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AFTER MARKET UPDATE - WEDNESDAY, FEBRUARY 29TH, 2012
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Indices NYSE Nasdaq
DOW  -53.28 12,951.84 -0.41% Volume 1,111,200,530 +47% Volume 2,059,371,040 +18%
NASDAQ -19.87 2,966.89 -0.67% Advancers 1,018 33% Advancers 644 24%
S&P 500 -6.51 1,365.67 -0.47% Decliners 1,993 64% Decliners 1,923 73%
Russell 2000 -12.86 810.94 -1.56% 52 Wk Highs 170   52 Wk Highs 69  
S&P 600 -6.66 451.03 -1.46% 52 Wk Lows 10   52 Wk Lows 20  

Despite Encouraging Data Indices Encounter Distributional Pressure

The major averages closed near session lows despite encouraging economic data, ending unanimously lower on Wednesday's session. Higher volume totals reported behind the losses indicated a pick-up in institutional selling pressure, termed "distribution", on both the NYSE and on the Nasdaq exchange. Breadth was negative as declining issues led advancers by nearly 2-1 on the NYSE and by nearly 3-1 on the Nasdaq exchange. Stocks hitting new 52-week highs still solidly outnumbered new 52-week lows on both exchanges. There were 46 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, versus the prior session total of 55 stocks. Wednesday's session concluded with gains from only 4 of the 28 high-ranked companies currently included on the Featured Stocks Page.

  

The major averages started the session with a positive bias following positive economic data and news out of Europe. Specifically, the European Central Bank said it would lend 529.5 billion Euros to 800 banks in its second Long-Term Refinancing Operation. European market closed lower with the FTSE in London falling -1% and the German DAX losing -0.5%.

Early economic data added to investors' optimism. U.S. fourth-quarter GDP beat consensus expectations of 2.8% in the secondary reading increasing at a 3% annualized rate. The February Chicago Purchasing Managers Index (PMI) improved from January, coming in at a better-than-expected 64. Federal Reserve Chairman Ben Bernanke delivered his semi-annual Humphrey Hawkins testimony to the House Financial Services Committee while providing no indication of further easing measures. The 2PM EST release of the Beige Book showed slight improvements in the economic condition as the reporting regions reported mild to moderate growth.

Homebuilders showed strength following positive industry comments from Toll Brothers' CEO Douglas Yearly. Toll Brothers Inc (TOL +4.59%) and Lennar Corp (LEN +3.86%) posted solid gains.

While the macro picture continues to improve, many market participants are questioning if that is priced into the stock market now that the S&P 500 has climbed about +10% year-to-date and sits at levels not seen since 2008. The interest in taking some risk off of the table likely played a part in the market's intra-day pullback and its inability to return to higher ground.  While the major averages (M criteria) are still in a confirmed uptrend, investors must be careful and selective to avoid chasing stocks that are extended too far away from sound base patterns.

Closely following the high-ranked companies included on the Featured Stocks Page and reading the daily mid-day and after-market reports allows upgraded members to discover many action-worthy candidates based on the fact-based investment system before they become familiar household names which are heavily owned by the institutional crowd.

PICTURED: The S&P 500 Index recently traded above its 2011 high and is now perched -13.4% off its October 2007 all-time 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.


Widespread Group Weakness; XAU Falls Below 200-Day Average

The tech sector was led lower by the Networking Index ($NWX -2.26%), Semiconductor Index ($SOX -1.58%), and Internet Index ($IIX -1.24%) while the Biotechnology Index ($BTK -0.64%) escaped with less than a -1% loss on Wednesday's widely negative session.  Energy-related shares lost ground and dragged both the Integrated Oil Index ($XOI -1.16%) and the Oil Services Index ($OSX -1.14%) lower. Modest losses from the Retail Index ($RLX -0.58%) and weakness in financials dragged the Bank Index ($BKX -0.55%) and Broker/Dealer Index ($XBD -0.33%) lower, adding to the major averages' negative bias. The Healthcare Index ($HMO -0.27%) also finished with a small loss.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU -3.28%) was a standout decliner as it slumped back below its 200-day moving average (DMA) line with a big loss.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  254.08 -2.94 -1.14% +17.48%
Healthcare $HMO  2,648.74 -7.14 -0.27% +16.09%
Integrated Oil $XOI  1,328.04 -15.58 -1.16% +8.05%
Semiconductor $SOX  424.17 -6.82 -1.58% +16.39%
Networking $NWX  259.90 -6.01 -2.26% +20.79%
Internet $IIX  312.29 -3.91 -1.24% +10.84%
Broker/Dealer $XBD  100.52 -0.33 -0.33% +20.72%
Retail $RLX  580.63 -3.40 -0.58% +10.98%
Gold & Silver $XAU  195.56 -6.63 -3.28% +8.26%
Bank $BKX  45.31 -0.25 -0.55% +15.06%
Biotech $BTK  1,314.48 -8.50 -0.64% +20.44%


Technically Strong Despite Fresh Concerns Over Fundamentals

Alliance Data Systems Corporation (ADS -$0.15 or -0.12% to $121.36) is quietly hovering near its all-time high. Its 50-day moving average (DMA) line defines the nearest support level to watch on pullbacks while it is now extended from its latest base. Its last appearance in this FSU section with an annotated graph was on 1/17/12 under the headline, "New Pivot Point Cited for Resilient Leader", as it hit a new all-time high and rallied for gain backed by +40% above average volume, near the bare minimum volume required to trigger a proper technical buy signal. Confirming gains backed by heavy volume showed up in the weeks that followed, providing reassuring signs of serious institutional buying demand that could lead to a more meaningful advance.

ADS has maintained a good annual earnings (A criteria) history, even through challenging economic times in recent years which created flaws in the A criteria for many growth stocks. However, its latest quarter ended December 31, 2011 showed earnings +9% on +12% sales revenues, below the +25% earnings guideline for buy candidates, raising concerns (see red circle). The prior 3 quarterly comparisons (Mar, Jun, and Sep '11) showed earnings per share increases greater than the +25% minimum guideline (C criteria). Current leadership from other companies in the Finance - Credit Card/Payment Processing group (L criteria) is a favorable characteristic.  Ownership by top-rated funds also rose from 616 in Dec '10 to 818 in Dec '11, a reassuring sign concerning the I criteria.

In the Certification they teach investors that stocks should be bought based on a combination of both fundamental and technical criteria, and stocks should always be sold based on technical action. In this case, anyone who owns it might be watching out now for weak action leading to technical sell signals if they meanwhile decide to hold on to see if it first may go on to produce more climactic gains.  A disciplined investor would likely look for a fresh candidate without a flaw in its latest earnings report, and one that is near a sound base patter rather than extended.

Lackluster price/volume action coupled with a fresh quarterly earnings report that missed the +25% guideline led to another Featured Stock recently being noted as it was dropped from the Featured Stocks list. See the "Ken's Mail Bag" section lower in this evening's report for more details...


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  
$121.36 -0.15
-0.12%

$122.44

384,120
54.82% of 50 DAV
50 DAV is 700,700
$122.62
-1.03%
1/17/2012 $108.24 PP = $107.43
MB = $112.80
Most Recent Note - 2/29/2012 7:52:47 PM
G - Quietly holding its ground near its all-time high, extended from its latest base. Fundamental concerns were raised by earnings below the +25% guideline in the latest quarter ended December 31, 2011. 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  
$83.73 -1.12
-1.32%

$84.94

1,108,275
89.01% of 50 DAV
50 DAV is 1,245,100
$87.63
-4.45%
11/30/2011 $68.66 PP = $70.52
MB = $74.05
Most Recent Note - 2/24/2012 4:00:35 PM
G - After volume-driven gains for new all-time highs this week it is more extended from its prior base. Support to watch is its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/24/2012. Click here.

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BODY - NASDAQ
Body Central Corp
RETAIL - Catalog andamp; Mail Order Houses  
$27.84 -0.58
-2.04%

$28.98

134,689
77.95% of 50 DAV
50 DAV is 172,800
$29.49
-5.60%
1/27/2012 $26.69 PP = $25.46
MB = $26.73
Most Recent Note - 2/29/2012 4:58:43 PM
G - Down today on light volume for a 3rd consecutive small loss. Still, it is extended from its prior base. Prior highs in the $25-26 area recently acted as support after encountering some distributional pressure.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/27/2012. Click here.

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CATM - NASDAQ
Cardtronics Inc
DIVERSIFIED SERVICES - Business/Management Services  
$26.59 -0.13
-0.49%

$26.97

384,278
93.34% of 50 DAV
50 DAV is 411,700
$28.74
-7.48%
2/24/2012 $27.94 PP = $28.30
MB = $29.72
Most Recent Note - 2/27/2012 5:26:39 PM
Y - Gapped down today for a damaging loss on light volume, finishing near the session low. Color code was changed to yellow with new pivot point cited based on its 1/19/12 high. Formed a "double bottom" base over the past 9 weeks during which it found prompt support at its 200 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/30/2012. Click here.

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CDNS - NASDAQ
Cadence Design Systems
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$11.77 +0.02
0.17%

$11.89

2,936,978
97.10% of 50 DAV
50 DAV is 3,024,700
$12.11
-2.81%
2/3/2012 $11.66 PP = $11.15
MB = $11.71
Most Recent Note - 2/24/2012 4:13:06 PM
G - Its Relative Strength rating has slumped to 81, near the minimum 80+ guideline. Recently making limited progress while churning above average volume, a sign of distributional pressure while no resistance remains due to overhead supply.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/3/2012. 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
CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$73.33 -0.44
-0.59%

$74.73

3,892,684
120.37% of 50 DAV
50 DAV is 3,233,900
$76.09
-3.63%
2/2/2012 $74.16 PP = $75.21
MB = $78.97
Most Recent Note - 2/28/2012 5:59:31 PM
Y - Volume totals have been cooling since it stalled and slumped below the pivot point. Still perched within close striking distance of its all-time high ($77.39 in Aug '08). Any subsequent volume-driven gains would be a reassuring sign of fresh institutional demand, meanwhile its 50 DMA line and prior lows in the $71 area now coincide and define important chart support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/2/2012. Click here.

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ECHO - NASDAQ
Echo Global Logistics
DIVERSIFIED SERVICES - Business/Management Services  
$18.60 -0.47
-2.46%

$18.92

341,485
541.18% of 50 DAV
50 DAV is 63,100
$19.38
-4.02%
2/22/2012 $18.50 PP = $18.63
MB = $19.56
Most Recent Note - 2/29/2012 12:13:32 PM
Y - Small gap down today with heavy volume. Still holding its ground near its all-time high with no resistance remaining due to overhead supply. It has been consolidating below its "max buy" level after breaking out from a large cup shaped base.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/23/2012. Click here.

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FEIC - NASDAQ
F E I Co
ELECTRONICS - Diversified Electronics  
$44.52 -0.18
-0.40%

$45.16

698,177
251.50% of 50 DAV
50 DAV is 277,600
$48.31
-7.85%
12/7/2011 $41.41 PP = $42.35
MB = $44.47
Most Recent Note - 2/27/2012 5:28:49 PM
G - Solid gain today on near average volume. Its 50 DMA line and prior highs in the $43 area recently acted as support, whereas violations may trigger technical sell signals. Reported earnings +21% on +14% sales revenues for the latest quarter ended December 31, 2011 versus the year ago period (below the +25% minimum guideline for earnings growth).
>>> The latest Featured Stock Update with an annotated graph appeared on 1/25/2012. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$32.37 -0.36
-1.10%

$32.95

590,097
58.45% of 50 DAV
50 DAV is 1,009,600
$33.70
-3.95%
1/19/2012 $28.99 PP = $29.60
MB = $31.08
Most Recent Note - 2/24/2012 3:50:59 PM
G - Pulling back on light volume today. Prior highs in the $29.50 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/19/2012. Click here.

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GOLD - NASDAQ
Randgold Resources Adr
METALS and MINING - Gold  
$114.73 -2.68
-2.28%

$118.27

684,696
142.17% of 50 DAV
50 DAV is 481,600
$120.73
-4.97%
2/7/2012 $116.21 PP = $120.83
MB = $126.87
Most Recent Note - 2/28/2012 5:53:29 PM
Y - Inched higher with below average volume today, perched within close striking distance of prior highs. Found support at its 50 DMA line as it formed a downward sloping "handle" with losses on light volume following the previously noted base pattern. Subsequent volume-driven gains into new high territory may trigger a technical buy signal, however such convincing gains have not yet confirmed a fresh burst of great institutional buying demand. Meanwhile its 89 Relative Strength Rating is above the 80+ guideline for buy candidates, but its Relative Strength line was plotted higher later last year.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/8/2012. 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
HLF - NYSE
Herbalife Ltd
DRUGS - Nutrition and Weight Management  
$66.21 -0.76
-1.13%

$67.50

1,288,855
103.18% of 50 DAV
50 DAV is 1,249,100
$67.40
-1.77%
2/22/2012 $65.90 PP = $63.50
MB = $66.68
Most Recent Note - 2/29/2012 5:04:24 PM
Y - Stubbornly holding its ground in a very tight range with volume totals cooling since its 2/22/12 gain triggered a technical buy signal. It remains below its "max buy" level, not too extended from its prior base pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/22/2012. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$32.22 -0.08
-0.25%

$32.74

710,467
76.52% of 50 DAV
50 DAV is 928,500
$34.98
-7.88%
10/27/2011 $26.44 PP = $28.37
MB = $29.79
Most Recent Note - 2/29/2012 5:06:42 PM
G - Loss today on lighter volume followed the violation of its 50 DMA line with above average volume, raising more concerns. Following recent distributional action, any further deterioration below that important short-term average may clinch a more definitive technical sell signal. Meanwhile prior lows in the $30 area define the next chart support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/9/2012. Click here.

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ISRG - NASDAQ
Intuitive Surgical Inc
HEALTH SERVICES - Medical Appliances and Equipment  
$511.62 -4.07
-0.79%

$516.13

219,776
59.80% of 50 DAV
50 DAV is 367,500
$518.47
-1.32%
12/20/2011 $442.43 PP = $449.16
MB = $471.62
Most Recent Note - 2/28/2012 6:04:36 PM
G - Perched near its all-time high with volume totals cooling while stubbornly holding its ground. It is extended from prior highs in the $475 area that define support to watch on pullbacks. December '11 quarterly earnings increased by just below the borderline +25% minimum guideline for ideal buy candidates.
>>> 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  
$67.02 -0.72
-1.06%

$68.06

1,443,001
59.69% of 50 DAV
50 DAV is 2,417,400
$67.84
-1.21%
1/10/2012 $60.97 PP = $59.46
MB = $62.43
Most Recent Note - 2/28/2012 6:07:14 PM
G - Wedging higher without great volume conviction, today it inched to yet another new all-time high. Prior highs in the $61-64 area define initial chart support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/21/2012. Click here.

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MA - NYSE
Mastercard Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$420.00 -3.97
-0.94%

$428.57

1,099,040
99.88% of 50 DAV
50 DAV is 1,100,400
$426.00
-1.41%
2/2/2012 $379.05 PP = $381.32
MB = $400.39
Most Recent Note - 2/29/2012 5:01:14 PM
G - Reversed into the red after inching further into new all-time high territory earlier today. Prior highs in the $381-384 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/17/2012. 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
MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$97.31 -3.79
-3.75%

$102.00

621,593
119.93% of 50 DAV
50 DAV is 518,300
$104.50
-6.88%
2/6/2012 $97.09 PP = $95.58
MB = $100.36
Most Recent Note - 2/29/2012 4:47:54 PM
Y - Down for a second consecutive session today on near average but slightly higher volume, retreating from its all-time high to below its "max buy" level. The color code is changed to yellow again. Reported earnings +31% on +39% sales revenues for the quarter ended December 31, 2011 versus the year ago period.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/6/2012. Click here.

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MKTX - NASDAQ
Marketaxess Holdings Inc
FINANCIAL SERVICES - Investment Brokerage - Nationa  
$33.12 -0.28
-0.84%

$33.95

272,817
112.13% of 50 DAV
50 DAV is 243,300
$35.42
-6.49%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 2/29/2012 4:51:09 PM
G - It found prompt support near its 50 DMA line last week and is perched -6.5% off its all-time high today, consolidating after completing a Secondary Offering on 2/22/12.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/24/2012. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$52.24 -0.54
-1.02%

$53.33

1,322,207
68.09% of 50 DAV
50 DAV is 1,941,900
$56.94
-8.25%
2/2/2012 $46.69 PP = $45.55
MB = $47.83
Most Recent Note - 2/29/2012 4:54:03 PM
G - Down today for a 5th consecutive small loss with below average volume, now -8.3% off its 52-week high. Repeatedly noted following a considerable 2/14/12 gap up gain with very heavy volume - "Too extended from the previous base to be considered an ideal buy candidate under the fact-based investment system's guidelines."
>>> The latest Featured Stock Update with an annotated graph appeared on 2/16/2012. Click here.

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RRTS - NYSE
Roadrunner Trans Systems
TRANSPORTATION - Air Delivery and Freight Service  
$17.85 +0.06
0.34%

$18.06

122,759
88.44% of 50 DAV
50 DAV is 138,800
$18.44
-3.20%
2/10/2012 $17.40 PP = $17.50
MB = $18.38
Most Recent Note - 2/27/2012 12:52:31 PM
Y - Hovering within close striking distance of its 52-week high, stubbornly holding its ground. Prior highs in the $17 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/13/2012. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$37.26 -1.09
-2.84%

$38.45

862,833
75.56% of 50 DAV
50 DAV is 1,141,900
$39.75
-6.26%
1/26/2012 $32.36 PP = $33.78
MB = $35.47
Most Recent Note - 2/29/2012 4:40:22 PM
G - Pulled back on below average volume today for a 4th consecutive small loss, retreating from its all-time high. It is extended from its latest base. Earnings below the +25% guideline for the Dec '11 quarter raised fundamental concerns.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/26/2012. 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
SXCI - NASDAQ
S X C Health Solutions
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$70.80 -0.37
-0.52%

$71.82

475,944
130.00% of 50 DAV
50 DAV is 366,100
$72.34
-2.13%
2/23/2012 $68.24 PP = $66.05
MB = $69.35
Most Recent Note - 2/29/2012 4:41:54 PM
G - Holding its ground after getting extended beyond its "max buy" level with 5 consecutive volume-driven gains. Prior highs in the $66 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/20/2012. Click here.

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$118.79 +1.92
1.64%

$120.88

515,456
147.32% of 50 DAV
50 DAV is 349,900
$121.48
-2.21%
2/29/2012 $120.10 PP = $118.93
MB = $124.88
Most Recent Note - 2/29/2012 12:41:45 PM
Y - It formed an advanced "3-weeks tight" base pattern and its color code is changed to yellow with a new pivot point cited based on its 2/13/12 high plus 10 cents. A volume-driven gain for a strong close above it pivot point may confirm a new (or-add on) technical buy signal. Prior highs near $102 define the initial support level to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/10/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$18.74 -0.56
-2.90%

$19.38

493,920
156.45% of 50 DAV
50 DAV is 315,700
$19.90
-5.83%
2/13/2012 $15.39 PP = $16.51
MB = $17.34
Most Recent Note - 2/29/2012 4:44:19 PM
G - Down today for its 3rd consecutive loss marked by above average volume after rallying to new highs with volume-driven gains. It is extended from prior highs in the $16 area which define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/14/2012. Click here.

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TSCO - NASDAQ
Tractor Supply Co
SPECIALTY RETAIL - Specialty Retail, Other  
$85.47 -1.09
-1.26%

$87.20

600,502
82.32% of 50 DAV
50 DAV is 729,500
$88.65
-3.59%
1/12/2012 $79.12 PP = $75.58
MB = $79.36
Most Recent Note - 2/27/2012 5:24:59 PM
G - Up today with +58% above average volume for a new all-time high. Its 50 DMA line defines 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 2/27/2012. Click here.

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UA - NYSE
Under Armour Inc Cl A
CONSUMER NON-DURABLES - Textile - Apparel Clothing  
$89.24 +1.52
1.73%

$89.88

1,440,139
115.83% of 50 DAV
50 DAV is 1,243,300
$88.90
0.38%
2/15/2012 $85.77 PP = $84.86
MB = $89.10
Most Recent Note - 2/29/2012 7:58:40 PM
Y - Today's 4th consecutive gain above its pivot point again did not have more than the minimum +40% above average volume sufficient behind a gain to trigger a proper technical buy signal. Pyramiding into a stock can help investors avoid chasing them too far above their pivot point.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/15/2012. 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
UBNT - NASDAQ
Ubiquiti Networks Inc
TELECOMMUNICATIONS - Diversified Communication Serv  
$26.28 -1.52
-5.47%

$28.22

251,498
82.08% of 50 DAV
50 DAV is 306,400
$28.97
-9.29%
1/27/2012 $22.25 PP = $23.14
MB = $24.30
Most Recent Note - 2/29/2012 4:36:57 PM
G - Down today for a loss on light volume following recent volume-driven gains. It is too extended from its prior base to be considered buyable under the investment system's guidelines, and patient investors may watch for secondary buy points to possibly develop and be noted.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/1/2012. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$83.24 -0.64
-0.76%

$83.90

370,295
50.16% of 50 DAV
50 DAV is 738,200
$84.48
-1.47%
1/11/2012 $71.97 PP = $75.80
MB = $79.59
Most Recent Note - 2/28/2012 7:09:26 PM
G - Posted a gain today with light volume. It has been quietly hovering near its all-time high, extended from any sound base pattern. Prior highs near $75 define 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 2/28/2012. Click here.

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V - NYSE
Visa Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$116.37 -2.58
-2.17%

$119.36

3,804,983
93.73% of 50 DAV
50 DAV is 4,059,300
$118.97
-2.19%
2/2/2012 $105.43 PP = $104.30
MB = $109.52
Most Recent Note - 2/29/2012 4:56:40 PM
G - Reversed and finished in the red today with slightly higher (but still below average) volume after inching to new high territory this week with below average volume conviction behind its recent 2 weeks' gains. Prior highs in the $103-104 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 1/23/2012. Click here.

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Subscriber Question:

February 27, 2012

Dear Ken,

Why was OSI Systems Inc (OSIS) not on the after market report?

Thanks so much for your time. John  

 
Ken's Response:

 February 29, 2012

Dear John,

Thanks for writing in with your question. 

OSIS is not appearing in recent after market reports in the "Featured Stock Update" summary table and it is not included on the Featured Stocks Page anymore because it was recently noted and dropped from the Featured Stocks list. It has subsequently powered higher, however fundamental concerns remain an overriding concern making it a questionable buy candidate under the fact-based investment system's guidelines.

It was noted 2/22/2012 at 4:07:11 PM - "Consolidating just above its 50 DMA line which defines important support to watch. Earnings increase below the +25% minimum earnings guideline in the Dec '11 quarter was noted as a fundamental concern. It will be dropped from the Featured Stocks list tonight."  It had been struggling while repeatedly noted since 1/24/2012 at 11:21:15 AM - "Reported earnings +20% on +11% sales revenues for the quarter ended December 31, 2011 versus the year ago period, below the +25% minimum earnings guideline and marking its weakest earnings comparison in 2 years, raising concerns."

Before it was dropped from the Featured Stocks list OSIS had traded up as much as +36.7% from when it was first featured in yellow at $42.07 in the mid-day report on 11/1/2011 when noted - "Gapped down today, pulling back after recently wedging to a new 52-week high without great volume conviction. It may be forming a handle following a 14-week cup shaped base. Color code is changed to yellow with pivot point cited based on its 10/27/11 high. Subsequent volume-driven gains above its pivot point may trigger a technical buy signal. Annual earnings (A criteria) growth has been strong and quarterly earnings increases have been above the +25% guideline satisfying the C criteria. Ownership by top-rated funds fell from 352 in Mar '11 to 333 in Sep '11."  It actually took until 11/30/11 before OSIS finally showed noteworthy gains that justified disciplined investors taking action as it was then noted - "Gapped up today and rallied with +44% above average volume for a close above its previously cited pivot point for a new high, confirming a technical buy signal."  

Hopefully this clarifies the matter. You can review all past notes and featured articles with detailed analysis and annotated graphs on any stock previously appearing in CANSLIM.net reports by simply clicking the "View All Notes" links or by going to the "Company Profile" pages.  

Best regards,

Kenneth J. Gruneisen
Founder & Contributing Writer for CANSLIM.net
www.canslim.net


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