
MB = $58.64
Most Recent Note - 9/2/2010 11:18:23 AM
G - Hit a new 52-week high today, getting extended from any sound base. Prior highs in the $62 area and its 50 DMA line define chart support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/26/2010. Click here.

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MRX - NYSE
Medicis Pharmaceut Cl A
DRUGS - Biotechnology  
$29.47 +0.86
3.01%

$29.61

2,001,262
170.20% of 50 DAV
50 DAV is 1,175,800
$28.65
2.86%
8/12/2010 $26.88 PP = $26.71
MB = $28.05
Most Recent Note - 9/2/2010 12:45:06 PM
G - Hit another new 52-week high today. Color code was changed to green after volume-driven gains beyond its "max buy" level. Prior highs in the $28 area define an initial chart support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/12/2010. Click here.

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MWIV - NASDAQ
M W I Veterinary Supply
HEALTH SERVICES - Medical Instruments and; Supplies  
$55.27 +0.77
1.41%

$55.48

41,879
53.83% of 50 DAV
50 DAV is 77,800
$55.46
-0.34%
7/29/2010 $52.05 PP = $52.09
MB = $54.69
Most Recent Note - 9/2/2010 4:49:14 PM
G - Gain on light volume today for a new all-time high above its "max buy" level. Color code is changed to green. 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.

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NEM - NYSE
Newmont Mining Corp
METALS and MINING - Gold  
$61.53 +1.21
2.01%

$61.54

5,199,686
71.38% of 50 DAV
50 DAV is 7,284,600
$63.38
-2.92%
8/31/2010 $61.32 PP = $63.48
MB = $66.65
Most Recent Note - 9/2/2010 4:50:51 PM
Y - Closed 40 cents off its 7/09/10 high close today with gain on light volume. Color code was changed to yellow with new pivot point cited based on its 52-week high plus ten cents. Disciplined investors will watch for a confirming gain above its pivot with heavy volume. Leadership in the Mining - Gold/Silver/Gems group (L criteria) is a nice reassurance.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2010. Click here.

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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
NEOG - NASDAQ
Neogen Corp
DRUGS - Diagnostic Substances  
$30.73 -0.11
-0.36%

$31.13

660,848
782.07% of 50 DAV
50 DAV is 84,500
$31.17
-1.41%
9/1/2010 $30.79 PP = $30.49
MB = $32.01
Most Recent Note - 9/2/2010 4:56:10 PM
Y- Churned a lot of volume today but held its ground after a considerable gain and new all-time high. Technically, its 9/01/10 gain above the new pivot point cited triggered a buy signal after an orderly 5-week base-on-base pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/20/2010. Click here.

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NFLX - NASDAQ
Netflix Inc
SPECIALTY RETAIL - Music and Video Stores  
$138.00 +3.09
2.29%

$138.58

5,256,723
119.69% of 50 DAV
50 DAV is 4,391,800
$140.90
-2.06%
8/10/2010 $124.05 PP = $124.00
MB = $130.20
Most Recent Note - 9/2/2010 12:49:25 PM
G- Gain today has it within close striking range of its all-time high. It has risen beyond its "max buy" level after holding its ground and finding recent support near its pivot point.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2010. Click here.

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PAY - NYSE
Verifone Systems Inc
COMPUTER HARDWARE - Transaction Automation Systems  
$25.56 +0.26
1.03%

$25.60

1,637,952
131.82% of 50 DAV
50 DAV is 1,242,600
$25.90
-1.31%
8/25/2010 $24.30 PP = $23.74
MB = $24.93
Most Recent Note - 9/2/2010 12:56:44 PM
G - Disciplined investors may watch for chances to accumulate shares on pullbacks toward prior highs in the $23 area defining chart support. It is slightly extended beyond its "max buy" level.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/30/2010. Click here.

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ROVI - NASDAQ
Rovi Corp
COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services  
$43.35 -0.89
-2.01%

$43.78

1,472,834
131.20% of 50 DAV
50 DAV is 1,122,600
$44.96
-3.58%
8/31/2010 $43.31 PP = $45.06
MB = $47.31
Most Recent Note - 9/2/2010 1:02:00 PM
Y - Gapped down today, consolidating above support at its 50 DMA line while only -3.6% off its 52-week high. Color code was changed to yellow with new pivot point cited while building a base-on-base type pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/24/2010. Click here.

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SHOO - NASDAQ
Steven Madden Limited
CONSUMER NON-DURABLES - Textile - Apparel Footwear  
$36.27 +0.43
1.20%

$36.55

234,321
54.99% of 50 DAV
50 DAV is 426,100
$40.98
-11.49%
8/5/2010 $39.55 PP = $41.08
MB = $43.13
Most Recent Note - 9/1/2010 2:07:38 PM
G - Rising above its 50 DMA line on quiet volume amid widespread gains today. Support is defined by its 200 DMA line and prior chart lows in the $30 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2010. Click here.

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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
SLW - NYSE
Silver Wheaton Corp
METALS and; MINING - Silver  
$23.15 +0.64
2.84%

$23.50

5,032,755
108.85% of 50 DAV
50 DAV is 4,623,600
$23.58
-1.82%
8/25/2010 $21.40 PP = $21.99
MB = $23.09
Most Recent Note - 9/2/2010 1:03:13 PM
G - Gapped up today. The M criteria has improved since the 9/01/10 follow-through day confirmed a new rally. Color code was changed to green after getting extended from its prior base. Previous highs in the $21 area are now a support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/25/2010. Click here.

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VIT - NYSE
Vanceinfo Tech Inc Ads
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$29.53 +0.71
2.46%

$29.53

232,211
41.06% of 50 DAV
50 DAV is 565,500
$29.80
-0.91%
7/8/2010 $25.20 PP = $26.58
MB = $27.91
Most Recent Note - 9/2/2010 4:57:10 PM
G - Gain today with light volume for a new high close. Patient investors may watch for secondary buy points. Recent gains lifted it more than +5% above its old chart highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/31/2010. Click here.

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WCRX - NASDAQ
Warner Chilcott Plc
DRUGS - Drug Manufacturers - Other  
$29.37 +0.47
1.63%

$29.40

920,177
52.79% of 50 DAV
50 DAV is 1,743,100
$30.57
-3.93%
8/23/2010 $29.54 PP = $29.34
MB = $30.81
Most Recent Note - 9/1/2010 2:10:08 PM
Y - Volume totals have been cooling while it remains perched near its pivot point. It was featured in yellow in the mid-day report on 8/23/10 rising from a cup shaped base.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/23/2010. Click here.

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