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AFTER MARKET UPDATE - TUESDAY, JANUARY 6TH, 2015
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DOW |
-130.01 |
17,371.64 |
-0.74% |
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Volume |
916,015,650 |
+11% |
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Volume |
1,988,143,610 |
+20% |
NASDAQ |
-59.83 |
4,592.74 |
-1.29% |
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Advancers |
1,019 |
32% |
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Advancers |
676 |
21% |
S&P 500 |
-17.97 |
2,002.61 |
-0.89% |
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Decliners |
2,097 |
65% |
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Decliners |
2,418 |
76% |
Russell 2000 |
-37.49 |
1,161.31 |
-3.13% |
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52 Wk Highs |
148 |
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52 Wk Highs |
41 |
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S&P 600 |
-11.08 |
668.19 |
-1.63% |
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52 Wk Lows |
129 |
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52 Wk Lows |
79 |
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Institutional Selling Hurt Major Averages as Volume Rose
Kenneth J. Gruneisen - Passed the CAN SLIM® Master's Exam
Stocks suffered another setback on Tuesday. The Dow declined 130 points to 17,371. The S&P 500 fell 17 points to 2,002, its fifth straight day of losses. The NASDAQ Composite lost 59 points to 4,592. The volume totals on the NYSE and on the Nasdaq exchange were higher than the prior session, a clear sign of distributional pressure. Decliners led advancers by more than a 2-1 margin on the NYSE and nearly a 4-1 margin on the Nasdaq exchange. There were 16 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session total of 13 stocks. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows outnumbered new highs on the Nasdaq exchange. There were gains for 2 of the 12 high-ranked companies currently on the Featured Stocks Page, a list that has recently been getting trimmed.
The Dow Jones Industrial Average, S&P 500 Index, and Nasdaq Composite Index collectively violated their respective 50-day moving average (DMA) lines on Monday coupled with waning leadership. The change in behavior earned the market (M criteria) the label of a "correction" again. New buying efforts should not be made in stocks, even if meeting all fundamental and technical guidelines of the fact-based investment system, until the broader market shows renewed strength.
PICTURED: The Nasdaq Composite Index slumped below its 50-day moving average (DMA) line near prior lows.
The major averages extended Monday's retreat as falling oil prices continued to weigh on risk assets. WTI crude dropped -4.5% to a new five-year low of $47.79 per barrel amid speculation that U.S. stockpiles expanded last week. Disappointing economic data added to the downside. Factory orders fell for a fourth straight month in November and a report revealed U.S. services industries expanded in December at the slowest pace in six months.
Eight of the 10 sectors in the S&P 500 finished lower. Financials and energy were the worst performing groups as JP Morgan Chase & Co (JPM -2.59%) and ConocoPhillips (COP -4.13%) fell. Industrials and tech also dragged on the market as General Electric (GE -2.15%) and Microsoft (MSFT -1.46%) declined. The defensive sectors of telecom and utilities advanced. Verizon (VZ +1.01%) rose amid a report that the company is exploring a potential acquisition or joint venture with AOL Inc (AOL +3.38%). Duke Energy (DUK +1.64%) rose.
Treasuries staged another rally. The 10-year note gained 25/32 to yield 1.95%. The 30-year bond increased for the eighth consecutive session as it rose two full points to yield 2.51%, its lowest level since July 2012.
Disciplined investors know that new buying efforts should only be made in stocks when all fundamental and technical guidelines are met. This should be done as the stock is breaking out of a sound base pattern. Historic studies have shown that odds are not as favorable for investors when buying stocks on pullbacks.
The Featured Stocks Page shows recent notes and Headline Links directing members to detailed analysis with data-packed graphs annotated by a Certified expert. See the Premium Member Homepage for archives to all prior pay reports published.
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Kenneth J. Gruneisen started out as a licensed stockbroker in August 1987, a couple of months prior to the historic stock market crash that took the Dow Jones Industrial Average down -22.6% in a single day. He has published daily fact-based fundamental and technical analysis on high-ranked stocks online for two decades. Through FACTBASEDINVESTING.COM, Kenneth provides educational articles, news, market commentary, and other information regarding proven investment systems that work in good times and bad.
Comments contained in the body of this report are technical opinions only and are not necessarily those of Gruneisen Growth Corp. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. |
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Gold & Silver Index's Big Gains Bucked Widespread Group Losses
Kenneth J. Gruneisen - Passed the CAN SLIM® Master's Exam
Weakness in financials weighed on the major averages as the Bank Index ($BKX -2.66%) and the Broker/Dealer Index ($XBD -2.15%) both fell more than -2%. The Retail Index ($RLX -0.93%) suffered a smaller loss. The tech sector saw unanimous losses for the Semiconductor Index ($SOX -2.19%), Networking Index ($NWX -2.16%), and the Biotechnology Index ($BTK -1.58%). Energy-related shares drifted lower again as the Integrated Oil Index ($XOI -1.42%) and the Oil Services Index ($OSX -1.20%) sank.
Charts courtesy www.stockcharts.com
PICTURED: The Gold & Silver Index ($XAU +5.63%) was a standout gainer on Tuesday while most groups fell. It rebounded above its 50 DMA line and above recent highs.
Oil Services |
$OSX |
200.09 |
-2.43 |
-1.20% |
-5.11% |
Integrated Oil |
$XOI |
1,269.40 |
-18.26 |
-1.42% |
-5.84% |
Semiconductor |
$SOX |
658.83 |
-14.76 |
-2.19% |
-4.08% |
Networking |
$NWX |
344.37 |
-7.59 |
-2.16% |
-3.79% |
Broker/Dealer |
$XBD |
176.61 |
-3.88 |
-2.15% |
-4.35% |
Retail |
$RLX |
997.05 |
-9.39 |
-0.93% |
-3.45% |
Gold & Silver |
$XAU |
75.84 |
+4.04 |
+5.63% |
+10.26% |
Bank |
$BKX |
69.96 |
-1.91 |
-2.66% |
-5.79% |
Biotech |
$BTK |
3,409.93 |
-54.61 |
-1.58% |
-0.85% |
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Formed a Big Cup-With-Handle Base Setup
Kenneth J. Gruneisen - Passed the CAN SLIM® Master's Exam
Valeant Pharmaceuticals International, Inc. (VRX -$1.46 or -1.01% to $142.83) was highlighted in yellow in the 1/05/15 mid-day report (read here) with an annotated weekly graph showing a new pivot point cited based on the 12/22/14 high while building a cup-with-handle base. Subsequent volume-driven gains above the pivot point may trigger a new technical buy signal. It faces little resistance due to overhead supply up through the $153 level. Disciplined investors will watch for improvement in the broader market (M criteria) and wait for the specific stock to show fresh proof of institutional buying demand in the future.
VRX went through a deep consolidation below its 200 DMA line then rebounded since dropped from the Featured Stocks list on 4/04/14. VRX was last shown in this FSU section on 4/02/14 with annotated daily and weekly graphs under the headline, "After Damaging Losses a Rebound Above 50 DMA Line is Needed ", consolidating below its 50-day moving average (DMA) line after damaging losses triggered a technical sell signal.
It reported better than expected Sep '14 quarterly results with earnings +45% on +33 sales revenues, above the +25% minimum guideline (C criteria). A downturn in FY '07 and '08 earnings (A criteria) was been followed by a strong earnings rebound in recent years. Its current Up/Down Volume Ratio of 1.6 is an unbiased indication its shares have been under accumulation over the past 50 days. The number of top-rated funds owning its shares rose from 1,056 in Mar '14 to 1,127 in Dec '14, a reassuring trend concerning the I criteria. The high-ranked Medical - Ethical Drugs firm completed Public Offering on 6/18/13. The upshot of Public Offerings is that when completed the end result is typically an increase in the total number of institutional owners. Institutional owners are often supportive of their existing positions and will even accumulate more shares when they consolidate near classic support levels like the 50-day and 200-day moving average (DMA) lines, if they are still believers in the company. If too many become pessimistic and decide to unload, this is what ends up sending the stocks slicing through support.
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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 |
ACT
-
NYSE
Actavis plc
Medical-Generic Drugs
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$255.17
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-1.52
-0.59% |
$260.04
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2,773,144 92.41% of 50 DAV
50 DAV is 3,001,000
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$272.75 -6.45%
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12/29/2014
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$260.22
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PP = $272.85
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MB = $286.49
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Most Recent Note - 1/5/2015 7:07:22 PM
Y - Subsequent volume-driven gains above the pivot point may trigger a technical buy signal. Volume totals have been quiet while recently consolidating above support at prior highs and its 50 DMA line.
>>> FEATURED STOCK ARTICLE : Formed New Base Above Prior Highs and 50-Day Moving Average - 12/29/2014
View all notes |
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News |
Chart |
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C
A N
S L
I M
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AFSI
-
NASDAQ
Amtrust Financial Svcs
INSURANCE - Property and; Casualty Insurance
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$53.28
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-0.24
-0.45% |
$54.46
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736,059 72.23% of 50 DAV
50 DAV is 1,019,000
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$59.31 -10.17%
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10/17/2014
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$45.24
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PP = $46.02
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MB = $48.32
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Most Recent Note - 1/5/2015 7:09:26 PM
G - Fell near prior highs in the $53 area and its 50 DMA line ($52.73). More damaging losses would raise greater concerns.
>>> FEATURED STOCK ARTICLE : Finding Support Near Prior Highs - 12/24/2014
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News |
Chart |
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C
A N
S L
I M
|
ALXN
-
NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other
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$177.95
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-4.22
-2.32% |
$186.46
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1,411,670 131.07% of 50 DAV
50 DAV is 1,077,000
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$203.30 -12.47%
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10/23/2014
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$184.01
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PP = $185.53
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MB = $194.81
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Most Recent Note - 1/6/2015 6:44:56 PM
G - Today's 2nd consecutive loss had its slumping near the recent low ($176.01 on 12/17/14) that defines the next important support level. Faces resistance due to overhead supply up through the $203 level.
>>> FEATURED STOCK ARTICLE : 50-Day Moving Average Acted as Resistance After Damaging Losses - 1/2/2015
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C
A N
S L
I M
|
BIDU
-
NASDAQ
Baidu Inc Ads
INTERNET - Internet Information Providers
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$220.18
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+0.40
0.18% |
$222.87
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3,222,155 100.10% of 50 DAV
50 DAV is 3,219,000
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$251.99 -12.62%
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10/30/2014
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$234.08
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PP = $231.51
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MB = $243.09
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Most Recent Note - 1/2/2015 6:14:27 PM
G - Color code is changed to green while slumping below its 50 DMA line with higher (near average) volume. Recent lows in the $217-218 area define important near-term support where subsequent losses would raise more serious concerns.
>>> FEATURED STOCK ARTICLE : Rebound Above 50-Day Moving Average Helped Technical Stance - 12/19/2014
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C
A N
S L
I M
|
EPAM
-
NYSE
Epam Systems Inc
COMPUTER SOFTWARE and SERVICES - Information Technology Service
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$46.29
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+0.02
0.04% |
$47.23
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426,171 95.55% of 50 DAV
50 DAV is 446,000
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$52.89 -12.48%
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10/23/2014
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$45.21
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PP = $46.09
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MB = $48.39
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Most Recent Note - 1/2/2015 6:17:28 PM
G - Slumped further below its 50 DMA line today raising concerns with higher (near average) volume. Subsequent losses below its recent low close ($46.24 on 12/16/14) would raise concerns and trigger a more worrisome technical sell signal.
>>> FEATURED STOCK ARTICLE : Halted Slide at 50-Day Moving Average - 12/31/2014
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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 |
FB
-
NASDAQ
Facebook Inc Cl A
INTERNET
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$76.15
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-1.04
-1.35% |
$77.59
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27,364,682 92.70% of 50 DAV
50 DAV is 29,519,000
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$82.17 -7.33%
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12/22/2014
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$81.79
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PP = $81.26
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MB = $85.32
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Most Recent Note - 1/5/2015 7:15:07 PM
Y - Pulled back today on higher but below average volume, retreating near its 50 DMA line ($76.69). Little resistance remains due to overhead supply up through the $82 level, however, convincing volume-driven gains above the pivot point are needed to clinch a proper new (or add-on) technical buy signal.
>>> FEATURED STOCK ARTICLE : Gains for New Highs Backed By Lighter Volume - 12/22/2014
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C
A N
S L
I M
|
ILMN
-
NASDAQ
Illumina Inc
DRUGS - Biotechnology
|
$188.31
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-2.41
-1.26% |
$192.90
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1,139,613 109.26% of 50 DAV
50 DAV is 1,043,000
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$197.37 -4.59%
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12/30/2014
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$186.26
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PP = $196.00
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MB = $205.80
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Most Recent Note - 1/5/2015 12:52:47 PM
Y - Trading above its 50 DMA line today while still working on a new "double bottom" base. Subsequent volume-driven gains above the pivot point may trigger a new (or add-on) technical buy signal. Faces little resistance due to overhead supply up through $197.
>>> FEATURED STOCK ARTICLE : Forming New Base And Fundamentals Remain Favorable - 12/30/2014
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C
A N
S L
I M
|
NXPI
-
NASDAQ
Nxp Semiconductors N V
ELECTRONICS - Semiconductor - Broad Line
|
$72.38
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-3.62
-4.76% |
$75.77
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4,100,729 128.95% of 50 DAV
50 DAV is 3,180,000
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$78.34 -7.61%
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1/5/2015
|
$76.43
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PP = $78.44
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MB = $82.36
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Most Recent Note - 1/6/2015 1:05:27 PM
G - Slumping below its 50 DMA line today amid widespread weakness in the broader market (M criteria) and its color code is changed to green. Only a prompt rebound above the 50 DMA line would help its outlook improve. Highlighted in yellow with pivot point based on its 11/28/14 high plus 10 cents in the 1/05/15 mid-day report (read here). Subsequent volume-driven gains above the pivot point may trigger a new technical buy signal. See the latest FSU analysis for more details and annotated graphs.
>>> FEATURED STOCK ARTICLE : Little Resistance Remains Due to Overhead Supply - 1/5/2015
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C
A N
S L
I M
|
PANW
-
NYSE
Palo Alto Networks
Computer Sftwr-Security
|
$121.85
|
-1.88
-1.52% |
$125.19
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1,351,197 89.07% of 50 DAV
50 DAV is 1,517,000
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$128.20 -4.95%
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7/30/2014
|
$84.21
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PP = $85.88
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MB = $90.17
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Most Recent Note - 1/5/2015 7:10:39 PM
G - Posted a gain on below average volume today. Prior reports cautioned members - "It has not formed a sound base. The 50 DMA line defines near-term support to watch below recent lows."
>>> FEATURED STOCK ARTICLE : Latest Consolidation Was Not a Base of Sufficient Length - 12/18/2014
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C
A N
S L
I M
|
RH
-
NYSE
Restoration Hardware Hld
RETAIL - Home Furnishing Stores
|
$91.91
|
-3.38
-3.55% |
$95.36
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1,063,486 117.51% of 50 DAV
50 DAV is 905,000
|
$100.66 -8.69%
|
12/11/2014
|
$98.66
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PP = $94.60
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MB = $99.33
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Most Recent Note - 1/6/2015 1:08:35 PM
Y - Pulling back from its high to a 3-week low. Prior reports cautioned members - "Subsequent losses leading to a close below its old high close ($93.05 on 6/30/14) would completely negate the recent breakout and raise concerns."
>>> FEATURED STOCK ARTICLE : Consolidating Above Prior Highs With Volume Totals Cooling - 12/26/2014
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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 |
UIHC
-
NASDAQ
United Insurance Holding
Insurance-Prop/Cas/Titl
|
$21.15
|
-0.10
-0.47% |
$21.41
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189,894 85.54% of 50 DAV
50 DAV is 222,000
|
$22.44 -5.75%
|
12/5/2014
|
$20.64
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PP = $20.31
|
MB = $21.33
|
Most Recent Note - 1/2/2015 12:53:36 PM
Y - Touched a new 52-week high today but reversed early gains. Color code is changed to yellow after retreating below its "max buy" level. Prior highs and its 50 DMA line ($19.55) define near-term support to watch.
>>> FEATURED STOCK ARTICLE : Recent Streak of Gains Lacked Volume Conviction - 12/23/2014
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C
A N
S L
I M
|
VRX
-
NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other
|
$142.83
|
-1.46
-1.01% |
$147.75
|
2,640,577 127.75% of 50 DAV
50 DAV is 2,067,000
|
$153.10 -6.71%
|
1/5/2015
|
$144.84
|
PP = $149.90
|
MB = $157.40
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Most Recent Note - 1/6/2015 6:40:40 PM
Y - Fundamentals remain strong with earnings above the +25% minimum guideline (C criteria) through the Sep '14 quarter. Highlighted in yellow in the 1/05/15 mid-day report with new pivot point cited based on the 12/22/14 high while building a cup-with-handle base. Subsequent volume-driven gains above the pivot point may trigger a new technical buy signal. Faces little resistance due to overhead supply up through the $153 level. Went through a deep consolidation below its 200 DMA line then rebounded since dropped from the Featured Stocks list on 4/04/14. See the latest FSU analysis for more details and a new annotated daily graph.
>>> FEATURED STOCK ARTICLE : Formed a Big Cup-With-Handle Base Setup - 1/6/2015
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C
A N
S L
I M
|
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THESE ARE NOT BUY RECOMMENDATIONS!
Comments contained in the body of this report are technical
opinions only. The material herein has been obtained
from sources believed to be reliable and accurate, however,
its accuracy and completeness cannot be guaranteed.
This site is not an investment advisor, hence it does
not endorse or recommend any securities or other investments.
Any recommendation contained in this report may not
be suitable for all investors and it is not to be deemed
an offer or solicitation on our part with respect to
the purchase or sale of any securities. All trademarks,
service marks and trade names appearing in this report
are the property of their respective owners, and are
likewise used for identification purposes only.
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