The major averages ended unanimously higher, yet volume totals on the stock exchanges contracted for the second straight day. The fact that the market has edged higher on lighter volume after Tuesday's heavy volume sell off suggests the bulls are running out of gas. Advancers led decliners by more than a 3-to-1 ratio on the NYSE and by more than a 2-to-1 ratio on the Nasdaq exchange. There were only 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 4 issues that appeared on the prior session. New 52-week highs still outnumbered new 52-week lows on both exchanges while new lows were in the single digits again.

Precious metals stole the show for the second straight day as stocks ended widely higher on lighter volume Thursday. Gold and silver stocks added to the prior session's impressive rally, helping the lagging group quickly sprint higher. Historically, investors have been known to invest in gold as a hedge against inflation or use it as insurance against a global scare. The fact that gold and silver have surged sharply -after the major averages soared over +50% from their March lows, suggests that capital is rotating away from equities and into so-called "safer" investments (i.e. gold and bonds). It will be very interesting to see how the major averages perform in the near term, and whether this time around the group will serve as a safe haven, or offer any meaningful upside in a period of declining equity prices.

The Labor Department reported that unemployment claims fell last week by 4,000 to 570,000 while the number of those receiving benefits rose. This was lower than the Street's forecast for a larger drop. Before Friday's opening bell, the Labor Department is slated to release last month's employment report which is is expected to show that US employers slashed over 200,000 jobs last month. One of the largest problems facing the economic recovery is the massive unemployment rate.

The International Council of Shopping Centers released a report which showed that retail sales slid -2.1% in August but were better than an expected drop of -3.5%. The Institute for Supply Management said its service index, was negative but closer to the boom/bust level of 50. This was the 11th consecutive monthly decline.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index is consolidating above prior chart highs and its 50-day moving average (DMA) line.

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.