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AFTER MARKET UPDATE - MONDAY, APRIL 1ST, 2013
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Indices NYSE Nasdaq
DOW  -5.69 14,572.85 -0.04% Volume 574,975,210 -35% Volume 1,434,299,780 -7%
NASDAQ -28.35 3,239.17 -0.87% Advancers 916 29% Advancers 668 26%
S&P 500 -7.02 1,562.17 -0.45% Decliners 2,089 67% Decliners 1,775 70%
Russell 2000 -12.76 938.78 -1.34% 52 Wk Highs 240   52 Wk Highs 138  
S&P 600 +0.73 531.38 +0.14% 52 Wk Lows 27   52 Wk Lows 35  

Indices Start 2nd Quarter With a Quiet Pullback

For the first day of the second-quarter of 2013 the major averages edged lower.  Monday's volume totals were reported lower than the prior session total on the NYSE and on the Nasdaq exchange and it was one of the lightest volume days of the year. Breadth was clearly negative as decliners outnumbered advancers by 2-1 margin on the NYSE and by more than 2-1 the Nasdaq exchange. The total number of stocks hitting new 52-week highs easily outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There were 61 high-ranked companies from the CANSLIM.net Leaders List making new 52-week highs and appearing on the CANSLIM.net BreakOuts Page, down from the prior session total of 103 stocks. There were gains for only 4 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

The S&P 500 Index retreated from its record closing high last week after weaker-than-expected manufacturing data. Data showed factory activity grew at the slowest rate in three months in March, suggesting the economy lost some momentum at the end of the first quarter. Recent data has pointed to a strengthening economy in general. The Institute for Supply Management said its index of national factory activity fell to 51.3 last month from 54.2 in February. A reading above 50 indicates expansion in the manufacturing sector. A separate report showed construction spending rose more than expected in February, gaining +1.2%, above forecasts of a +1% rise. 

Traders will be watching for the U.S. payrolls report on Friday. With the strong start to the year, many investors have been anticipating a pullback. Uncertainty over the economic future of Cyprus has weighed on stocks in recent sessions. European markets were closed on Monday for a holiday.

Apple Inc (AAPL -3.11%) was the biggest drag on both the S&P 500 and Nasdaq 100 Index. Portfolio manager Will Danoff, whose $92 billion Fidelity Contrafund is the largest active shareholder in Apple, cut the fund's stake in the iPhone maker by 10% during the first two months of 2013.  Tesla Motors Inc (TSLA +15.94%) was a standout gainer after forecasting full profitability in the first quarter, citing strong sales of its Model S sedan.  Dell Inc (DELL -0.24%) edged lower after warning that it would be dangerous to take on a lot of debt and remain a public company given its worsening profit outlook, in a sign that it views proposals from The Blackstone Group LP (BX -2.02%) and billionaire investor Carl Icahn as fraught with risk. Shares of BGC Partners Inc (BGCP -7.45%) traded considerably higher after news following Monday's close of the sale of its eSpeed platform to Nasdaq OMX Group Inc (NDAQ -0.90%).

New buying efforts are justified under the fact-based system since a follow-through day on 3/05/13 shifted the market's (M criteria) direction to a confirmed rally again after a brief correction. Any sustainable rally requires a healthy crop of companies hitting new 52-week highs, so it is always essential to see meaningful leadership (stocks hitting new 52-week highs). 

Watch for an announcement via email concerning the next WEBCAST. The webcast will also be available via an updated link highlighted at the top of the Premium Member Homepage

PICTURED: The Dow Jones Industrial Average is perched near its all-time high and trading up +11.2% year-to-date.


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.


Broker/Dealer Index Violated 50-Day Moving Average Line

The Semiconductor Index ($SOX -2.03%) and Networking Index ($NWX -1.09%) lost ground and led the tech sector lower, followed by more modest losses from the Biotechnology Index ($BTK -0.67%) and the Internet Index ($IIX -0.66%).  The Retail Index ($RLX -0.61%) was a negative influence on the major averages, and weaker financial shares also created a drag on the market as the Broker/Dealer Index ($XBD -1.99%) led the Bank Index ($BKX -0.80%) to the downside. Commodity-linked groups added to the mostly negative bias as the Oil Services Index ($OSX -1.41%) and the Gold & Silver Index ($XAU -1.31%) lost ground. Meanwhile, the Healthcare Index ($HMO +2.37%) was a standout gainer on Monday.

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD -1.99%) suffered a damaging loss today which violated its 50-day moving average (DMA) line, slumping under that important short-term average for the first time since November.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  242.09 -3.47 -1.41% +9.96%
Healthcare $HMO  2,843.81 +65.97 +2.37% +13.11%
Integrated Oil $XOI  1,361.08 +2.38 +0.18% +9.60%
Semiconductor $SOX  427.80 -8.86 -2.03% +11.39%
Networking $NWX  230.67 -2.54 -1.09% +1.82%
Internet $IIX  360.75 -2.41 -0.66% +10.32%
Broker/Dealer $XBD  105.72 -2.14 -1.99% +12.08%
Retail $RLX  7,722.00 -4.44 -0.61% +11.82%
Gold & Silver $XAU  133.98 -1.78 -1.31% -19.09%
Bank $BKX  55.83 -0.45 -0.80% +8.87%
Biotech $BTK  1,814.45 -12.30 -0.67% +17.29%


Bullish Up/Down Volume Ratio Despite Sub Par Dec '12 Earnings Increase

Netsuite Inc (N -$1.17 or -1.46% to $78.89) pulled back today after inching to new 52-week and all-time highs last week with a 7th consecutive weekly gain. Its 50-day moving average (DMA) line acted as support during the recent consolidation. Netsuite gradually rose since last shown in this FSU section on 3/01/13 with an annotated graph under the headline, "New High Close After Finding Solid Support", as it rallied for a best-ever close. We observed at that time - "The latest action indicates that its shares are being accumulated and bid up."  The number of top-rated funds owning its shares rose from 201 in Jun '11 to 319 in Dec '12, a reassuring sign concerning the I criteria.  Its current Up/Down Volume Ratio of 1.6 is an unbiased indication its shares have been under accumulation over the past 50 days.

It reported earnings +20% on +33% sales revenues for the Dec '12 quarter, below the +25% minimum earnings guideline (C criteria), raising fundamental concerns for followers of the fact-based investment system. The company had reported earnings increases above the +25% minimum earnings guideline (C criteria) in the 5 prior quarterly comparisons. Its annual earnings (A criteria) history improved from losses prior to FY '09. The stock made limited progress since it was highlighted in yellow in the 12/12/12 mid-day report with a pivot point cited based on its 10/26/12 high plus 10 cents (read here), however it seems to be rewarding patient investors. 


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
AMBA - NASDAQ
Ambarella Inc
ELECTRONICS - Semiconductor - Specialized  
$14.87 -0.79
-5.04%

$16.00

795,199
292.35% of 50 DAV
50 DAV is 272,000
$15.91
-6.54%
3/26/2013 $15.31 PP = $14.83
MB = $15.57
Most Recent Note - 4/1/2013 11:58:31 AM
Y - Gapped up today and touched a new 52-week high then reversed into the red. Rallied above its pivot point with a considerable gain backed by 5 times average volume on 3/26/13 triggering a technical buy signal from a cup-with-high-handle base. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/26/2013. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$117.04 +1.13
0.97%

$117.94

2,536,052
75.64% of 50 DAV
50 DAV is 3,352,600
$116.95
0.08%
3/27/2013 $113.24 PP = $115.54
MB = $121.32
Most Recent Note - 3/28/2013 6:05:26 PM
Y - It wedged to new highs from an advanced "3-weeks tight" base with only average volume behind its gain today above the new pivot point cited based on its 3/14/13 high plus 10 cents. See the latest FSU analysis for more details and a new annotated weekly graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/28/2013. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$17.70 -0.48
-2.64%

$18.33

282,537
133.08% of 50 DAV
50 DAV is 212,300
$18.40
-3.80%
3/22/2013 $17.99 PP = $18.29
MB = $19.20
Most Recent Note - 3/28/2013 2:36:56 PM
Y - Inched higher with small gains lacking great volume conviction since forming the previously noted advanced "3-weeks tight" base. Gains above the pivot point must have at least the bare minimum +40% above average volume, preferably more, to trigger a proper new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/18/2013. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$41.38 -0.41
-0.97%

$42.07

10,038,762
70.37% of 50 DAV
50 DAV is 14,265,300
$42.01
-1.50%
12/3/2012 $37.08 PP = $38.06
MB = $39.96
Most Recent Note - 3/27/2013 6:32:11 PM
G - Found recent support and rallied from its 50 DMA line. Relative Strength Rating is at 78, just the 80+ guideline. Fundamental concerns remain since it reported earnings +11% on +6% sales revenues for the Dec '12 quarter.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/19/2013. Click here.

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CVLT - NASDAQ
Commvault Systems Inc
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$80.77 -1.23
-1.50%

$83.83

578,734
78.90% of 50 DAV
50 DAV is 733,500
$86.89
-7.04%
3/14/2013 $84.71 PP = $79.63
MB = $83.61
Most Recent Note - 3/27/2013 6:34:45 PM
Y - Volume totals have been cooling in recent weeks while consolidating above prior highs in the $79 area defining initial chart support to watch. Its technical breakout on 3/14/13 was backed by 4.5 times average volume. Prior highs define initial support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/14/2013. 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
EVER - NYSE
Everbank Financial Corp
BANKING  
$15.40 +0.00
0.00%

$15.62

436,330
49.43% of 50 DAV
50 DAV is 882,800
$17.29
-10.93%
3/4/2013 $15.38 PP = $15.83
MB = $16.62
Most Recent Note - 3/28/2013 2:38:16 PM
G - Still quietly consolidating above its 50 DMA line. That important short-term average has acted as support since damaging losses violated prior highs in the $16 area raising concerns while completely negating its prior technical breakout.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/4/2013. Click here.

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FLT - NYSE
Fleetcor Technologies
DIVERSIFIED SERVICES - Business/Management Services  
$77.24 +0.57
0.74%

$77.91

970,060
128.11% of 50 DAV
50 DAV is 757,200
$77.46
-0.28%
3/21/2013 $71.14 PP = $73.00
MB = $76.65
Most Recent Note - 4/1/2013 6:04:06 PM
G - Color code is changed to green after a gain today with above average volume for another new 52-week high, getting extended above its "max buy" level. Prior high in the $72 area defines near-term support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/21/2013. Click here.

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JAZZ - NASDAQ
Jazz Pharmaceuticals Plc
DRUGS - Biotechnology  
$55.17 -0.74
-1.32%

$56.38

564,731
103.91% of 50 DAV
50 DAV is 543,500
$60.79
-9.24%
3/5/2013 $59.10 PP = $60.10
MB = $63.11
Most Recent Note - 4/1/2013 6:07:33 PM
Slid further below its 50 DMA line and its Relative Strength rating has slumped to 55, well below the 80+ minimum guideline for buy candidates. Completed a Secondary Offering on 3/05/13. Needs a rebound above its 50 DMA line for its outlook to improve. Based on weak action it will be dropped from the Featured Stocks list tonight.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/7/2013. Click here.

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KORS - NYSE
Michael Kors Hldgs Ltd
RETAIL - Apparel Stores  
$55.50 -1.29
-2.27%

$57.49

3,535,905
58.02% of 50 DAV
50 DAV is 6,094,800
$65.10
-14.75%
1/23/2013 $54.98 PP = $58.72
MB = $61.66
Most Recent Note - 3/27/2013 6:37:30 PM
G - Still sputtering below its 50 DMA line and its Relative Strength rating has slumped to 72, below the 80+ minimum guideline for buy candidates raising more concerns. Completed another Secondary Offering 2/20/13 while perched near its all-time high.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/8/2013. Click here.

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LNKD - NYSE
Linkedin Corp Class A
INTERNET - Internet Information Providers  
$173.61 -2.45
-1.39%

$180.39

1,811,622
74.15% of 50 DAV
50 DAV is 2,443,300
$184.15
-5.72%
2/8/2013 $147.04 PP = $127.55
MB = $133.93
Most Recent Note - 4/1/2013 6:09:52 PM
G - Volume was higher but below average behind today's loss. It is still extended from its prior base, meanwhile its 50 DMA line defines important near term support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/11/2013. 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
LOPE - NASDAQ
Grand Canyon Education
DIVERSIFIED SERVICES - Education and; Training Services  
$24.12 -1.27
-5.00%

$25.47

539,809
121.47% of 50 DAV
50 DAV is 444,400
$27.18
-11.26%
2/20/2013 $26.44 PP = $25.10
MB = $26.36
Most Recent Note - 4/1/2013 6:13:05 PM
Slumped to a weak close just below its 50 DMA line with above average volume behind today's loss. Its Relative Strength Rating has also slumped to 74, below the 80+ minimum guideline for buy candidates. It will be dropped from the Featured Stocks list tonight. Volume-driven gains to new highs are needed for its technical stance to improve.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/13/2013. Click here.

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MIDD - NASDAQ
Middleby Corp
MANUFACTURING - Diversified Machinery  
$150.20 -1.95
-1.28%

$152.72

112,541
117.35% of 50 DAV
50 DAV is 95,900
$154.74
-2.93%
10/8/2012 $118.46 PP = $122.67
MB = $128.80
Most Recent Note - 4/1/2013 6:13:43 PM
G - Recently staying in tight trading range near all-time highs, stubbornly holding its ground above its 50 DMA line. Fundamental concerns were recently noted.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/25/2013. Click here.

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MNTX - NASDAQ
Manitex International
MANUFACTURING - Diversified Machinery  
$12.32 -0.09
-0.73%

$12.84

112,571
59.85% of 50 DAV
50 DAV is 188,100
$13.14
-6.24%
3/20/2013 $11.29 PP = $12.05
MB = $12.65
Most Recent Note - 3/28/2013 12:30:16 PM
Y - Encountering some distributional pressure after a considerable gain with heavy volume on 3/25/13 cleared its pivot point and triggered a technical buy signal. Prior highs define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/20/2013. Click here.

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MRLN - NASDAQ
Marlin Business Services
DIVERSIFIED SERVICES - Rental and Leasing Services  
$23.16 -0.03
-0.13%

$23.43

26,660
112.49% of 50 DAV
50 DAV is 23,700
$23.98
-3.42%
3/15/2013 $22.29 PP = $23.18
MB = $24.34
Most Recent Note - 3/28/2013 6:18:39 PM
Y - Volume was above average today after a "negative reversal" as it hit a new 52-week high and then finished lower on the session. The action was indicative of distributional pressure, rather than institutional accumulation. MRLN wedged higher with gains lacking great volume conviction since last noted on 3/25/13 with caution - "Subsequent volume-driven gains above the pivot point could help clinch a more convincing technical buy signal."
>>> The latest Featured Stock Update with an annotated graph appeared on 3/15/2013. Click here.

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MWIV - NASDAQ
M W I Veterinary Supply
HEALTH SERVICES - Medical Instruments and; Supplies  
$132.87 +0.61
0.46%

$133.38

40,941
72.59% of 50 DAV
50 DAV is 56,400
$137.18
-3.14%
3/4/2013 $130.90 PP = $129.45
MB = $135.92
Most Recent Note - 3/28/2013 2:42:58 PM
Y - Still consolidating above its pivot point with volume totals cooling. Its 50 DMA line defines near-term support. Disciplined investors limit loses by selling if ever any stock fall more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/6/2013. 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
N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$78.89 -1.17
-1.46%

$80.30

433,592
117.76% of 50 DAV
50 DAV is 368,200
$80.33
-1.79%
12/12/2012 $64.75 PP = $67.12
MB = $70.48
Most Recent Note - 4/1/2013 7:26:50 PM
G - Perched at 52-week and all-time highs after 7 consecutive weekly gains, extended from its prior base. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 4/1/2013. Click here.

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NSR - NYSE
Neustar Inc
TELECOMMUNICATIONS - Diversified Communication Serv  
$45.03 -1.50
-3.22%

$46.69

957,339
216.59% of 50 DAV
50 DAV is 442,000
$47.24
-4.68%
3/8/2013 $44.99 PP = $47.34
MB = $49.71
Most Recent Note - 4/1/2013 12:20:43 PM
Y - Still consolidating near its 50 DMA line which has acted as support in recent weeks. Its Relative Strength rating has slumped to 77, below the 80+ minimum guideline for buy candidates.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/27/2013. Click here.

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SLCA - NYSE
U S Silica Holdings Inc
CHEMICALS - Specialty Chemicals  
$22.94 -0.64
-2.71%

$23.99

1,774,419
166.21% of 50 DAV
50 DAV is 1,067,600
$28.50
-19.51%
2/26/2013 $22.23 PP = $21.50
MB = $22.58
Most Recent Note - 4/1/2013 6:15:25 PM
G - Consolidating above its 50 DMA line with higher volume behind today's loss a sign of more distributional pressure. Completed a Secondary Offering on 3/14/13. Any violation of its 50 DMA line or recent low ($21.24 on 3/15/13) would raise concerns and trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/22/2013. Click here.

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VRX - NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$76.05 +1.03
1.37%

$76.44

1,298,248
104.13% of 50 DAV
50 DAV is 1,246,700
$75.10
1.26%
12/20/2012 $60.24 PP = $61.21
MB = $64.27
Most Recent Note - 3/27/2013 6:43:52 PM
G - Hovering near its all-time high today, holding its ground with volume totals cooling in the past week. It is very extended from the secondary buy point noted earlier. The 50 DMA line and recent low ($64.05 on 2/21/13) define important support areas to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/12/2013. Click here.

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