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AFTER MARKET UPDATE - WEDNESDAY, JANUARY 11TH, 2012
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Indices NYSE Nasdaq
DOW  -13.02 12,449.45 -0.10% Volume 759,117,510 -10% Volume 1,682,039,810 -5%
NASDAQ +8.26 2,710.76 +0.31% Advancers 1,563 50% Advancers 1,493 56%
S&P 500 +0.40 1,292.48 +0.03% Decliners 1,453 47% Decliners 1,018 38%
Russell 2000 +2.49 767.24 +0.33% 52 Wk Highs 67   52 Wk Highs 50  
S&P 600 +1.08 428.70 +0.25% 52 Wk Lows 14   52 Wk Lows 23  

Major Averages Finished Mixed With Quieter Volume

The major averages ended mixed and little changed as a rally in financials offset concerns Europe is heading into recession. Wednesday's reported volume totals were lighter versus the prior session on the NYSE and on the Nasdaq exchange. Breadth on the session was positive as advancers led decliners by 7-5 on the Nasdaq exchange, but advancers led decliners by only a very narrow margin on the NYSE. New 52-week highs again outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 34 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, down from the prior session total of 73 stocks. There were losses for 8 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

The major averages declined early on a report the German economy contracted in fourth quarter and the European Union cut its forecast for the third quarter to 0.1% from 0.2%. In other action, Fitch Ratings said the European Central Bank should step up government-bond purchases to prevent a collapse of the euro.  The market recovered from its retreat after the Fed's Beige Book survey suggested the U.S. economy improved "at a modest to moderate pace" in December despite continued weakness in the labor and housing markets.

Materials were the best performing sector. Freeport McMoRan Copper & Gold Inc (FCX +3.22%) rallied again as gold rose to a four-week high.  Energy was the worst performing sector. Cabot Oil & Gas Corp (COG -11.16%) slumped after a milder weather forecast sent heating fuel prices to a 28-month low. Retailer Urban Outfitters (URBN -18.63%) plunged after the departure of its CEO.

The expansion in leadership this week has been noted as a reassuring sign concerning the current confirmed market uptrend and the M criteria, as a healthy crop of strong leaders is necessary for any sustained market advance.  Technical improvement from financial shares (noted in the "Industry Group Watch" section this evening) is another encouraging sign that helps the market outlook.  The Q4 2011 CANSLIM.net Webcast is still available "ON DEMAND" to all upgraded members at no additional cost.  Via the Premium Member Homepage links to all prior reports and webcasts are always available.

PICTURED: The S&P Mid-Cap 400 Index is rising above its 200-day moving average (DMA) line near its October 2011 high.


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.


Bank Index's Rally Above 200-Day Moving Average Bodes Well

Financial shares' positive bias helped offset weakness in other groups as the Broker/Dealer Index ($XBD +0.83%) and Bank Index ($BKX +1.21%) gained more ground on Wednesday.  The tech sector's positive bias benefited the tech-heavy Nasdaq Composite Index as the Networking Index ($NWX +1.49%), Biotechnology Index ($BTK +2.30%), Semiconductor Index ($SOX +0.42%), and Internet Index ($IIX +0.53%) posted unanimous gains.  The Gold & Silver Index ($XAU +0.70%) posted a modest gain. Meanwhile, energy-related shares were the session's worst laggards as the Oil Services Index ($OSX -1.33%) and Integrated Oil Index ($XOI -1.14%) lost ground.  The Retail Index ($RLX -0.17%) also edged lower and the Healthcare Index ($HMO +0.09%) finished flat.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +1.21%) is making progress above its recent chart highs. Of more significance to chart readers, Wednesday's gain helped it rally for its first close above its 200-day moving average (DMA) line since May 2011. Improvement from financial indexes, recognized repeatedly in this commentary as reliable "leading indicators", bodes well for the broader market outlook.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  227.07 -3.07 -1.33% +4.99%
Healthcare $HMO  2,497.75 +2.19 +0.09% +9.47%
Integrated Oil $XOI  1,248.73 -14.36 -1.14% +1.60%
Semiconductor $SOX  387.89 +1.61 +0.42% +6.43%
Networking $NWX  229.29 +3.36 +1.49% +6.57%
Internet $IIX  289.60 +1.53 +0.53% +2.79%
Broker/Dealer $XBD  90.03 +0.74 +0.83% +8.12%
Retail $RLX  533.09 -0.90 -0.17% +1.89%
Gold & Silver $XAU  193.05 +1.35 +0.70% +6.87%
Bank $BKX  43.38 +0.52 +1.21% +10.16%
Biotech $BTK  1,230.25 +27.66 +2.30% +12.72%


Recent Rally Above 50-Day Average Improved Technical Stance

Ulta Salon Cosmetics & Fragrance, Inc. (ULTA +$1.32 or +1.87% to $71.78) returned to the Featured Stocks list and was highlighted in yellow in the earlier mid-day report (read here). A gap up above its 50-day moving average (DMA) line on 1/05/12 helped its technical stance improve. A new pivot point was cited based on its 52-week high plus 10 cents while building on a riskier late-stage base. Disciplined investors would watch for a convincing breakout to provide confirmation that fresh institutional accumulation is driving it higher. Prior lows near $64 define important chart support above its 200 DMA line.

Its last appearance in this FSU section was on 12/02/11 with analysis and an annotated graph under the headline, "Late Stage Set-Up For Previous Big Gainer." After making little progress and then slumping below its 50 DMA and below prior chart lows ULTA was dropped from the Featured Stocks list on 12/22/11.

Its strong quarterly earnings increases above the +25% guideline in the 8 latest comparisons satisfies the C criteria, and its solid annual earnings (A criteria) history is also very reassuring. The number of top-rated funds with an ownership interest has grown from 376 funds in Dec '10 to 508 funds as of Dec '11 which is an encouraging sign of increasing institutional interest (the I 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 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
ADS - NYSE
Alliance Data Sys Corp
COMPUTER SOFTWARE and SERVICES - Information and Delivery Service  
$106.70 +1.74
1.66%

$107.20

800,429
114.17% of 50 DAV
50 DAV is 701,100
$107.33
-0.59%
10/21/2011 $97.94 PP = $101.15
MB = $106.21
Most Recent Note - 1/10/2012 5:44:09 PM
Y - Up for a 4th consecutive gain today after finding prompt support near its 50 DMA line, still perched within close striking distance of its all-time high. However, a subsequent violation of the 1/04/12 session low ($100.42) would raise greater concerns and trigger a technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/14/2011. Click here.

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ALXN - NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$73.64 -1.04
-1.39%

$75.03

1,291,298
108.33% of 50 DAV
50 DAV is 1,192,000
$76.20
-3.36%
11/30/2011 $68.66 PP = $70.52
MB = $74.05
Most Recent Note - 1/9/2012 12:25:45 PM
G - Color code is changed to green after rallying beyond its "max buy" level for new all-time highs today with volume running at an above average pace for a 3rd consecutive session. The prior gain above its pivot point had +53% above average volume, meeting the investment system guidelines for a technical buy signal. Its 50 DMA line defines near-term support above prior lows in the $62 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/12/2011. Click here.

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CATM - NASDAQ
Cardtronics Inc
DIVERSIFIED SERVICES - Business/Management Services  
$26.70 +0.18
0.68%

$26.76

351,708
103.81% of 50 DAV
50 DAV is 338,800
$28.74
-7.10%
12/23/2011 $28.64 PP = $28.56
MB = $29.99
Most Recent Note - 1/11/2012 4:55:54 PM
Y - Color code is changed to yellow while showing resilience and finding prompt support near its 50 DMA line. Previously noted, "The gain on 12/23/11 was backed by +77% above average volume and it touched a new 52-week high, but it did not close above the new pivot point cited based on its 11/08/11 high plus 10 cents."
>>> The latest Featured Stock Update with an annotated graph appeared on 12/23/2011. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$72.07 +1.81
2.58%

$72.31

4,311,214
128.01% of 50 DAV
50 DAV is 3,367,800
$70.77
1.84%
12/20/2011 $66.68 PP = $68.35
MB = $71.77
Most Recent Note - 1/11/2012 5:03:48 PM
G - Color code is changed to green after rallying beyond its "max buy" level for another new 52-week high today. Its 1/10/12 gain and strong close was backed by +59% above average volume as it rallied above its pivot point triggering a technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/29/2011. Click here.

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FEIC - NASDAQ
F E I Co
ELECTRONICS - Diversified Electronics  
$43.91 +1.53
3.61%

$44.04

552,844
168.55% of 50 DAV
50 DAV is 328,000
$43.00
2.12%
12/7/2011 $41.41 PP = $42.35
MB = $44.47
Most Recent Note - 1/11/2012 5:05:41 PM
Y - Hit a new all-time high and triggered a technical buy signal with +68% above average volume behind its gain today while rising above its pivot point for a 3rd consecutive gain. No overhead supply remains to hinder its upward progress. The 50 DMA line defines chart support above prior lows.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/21/2011. 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
GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$28.36 +0.32
1.14%

$28.45

296,437
25.45% of 50 DAV
50 DAV is 1,164,900
$29.50
-3.86%
10/26/2011 $24.60 PP = $24.80
MB = $26.04
Most Recent Note - 1/9/2012 2:08:08 PM
G - Overcame early weakness and managed a positive reversal, finding prompt support after briefly undercutting its 50 DMA line. Subsequent losses below its intra-day low ($26.54) would raise more serious concerns and trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/16/2011. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$32.13 -0.04
-0.12%

$32.16

319,145
29.93% of 50 DAV
50 DAV is 1,066,400
$32.83
-2.13%
10/27/2011 $26.44 PP = $28.37
MB = $29.79
Most Recent Note - 1/11/2012 4:58:14 PM
G - No resistance remains to hinder its progress, but it is slightly extended from its prior base. Holding its ground near its all-time high with volume totals cooling in recent weeks.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/28/2011. Click here.

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ISRG - NASDAQ
Intuitive Surgical Inc
HEALTH SERVICES - Medical Appliances and Equipment  
$456.95 +6.76
1.50%

$457.76

319,105
104.32% of 50 DAV
50 DAV is 305,900
$474.50
-3.70%
12/20/2011 $442.43 PP = $449.16
MB = $471.62
Most Recent Note - 1/11/2012 4:59:33 PM
Y - Gain today on average volume halted a streak of 3 consecutive losses. Recently enduring mild distributional pressure while churning near its all-time high, and previously noted, "Recent gains above its pivot point have lacked the volume needed to trigger a proper new (or add-on) technical buy signal. Important support is defined by its 50 DMA line."
>>> The latest Featured Stock Update with an annotated graph appeared on 12/13/2011. Click here.

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LULU - NASDAQ
Lululemon Athletica
MANUFACTURING - Textile Manufacturing  
$60.57 +0.70
1.17%

$61.38

4,370,880
112.23% of 50 DAV
50 DAV is 3,894,700
$64.49
-6.08%
1/10/2012 $60.97 PP = $59.46
MB = $62.43
Most Recent Note - 1/11/2012 12:32:55 PM
Y - Holding its ground today following a considerable gap up gain on 1/10/12 when noted rising from a "double bottom" base. Prior chart highs in the low $60s may now act as a resistance level. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/10/2012. Click here.

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MA - NYSE
Mastercard Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$341.47 -7.36
-2.11%

$345.56

1,435,029
138.76% of 50 DAV
50 DAV is 1,034,200
$384.99
-11.30%
1/3/2012 $367.87 PP = $385.09
MB = $404.34
Most Recent Note - 1/11/2012 2:26:21 PM
G - Slumping further below its 50 DMA line and under late-November lows raising greater concerns. Its 200 DMA line defines the next nearest support level as technical damage mounts.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/3/2012. 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
MG - NYSE
Mistras Group Inc
DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services  
$22.31 -0.08
-0.36%

$23.13

270,321
193.64% of 50 DAV
50 DAV is 139,600
$26.24
-14.98%
10/28/2011 $22.49 PP = $23.61
MB = $24.79
Most Recent Note - 1/11/2012 5:09:18 PM
Yet another damaging loss today with above average volume. Violation of its 50 DMA line and upward trendline triggered technical sell signals. Based on weak action it will be dropped from the Featured Stocks list tonight. Only a prompt rebound above its 50 DMA line would help its outlook. Reported earnings +38% on +29% sales revenues for the quarter ended November 30, 2011 versus the year ago period.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/6/2012. Click here.

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MKTX - NASDAQ
Marketaxess Holdings Inc
FINANCIAL SERVICES - Investment Brokerage - Nationa  
$30.77 -1.39
-4.32%

$32.01

106,309
51.61% of 50 DAV
50 DAV is 206,000
$32.23
-4.53%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 1/11/2012 2:44:38 PM
Y - Pulling back today following 2 prior gains into new all-time high territory without truly great volume conviction. The 50 DMA line defines initial chart support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/20/2011. Click here.

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OSIS - NASDAQ
O S I Systems Inc
ELECTRONICS - Semiconductor Equipment and Mate  
$50.66 +0.00
0.00%

$51.05

55,188
52.81% of 50 DAV
50 DAV is 104,500
$51.06
-0.78%
11/1/2011 $42.07 PP = $45.57
MB = $47.85
Most Recent Note - 1/9/2012 1:17:41 PM
G - Wedging higher again with today's 5th consecutive small gain, getting extended from its prior base. Its 50 DMA line and recent chart lows near $45 define important near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/27/2011. Click here.

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PRGO - NASDAQ
Perrigo Co
DRUGS - Drug Related Products  
$97.42 -2.16
-2.17%

$99.24

951,516
71.82% of 50 DAV
50 DAV is 1,324,900
$104.70
-6.95%
12/9/2011 $99.54 PP = $101.56
MB = $106.64
Most Recent Note - 1/10/2012 2:39:47 PM
G - Gapped up today for a solid gain backed by higher volume, rallying toward previously stubborn resistance in the low $100s.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/9/2012. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$42.63 +0.56
1.33%

$42.68

1,033,434
62.51% of 50 DAV
50 DAV is 1,653,200
$46.50
-8.31%
11/8/2011 $44.28 PP = $46.27
MB = $48.58
Most Recent Note - 1/10/2012 5:45:58 PM
G - Encountering resistance when trying to rebound back above its 50 DMA line, enduring distributional pressure after not making headway above its pivot point. Its 200 DMA line defines the next near-term support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/5/2012. 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
SXCI - NASDAQ
S X C Health Solutions
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$64.65 +1.85
2.95%

$64.75

661,330
154.01% of 50 DAV
50 DAV is 429,400
$66.40
-2.64%
1/10/2012 $62.05 PP = $60.10
MB = $63.11
Most Recent Note - 1/11/2012 4:18:24 PM
G - Finished strong today for its second-best close ever with its 2nd consecutive volume-driven gain, quickly getting extended from its orderly base pattern, and its color code is changed to green. Featured in yellow in the 1/10/12 mid-day report (read here) with pivot point cited based on its 12/02/11 high plus 10 cents. Ownership by top-rated funds has been increasing, rising from 453 in Jun '10 to 600 in Dec '11, a reassuring sign concerning the I criteria. Reported earnings +57% on +163% sales revenues for the quarter ended September 31, 2011 versus the year ago period. Strong prior quarters and good annual earnings history satisfy the C & A criteria.

There are no Featured Stock Updates™ available for this stock at this time. You may request one by clicking the Request a New Note link below

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$98.37 -0.33
-0.33%

$98.76

226,541
64.56% of 50 DAV
50 DAV is 350,900
$102.73
-4.24%
1/10/2012 $98.83 PP = $102.83
MB = $107.97
Most Recent Note - 1/10/2012 5:49:48 PM
Y - Gain today on light volume for its best-ever close. No overhead supply remains to act as resistance. Color code was changed to yellow with new pivot point cited based on its 52-week high plus 10 cents. Volume driven gains for new highs may help it clear a base-on-base type pattern. Recent lows in the $90 area define the next nearby support level to watch above its 200 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/4/2012. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$71.78 +1.32
1.87%

$73.78

1,057,191
107.98% of 50 DAV
50 DAV is 979,100
$75.70
-5.18%
1/11/2012 $71.97 PP = $75.80
MB = $79.59
Most Recent Note - 1/11/2012 5:41:49 PM
Y - Color code was changed to yellow with new pivot point cited based on its 52-week high plus 10 cents while building on a riskier late-stage base. Prior lows near $64 define important chart support above its 200 DMA line. A gap up and rebound above its 50 DMA line has helped its technical stance improve since it was dropped from the Featured Stocks list on 12/22/11. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/11/2012. Click here.

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V - NYSE
Visa Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$99.11 -0.69
-0.69%

$99.50

4,753,217
120.86% of 50 DAV
50 DAV is 3,932,800
$103.45
-4.20%
10/24/2011 $94.21 PP = $94.85
MB = $99.59
Most Recent Note - 1/10/2012 5:51:06 PM
G - Down today for a 4th loss in the span of 5 sessions, slumping near its "max buy" level. Prior highs in the $95 area and its 50 DMA line define chart support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/15/2011. Click here.

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