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AFTER MARKET UPDATE - WEDNESDAY, DECEMBER 28TH, 2011
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Indices NYSE Nasdaq
DOW  -139.94 12,151.41 -1.14% Volume 542,491,000 +10% Volume 1,059,837,060 +13%
NASDAQ -35.22 2,589.98 -1.34% Advancers 755 22% Advancers 654 21%
S&P 500 -15.79 1,249.64 -1.25% Decliners 2,519 73% Decliners 2,223 73%
Russell 2000 -16.10 735.21 -2.14% 52 Wk Highs 111   52 Wk Highs 27  
S&P 600 -8.98 413.29 -2.13% 52 Wk Lows 47   52 Wk Lows 79  

Major Averages Fell With Higher But Below Average Volume

The major averages lost ground on Wednesday's session. Volume totals rose from the prior session totals but remained lighter than average on the NYSE and on the Nasdaq exchange. Breadth was decisively negative as declining issues outnumbered advancing issues by about 3-1 both on the NYSE and on the Nasdaq exchange. New 52-week highs outnumbered new 52-week lows on the NYSE but new lows solidly outnumbered new highs on the Nasdaq exchange. There were 28 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 74 stocks. There were gains for only 3 of the 17 high-ranked companies currently included on the Featured Stocks Page.

 

The market suffered another setback amid renewed concerns over Europe's debt crisis. Stocks declined on news the European Central Bank's balance sheet increased to a record 2.73 trillion euros after a sharp increase in lending the region's troubled banks. Although bond auction of short-term Italian debt was well received, investors appeared cautious ahead of the country's offering of 8.5 billion euro of longer-maturity debt tomorrow. With Europe weighing on investor sentiment, the major averages ended the day near their session lows.

All major sectors ended the session in negative territory. Commodity stocks paced the decline as a rally in the dollar damped demand for raw materials, and influential decliners included Alcoa Inc (AA -3.07%) and Freeport McMoRan Copper & Gold Inc. (FCX -4.09%) loss. Financials continued to act poorly with Bank of America Corp (BAC -3.56%) and Citigroup Inc (C -2.86%) among the influential decliners. 

The Q4 2011 CANSLIM.net Webcast is scheduled to air tonight (Wednesday, December 28th at 8PM EST) and it will be available "ON DEMAND" afterward 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 Dow Jones Industrial Average encountered resistance after briefly trading above prior highs, and it finished the session -5.6% off its 2011 high hit on May 2nd.


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.


Commodity-Linked Groups Led Widespread Losses

Widespread losses were led by commodity-linked groups as the Gold & Silver Index ($XAU -3.46%), Oil Services Index ($OSX -2.40%), and Integrated Oil Index ($XOI -1.93%) slumped.  The Healthcare Index ($HMO -2.18%) lost ground, not rewarding defensively positioned investors.  The influential Retail Index ($RLX -1.05%) and financial shares also fell as the Bank Index ($BKX -1.79%) and Broker/Dealer Index ($XBD -1.61%) weighed negatively on the major averages. The tech sector was led lower by the Networking Index ($NWX -2.21%), followed by the Semiconductor Index ($SOX -1.47%), Internet Index ($IIX -1.42%), and Biotechnology Index ($BTK -1.02%).   

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU -3.46%) slumped to its lowest close since August 2010.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  214.27 -5.27 -2.40% -12.59%
Healthcare $HMO  2,291.10 -51.02 -2.18% +35.41%
Integrated Oil $XOI  1,215.21 -23.93 -1.93% +0.17%
Semiconductor $SOX  362.59 -5.42 -1.47% -11.95%
Networking $NWX  214.29 -4.85 -2.21% -23.62%
Internet $IIX  280.69 -4.04 -1.42% -8.79%
Broker/Dealer $XBD  82.35 -1.34 -1.61% -32.23%
Retail $RLX  524.47 -5.59 -1.05% +3.16%
Gold & Silver $XAU  176.34 -6.32 -3.46% -22.17%
Bank $BKX  38.88 -0.71 -1.79% -25.53%
Biotech $BTK  1,073.55 -11.05 -1.02% -17.27%


No Resistance Remains But Now Extended From Prior Base Pattern

H M S Holdings Corp (HMSY -$0.38 or -1.19% to $31.46) is stubbornly holding its ground near its all-time high with volume totals cooling. No resistance remains, but it is extended from its prior base. Its last appearance in this FSU section was on 11/30/11 with an annotated weekly graph under the headline, "Rallied Above 'Max Buy' Level Following Consolidation." Its color code was changed to green that day after rising above its "max buy" level.  Prior highs in the $27-28 area acted as support during the recent pullback. Its earlier appearance in this FSU section was on 11/04/11 with an annotated graph under the headline, "Recent Damage Needs Repair For Outlook to Improve." On the very next session it not only repaired the damage, it confirmed a technical buy signal with a solid volume-driven gain into new high territory.

This Commercial Services - Healthcare firm has maintained a solid sales revenues and earnings growth history that still satisfies the C and A criteria. It reported earnings +31% on +15% sales revenues for the quarter ended September 30, 2011 versus the year ago period. The number of top-rated funds owning its shares has risen from 432 in Dec '10 to 464 in Sep '11, a reassuring sign concerning 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  
$103.92 -1.63
-1.54%

$105.88

522,558
66.79% of 50 DAV
50 DAV is 782,400
$107.33
-3.18%
10/21/2011 $97.94 PP = $101.15
MB = $106.21
Most Recent Note - 12/27/2011 12:44:09 PM
Y - Stubbornly holding its ground with volume totals cooling while perched within close striking distance of its all-time high. Its 50 DMA line defines important near-term chart support.
>>> 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  
$70.92 -0.63
-0.88%

$71.78

694,948
58.17% of 50 DAV
50 DAV is 1,194,700
$72.18
-1.75%
11/30/2011 $68.66 PP = $70.52
MB = $74.05
Most Recent Note - 12/27/2011 12:09:14 PM
Y - Rallying to new all-time high territory and above its pivot point with today's gain. A strong close with at least +40% above average volume or more may clinch a new technical buy signal. Recent lows near $62 define important near-term support to watch.
>>> 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  
$27.10 -0.55
-1.99%

$27.87

337,697
96.16% of 50 DAV
50 DAV is 351,200
$28.74
-5.71%
12/23/2011 $28.64 PP = $28.56
MB = $29.99
Most Recent Note - 12/28/2011 5:22:32 PM
Y - Down today for a 2nd consecutive loss on near average volume, slumping further below the pivot point cited. Its 50 DMA line defines important chart support to watch.
>>> 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  
$66.80 -1.21
-1.78%

$68.16

1,932,376
57.02% of 50 DAV
50 DAV is 3,389,100
$68.25
-2.12%
12/20/2011 $66.68 PP = $68.35
MB = $71.77
Most Recent Note - 12/28/2011 5:24:14 PM
Y - Down today on below average volume, breaking a streak of 8 consecutive small gains after rallying within close striking distance of its 52-week high. Subsequent volume-driven gains above the pivot point may trigger a new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/1/2011. Click here.

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FEIC - NASDAQ
F E I Co
ELECTRONICS - Diversified Electronics  
$41.80 -0.69
-1.62%

$42.73

183,888
52.33% of 50 DAV
50 DAV is 351,400
$43.00
-2.79%
12/7/2011 $41.41 PP = $42.35
MB = $44.47
Most Recent Note - 12/27/2011 12:48:54 PM
Y - Rallying into new all-time high territory today, however volume is running at a below average pace behind its gain. Its 50 DMA line and prior lows in the $36 area define chart support. Disciplined investors would watch for a volume-driven gain above the pivot point to trigger a proper technical buy signal.
>>> 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  
$29.01 -0.23
-0.79%

$29.30

210,152
12.75% of 50 DAV
50 DAV is 1,647,700
$29.50
-1.66%
10/26/2011 $24.60 PP = $24.80
MB = $26.04
Most Recent Note - 12/27/2011 1:16:31 PM
G - Holding its ground perched near all-time high territory. It is extended from its prior base pattern. Prior chart highs and its 50 DMA line coincide in the $25-26 area defining important support to watch on pullbacks.
>>> 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  
$31.46 -0.38
-1.19%

$32.33

396,898
37.13% of 50 DAV
50 DAV is 1,068,900
$32.16
-2.18%
10/27/2011 $26.44 PP = $28.37
MB = $29.79
Most Recent Note - 12/28/2011 6:39:35 PM
G - Touched a new all-time high today and then reversed into the red for a small loss on light volume. No resistance remains, but it is 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 12/28/2011. Click here.

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ISRG - NASDAQ
Intuitive Surgical Inc
HEALTH SERVICES - Medical Appliances and Equipment  
$457.70 -5.77
-1.24%

$465.00

162,827
46.80% of 50 DAV
50 DAV is 347,900
$465.65
-1.71%
12/20/2011 $442.43 PP = $449.16
MB = $471.62
Most Recent Note - 12/27/2011 12:53:34 PM
Y - Up today without great volume conviction, yet rising further into new all-time high territory. Color code was changed to yellow with new pivot point cited based on its 52-week high plus 10 cents. Recent gains above its pivot point 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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MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$80.40 -1.19
-1.46%

$81.99

280,118
39.47% of 50 DAV
50 DAV is 709,700
$95.48
-15.79%
12/5/2011 $91.08 PP = $92.83
MB = $97.47
Most Recent Note - 12/27/2011 12:54:53 PM
G - Quietly consolidating just above its 50 DMA line and prior lows defining chart support near the $80 area. It stalled after volume-driven gains to new all-time highs in early-December, yet it has not encountered heavy distributional pressure.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/5/2011. Click here.

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MG - NYSE
Mistras Group Inc
DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services  
$25.80 +0.42
1.65%

$26.15

107,373
72.94% of 50 DAV
50 DAV is 147,200
$25.40
1.57%
10/28/2011 $22.49 PP = $23.61
MB = $24.79
Most Recent Note - 12/27/2011 1:14:50 PM
G - Up today and on track for a 5th consecutive small gain. Color code is changed to green after inching above its "max buy" level. Prior highs in the $23 area define chart support along with its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/8/2011. 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
MKTX - NASDAQ
Marketaxess Holdings Inc
FINANCIAL SERVICES - Investment Brokerage - Nationa  
$29.93 +0.48
1.63%

$30.70

289,827
145.06% of 50 DAV
50 DAV is 199,800
$31.59
-5.25%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 12/28/2011 12:48:58 PM
Y - Up today, rallying within striking distance of its best-ever close. Held its ground after reversing back into the prior base when encountering distributional pressure immediately following its volume-driven breakout on 12/20/11. The 50 DMA line is 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  
$49.06 +0.33
0.68%

$49.41

91,744
81.19% of 50 DAV
50 DAV is 113,000
$49.37
-0.63%
11/1/2011 $42.07 PP = $45.57
MB = $47.85
Most Recent Note - 12/27/2011 12:58:30 PM
G - Up today without great volume conviction, yet inching further above its "max buy" level into new all-time high territory and its color code is changed to green. 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  
$98.90 -1.78
-1.77%

$101.04

538,702
40.10% of 50 DAV
50 DAV is 1,343,500
$104.70
-5.54%
12/9/2011 $99.54 PP = $101.56
MB = $106.64
Most Recent Note - 12/27/2011 1:01:32 PM
Y - Perched near its all-time high today, holding its ground since a negative reversal on 12/22/11. Insider buying was recently reported while perched near all-time highs, which is a reassuring sign. It has formed a late-stage base, however disciplined investors would watch for confirming gains to trigger a proper new technical buy signal. Chart readers may note that its Relative Strength line peaked in September and did not recently lead the way confirming new highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/9/2011. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$43.31 -0.59
-1.34%

$44.06

1,158,917
74.05% of 50 DAV
50 DAV is 1,565,000
$46.50
-6.85%
11/8/2011 $44.28 PP = $46.27
MB = $48.58
Most Recent Note - 12/27/2011 1:02:58 PM
Y - Holding its ground today perched within -5.7% of its 52-week and all-time high. Its 50 DMA line defines near-term support to watch. That short-term moving average has risen since its positive crossover with the 200 DMA line shown on the graph in the latest FSU analysis dated 12/07/11.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/7/2011. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$28.46 -0.34
-1.18%

$29.00

730,466
57.41% of 50 DAV
50 DAV is 1,272,400
$33.68
-15.50%
10/27/2011 $27.78 PP = $25.62
MB = $26.90
Most Recent Note - 12/27/2011 1:08:11 PM
G - Still lingering below its 50 DMA line after damaging losses triggered worrisome technical sell signals, and a rebound above that important short-term average is needed for its outlook to improve. Prior highs in the $25-26 area and its 200 DMA line define the next important area of chart support.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/19/2011. 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
TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$95.34 -2.92
-2.97%

$98.39

194,624
54.06% of 50 DAV
50 DAV is 360,000
$102.73
-7.19%
11/9/2011 $98.45 PP = $95.14
MB = $99.90
Most Recent Note - 12/28/2011 5:03:33 PM
Y - Finished near the session low today with a considerable loss on higher (yet still below average) volume. Its 50 DMA line defines near-term support above recent lows where subsequent violations would trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/6/2011. Click here.

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V - NYSE
Visa Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$100.72 -1.19
-1.17%

$102.00

2,492,375
59.13% of 50 DAV
50 DAV is 4,215,300
$103.45
-2.64%
10/24/2011 $94.21 PP = $94.85
MB = $99.59
Most Recent Note - 12/27/2011 1:18:01 PM
G - Reversed into the red today after early gains helped it inch higher into new all-time high territory. It is extended from its prior base and trading above 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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