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AFTER MARKET UPDATE - MONDAY, MARCH 7TH, 2011
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Indices NYSE Nasdaq
DOW  -79.85 12,090.03 -0.66% Volume 1,035,788,080 -0% Volume 2,125,324,480 +10%
NASDAQ -39.04 2,745.63 -1.40% Advancers 695 22% Advancers 607 22%
S&P 500 -11.02 1,310.13 -0.83% Decliners 2,322 75% Decliners 2,052 74%
Russell 2000 -12.74 812.25 -1.54% 52 Wk Highs 160   52 Wk Highs 107  
S&P 600 -6.63 429.60 -1.52% 52 Wk Lows 22   52 Wk Lows 39  

Major Averages Fall With Clearly Negative Breadth

A final hour rebound was not enough to recover from losses as the major averages finished unanimously in the red. The volume total on the NYSE was near the prior session  total while on the Nasdaq exchange volume was reported higher than the prior session's total, suggesting that institutional investors were more aggressively selling shares again. Declining issues beat advancers 3-1 on the NYSE and by 10-3 on the Nasdaq.  New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange. There was a total of 45 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 a total of 64 on the prior session. On the Featured Stocks Page there was a negative bias shown by high-ranked market leaders, with gains from only 4 of the 22 companies listed.

 

Monday's only economic report showed consumer borrowing rose in January for a fourth straight month. on Wall Street. Supply concerns were a catalyst for oil prices spiking near $107 per barrel to a 29-month high as violence increased in Libya.

Technology stocks led the major averages lower after a brokerage downgrade of semiconductors. Ciena Corp (CIEN -9.82%) forecast weaker-than-expected sales. The markets got a boost in early trading from merger news after Western Digital Corp (WDC +15.5%) agreed to buy Hitachi Ltd's (HIT +5.44%) disk-drive business for about $4.3 billion. TomoTherapy Inc (TOMO +24.5%) soared after Accuray Inc (ARAY -10.1%) said it would buy the radiation treatment company for $277 million. 

A recent expansion in leadership (new highs) has been noted as a reassuring sign that the market's rally may still have some legs. However, any additional distribution days in the near term could prove more damaging and may lead to a more substantial correction for the major averages. New buying efforts should be cautiously and carefully made, only when all of the investment system's key criteria are met.  As always, limit losses if ever a stock falls more than -7% from your purchase price.

PICTURED: The S&P 500 Index is consolidating above its 50-day moving average and recent chart lows defining support to watch.


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.


Semiconductor Index Slumping Under Profit Taking Pressure

The Semiconductor Index ($SOX -2.71%) led the tech sector lower and the Networking Index ($NWX -1.96%), Internet Index ($IIX -1.54%), and Biotechnology Index ($BTK -0.95%) ended unanimously lower. The Retail Index ($RLX -1.18%) was a negative influence on the major averages along with the Broker/Dealer Index ($XBD -0.98%) and Bank Index ($BKX -0.78%) continuing to slump.  Defensive groups offered safe-haven investors no reward as the Healthcare Index ($HMO -1.60%) and Gold & Silver Index ($XAU -0.87%) lost ground.  Even energy-related shares fell and the Oil Services Index ($OSX -0.85%) and Integrated Oil Index ($XOI -0.61%) lost ground.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX -2.71%) is testing support at its 50-day moving average line. It recently violated the upward trendline that was shown in the February 17th Industry Group Watch section (read here).


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  288.63 -2.46 -0.85% +17.75%
Healthcare $HMO  2,044.40 -33.33 -1.60% +20.83%
Integrated Oil $XOI  1,360.63 -8.30 -0.61% +12.16%
Semiconductor $SOX  447.35 -12.47 -2.71% +8.63%
Networking $NWX  330.23 -6.61 -1.96% +17.71%
Internet $IIX  314.66 -4.91 -1.54% +2.25%
Broker/Dealer $XBD  122.21 -1.20 -0.98% +0.58%
Retail $RLX  505.68 -6.03 -1.18% -0.53%
Gold & Silver $XAU  213.98 -1.88 -0.87% -5.56%
Bank $BKX  51.86 -0.41 -0.78% -0.67%
Biotech $BTK  1,286.32 -12.28 -0.95% -0.87%


High-Ranked Apparel Firm Bucking Broader Weakness

Under Armour Inc (UA +$0.53 or +0.79% to $67.86) posted a solid gain with above average volume today, bucking the broader market's weakness. Prior resistance and its 50-day moving average (DMA) line in the $60 area define important chart support to watch. Its brief consolidation has been healthy, but it needs more time to potentially form a sound base-on-base type pattern. Since its last appearance in this FSU section on 2/01/11 with an annotated graph under the headline, "Perched Near 52-Week High Following "Double Bottom" Breakout", it blasted higher with more volume-driven gains, however it has yet to challenge its 2007 all-time high ($73.40). 

Prior reports observed that its technical strength was backed up by strong earnings and sales revenues increases reported for the quarter ended Dec 31, 2011 with positive guidance. Earnings were up +47% on +36% better sales revenues for the quarter ended December 31, 2010 versus the year ago period. Fundamentally, that improvement was a big help with respect to the C criteria. (Editor's Note: Its earnings increase in the September '10 comparison appears to have been upwardly revised since its prior FSU appearances.) Earlier notes had acknowledged the downward turn in annual earnings (A criteria) in FY '08, another fundamental concern with respect to the fact-based investment system.


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
BIDU - NASDAQ
Baidu Inc Ads
INTERNET - Internet Information Providers  
$120.18 -2.16
-1.77%

$123.23

5,143,434
77.73% of 50 DAV
50 DAV is 6,616,700
$131.63
-8.70%
2/1/2011 $117.74 PP = $112.08
MB = $117.68
Most Recent Note - 3/3/2011 4:23:57 PM
G - Recent gains have been backed by below average volume. Its 50 DMA line and 2/23/11 low define important chart support levels to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/2/2011. Click here.

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CMG - NYSE
Chipotle Mexican Grill
LEISURE - Restaurants  
$252.56 -2.44
-0.96%

$258.64

1,080,506
104.19% of 50 DAV
50 DAV is 1,037,100
$275.00
-8.16%
2/11/2011 $271.15 PP = $262.87
MB = $276.01
Most Recent Note - 3/4/2011 4:10:13 PM
G - Up for a 3rd consecutive gain since finding support at its 50 DMA line and prior highs in the $237 area. A violation and damaging loss would raise greater concerns and trigger a technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/11/2011. Click here.

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CRUS - NASDAQ
Cirrus Logic Inc
ELECTRONICS - Semiconductor - Specialized  
$23.12 -1.44
-5.86%

$24.64

4,580,140
132.44% of 50 DAV
50 DAV is 3,458,300
$25.48
-9.26%
1/28/2011 $20.69 PP = $19.17
MB = $20.13
Most Recent Note - 3/7/2011 5:21:23 PM
G - Today it led the 30 Semiconductor Index components lower with a loss on higher volume. Recently found support above prior chart resistance. Its recent low (2/23/11 low $21.17) and much earlier high close ($20.54 on 7/26/10) define chart support to watch along with its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/4/2011. Click here.

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CTSH - NASDAQ
Cognizant Tech Sol Cl A
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$75.91 -0.41
-0.54%

$76.81

2,364,043
108.27% of 50 DAV
50 DAV is 2,183,400
$77.74
-2.35%
2/7/2011 $75.09 PP = $76.46
MB = $80.28
Most Recent Note - 3/3/2011 4:03:37 PM
Y - Up today on lighter volume, rising from support at its 50 DMA line. No overhead supply remains to hinder its progress. It stalled after its 2/08/11 breakout with bare minimum volume. Subsequent confirming gains for new highs with above average volume would be a welcome reassurance of institutional accumulation.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/8/2011. Click here.

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DECK - NASDAQ
Deckers Outdoor Corp
CONSUMER NON-DURABLES - Textile - Apparel Footwear  
$87.42 +0.24
0.28%

$90.21

1,776,104
109.27% of 50 DAV
50 DAV is 1,625,400
$94.70
-7.69%
2/3/2011 $79.61 PP = $82.67
MB = $86.80
Most Recent Note - 3/3/2011 4:44:18 PM
G - Posted 2 consecutive gains on light or near average volume after recent losses on above average volume. Churning above average volume action without meaningful price progress has been noted as indicative of distributional pressure following its 2/17/11 technical breakout. Support to watch is at its pivot point and 50 DMA line (now $81.68).
>>> The latest Featured Stock Update with an annotated graph appeared on 3/3/2011. 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
EBIX - NASDAQ
Ebix Inc
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$28.59 -0.31
-1.07%

$29.49

960,014
181.37% of 50 DAV
50 DAV is 529,300
$29.61
-3.44%
2/28/2011 $25.70 PP = $25.97
MB = $27.27
Most Recent Note - 3/7/2011 12:23:45 PM
G - Pulling back from its 52-week high today. Color code was changed to green after getting extended beyond the "max buy" level +5% above the pivot point recently cited. Prior highs in the $25-26 area define initial support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/28/2011. Click here.

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EZCH - NASDAQ
Ezchip Semiconductor Ltd
ELECTRONICS - Semiconductor - Specialized  
$29.61 -0.61
-2.02%

$30.40

244,991
64.18% of 50 DAV
50 DAV is 381,700
$33.48
-11.56%
12/2/2010 $27.53 PP = $26.00
MB = $27.30
Most Recent Note - 3/7/2011 5:47:29 PM
G - Pulling back after its 50 DMA line recently acted as resistance while volume totals have cooled. A convincing rebound above its short-term average would help its outlook, meanwhile it faces overhead supply up through the $33 area which may hinder its ability to rally.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/1/2011. Click here.

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EZPW - NASDAQ
Ezcorp Inc Cl A
SPECIALTY RETAIL - Specialty Retail, Other  
$28.43 -0.53
-1.83%

$29.19

207,491
55.64% of 50 DAV
50 DAV is 372,900
$29.94
-5.04%
2/18/2011 $27.94 PP = $30.04
MB = $31.54
Most Recent Note - 3/7/2011 5:46:05 PM
Y - Down on light volume today, finishing -5.0% off its 52-week high. Consolidating just above its 50 DMA line showing resilience. Subsequent gains with heavy volume above its pivot point may trigger a new (or add-on) technical buy signal. Recent low ($25.56 on 1/25/11) defines an important support level now.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/3/2011. Click here.

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FOSL - NASDAQ
Fossil Inc
CONSUMER DURABLES - Recreational Goods, Other  
$83.05 +2.22
2.75%

$83.39

1,878,501
221.13% of 50 DAV
50 DAV is 849,500
$83.68
-0.75%
2/1/2011 $73.30 PP = $74.44
MB = $78.16
Most Recent Note - 3/7/2011 12:25:43 PM
G - Perched -3.6% off its all-time high today, extended from its prior base. It found support at its 50 DMA line while consolidating above prior resistance in the $74 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/24/2011. Click here.

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GSIT - NASDAQ
G S I Technology Inc
ELECTRONICS - Semiconductor - Broad Line  
$9.00 -0.61
-6.35%

$9.63

210,531
87.79% of 50 DAV
50 DAV is 239,800
$10.20
-11.76%
2/18/2011 $10.08 PP = $10.25
MB = $10.76
Most Recent Note - 3/7/2011 5:19:04 PM
G - Violated and closed below its 50 DMA line today, raising concerns while slumping near prior lows in the $8.60-8.80 range that define important chart support. A rally and strong close above its 2/18/11 close ($9.78) would help its outlook following its damaging 2/22/11 gap down.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/18/2011. 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
HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$79.00 -0.13
-0.16%

$79.99

281,832
176.81% of 50 DAV
50 DAV is 159,400
$79.78
-0.98%
11/19/2010 $61.89 PP = $63.01
MB = $66.16
Most Recent Note - 3/7/2011 12:26:50 PM
G - Perched at its all-time high today after 21 gains in the past 23 sessions, extended from any sound base pattern. Support to watch is defined by prior chart highs and its 50 DMA line in the $67 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/16/2011. Click here.

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JOBS - NASDAQ
Fifty One Job Inc Ads
DIVERSIFIED SERVICES - Staffing and; Outsourcing Service  
$57.72 -2.64
-4.37%

$60.40

290,575
235.28% of 50 DAV
50 DAV is 123,500
$64.55
-10.58%
2/7/2011 $59.23 PP = $61.38
MB = $64.45
Most Recent Note - 3/7/2011 5:27:54 PM
G - Loss today with higher volume was indicative of distributional pressure and its color code is changed to green. Recently churned above average volume and stalled near its pivot point noted nearly a month ago. Gains for new highs with well above average volume would be a reassuring sign of accumulation by institutional investors, meanwhile its recent low ($52.58 on 1/28/11) defines support below its 50 DMA line where violations would trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/7/2011. Click here.

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LULU - NASDAQ
Lululemon Athletica
MANUFACTURING - Textile Manufacturing  
$75.18 -2.08
-2.69%

$78.60

1,886,049
96.61% of 50 DAV
50 DAV is 1,952,200
$85.28
-11.84%
1/26/2011 $68.11 PP = $74.70
MB = $78.44
Most Recent Note - 3/7/2011 5:43:07 PM
Y - Loss today has it testing support at its 50 DMA line again. A violation of that important short-term average may trigger a technical sell signal. A close below a significant prior high close ($73.51 on 12/21/10) would completely negate its latest breakout, raising more serious concerns.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/25/2011. Click here.

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MWIV - NASDAQ
M W I Veterinary Supply
HEALTH SERVICES - Medical Instruments and; Supplies  
$73.17 +1.59
2.22%

$73.50

150,924
208.17% of 50 DAV
50 DAV is 72,500
$72.27
1.25%
11/4/2010 $61.79 PP = $59.60
MB = $62.58
Most Recent Note - 3/7/2011 5:44:12 PM
G - Up today with above above average volume for a new all-time high. Found support near prior highs and its 50 DMA line recently but did not build a sound new base pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/2/2011. Click here.

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OPEN - NASDAQ
Opentable Inc
INTERNET - Internet Software and Services  
$86.58 -3.41
-3.79%

$90.48

1,081,735
104.54% of 50 DAV
50 DAV is 1,034,800
$95.97
-9.78%
1/5/2011 $74.05 PP = $76.79
MB = $80.63
Most Recent Note - 3/7/2011 10:59:27 AM
G - Consolidating above prior resistance near $82 and above its 50 DMA line. Its brief consolidation of about 4 weeks has the look of a bullish base-on-base type pattern forming, but a proper "flat base" should be a minimum of 5 weeks in length.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/15/2011. 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
ORCL - NASDAQ
Oracle Corp
COMPUTER SOFTWARE and SERVICES - Application Software  
$32.10 -0.67
-2.03%

$33.06

20,547,257
88.21% of 50 DAV
50 DAV is 23,294,200
$33.71
-4.78%
1/20/2011 $32.31 PP = $32.37
MB = $33.99
Most Recent Note - 3/7/2011 5:41:39 PM
Y - Loss today on light volume led to a close below its 50 DMA line again. Its prior low previously noted ($30.80 on 1/10/11) defines the next important chart support level to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/22/2011. Click here.

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PAY - NYSE
Verifone Systems Inc
COMPUTER HARDWARE - Transaction Automation Systems  
$48.91 -1.00
-2.00%

$50.15

2,088,640
129.13% of 50 DAV
50 DAV is 1,617,500
$50.17
-2.51%
1/27/2011 $41.77 PP = $44.97
MB = $47.22
Most Recent Note - 3/7/2011 5:48:48 PM
G - Hovering at its 52-week and all-time highs today, pausing after 3 consecutive gains with above average volume. No resistance remains due to overhead supply, but it is extended from a sound base pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/2/2011. Click here.

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PCLN - NASDAQ
Priceline.Com Inc
INTERNET - Internet Software and Services  
$466.69 -2.44
-0.52%

$474.74

1,449,990
131.55% of 50 DAV
50 DAV is 1,102,200
$469.74
-0.65%
1/3/2011 $399.55 PP = $428.20
MB = $449.61
Most Recent Note - 3/7/2011 5:50:08 PM
G - Paused today after 3 consecutive gains with above average volume hitting new 52-week highs. It is extended from a sound base, and found impressive support near its 50 DMA line in recent months .
>>> The latest Featured Stock Update with an annotated graph appeared on 2/14/2011. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$36.75 -1.03
-2.73%

$37.74

2,231,154
125.15% of 50 DAV
50 DAV is 1,782,800
$40.62
-9.53%
1/10/2011 $22.84 PP = $32.76
MB = $34.40
Most Recent Note - 3/7/2011 10:53:14 AM
G - Down today, slumping -10% off its all-time high. Consolidating just above prior highs near $35 previously noted as defining support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/9/2011. Click here.

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TIBX - NASDAQ
Tibco Software Inc
COMPUTER SOFTWARE and SERVICES - Business Software and Services  
$24.10 -1.03
-4.08%

$25.39

2,026,757
76.23% of 50 DAV
50 DAV is 2,658,600
$25.94
-7.09%
2/1/2011 $24.35 PP = $22.18
MB = $23.29
Most Recent Note - 3/7/2011 5:30:27 PM
G - Pulling back today with below average volume, finishing -7.1% off its 52-week high. Recently found support above prior highs in the $22 area and well above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/10/2011. 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
UA - NYSE
Under Armour Inc Cl A
CONSUMER NON-DURABLES - Textile - Apparel Clothing  
$67.86 +0.53
0.79%

$67.48

1,357,045
185.59% of 50 DAV
50 DAV is 731,200
$70.43
-3.65%
1/27/2011 $58.31 PP = $56.99
MB = $59.84
Most Recent Note - 3/7/2011 5:34:46 PM
G - Solid gain with above average volume today. Prior resistance and its 50 DMA line in the $60 area define chart support to watch. Its brief consolidation has been healthy, but it needs more time to potentially form a sound base-on-base type pattern.
>>> The latest Featured Stock Update with an annotated graph appeared on 3/7/2011. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$41.27 -0.71
-1.69%

$42.22

707,111
148.71% of 50 DAV
50 DAV is 475,500
$44.06
-6.33%
1/6/2011 $36.12 PP = $37.34
MB = $39.21
Most Recent Note - 3/7/2011 5:40:25 PM
G - Loss on higher volume today, finishing -6.3% off its all-time high. Its Up/Down Volume Ratio of 1.7 is a sign of accumulation, but it has not built a sound new base pattern. Prior highs in the $37-38 area define chart support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 2/17/2011. Click here.

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