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AFTER MARKET UPDATE - TUESDAY, JULY 17TH, 2012
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Indices NYSE Nasdaq
DOW  +78.33 12,805.54 +0.62% Volume 697,724,800 +16% Volume 1,697,496,780 +21%
NASDAQ +13.10 2,910.04 +0.45% Advancers 2,042 64% Advancers 1,382 53%
S&P 500 +10.03 1,363.67 +0.74% Decliners 999 31% Decliners 1,110 43%
Russell 2000 +2.79 799.45 +0.35% 52 Wk Highs 236   52 Wk Highs 89  
S&P 600 +1.08 446.26 +0.24% 52 Wk Lows 42   52 Wk Lows 71  

Major Averages Tallied Gains With Increase in Volume Totals

Markets held their gains into the closing bell after dipping in early trading on Tuesday. The volume totals were reported higher on the Nasdaq exchange and on the NYSE versus the prior session's volume totals, hinting that institutional buying demand picked up its pace. Advancing issues led decliners by 2-1 on the NYSE and by a narrower 7-5 margin on the Nasdaq exchange. The total number of new 52-week highs led new 52-week lows on the NYSE and on the Nasdaq exchange. There were 67 high-ranked companies from the CANSLIM.net Leaders List made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session total of 45 stocks. At the session's close there were gains for 10 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks experienced momentary weakness following Fed Chairman Bernanke's testimony that lacked any hints toward further stimulus measures. Despite this, equities rebounded to close near their session highs as investors looked to positive economic readings, better-than-expected corporate earnings. Looking at the data, prices of consumer goods held firm in June, while industrial production and the housing market index topped expectations.

All 10 sectors on the S&P finished in the green, led by Pfizer Inc (PFE +2.12%) and others in the health care space. Johnson & Johnson (JNJ +0.80%) rose even after the drug and consumer-products company reported second-quarter revenue that fell short of analysts' expectations and lowered its 2012 earnings outlook. Shares of Fertilizer stocks also showed strength as drought conditions throughout much of the country pushed grain prices higher. Mosaic Co (MOS +5.13%) and CF Industries Holdings Inc (CF +2.51%) rallied.

Also on the earnings front, The Coca-Cola Co (KO +1.58%) gained after topping analysts' expectations in the quarter. The Goldman Sachs Group inc (GS +0.31%) inched higher after the Wall Street bank reported second-quarter profit above estimates and said it was selling its hedge-fund administration. 

Turning to the fixed income space, Treasuries were lower along the curve. The benchmark 10-year note fell 3/16 to yield 1.50% and the 30-year bond was off 23/32 to yield 2.60%.

The upward trend concerning the M criteria has come under recent pressure. However, new buying efforts may be justified in worthy buy candidates with strong fundamental and technical characteristics matching all key investment criteria. The best buy candidates identified by CANSLIM.net's experts are always viewable on the Featured Stocks page.  

The Q2 2012 WEBCAST is available "ON DEMAND" - CLICK HERE. Upgraded members now get access to these informative *Quarterly Webcasts included at no additional cost. (*Previously sold separately at $99 per webcast.)  Links to archived webcasts and all prior reports are on the Premium Member Homepage

PICTURED: The Nasdaq Composite Index is consolidating above its 50-day moving average (DMA) line. It posted a gain on higher volume and finished near the session 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.


Banks, Energy, and Medical-Related Groups Led Gains

The Bank Index ($BKX +1.05%) was a positive influence on the major indices and the Broker/Dealer Index ($XBD +0.25%) and the Retail Index ($RLX +0.31%) posted smaller gains. The Biotechnology Index ($BTK +1.07%) was a standout gainer in the tech sector. The Healthcare Index ($HMO +0.92%) also had a positive bias. The Networking Index ($NWX -2.02%) led the tech sector lower and the Semiconductor Index ($SOX -0.48%) ended with a modest loss while the Internet Index ($IIX +0.10%) finished virtually flat. Energy-related shares rose and the Integrated Oil Index ($XOI +0.86%) and Oil Services Index ($OSX +1.25%) tallied gains while the Gold & Silver Index ($XAU -1.02%) slumped.

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +0.25%) has been recently encountering resistance at its 50-day moving average (DMA) line.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  208.96 +2.58 +1.25% -3.38%
Healthcare $HMO  2,412.60 +21.89 +0.92% +5.74%
Integrated Oil $XOI  1,190.67 +10.19 +0.86% -3.13%
Semiconductor $SOX  351.45 -1.70 -0.48% -3.56%
Networking $NWX  188.52 -3.88 -2.02% -12.38%
Internet $IIX  288.59 +0.29 +0.10% +2.43%
Broker/Dealer $XBD  85.97 +0.21 +0.25% +3.25%
Retail $RLX  610.31 +1.87 +0.31% +16.65%
Gold & Silver $XAU  148.09 -1.53 -1.02% -18.02%
Bank $BKX  46.33 +0.48 +1.05% +17.65%
Biotech $BTK  1,518.74 +16.13 +1.07% +39.15%


Damaging Loss on Higher Volume Triggers Worrisome Sell Signal

Netease.com Inc (NTES -$2.70 or -4.76% to $54.05) violated prior lows in the $55 area today and triggered a more worrisome technical sell signal while slumping toward its 200-day moving average (DMA) line. It faces overhead supply that may act as resistance up through the $65 area. Based on weak action it ended -17.5% off its 52-week high and it will be dropped from the Featured Stocks list tonight. Weeks ago it violated its 50-day moving average (DMA) line triggering a previously noted technical sell signal.

NTES tallied only 4 gains versus 15 losses in the interim since its last appearance in this FSU section on 6/19/12 with an annotated graph under the headline, "Best Close of 2012 After No New Base Was Formed". Its Relative Strength Rating was a 92 at that time, but it has slumped to 81, near the minimum guideline for buy candidates.

No overhead supply was there to act as resistance, however it made only limited price progress above its 2011 highs in the $55 area in recent months. It was featured in yellow at $56.18 in the 3/19/12 mid-day report (read here) with a pivot point based on its 4/19/11 high plus 10 cents (not shown on the chart below, but best viewed on a weekly chart).

The number of top-rated funds owning its shares rose from 237 in Dec '11 to 261 in Mar '12, a somewhat reassuring improvement concerning the I criteria.  Fundamentals remain healthy as it reported earnings +33% on +36% sales revenues for the quarter ended March 31, 2012 versus the year ago period. Its good earnings history satisfies the C and 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 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
ALXN - NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$98.97 +1.47
1.51%

$99.18

825,792
37.14% of 50 DAV
50 DAV is 2,223,600
$104.38
-5.18%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 7/13/2012 3:38:53 PM
Y - Halted its slide this week above prior highs in the $95 area that define support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/29/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$74.59 -0.41
-0.55%

$75.25

73,834
54.13% of 50 DAV
50 DAV is 136,400
$76.20
-2.11%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 7/13/2012 3:25:36 PM
G - Up today following a damaging loss with above average volume on the prior session. Prior highs in the $65 area and its 50 DMA line define near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/3/2012. Click here.

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CERN - NASDAQ
Cerner Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$78.07 +0.48
0.62%

$79.20

1,808,286
126.46% of 50 DAV
50 DAV is 1,429,900
$88.32
-11.61%
6/7/2012 $78.36 PP = $84.20
MB = $88.41
Most Recent Note - 7/16/2012 1:12:35 PM
G - Slumping below its 50 DMA line today raising concerns, and prior lows in the $75-76 area define the next important chart support level. It has not formed a proper base since negating its prior breakout.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/9/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$32.33 +0.50
1.57%

$32.40

13,359,955
98.91% of 50 DAV
50 DAV is 13,507,200
$32.50
-0.52%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 7/13/2012 3:28:27 PM
Y - Trading up today after a loss with above average volume on the prior session. Still consolidating in a tight range near its 52-week high, holding ground above its pivot point. No overhead supply remains to act as resistance and it is still trading below its "max buy" 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 7/11/2012. Click here.

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CSTR - NASDAQ
Coinstar Inc
DIVERSIFIED SERVICES - Personal Services  
$62.56 -0.03
-0.05%

$64.10

863,380
80.71% of 50 DAV
50 DAV is 1,069,700
$71.82
-12.89%
6/26/2012 $64.05 PP = $67.00
MB = $70.35
Most Recent Note - 7/16/2012 5:43:57 PM
G - Closed below its 50 DMA line today with a 2nd consecutive damaging loss with above average volume triggering a technical sell signal. Completely negated its recent breakout and raised concerns while promptly slumping back into its prior base. Disciplined investors always limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/26/2012. 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
CTRX - NASDAQ
Catamaran Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$91.09 -1.97
-2.12%

$93.98

1,066,481
91.37% of 50 DAV
50 DAV is 1,167,200
$104.79
-13.07%
6/14/2012 $94.71 PP = $100.60
MB = $105.63
Most Recent Note - 7/17/2012 3:53:56 PM
G - Slumping below its 50 DMA line ($92.87) today with a loss on higher (near average) volume. Churned above average volume while not making headway above its pivot point, and recent "negative reversals" were noted as signs of distributional pressure. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/16/2012. Click here.

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DG - NYSE
Dollar General Corp
RETAIL - Discount, Variety Stores  
$55.06 +0.45
0.82%

$55.23

1,378,748
36.30% of 50 DAV
50 DAV is 3,798,500
$56.04
-1.75%
7/16/2012 $54.68 PP = $56.14
MB = $58.95
Most Recent Note - 7/16/2012 1:20:51 PM
Y - Volume totals have been cooling while recently hovering near its all-time high. Color code is changed to yellow after forming an advanced "3-weeks tight" base. Volume-driven gains above its new pivot point may trigger a new (or add-on) technical buy signal. Completed another Secondary Offering on 6/05/12, its 4th Secondary Offering since September '11.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2012. Click here.

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ECHO - NASDAQ
Echo Global Logistics
DIVERSIFIED SERVICES - Business/Management Services  
$18.97 -0.46
-2.37%

$19.48

118,852
94.85% of 50 DAV
50 DAV is 125,300
$19.97
-5.01%
6/22/2012 $18.98 PP = $19.48
MB = $20.45
Most Recent Note - 7/17/2012 3:57:00 PM
Y - Down today on lighter volume after briefly trading above its pivot point and hitting a new 52-week high on the prior session, not quite triggering a proper technical buy signal under the fact-based system.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/22/2012. Click here.

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EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$45.93 +0.71
1.57%

$46.45

2,762,496
72.64% of 50 DAV
50 DAV is 3,803,200
$50.66
-9.34%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 7/13/2012 3:18:25 PM
G - Rebounding above its 50 DMA line ($45.35 now) today, showing resilience after undercutting that important short-term average on the prior session. Prior highs in the $43 area define the next support level.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/10/2012. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$39.24 +0.45
1.16%

$40.31

3,134,434
135.79% of 50 DAV
50 DAV is 2,308,300
$42.70
-8.10%
6/29/2012 $39.20 PP = $40.00
MB = $42.00
Most Recent Note - 7/16/2012 1:08:11 PM
Y - Still sputtering below its pivot point and trading near its 50 DMA line today following last week's distributional action. Disciplined investors always limit losses if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/5/2012. 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
GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$17.87 +0.12
0.68%

$18.39

58,997
104.42% of 50 DAV
50 DAV is 56,500
$18.99
-5.90%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 7/16/2012 1:09:52 PM
Y - Managed a "positive reversal" on 7/12/12, however recent losses completely negated the prior breakout and raised concerns. Disciplined investors always limit losses by selling any stock if it falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/6/2012. Click here.

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MLNX - NASDAQ
Mellanox Technologies
ELECTRONICS - Semiconductor - Broad Line  
$62.24 -3.61
-5.48%

$67.28

1,482,541
232.37% of 50 DAV
50 DAV is 638,000
$77.69
-19.89%
6/18/2012 $70.90 PP = $67.30
MB = $70.67
Most Recent Note - 7/17/2012 5:50:07 PM
Down today with above average volume for an 8th consecutive loss, violating its 50 DMA line and triggering a technical sell signal. Based on weak action it ended -19.9% off its 52-week high and it will be dropped from the Featured Stocks list tonight.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$49.50 -0.43
-0.86%

$50.96

434,959
76.90% of 50 DAV
50 DAV is 565,600
$56.06
-11.70%
6/20/2012 $51.83 PP = $51.88
MB = $54.47
Most Recent Note - 7/13/2012 3:30:50 PM
Y - Halted its slide above its 50 DMA line after damaging distributional losses this week undercut its pivot point and negated its recent breakout. Disciplined investors always limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/20/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$24.71 +0.31
1.27%

$24.80

496,872
62.27% of 50 DAV
50 DAV is 797,900
$25.11
-1.59%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 7/16/2012 5:11:01 PM
G - Hovering at its 52-week high with volume totals cooling in the past week after getting extended from its prior base. Prior highs in the $20 area define important support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/27/2012. Click here.

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NTES - NASDAQ
Netease Inc Adr
INTERNET - Internet Information Providers  
$54.05 -2.70
-4.76%

$57.81

1,667,054
231.54% of 50 DAV
50 DAV is 720,000
$65.54
-17.53%
3/19/2012 $56.18 PP = $55.10
MB = $57.86
Most Recent Note - 7/17/2012 6:14:23 PM
Violated prior lows in the $55 area today and triggered a more worrisome technical sell signal while slumping toward its 200 DMA line. It faces overhead supply that may act as resistance up through the $65 area. Based on weak action it ended -17.5% off its 52-week high and it will be dropped from the Featured Stocks list tonight. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/17/2012. 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
TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$129.87 +0.22
0.17%

$130.34

296,156
57.65% of 50 DAV
50 DAV is 513,700
$136.34
-4.74%
6/18/2012 $127.00 PP = $132.79
MB = $139.43
Most Recent Note - 7/13/2012 3:21:10 PM
Y - Halted its slide today at its 50 DMA line which defines important support to watch. The 6/29/12 gain above its pivot point was backed by only +32% above average volume, below the minimum threshold need to trigger a proper new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/18/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$20.47 -0.21
-1.02%

$20.85

182,081
34.31% of 50 DAV
50 DAV is 530,700
$23.05
-11.19%
6/27/2012 $21.70 PP = $23.15
MB = $24.31
Most Recent Note - 7/13/2012 3:22:34 PM
G - Trading up today on light volume, but still below its 50 DMA line following a streak of 6 consecutive losses on light volume. Gains back above that important short-term average are needed to help its outlook, and gains above the pivot point backed by +40% above average volume or greater could trigger a new technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/28/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$55.20 +0.18
0.33%

$57.46

378,436
75.75% of 50 DAV
50 DAV is 499,600
$58.22
-5.19%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 7/16/2012 1:06:08 PM
Y - Slumping below its pivot point with today's loss. Recent gains helped it trade above the new pivot point based on its 6/22/12 high after forming an 8-week cup-with-handle base, but the gains have lacked the volume required to trigger a proper new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/2/2012. Click here.

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WFM - NASDAQ
Whole Foods Market Inc
RETAIL - Grocery Stores  
$93.82 -0.04
-0.04%

$94.61

1,250,464
67.52% of 50 DAV
50 DAV is 1,852,000
$97.25
-3.53%
6/13/2012 $89.90 PP = $91.60
MB = $96.18
Most Recent Note - 7/13/2012 5:46:20 PM
Y - Volume totals have been cooling while consolidating below its "max buy" level. Prior highs in the $91.50 area and its 50 DMA line define important support to watch where violations may trigger technical sell signals. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/13/2012. Click here.

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