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AFTER MARKET UPDATE - TUESDAY, AUGUST 14TH, 2012
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Indices NYSE Nasdaq
DOW  +2.71 13,172.14 +0.02% Volume 566,685,770 +17% Volume 1,524,393,570 +16%
NASDAQ -5.54 3,016.98 -0.18% Advancers 1,481 47% Advancers 942 36%
S&P 500 -0.17 1,403.94 -0.01% Decliners 1,519 48% Decliners 1,526 59%
Russell 2000 -2.61 796.88 -0.33% 52 Wk Highs 124   52 Wk Highs 54  
S&P 600 -1.60 448.50 -0.36% 52 Wk Lows 19   52 Wk Lows 34  

Major Averages Ended Mixed After Giving Up Early Gains

The major averages gave up their early gains to close with mixed results and little net change on Tuesday. The volume totals were slightly higher on the NYSE and on the Nasdaq exchange versus the prior session totals. Decliners led advancing issues by a 3-2 margin on Nasdaq exchange while advancers and decliners were evenly mixed on the NYSE. The total number of new 52-week highs led new 52-week lows on the NYSE on the Nasdaq exchange. There were 42 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 31 stocks. There were gains for 9 of the 20 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks moved higher in the opening hours of trading after German and French GDP topped expectations and after U.S. retail sales rose for the first time since February. Despite the early strength, equities pulled back from their best levels, sending 7 of the 10 sectors on the S&P into the red. Material firms such as Alcoa Inc (AA -1.59%) and Freeport McMoRan Copper & Gold Inc (FCX -1.32%) were the worst performers. On the upside, consumer stocks rallied following some better-than-expected profit tallies from retailers including TJX Companies Inc (TJX +1.78%). Home Depot (HD +3.58%) hit a new 52-week high after gapping up, and high-end clothing retailer Michael Kors Holdings Ltd (KORS +16.48%) also gapped up after both companies posted better-than-expected profit tallies and raised their full-year earnings guidance. Saks Inc (SKS +6.18%) was also in the green.

Despite the late weakness in equities, Treasuries held their losses into the close. The benchmark 10-year note was down 21/32 to yield 1.74% and the 30-year bond gave up over 1 and 1/2 points to yield 2.83%.

The major averages are perched within close striking distance their 2012 high. In terms of the M criteria, the major indices recently have been in a confirmed rally coupled with an expansion in leadership (stocks hitting new 52-week highs). 

Watch for an announcement soon via email concerning new monthly webcasts starting in August and a new "Market's Leading Groups" archives tab to be added on the Premium Member Homepage. These changes are aimed at satisfying member requests and improving the service.  If you have questions, comments or suggestions please let us know via the inquiry form here.  The most recent WEBCAST (Q2 2012) is available "ON DEMAND" - CLICK HERE

PICTURED: The Dow Jones Industrial Average finished -1.25% off its 2012 high hit May 1, 2012.


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.


Retail Group Led Gainers; Networking Index Led Tech Weakness

The Retail Index ($RLX +0.88%) was a positive influence on the major averages. Financial shares were quiet as the Broker/Dealer Index ($XBD -0.19%) and Bank Index ($BKX -0.02%) finished with very small losses. The Networking Index ($NWX -2.31%) led the tech sector lower while the Internet Index ($IIX -0.96%) and the Semiconductor Index ($SOX -0.82%) also fell, meanwhile the Biotechnology Index ($BTK +0.53%) bucked the tech sector's weakness with a modest gain. Defensive issues were weak as the Gold & Silver Index ($XAU -0.68%) and Healthcare Index ($HMO -0.55%) suffered modest losses. Energy-related shares were quiet as the Oil Services Index ($OSX -0.50%) edged lower while the Integrated Oil Index ($XOI +0.17%) inched higher.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX -2.31%) is consolidating above its 50-day moving average (DMA) line, but still trading well below its 200 DMA line since early-April.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  225.54 -1.14 -0.50% +4.28%
Healthcare $HMO  2,265.99 -12.58 -0.55% -0.68%
Integrated Oil $XOI  1,237.01 +2.06 +0.17% +0.64%
Semiconductor $SOX  399.12 -3.29 -0.82% +9.52%
Networking $NWX  204.81 -4.83 -2.31% -4.81%
Internet $IIX  308.80 -3.00 -0.96% +9.60%
Broker/Dealer $XBD  80.15 -0.16 -0.19% -3.75%
Retail $RLX  627.66 +5.46 +0.88% +19.97%
Gold & Silver $XAU  154.99 -1.06 -0.68% -14.20%
Bank $BKX  46.54 -0.01 -0.02% +18.18%
Biotech $BTK  1,443.87 +7.66 +0.53% +32.29%


Weakening Group Raises Concerns After Prior Gains

Expedia Inc (EXPE -$1.52 or -2.82% to $52.31) was down today for a 5th losing session in a row. Recent weakness has been noted in travel-related stocks after Priceline.com Inc (PCLN) and Orbitz Worldwide Inc (OWW) reported disappointing results. The Leisure - Travel Booking industry group has Group Relative Strength Rating of 31/C-, down from 88/A+ when it made its last appearance in this FSU section on 7/10/12 with an annotated graph under the headline, "Fifth Straight Loss With Higher Volume Tests 50-Day Average". The weakening of the group raises concerns because the L criteria calls for investors to focus new buying efforts only on high-ranked leaders in leading industry groups where the odds are most favorable. It may find support near its prior highs in the $50 area which define support along with its 50 DMA line now, but further deterioration would raise greater concerns.

EXPE recently reported earnings +24% on +14% sales revenues for the quarter ending June 30, 2012 versus the year ago period, just below the +25% minimum earnings guideline for buy candidates.  It had undercut its 50-day moving average (DMA) line in the weeks that followed before its big gap up gain on 7/27/12 to new high territory.  Its annual earnings (A criteria) history has been good.  The number of top-rated funds owning its shares rose from 955 in Sep '11 to 1,051 in Jun '12, a reassuring sign concerning the I criteria.

EXPE traded up as much as +41.3% since it was highlighted in yellow in the 4/27/12 mid-day breakouts report (read here) after its considerable "breakaway gap" up above its 3/26/12 high.  It had reported earnings +63% on +12% sales revenues for the quarter ended March 31, 2012 versus the year ago period. However, quarterly earnings should be above the +25% minimum guideline in 3 of the past 4 comparisons.


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  
$104.03 +0.35
0.34%

$104.68

724,711
47.74% of 50 DAV
50 DAV is 1,518,100
$109.96
-5.39%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 8/8/2012 4:05:52 PM
G - Holding its ground with volume totals cooling since last noted on 8/03/12 when it gapped up for a gain with above average volume. Chart support is defined by its 50 DMA line (now $98.11).
>>> The latest Featured Stock Update with an annotated graph appeared on 7/25/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$84.44 -0.23
-0.27%

$84.93

63,831
48.36% of 50 DAV
50 DAV is 132,000
$84.82
-0.45%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 8/8/2012 4:06:45 PM
G - Tallied a 9th consecutive gain today and hit another new high, getting more extended from its prior base. Recent low and its 50 DMA line define near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/3/2012. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$12.34 -0.10
-0.80%

$12.54

60,193
78.89% of 50 DAV
50 DAV is 76,300
$13.21
-6.59%
7/20/2012 $12.85 PP = $12.41
MB = $13.03
Most Recent Note - 8/14/2012 5:58:04 PM
Y - Consolidating near its 50 DMA line and prior chart highs defining important near-term support to watch. Volume totals have been cooling in recent weeks
>>> The latest Featured Stock Update with an annotated graph appeared on 7/26/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$34.36 -0.20
-0.56%

$34.89

12,456,255
87.59% of 50 DAV
50 DAV is 14,220,700
$35.16
-2.29%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 8/14/2012 5:59:19 PM
G - Hovering in a tight range near its 52-week high. Recently reported earnings +19% on +6% sales revenues for the Jun '12 quarter, below the fact-based investment system's +25% minimum guideline for the C criteria.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/11/2012. Click here.

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DG - NYSE
Dollar General Corp
RETAIL - Discount, Variety Stores  
$52.31 -0.23
-0.44%

$52.90

1,113,221
28.84% of 50 DAV
50 DAV is 3,860,300
$56.04
-6.66%
7/16/2012 $54.68 PP = $56.14
MB = $58.95
Most Recent Note - 8/14/2012 6:01:47 PM
G - Still consolidating near its 50 DMA line with volume totals cooling in recent weeks after encountering distributional pressure. Prior lows near $49 define important near-term support to watch while it may be forming a new base.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2012. 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
ECPG - NASDAQ
Encore Capital Group Inc
FINANCIAL SERVICES - Credit Services  
$28.34 -0.16
-0.56%

$28.56

113,297
72.91% of 50 DAV
50 DAV is 155,400
$30.47
-6.99%
8/3/2012 $29.91 PP = $30.45
MB = $31.97
Most Recent Note - 8/8/2012 12:04:47 PM
Y - Gapped down today, retreating to its 50 DMA line with a large loss on above average volume. A volume-driven gain and close above its pivot point may trigger a technical buy signal, meanwhile, subsequent deterioration below its 50 DMA line and recent lows would raise more serious concerns. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2012. Click here.

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EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$52.31 -1.52
-2.82%

$53.60

3,269,624
84.94% of 50 DAV
50 DAV is 3,849,500
$59.50
-12.08%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 8/14/2012 5:55:40 PM
G - Down today for a 5th losing session in a row after its 8/08/12 gap down amid weakness in travel-related stocks after Priceline.com Inc (PCLN) and Orbitz Worldwide Inc (OWW) reported disappointing results. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/14/2012. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$38.58 -0.29
-0.75%

$39.00

1,516,588
57.07% of 50 DAV
50 DAV is 2,657,400
$42.70
-9.65%
6/29/2012 $39.20 PP = $40.00
MB = $42.00
Most Recent Note - 8/10/2012 12:59:22 PM
G - Down today with above average volume while slumping below its 50 DMA line raising concerns, and its color code is changed to green. Reported earnings +59% on +19% sales revenues for the quarter ended June 30, 2012 versus the year ago period, beating expectations, and it also raised guidance for FY '12.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/8/2012. Click here.

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GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$19.49 +0.24
1.25%

$19.49

77,221
115.08% of 50 DAV
50 DAV is 67,100
$20.08
-2.94%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 8/13/2012 5:39:34 PM
G - Up today with above average volume, finishing -4.1% off its 52-week high. Color code is changed to green after closing back above its "max buy" level.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/7/2012. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$36.71 +0.54
1.49%

$37.10

796,689
89.99% of 50 DAV
50 DAV is 885,300
$36.97
-0.70%
7/27/2012 $33.91 PP = $34.83
MB = $36.57
Most Recent Note - 8/13/2012 5:40:27 PM
Y - Hit another new 52-week high today with near average volume behind its gain. Gains above a stock's pivot point must have at least +40% above average volume, preferably greater, to trigger a proper technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/27/2012. 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
LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$38.61 +0.05
0.13%

$38.78

773,588
103.02% of 50 DAV
50 DAV is 750,900
$38.62
-0.03%
8/9/2012 $37.93 PP = $37.44
MB = $39.31
Most Recent Note - 8/10/2012 6:01:47 PM
Y - Hit a new 52-week high today with its 6th consecutive gain. Its prior gain with +55% above average volume while rising above its pivot point triggered a technical buy signal. See the latest FSU analysis for more details and an annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2012. Click here.

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MIDD - NASDAQ
Middleby Corp
MANUFACTURING - Diversified Machinery  
$114.91 -1.73
-1.48%

$118.48

156,761
158.66% of 50 DAV
50 DAV is 98,800
$119.74
-4.03%
8/9/2012 $118.60 PP = $104.92
MB = $110.17
Most Recent Note - 8/14/2012 12:57:07 PM
G - Holding its ground today, extended after 3 consecutive volume-driven gains into new high territory. Prior highs define initial support to watch on pullbacks. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/13/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$56.05 -0.58
-1.02%

$56.93

473,405
63.54% of 50 DAV
50 DAV is 745,000
$59.22
-5.35%
6/20/2012 $51.83 PP = $51.88
MB = $54.47
Most Recent Note - 8/8/2012 4:10:23 PM
G - Perched near its 52-week high, holding its ground with volume totals cooling. Found support near its 50 DMA line when encountering recent distributional pressure.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$27.60 +2.29
9.05%

$28.03

2,671,178
335.87% of 50 DAV
50 DAV is 795,300
$26.20
5.34%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 8/14/2012 1:00:03 PM

G - Hit a new 52-week high today with a considerable volume-driven gain, getting more extended from any sound base pattern. Reported earnings of 41 cents per share versus 2 cents per share on +143% sales revenues for the Jun '12 quarter versus the year ago period.


>>> The latest Featured Stock Update with an annotated graph appeared on 8/1/2012. Click here.

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OSIS - NASDAQ
O S I Systems Inc
ELECTRONICS - Semiconductor Equipment and Mate  
$72.07 -1.42
-1.93%

$74.28

226,864
201.30% of 50 DAV
50 DAV is 112,700
$73.61
-2.09%
8/9/2012 $67.71 PP = $67.48
MB = $70.85
Most Recent Note - 8/14/2012 1:01:16 PM
G - Reversed into the red after touching another new high today. It is extended from its prior base. Prior highs in the $67-68 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/9/2012. 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
RNF - NYSE
Rentech Nitrogen Ptnr Lp
CHEMICALS - Agricultural Chemicals  
$31.81 +0.45
1.43%

$32.78

403,520
96.01% of 50 DAV
50 DAV is 420,300
$34.48
-7.74%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 8/13/2012 4:58:03 PM
Y - Color code is changed to yellow after slumping below its "max buy" level with a 3rd consecutive loss today with above average volume. Encountering distributional pressure after triggering a technical buy signal with its considerable 8/07/12 gain, prior highs in the $30-31 area define initial support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/31/2012. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$54.54 -0.88
-1.59%

$55.87

614,762
49.45% of 50 DAV
50 DAV is 1,243,300
$56.80
-3.98%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 8/10/2012 4:35:28 PM
G - Pulling back from its all-time high today with a 3rd consecutive loss on light volume. Prior highs in the $48 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/30/2012. Click here.

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$127.85 +0.21
0.16%

$128.95

132,309
30.66% of 50 DAV
50 DAV is 431,500
$136.34
-6.23%
6/18/2012 $127.00 PP = $132.79
MB = $139.43
Most Recent Note - 8/14/2012 6:03:36 PM
G - Inching above its 50 DMA line with light volume behind today's 4th consecutive gain. Recent lows in the $117-118 are define near-term support above its 200 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/18/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$21.04 +0.21
1.01%

$21.34

263,951
60.03% of 50 DAV
50 DAV is 439,700
$23.05
-8.72%
8/9/2012 $21.30 PP = $23.10
MB = $24.26
Most Recent Note - 8/13/2012 3:55:20 PM
Y - Pulling back today with below average volume. Last week's gap up and rally above its 50 DMA line improved its technical stance. Reported earnings +67% on +39% sales revenues for the Jun '12 quarter. Pivot point cited is based on its 6/26/12 high plus 10 cents, and it still faces resistance up to the $23 level which has been a stubborn resistance area in recent months. Volume-driven gains above its pivot point are needed to trigger a proper technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/24/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$56.49 +0.02
0.04%

$57.89

502,520
132.87% of 50 DAV
50 DAV is 378,200
$61.83
-8.63%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 8/13/2012 3:58:16 PM
G - Down today with higher volume indicative of distributional pressure after getting extended from a sound base. Its 50 DMA line and upward trendline define near-term chart support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2012. 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

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