The major averages posted unanimous gains on Monday while volume totals on the NYSE and Nasdaq exchange were reported lighter than the prior session totals.  Advancing issues led decliners on the NYSE by almost a 5-to-1 ratio, while there was a better than 2-to-1 ratio on the Nasdaq exchange. There were 42 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 20 issues that appeared on the prior session. On both exchanges new 52-week highs still significantly outnumbered 52-week lows.  The market's more favorable conditions of late (concerning the M criteria) are detailed more extensively in the new August 2009 issue of our monthly newsletter, CANSLIM.net News (read here).

Better-than-expected economic data led to broad-based buying after the ISM Manufacturing Index made its 7th straight increase, coming in at 48.9 for June. Its below 50 reading still indicates contraction in the manufacturing sector, however.  Construction spending data for June rose +0.3%, yet the Street expected a decline of -0.5%. A weaker dollar helped the case for sharply higher commodity prices as the CRB Commodity Index spiked +3.4%, which has it up more than +9% over the past three sessions. Oil prices jumped +3.0% to $71.53 per barrel, the highest level in a month.

Financial stocks also helped underpin the market after reports from Barclays Plc (BCS +7.48%) and HSBC Holdings Plc (HBC +7.50%) helped provide leadership. Earnings announcements are becoming less of a factor, as many bellwethers have already reported.  However, earnings news is still due from some high-ranked leaders among the current list of Featured Stocks including Pegasystems Inc (PEGA +3%), which has its Q2 earnings report due after Tuesday's close, and Neutral Tandem Inc (TNDM +7.23%), which is due to report earnings before Thursday's opening bell. Green Mtn Coffee Roastrs (GMCR -4.22%), which reported its latest strong quarterly results last Thursday, gapped down on Monday after announcing plans to offer 4 million shares for sale with the assistance of underwriters at BofA Merrilll Lynch.  Additional share offerings can often have a dilutive effect and hinder upward price progress for the near term.  GMCR traded up more than +168% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +2.62%) posted a 9th consecutive gain, and its 50-day and 200-day moving average lines have nearly converged.  A bullish crossover would be a technical sign of near-term strength in bank stocks.  Additional momentum could also be built by an eventual technical breakout above the Bank Index's May high ($43.80).

NVE Corp (NVEC +$1.72 or +3.20% to $55.45) has been consolidating in a tight range on lighter volume since its 7/23/09 breakout on 4 times average volume.  It is extended from an ideal buy point by more than +5%, so disciplined investors would avoid chasing it or making potentially reckless buys.  Patience can sometimes allow disciplined investors to accumulate shares on pullbacks toward prior highs and a stock's 50-day moving average (DMA) line -important support levels. For investors who miss the opportunity to buy when a stock initially breaks out, a stock's first pullback to its 50 DMA line can often be considered an ideal secondary buy point.  However, the risk of a more serious correction and violation of the 50 DMA line increases with each subsequent pullback to the stock's 50 DMA line.  By now, NVEC has found support near that important short-term average line a few times, so the risk of a more substantial consolidation is even greater.

Throughout its ongoing advance, NVEC has found support near its 50 DMA line.  Caution is warranted now, as eventually a more substantial correction is bound to come. NVEC has traded up as much as +69.87% since it was first featured in yellow at $33.85 in the Friday, March 13, 2009 Mid-Day Breakouts Report (read here). It was featured in the 7/23/09 Mid-Day BreakOuts Report (read here) after it gapped up for a considerable gain on heavy volume following news of stronger sales revenues (+41%) and solid earnings increases for the quarter ended June 30, 2009. The technical action was described as a "breakaway gap" from a valid ascending base.

It has a very small supply of only 4.68 million shares outstanding. This is another good reason to be especially disciplined about proper entries and exits.  A small supply is generally considered a good sign with respect to the S criteria, yet could contribute to great volatility in the event of institutional accumulation or distribution. This high-ranked Electronics - Components leader has a good quarterly and annual earnings growth history (C & A 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 quote data in this table corresponds with the timestamp on the note***
 

Symbol/Exchange Company Name Industry Group	Last	Chg.	Vol % DAV	Date  Featured	Price Featured	Latest Pivot Point Featured	Status
						Latest Max Buy Price
ASIA - NASDAQ Asiainfo Holdings Inc INTERNET - Internet Software & Services	$19.35	+0.08	724,274 N/A	8/2/2009 (Date Featured)	$19.27 (Price Featured)	PP = $22.19	Y
						MB = $23.30
Most Recent Note - 8/3/2009 6:28:50 PM Y - Holding its ground since its 7/30/09 gap up. It was just featured in the August, 2009 CANSLIM.net News available here There are no Featured Stock Updates™ available for this stock at this time. You may request one by clicking here
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
CPLA - NASDAQ Capella Education Co DIVERSIFIED SERVICES - Education and Training Services	$65.00	+0.64	128,417 N/A	7/9/2009 (Date Featured)	$59.69 (Price Featured)	PP = $62.06	Y
						MB = $65.16
Most Recent Note - 8/3/2009 6:30:41 PM Y - Gain on light volume today, closing at a new 52-week high. On 7/28/09 it reported solid results for the quarter ended June 30, 2009, with a +21% increase in sales revenues (accelerating) and +51% earnings per share, and it technically gapped up and traded more than the +50% above average volume guideline as it rose above its pivot point. Featured in yellow in the 7/09/09 Mid-Day BreakOuts Report (read here). The group has shown some leadership, yet currently has a D+ and 28 for Relative Strength Rating/Ranks. CPLA is a high-ranked leader in the Commercial Services-Schools Group. Its small supply of only 13.9 million shares in the float could contribute to greater price volatility in the event of institutional accumulation or distribution. The number of top-rated funds owning an interest rose from 91 in Sept '08, to 135 as of March '09, which is reassuring with respect to the I criteria. It has a very good earnings history that satisfies the C & A criteria, while recent quarters showed steady sales revenues increases in the +17-18% range. >>> The latest Featured Stock Update with an annotated graph appeared on 7/20/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
GMCR - NASDAQ Green Mountain Coffee Roasters FOOD & BEVERAGE - Processed & Packaged Goods	$67.47	-2.97	2,342,261 N/A	7/17/2009 (Date Featured)	$60.15 (Price Featured)	PP = $63.79	G
						MB = $66.98
Most Recent Note - 8/3/2009 6:34:00 PM G - Gapped down today after reporting plans for an offering of 4 million shares underwritten by BofA Merrill Lynch. Prior highs in the $62-63 area are initial chart support to watch above its 50 DMA line. Do not be confused by the 3:2 stock split effective 6/09/09. GMCR traded up more than +168% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/30/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
HMSY - NASDAQ Hms Holdings Corp COMPUTER SOFTWARE & SERVICES - Healthcare Information Service	$38.97	+0.57	850,033 N/A	2/20/2009 (Date Featured)	$34.08 (Price Featured)	PP = $38.38	G
						MB = $40.30
Most Recent Note - 8/3/2009 6:40:27 PM G - Gain today with above average volume helped it close back above its 50 DMA line, a sign of prompt support after its 7/31/09 gap down and 50 DMA violation following its latest quarterly financial report. This high-ranked Commercial Services - Healthcare firm's prior highs in the $38 area are an important support level. A gap up gain on 6/16/09 with heavy volume triggered a technical buy signal. >>> The latest Featured Stock Update with an annotated graph appeared on 7/24/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
NTES - NASDAQ Netease.com Inc INTERNET - Internet Information Providers	$45.90	+1.84	2,332,308 N/A	7/17/2009 (Date Featured)	$39.29 (Price Featured)	PP = $38.74	G
						MB = $40.68
Most Recent Note - 8/3/2009 6:42:11 PM G - Gapped up today for a 5th consecutive gain on volume near average. Well above prior chart highs in the $38 area, an important support level to watch. A recent series of 10 consecutive gains was capped off with a considerable gain on 7/22/09 with very heavy volume that lifted it well above its max buy level. It got extended from its latest base. On 7/17/09 it broke out from a 5-week flat base with +44% above average volume behind its gain. First featured at $26.75 in the 3/31/09 CANSLIM.net Mid-Day Breakouts Report (read here). This high-ranked Chinese Internet - Content firm was also summarized in greater detail including an annotated graph in the April 2009 issue of CANSLIM.net News (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/23/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
NVEC - NASDAQ Nve Corp ELECTRONICS - Semiconductor - Specialized	$55.45	+1.72	79,222 N/A	3/13/2009 (Date Featured)	$33.85 (Price Featured)	PP = $49.60	G
						MB = $52.08
Most Recent Note - 8/3/2009 6:43:10 PM G - Volume has been drying up while it has been consolidating in a tight range since its 7/23/09 breakout. Patience may allow for shares to be accumulated on pullbacks, and prior highs are now an important support level. Featured in the 7/23/09 Mid-Day BreakOuts Report (read here) after it gapped up for a considerable gain on heavy volume following news of stronger sales revenues (+41%) and solid earnings increases for the quarter ended June 30, 2009. The technical action was described as a "breakaway gap" from a valid ascending base. Quarterly sales revenues in the 6 million dollar range are still rather minuscule, leaving concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 8/3/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
PEGA - NASDAQ Pegasystems Inc COMPUTER SOFTWARE & SERVICES - Business Software & Services	$29.15	+0.85	486,099 N/A	7/29/2009 (Date Featured)	$27.53 (Price Featured)	PP = $27.49	G
						MB = $28.86
Most Recent Note - 8/3/2009 6:45:12 PM G - Gain with above average volume lifted it above its max buy level, and its color code is changed to green again. Q2 earnings report is due after Tuesday's close. Featured in in the 7/29/09 mid-day report (read here) during the course of its considerable gain on heavy volume 3 times its average for a new 52-week high. There were no news headlines to be found as this software firm triggered a technical buy signal by breaking out from a third stage, 8-week "double bottom" type base. The previously noted downturn in annual earnings (the A criteria) from 2003 to 2006 has been followed by a solid turn around and big earnings increases in '07 and '08, and Street expectations for '09 are calling for well above +25% growth. >>> The latest Featured Stock Update with an annotated graph appeared on 7/29/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
TNDM - NASDAQ Neutral Tandem Inc TELECOMMUNICATIONS - Wireless Communications	$33.24	+2.24	1,526,434 N/A	3/2/2009 (Date Featured)	$18.89 (Price Featured)	PP = $32.67	Y
						MB = $34.30
Most Recent Note - 8/3/2009 6:47:29 PM Y - Gapped up today for a considerable gain on above average volume and a new all-time high. The company has no news headlines, yet it is due to report earnings before Thursday's opening bell. A recent newspaper article suggested its June 29th high ($31.49) was "an adequate buy point." It rallied above that prior peak from a 5-week flat base. More significantly, it has also cleared its resistance level at its June 2nd high of $32.57. Color code is changed to yellow with new pivot point cited based upon its 52-week high plus ten cents. Subsequent deterioration below its 50 DMA average and recent lows would raise concerns and trigger sell signals. It traded up as much as +82.95% since first featured at $18.89 in the 3/02/09 Mid-Day BreakOuts Report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 7/21/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS
UTA - AMEX Universal Travel Group DIVERSIFIED SERVICES - Consumer Services	$14.71	+0.74	534,237 N/A	7/28/2009 (Date Featured)	$12.87 (Price Featured)	PP = $12.70	G
						MB = $13.34
Most Recent Note - 8/3/2009 12:21:40 PM G - Gapped up again today, now very extended above its "max buy" level. Strong action prompted it to be featured in yellow with pivot point and max buy levels noted in the 7/28/09 mid-day breakouts report (read here), with additional analysis included in the after market update (read here). This Chinese provider of airline tickets and travel related services gapped up on 7/28/09, rising from a choppy 6-week base with a considerable gain on very heavy volume. >>> The latest Featured Stock Update with an annotated graph appeared on 7/28/2009. click here.
C A N S L I M | StockTalk | News | Chart | SEC View all notes Alert me of new notes CANSLIM.net Company Profile ZACKS