Ed Hornstein's latest missive, posted with his permission.

This is for those of you who don't know Ed Hornstein. He'll send you his updates if you email him at [email]edward@hornsteincapital.com[/email]

In lieu of a full market update this weekend, I wanted to put out a quick
mid-week note. After much carnage for the past six weeks, the NASDAQ put in a
follow-through day on June 21 (more on that this weekend). Normally around a
follow-through, one or two leaders will break out to confirm the action of the
market, while other leaders will break out in the weeks thereafter. On June 21,
leader LULU broke out of a base as did leader GMCR. The day before, leader UA
retook its 50-day moving average on high volume. Those three stocks were an
early clue the market downtrend was ending.

Since that time, many other leaders have broken out adding credence to the new
uptrend. In addition, other stocks have built right sides of constructive
basing patterns and are setting up for potential breakouts. For now, I am
providing a list of stocks I view as the market leaders should such this rally
continue (which I expect it will subject to normal 2-3 percent pullbacks in the
major indices).

Stocks that have broken out already- LULU, UA, NFLX, PCP, COH, CROX, HANS, AH,
INFA, AMZN, CYOU, CMG, CERN, FTNT, FIO, FOSL, TIF, NTGR, PLCM, EL, AVGO, V, MA,
SODA, SBUX, TUP, TPX, MPEL, WYNN, BIIB, ISRG, ILMN, SXCI, RBN, BWLD, PNRA, GMCR

Stocks still basing - PPO, VMW, CRM, AAPL, BIDU, NTES, PCLN, NTES, LNKD, IPGP,
SQNS, IRBT, WFM, SINA, RAX, CAT, JOYG, CMI, MAKO, DVA, CLF, MCP, RIO, VALE, BHI,
CRR, MELI, TITN, APKT