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AFTER MARKET UPDATE - THURSDAY, JANUARY 19TH, 2012
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Indices NYSE Nasdaq
DOW  +45.03 12,623.98 +0.36% Volume 806,035,480 +1% Volume 1,941,160,570 -0%
NASDAQ +18.62 2,788.33 +0.67% Advancers 1,944 63% Advancers 1,462 56%
S&P 500 +6.46 1,314.50 +0.49% Decliners 1,037 34% Decliners 1,043 40%
Russell 2000 +3.11 782.37 +0.40% 52 Wk Highs 177   52 Wk Highs 84  
S&P 600 +1.86 437.36 +0.43% 52 Wk Lows 20   52 Wk Lows 10  

Dow Rallies Within 2% of Full Recovery to May 2011 High

The major averages rallied for a 3rd consecutive day of gains on Thursday, and with the risk-trade on, markets closed near the session highs. The volume totals were near the prior session totals, slightly higher than the prior session on the NYSE, but slightly lower on the Nasdaq exchange. Breadth on the session was solidly positive as advancers led decliners by nearly 2-1 on the NYSE and by 3-2 on the Nasdaq exchange. New 52-week highs totals expanded on both exchanges and easily outnumbered the new 52-week lows totals. There were 69 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session total of 52 stocks. There were gains for 12 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

Economic data was headlined by encouraging employment data as a smaller amount of Americans filed for jobless benefits, which pushed the claims number to its lowest level since April of 2008. This overshadowed a disappointing read on housing starts as housing starts dropped 4.1% last month and building permits were little changed. In addition, a gauge of manufacturing in the Philadelphia area trailed economists' estimates.

Before the bell, a batch of better-than-expected profit tallies and a bevy of inspiring economic data kept bears on the sidelines. In particular, financials set the tone as Bank of America Corp (BAC +2.35%) posted in-line profit and revenue numbers. Morgan Stanley (MS +5.36%) after reporting a smaller fourth-quarter loss than anticipated on an increase in equity-trading revenue. Google, IBM, Intel and Microsoft were slated to post earnings after the bell.

The recent expansion in leadership (stocks making new 52-week highs) has been noted as a reassuring sign concerning the current confirmed market uptrend and the M criteria, as a healthy crop of strong leaders is necessary for any sustained market advance.  Technical improvement from financial shares and key growth areas including the tech sector has been another encouraging sign helping the market outlook.  

The Q4 2011 CANSLIM.net Webcast is still available "ON DEMAND" 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 finished -1.96% below its May 2, 2011 high. It is the closest of the 3 major indexes to having made a full recovery from the "Bear Market" which occurred in 2011.


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 Gains Momentum as Approaches 200 DMA Line

The Retail Index ($RLX +1.49%) was a positive influence and the tech sector saw solid gains from the Semiconductor Index ($SOX +1.86%), Internet Index ($IIX +1.89%),  and the Networking Index ($NWX +2.44%). Energy-related shares had a slightly positive bias and helped the Integrated Oil Index ($XOI +0.21%) and Oil Services Index ($OSX +1.26%) posted gains. The Biotechnology Index ($BTK -0.18%) and Bank Index ($BKX -0.28%) finished slightly lower. Defensive groups were clearly laggards for a second consecutive session as the Gold & Silver Index ($XAU -1.65%) and Healthcare Index ($HMO -0.57%) lost ground.  

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +4.12%) was a standout gainer.  It recently has been building momentum after rallying above a multi-month downward trendline, and it is approaching its 200-day moving average (DMA) line.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  235.51 +2.93 +1.26% +8.89%
Healthcare $HMO  2,531.57 -14.48 -0.57% +10.96%
Integrated Oil $XOI  1,275.38 +2.69 +0.21% +3.77%
Semiconductor $SOX  412.11 +7.51 +1.86% +13.08%
Networking $NWX  245.20 +5.84 +2.44% +13.96%
Internet $IIX  302.10 +5.62 +1.89% +7.23%
Broker/Dealer $XBD  93.92 +3.71 +4.12% +12.79%
Retail $RLX  560.16 +8.25 +1.49% +7.06%
Gold & Silver $XAU  188.04 -3.16 -1.65% +4.10%
Bank $BKX  43.19 -0.12 -0.28% +9.67%
Biotech $BTK  1,258.27 -2.26 -0.18% +15.29%


Forming New Flat Base Above 50-Day Moving Average

GNC Holdings Inc's (GNC +$0.53 or +1.86% to $28.99) volume totals have been cooling in recent weeks while holding its ground perched within close striking distance of a new high (N criteria). It briefly undercut its 50-day moving average (DMA) line on 1/09/12 yet found prompt support and managed a "positive reversal" on that session. Subsequent losses below its 50 DMA and recent chart low (1/09/12 low of $26.54) would raise more serious concerns and trigger more worrisome technical sell signals.

GNC's last appearance in this FSU section was on 12/16/11 with an annotated graph under the headline, "Hovering Near Highs Extended From Prior Base." Since then it wedged to new highs without great volume conviction behind its gains. No resistance remains due to overhead supply, so it could produce more climactic gains. Disciplined investors would watch for a fresh sign of institutional buying demand before considering new (or add-on) buying efforts. Its color code was changed to yellow with a new pivot point cited based on its 12/22/11 high plus 10 cents while currently building on an orderly flat base pattern.  Volume-driven gains into new high territory would be a reassuring sign of institutional accumulation.

It completed a Secondary Offering on 10/25/11. New institutional owners are often attracted when a company has the help of underwriters in placing shares during offerings.  The number of top-rated funds owning its shares rose from 148 in June to 226 in December '11, a reassuring sign concerning the I criteria. Although the Retail - Specialty industry group has seen its Relative Strength Rating slump to a mediocre 63 (down from 84 when last shown in this FSU section) there are still several strong stocks in the group providing leadership which is good news concerning the L criteria. Its strong quarterly earnings increases with accelerating sales growth and a great annual earnings history satisfies the C and A criteria and helped it earn stellar ranks.  Keep in mind that an earnings announcement for the latest quarter is expected soon, and volume and volatility often increase near earnings news.


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  
$109.85 +0.38
0.35%

$110.16

570,231
82.83% of 50 DAV
50 DAV is 688,400
$109.87
-0.02%
1/17/2012 $108.24 PP = $107.43
MB = $112.80
Most Recent Note - 1/17/2012 6:30:20 PM
Y - Hit a new all-time high today and rallied above the previously cited "max buy" level with a gain backed by +40% above average volume, near the bare minimum volume required to trigger a proper technical buy signal. Color code remains yellow and a new pivot point was cited based on its 12/05/11 high plus 10 cents after building an orderly new flat base. Its 50 DMA line and the 1/04/12 session low ($100.42) define near-term support where violations would raise greater concerns and 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 1/17/2012. Click here.

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ALXN - NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$75.69 -1.30
-1.69%

$77.19

1,255,650
106.54% of 50 DAV
50 DAV is 1,178,600
$77.58
-2.44%
11/30/2011 $68.66 PP = $70.52
MB = $74.05
Most Recent Note - 1/17/2012 4:14:50 PM
G - Hit another new all-time high with today's gain, getting more extended from its prior base. Prior resistance in the $70 area defines initial chart support above its 50 DMA line. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/13/2012. Click here.

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CATM - NASDAQ
Cardtronics Inc
DIVERSIFIED SERVICES - Business/Management Services  
$27.29 +0.70
2.63%

$28.30

1,117,036
327.67% of 50 DAV
50 DAV is 340,900
$28.74
-5.05%
12/23/2011 $28.64 PP = $28.56
MB = $29.99
Most Recent Note - 1/19/2012 11:46:41 AM
Y - Considerable gain today with above average volume following a new analyst buy rating. Rallying above its 50 DMA line, helping its technical stance improve with a 3rd consecutive gain. Color code was changed to yellow while approaching its previously cited pivot point and trading within close striking distance of its 52-week high.
>>> 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  
$72.21 -0.53
-0.73%

$72.92

3,182,660
92.89% of 50 DAV
50 DAV is 3,426,300
$75.11
-3.86%
12/20/2011 $66.68 PP = $68.35
MB = $71.77
Most Recent Note - 1/17/2012 4:41:43 PM
G - Holding its ground after rallying beyond its "max buy" level with last week's streak of volume-driven gains. Prior highs in the $68 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/29/2011. Click here.

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FEIC - NASDAQ
F E I Co
ELECTRONICS - Diversified Electronics  
$44.88 +0.29
0.65%

$44.99

219,489
77.92% of 50 DAV
50 DAV is 281,700
$44.76
0.27%
12/7/2011 $41.41 PP = $42.35
MB = $44.47
Most Recent Note - 1/18/2012 6:38:02 PM
G - Gain today backed by +43% above average volume lifted it above its "max buy" level and its color code is changed to green while getting extended from its prior base. No overhead supply remains to hinder its upward progress. The 50 DMA line defines chart support above prior lows.
>>> 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  
$28.99 +0.53
1.86%

$29.12

852,502
82.74% of 50 DAV
50 DAV is 1,030,400
$29.50
-1.73%
1/19/2012 $28.99 PP = $29.60
MB = $31.08
Most Recent Note - 1/19/2012 5:22:28 PM
Y - Color code is changed to yellow with new pivot point cited based on its 52-week high plus 10 cents. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/19/2012. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$34.10 +0.07
0.21%

$34.73

588,318
60.28% of 50 DAV
50 DAV is 976,000
$34.06
0.12%
10/27/2011 $26.44 PP = $28.37
MB = $29.79
Most Recent Note - 1/17/2012 4:29:18 PM
G - Hit a new all-time high with today's gain backed by higher but still below average volume. No resistance remains to hinder its progress, but it is extended from its prior base.
>>> 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  
$474.65 +3.79
0.80%

$476.49

586,661
194.77% of 50 DAV
50 DAV is 301,200
$474.50
0.03%
12/20/2011 $442.43 PP = $449.16
MB = $471.62
Most Recent Note - 1/18/2012 6:33:26 PM
Y - Posted a 5th consecutive small gain today on average volume. Due to report earnings after Thursday's close. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/18/2012. Click here.

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LULU - NASDAQ
Lululemon Athletica
MANUFACTURING - Textile Manufacturing  
$60.14 -0.37
-0.61%

$61.00

2,490,385
63.53% of 50 DAV
50 DAV is 3,919,900
$64.49
-6.75%
1/10/2012 $60.97 PP = $59.46
MB = $62.43
Most Recent Note - 1/17/2012 4:33:25 PM
Y - Pulled back today on below average volume. A considerable gap up gain on 1/10/12 helped it break out from a "double bottom" base. Prior chart highs in the low $60s have been acting as a recent resistance level.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/10/2012. Click here.

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MA - NYSE
Mastercard Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$352.90 +0.52
0.15%

$356.00

884,919
87.82% of 50 DAV
50 DAV is 1,007,700
$384.99
-8.34%
1/3/2012 $367.87 PP = $385.09
MB = $404.34
Most Recent Note - 1/17/2012 4:36:57 PM
G - Posted a gain today on near average volume. It remains -10% off its 52-week high and below its 50 DMA line. It recently has sputtered near its late-November lows, leaving its 200 DMA line as the nearest support level to watch now.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/3/2012. 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
MKTX - NASDAQ
Marketaxess Holdings Inc
FINANCIAL SERVICES - Investment Brokerage - Nationa  
$31.71 +0.26
0.83%

$31.85

57,451
31.14% of 50 DAV
50 DAV is 184,500
$32.23
-1.61%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 1/18/2012 6:35:17 PM
Y - Still hovering near its all-time high without truly great volume conviction behind recent gains. The 50 DMA line defines 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  
$55.05 +0.88
1.62%

$55.66

75,582
78.49% of 50 DAV
50 DAV is 96,300
$54.26
1.46%
11/1/2011 $42.07 PP = $45.57
MB = $47.85
Most Recent Note - 1/18/2012 1:13:43 PM
G - Gapped up today, rallying for a considerable gain and new all-time highs, getting more extended from its prior base. Reported news of a six-year agreement for $400 million to provide turnkey screening services to Mexico's tax collection authority. Due to report earnings before the open on Tuesday, January 24th. Its 50 DMA line defines important 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  
$99.43 -0.42
-0.42%

$100.61

672,004
52.21% of 50 DAV
50 DAV is 1,287,200
$104.70
-5.03%
12/9/2011 $99.54 PP = $101.56
MB = $106.64
Most Recent Note - 1/19/2012 5:26:54 PM
G - Quietly perched within striking distance of its 52-week high with little resistance remaining due to overhead supply. Found support at its 50 DMA line
>>> The latest Featured Stock Update with an annotated graph appeared on 1/9/2012. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$43.56 +0.28
0.65%

$44.44

1,564,505
94.77% of 50 DAV
50 DAV is 1,650,900
$46.50
-6.31%
11/8/2011 $44.28 PP = $46.27
MB = $48.58
Most Recent Note - 1/19/2012 5:30:08 PM
Y - Gapped up today but finished near the lower end of its intra-day range for only a small gain on lighter volume. Its recent low ($41.37 on 1/09/12) defines important near-term support to watch above its 200 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/5/2012. Click here.

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SXCI - NASDAQ
S X C Health Solutions
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$62.85 -0.30
-0.48%

$65.95

354,137
88.03% of 50 DAV
50 DAV is 402,300
$66.40
-5.35%
1/10/2012 $62.05 PP = $60.10
MB = $63.11
Most Recent Note - 1/19/2012 5:34:24 PM
G - Challenged its 52-week high after gapping up today, but closed near the session low after a negative reversal. Ownership by top-rated funds has been increasing, rising from 453 in Jun '10 to 603 in Dec '11, a reassuring sign concerning the I criteria. Strong prior quarters and good annual earnings history satisfy the C & A criteria.
There are no Featured Stock Updates™ available for this stock at this time. You may request one by clicking the Request a New Note link below

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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  
$97.41 +0.81
0.84%

$98.32

321,109
95.34% of 50 DAV
50 DAV is 336,800
$102.73
-5.18%
1/10/2012 $98.83 PP = $102.83
MB = $107.97
Most Recent Note - 1/19/2012 5:37:14 PM
Y - Small gain today with average volume. No overhead supply remains to act as resistance and subsequent volume-driven gains for new highs may help it clear a base-on-base type pattern. Recent lows in the $92 area define the next important support level to watch if it slumps below its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/4/2012. Click here.

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TSCO - NASDAQ
Tractor Supply Co
SPECIALTY RETAIL - Specialty Retail, Other  
$80.43 -0.86
-1.06%

$81.98

1,097,666
158.94% of 50 DAV
50 DAV is 690,600
$81.32
-1.09%
1/12/2012 $79.12 PP = $75.58
MB = $79.36
Most Recent Note - 1/19/2012 5:42:51 PM
G - After hitting a new all-time high today it reversed into the red for a loss on above average volume, raising concerns. Prior highs in the mid-$70s which were a resistance area now define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/12/2012. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$77.39 +1.64
2.17%

$77.83

890,978
92.13% of 50 DAV
50 DAV is 967,100
$75.83
2.06%
1/11/2012 $71.97 PP = $75.80
MB = $79.59
Most Recent Note - 1/19/2012 5:43:44 PM
Y - Posted an 8th consecutive gain on near or below average volume and hit another new all-time high today, wedging up from a riskier late-stage base without sufficient volume to trigger a proper technical buy signal. Prior lows near $64 define important chart support above its 200 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/11/2012. Click here.

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V - NYSE
Visa Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$102.37 -1.41
-1.36%

$104.20

3,641,464
96.71% of 50 DAV
50 DAV is 3,765,200
$103.88
-1.45%
10/24/2011 $94.21 PP = $94.85
MB = $99.59
Most Recent Note - 1/19/2012 5:46:35 PM
G - Reversed into the red for a loss today with slightly higher (near average) volume than the prior session after touching another new all-time high. No overhead supply remains to act as resistance. Its recent low ($98.33 on 1/11/12) 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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