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AFTER MARKET UPDATE - FRIDAY, AUGUST 14TH, 2015
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Indices NYSE Nasdaq
DOW  +69.15 17,477.40 +0.40% Volume 655,027,030 -12% Volume 1,381,766,270 -9%
NASDAQ +14.68 5,048.24 +0.29% Advancers 2,091 68% Advancers 1,702 61%
S&P 500 +8.15 2,091.54 +0.39% Decliners 970 32% Decliners 1,104 39%
Russell 2000 +7.95 1,212.69 +0.66% 52 Wk Highs 51   52 Wk Highs 60  
S&P 600 +5.90 706.90 +0.84% 52 Wk Lows 110   52 Wk Lows 103  

Major Averages Posted Small Gains Without Volume Conviction

For the week, the Dow added 0.6%, the S&P 500 gained 0.7% and the NASDAQ climbed 0.1%. Behind Friday's small gains for the major indices the volume totals were reported lighter than the prior session totals on the NYSE and on the Nasdaq exchange, revealing lackluster buying demand from the institutional crowd. Breadth was positive as advancers led decliners by a 2-1 margin on the NYSE and by a 3-2 margin on the Nasdaq exchange. There were 34 high-ranked companies from the Leaders List that made new 52-week highs and appeared on the BreakOuts Page, down from the prior session total of 37 stocks. There were gains for 10 of the 16 high-ranked companies currently on the Featured Stocks Page. The number of new 52-week lows still solidly outnumbered new 52-week highs on both the Nasdaq and on the NYSE.

With Tuesday's big losses the Nasdaq Composite Index and the benchmark S&P 500 Index both abruptly retreated back below their respective 50-day moving average (DMA) lines and they have not recovered. Technical deterioration in the charts of the major averages (M criteria) coupled with a contraction in leadership gave investors more reasons to be cautious. Weakness in financial issues has added to previously noted pressure, contributing to the threat of a more substantial market "correction".

Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price. This is precisely how the fact-based investment system prompts investors to reduce exposure in weak markets, preserving cash until another confirmed rally marked by solid leadership.

Charts courtesy www.stockcharts.com

PICTURED: The Nasdaq Composite Index retreated from record highs back below its 50-day moving average (DMA) line. Prior lows and its 200 DMA line define the next near-term support level to watch.

Stocks eked out gains on Friday. The Dow rose 69 points to 17477. The S&P 500 added 8 points to 2091. The NASDAQ advanced 14 points to 5048.

The major averages climbed as investors looked favorably on economic data. In July, producer prices rose 0.2%, and 0.3% excluding food and energy, as both topped expectations. Over the same period, industrial production grew 0.6%, twice as much as estimated, and capacity utilization rose to 78%. However, the University of Michigan Sentiment Index unexpectedly declined.

Nine of 10 S&P 500 sectors finished higher. Financials and industrials were notable outperformers. Speculation of rate hikes pushed Regions Financial (RF +1.3%). In industrials, airlines caught a tailwind from bullish analyst commentary as American Airlines (AAL +0.5%). Tech stocks were mixed. Apple (AAPL +0.7%) shrugged off reports of Apple-TV delays, but poor earnings and lowered guidance left Applied Materials (AMAT -2.4%) lower. Positive earnings reports helped retailers as J.C. Penney (JCP +5.6%) rose, but media limited the advance as CBS (CBS -1.7%) fell.

Treasuries were mixed amid yield curve flattening. The 10-year note fell 2/32 to yield 2.19%. The 30-year bond gained 12/32 to yield 2.84%.

Commodities were mostly lower. Reversing earlier gains, WTI crude retreated 0.4% to $42.07/barrel. COMEX gold lost 0.1% to $1114.90/ounce. In FOREX, the dollar strengthened against the euro but was slightly weaker to the yen.

Stocks identified as the best matches with the fact-based investment system's guidelines currently are listed to the Featured Stocks Page. It shows the most current notes with headline links where members have access to more detailed letter-by-letter analysis including price/volume graphs annotated by our experts. See the Premium Member Homepage for archives to all prior pay reports.


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.


Financial, Retail, and Networking Indexes Rose

The Retail Index ($RLX +0.43%) rose modestly and the Bank Index ($BKX +0.98%) and the Broker/Dealer Index ($XBD +1.19%) both added a positive influence on the major averages on Friday. The Networking Index ($NWX +0.50%) edged higer while the Semiconductor Index ($SOX -0.60%) and Biotechnology Index ($BTK -0.85%) both ended the day lower. Energy-linked groups were weak particularly as the Oil Services Index ($OSX -2.16%) and Integrated Oil Index ($XOI -0.57%) both slumped, and the Gold & Silver Index ($XAU -0.76%) also quietly edged lower.
Charts courtesy www.stockcharts.com

 

PICTURED: The Integrated Oil Index ($XOI -0.57%rebounded after undercuting prior lows recently, yet it remains well below the 50-day and 200-day moving average (DMA) lines.

Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  177.24 -3.91 -2.16% -15.95%
Integrated Oil $XOI  1,209.04 -6.94 -0.57% -10.32%
Semiconductor $SOX  631.04 -3.83 -0.60% -8.13%
Networking $NWX  391.73 +1.95 +0.50% +9.44%
Broker/Dealer $XBD  189.14 +2.22 +1.19% +2.44%
Retail $RLX  1,236.42 +5.30 +0.43% +19.72%
Gold & Silver $XAU  49.71 -0.38 -0.76% -27.73%
Bank $BKX  78.24 +0.76 +0.98% +5.36%
Biotech $BTK  4,029.97 -34.40 -0.85% +17.18%


Following Damaging Losses Gains Came With Light Volume

Palo Alto Networks (PANW +$0.78 or +0.45% to $173.54) violated its 50-day moving average (DMA) line with a damaging volume-driven loss on 8/06/15 and triggered a technical sell signal. Also PANW undercut its prior low ($167.82 on 7/07/15) with another volume-driven loss on 8/12/15, however it found support and rebounded to close in the upper-third of its intra-day range. Recent gains came with light volume. Subsequent damaging losses below the 8/12/15 low ($171.00) would raise more serious concerns. 

The Computer Software - Security firm was last shown in this FSU section with annotated graphs on 7/21/15 under the headline, "Wedging to New Highs After Brief Consolidation". PANW traded up as much as +164% since first highlighted at $75.95 in yellow back on May 29, 2014 when shown breaking out of a "double bottom" base pattern.

PANW reported earnings +109% on +55% sales revenues for the Apr '15 quarter, its 4th consecutive comparison with strong sales revenues increases and earnings above the +25% minimum guideline satisfying the C criteria. Sequentially, it has shown encouraging acceleration with earnings increases of +57%, +88%, +90%, and +109% in the Jul '14, Oct '14, Jan '15 and Apr '15 quarters, respectively, versus the year ago periods. It has an Earnings Per Share (EPS) Rating of 99, the highest possible rating. It has a strong annual earnings (A criteria) history.

The number of top-rated funds owning its shares rose from 246 in Jun '13 to 808 in Jun '15, a very reassuring sign concerning the I criteria. Its small supply (S criteria) of 69.4 million shares in the public float is another favorable characteristic.
 
Charts courtesy www.stockcharts.com

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
GSBC - NASDAQ
Great Southern Bancorp
BANKING - Savings and Loans  
$42.29 +1.29
3.15%

$42.40

32,769
96.38% of 50 DAV
50 DAV is 34,000
$42.99
-1.63%
4/27/2015 $40.94 PP = $40.54
MB = $42.57
Most Recent Note - 8/14/2015 1:35:30 PM
G - Rebounding above its 50 DMA line today helps its technical stance. Earnings +8% on -11% sales revenues for the Jun '15 quarter, raised fundamental concerns. Recent low ($40.11 on 8/12/15) defines important support where any subsequent violation would trigger a more worrisome technical sell signal.
>>> FEATURED STOCK ARTICLE : Finding Support While Consolidating After Sub Par Quarter - 7/30/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
BOFI - NASDAQ
B O F I Holding Inc
BANKING - Savings andamp; Loans  
$128.50 -0.24
-0.19%

$129.43

254,211
105.92% of 50 DAV
50 DAV is 240,000
$134.79
-4.67%
6/10/2015 $101.47 PP = $97.78
MB = $102.67
Most Recent Note - 8/12/2015 6:57:25 PM
G - Hovering near its all-time high following gains marked by above average volume. Previously noted with caution - "It may produce more climactic gains, however it is very extended from its prior base. Its recent low ($111.43 on 7/29/15) defines near term support above its 50 DMA line."
>>> FEATURED STOCK ARTICLE : Extended and Perched Near High With Earnings News Due Soon - 7/27/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
AHS - NYSE
A M N Healthcare Svcs
DIVERSIFIED SERVICES - Staffing and Outsourcing Service  
$35.24 +0.22
0.63%

$35.55

529,769
77.45% of 50 DAV
50 DAV is 684,000
$36.34
-3.03%
8/5/2015 $34.50 PP = $32.53
MB = $34.16
Most Recent Note - 8/14/2015 1:31:45 PM
G - Rallying further above its "max buy" level and getting more extended from prior highs in the $32 area defining initial support to watch above its 50 DMA line.
>>> FEATURED STOCK ARTICLE : Gap Up Gain Triggered Technical Buy Signal Following Earnings - 8/5/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
ILMN - NASDAQ
Illumina Inc
DRUGS - Biotechnology  
$208.07 -0.77
-0.37%

$209.23

683,189
46.57% of 50 DAV
50 DAV is 1,467,000
$242.37
-14.15%
6/8/2015 $209.97 PP = $213.43
MB = $224.10
Most Recent Note - 8/12/2015 7:09:42 PM
G - Damaging losses below recent lows ($207) raised concerns and triggered a more worrisome technical sell signal. Found support and finished near the session high today after slumping near its 200 DMA line.
>>> FEATURED STOCK ARTICLE : Support Found After Abrupt Pullback Following Earnings News - 7/24/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
JAZZ - NASDAQ
Jazz Pharmaceuticals Plc
DRUGS - Biotechnology  
$184.46 -1.81
-0.97%

$186.77

297,625
69.05% of 50 DAV
50 DAV is 431,000
$194.73
-5.27%
7/29/2015 $190.13 PP = $191.11
MB = $200.67
Most Recent Note - 8/12/2015 6:51:29 PM
G - Managed a "positive reversal" today after slumping near its 200 DMA line. Fundamental concerns were recently noted after it reported earnings +19% on +15% sales revenues for the Jun '15 quarter, below the +25% minimum earnings guideline (C criteria). It stalled after highlighted in yellow with pivot point cited based on its 4/27/15 high plus 10 cents in the 7/29/15 mid-day report (read here).
>>> FEATURED STOCK ARTICLE : No Resistance Due to Overhead Supply For Drug Firm - 7/29/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
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
VRX - NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$246.57 +0.40
0.16%

$250.37

949,987
56.15% of 50 DAV
50 DAV is 1,692,000
$263.81
-6.54%
7/14/2015 $236.75 PP = $246.11
MB = $258.42
Most Recent Note - 8/12/2015 7:05:35 PM
Y - Undercut its 50 DMA line then found prompt support and closed in the upper third of its intra-day range. Endured distributional pressure after wedging higher with recent gains lacking great volume conviction. Its 7/23/15 gap up above the pivot point triggered a new (or add-on) technical buy signal.
>>> FEATURED STOCK ARTICLE : Holding Ground Following Latest Technical Breakout - 8/3/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
USNA - NYSE
U S A N A Health Science
DRUGS - Drug Related Products  
$161.55 -0.25
-0.15%

$161.76

86,037
64.21% of 50 DAV
50 DAV is 134,000
$176.88
-8.67%
8/5/2015 $157.22 PP = $145.15
MB = $152.41
Most Recent Note - 8/12/2015 7:07:16 PM
G - Consolidating well above prior highs in the $145 area defining initial support to watch. Risk increases the further one chases a stock above prior highs.
>>> FEATURED STOCK ARTICLE : Abrupt Retreat Following Breakout for Stock With Small Supply - 8/6/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
AMBA - NASDAQ
Ambarella Inc
ELECTRONICS - Semiconductor - Specialized  
$108.62 -0.54
-0.49%

$110.75

1,442,525
33.81% of 50 DAV
50 DAV is 4,266,000
$129.19
-15.92%
5/1/2015 $75.99 PP = $77.49
MB = $81.36
Most Recent Note - 8/12/2015 6:56:06 PM
G - Undercut its 50 DMA line today yet found prompt support and rebounded to close near that important short-term average and finish in the upper third of its intra-day range. More damaging losses would raise serious concerns and trigger a worrisome technical sell signal.
>>> FEATURED STOCK ARTICLE : Choppy Consolidation is Not a New Cup-With-Handle Base - 8/7/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
ACHC - NASDAQ
Acadia Healthcare Inc
HEALTH SERVICES - Specialized Health Services  
$81.02 +0.34
0.42%

$81.50

652,120
86.49% of 50 DAV
50 DAV is 754,000
$85.62
-5.37%
5/27/2015 $73.90 PP = $74.19
MB = $77.90
Most Recent Note - 8/14/2015 1:37:17 PM
G - Completed a Secondary Offering on 8/12/15. Recent consolidation was not a sound base pattern of sufficient length. Reported strong sales and earnings increases with acceleration again for Jun '15 quarter. Its 50 DMA line and recent lows define important support.
>>> FEATURED STOCK ARTICLE : Pullback Followed Another Strong Quarter Reported With Acceleration - 8/4/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
APOG - NASDAQ
Apogee Enterprises
MATERIALS and CONSTRUCTION - General Building Materials  
$54.27 +1.59
3.02%

$54.32

323,777
97.82% of 50 DAV
50 DAV is 331,000
$61.05
-11.10%
4/9/2015 $49.58 PP = $48.13
MB = $50.54
Most Recent Note - 8/12/2015 7:11:28 PM
G - Slumping further below its 50 DMA line, and a rebound above that short-term average is needed for its outlook to improve. Damaging losses below the recent low ($50.07 on 7/07/15) would raise greater concerns and trigger a worrisome technical sell signal.
>>> FEATURED STOCK ARTICLE : Rebound Above 50-Day Moving Average Line - 7/31/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
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
JLL - NYSE
Jones Lang Lasalle Inc
REAL ESTATE - Property Management/Developmen  
$177.01 +1.35
0.77%

$177.03

201,776
72.58% of 50 DAV
50 DAV is 278,000
$179.97
-1.64%
6/4/2015 $172.34 PP = $174.93
MB = $183.68
Most Recent Note - 8/12/2015 6:52:16 PM
Y - Down with average volume today, testing support at its 50 DMA line. Recent gains above the pivot point lacked the minimum +40% above average volume necessary to trigger a new (or add-on) technical buy signal.
>>> FEATURED STOCK ARTICLE : Recent Gains Lacked Volume Conviction; Earnings Report Soon Expected - 7/22/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
RH - NYSE
Restoration Hardware Hld
RETAIL - Home Furnishing Stores  
$102.38 +1.87
1.86%

$103.00

495,034
63.30% of 50 DAV
50 DAV is 782,000
$105.98
-3.40%
7/28/2015 $102.40 PP = $102.10
MB = $107.21
Most Recent Note - 8/12/2015 7:02:37 PM
Y - Undercut its 50 DMA line ($98.71) then found prompt support and finished in the upper third of its intra-day range. More damaging losses would raise greater concerns and trigger a worrisome technical sell signal.
>>> FEATURED STOCK ARTICLE : Fundamental and Technical Action Improved Outlook - 7/28/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$171.04 +1.76
1.04%

$171.10

479,394
71.55% of 50 DAV
50 DAV is 670,000
$171.21
-0.10%
5/29/2015 $155.03 PP = $159.95
MB = $167.95
Most Recent Note - 8/13/2015 6:34:21 PM
G - Color code is changed to green after up today with light volume nearly challenging 52-week high. Stayed well above 50 DMA line and prior highs in the $159 area defining initial support to watch on pullbacks. See latest FSU analysis for more details and new annotated graph.
>>> FEATURED STOCK ARTICLE : Recent Gains Have Still Lacked Substantial Volume Conviction - 8/13/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
LXFT - NYSE
Luxoft Holding Inc Cl A
Comp Sftwr-Spec Enterprs  
$65.12 -2.45
-3.63%

$67.91

563,147
215.77% of 50 DAV
50 DAV is 261,000
$68.16
-4.46%
5/26/2015 $51.90 PP = $57.40
MB = $60.27
Most Recent Note - 8/14/2015 1:10:43 PM
G - Pulling back from its new 52-week high today following a considerable volume-driven gain clearing a brief consolidation. Rallied from support at its 50 DMA line but did not form a sound base. Reported earnings +36% on +32% sales revenues for the Jun '15 quarter.
>>> FEATURED STOCK ARTICLE : Earnings News Often Leads to Greater Volume and Volatility - 8/10/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
PANW - NYSE
Palo Alto Networks
Computer Sftwr-Security  
$173.54 +0.78
0.45%

$174.06

706,405
48.48% of 50 DAV
50 DAV is 1,457,000
$200.55
-13.47%
3/27/2015 $146.44 PP = $149.45
MB = $156.92
Most Recent Note - 8/14/2015 6:29:44 PM
G - Latest gains have lacked volume conviction after volume-driven losses raised concerns and triggered technical sell signals. See the latest FSU analysis for more details and new annotated graphs.
>>> FEATURED STOCK ARTICLE : Following Damaging Losses Gains Came With Light Volume - 8/14/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 
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
INGN - NASDAQ
Inogen Inc
HEALTH SERVICES - Medical Instruments and Supplies  
$51.74 +0.38
0.74%

$51.86

289,862
109.38% of 50 DAV
50 DAV is 265,000
$51.39
0.68%
8/12/2015 $49.01 PP = $45.85
MB = $48.14
Most Recent Note - 8/13/2015 10:10:00 AM
G - Color code is changed to green after rallying well above its "max buy" level and getting extended from its latest sound base. Highlighted in 8/12/15 mid-day report with a pivot point cited based on its 6/23/15 high plus 10 cents (read here), it technically broke out with a considerable gap up and gain backed by +252% above average volume for a new 52-week high. Reported Jun '15 earnings +55% on 45% sales, its 4th consecutive quarterly earnings increase above the +25% minimum guideline (C criteria). Limited history and broader market weakness (M criteria) is a concern. See the latest FSU analysis for more details and an annotated graph.
>>> FEATURED STOCK ARTICLE : Finished Strong With Volume-Driven Breakout Gain - 8/12/2015
 |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I 

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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Kenneth J. Gruneisen founded Gruneisen Growth Corp. (2003), which prior to May 11, 2015, operated CANSLIM.net and CANSLIM.com both under license from Data Analysis Inc. / Investor's Business Daily. Kenneth has passed the CAN SLIM® Master's Exam. Gruneisen Growth Corp. now continues over two decades of fact based market analysis via FactBasedInvesting.com.

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