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AFTER MARKET UPDATE - TUESDAY, JULY 10TH, 2012
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Indices NYSE Nasdaq
DOW  -83.17 12,653.12 -0.65% Volume 727,394,130 +12% Volume 1,646,930,320 +18%
NASDAQ -29.44 2,902.33 -1.00% Advancers 1,028 32% Advancers 819 32%
S&P 500 -10.99 1,341.47 -0.81% Decliners 2,028 64% Decliners 1,657 64%
Russell 2000 -9.63 795.17 -1.20% 52 Wk Highs 207   52 Wk Highs 92  
S&P 600 -4.91 443.09 -1.10% 52 Wk Lows 33   52 Wk Lows 41  

Major Averages Encountered Some Distributional Pressure

On Tuesday's session the indices suffered their 4th consecutive losses after Wall Street's early gains fell short of breaking the market's losing streak. Behind the losses the volume totals on the NYSE and on the Nasdaq exchange were reported higher than the prior session total, amounting to a distribution day. Breadth was negative as decliners led advancers by about a 2-1 ratio on the NYSE and on the Nasdaq exchange. The total number of new 52-week highs led new 52-week lows on the NYSE and on the Nasdaq exchange. There were 53 high-ranked companies from the CANSLIM.net Leaders List made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session total of 34 stocks. At the session's close there were gains for only 6 of the 19 high-ranked companies currently included on the Featured Stocks Page, again a more negative tally compared to the broader market.

 

The major averages appeared poised to snap a three-day losing streak after European governments agreed to provide emergency funding to Spanish banks. The market gave back its early gains amid concerns over corporate earnings. The 10-year note was up 1/16 to yield 1.50%.

Advanced Micro Devices, Inc (AMD -11.21%) declined after it reported a drop in sales. Applied Materials Inc (AMAT -2.72%) retreated as the chip-equipment maker lowered its forecasts. Shares of Cummins Inc (CMI -8.94%) fell after the truck engine maker forecast sales below analyst projections. Materials were the worst performing sector. Shares of Alcoa Inc (AA -4.11%) fell despite kicking off earnings season with results that topped consensus expectations. The sector was also weighed down by declines in mining and chemical stocks including Freeport McMoRan Copper & Gold Inc (FCX -4.17%) and The Dow Chemical Co (DOW -2.02%). Utilities were the best performing sector with Duke Energy Corp (DUK +1.27%) on the rise.

The market's pullback came with lighter volume following considerable volume-driven gains for the major averages coupled with a huge expansion in leadership (stocks making new 52-week highs).  The recently reconfirmed upward trend concerning the M criteria signaled to investors that new buying efforts are now encouraged under the fact-based system. Action may only be justified in worthy buy candidates with strong fundamental and technical characteristics matching all key investment criteria. As always, disciplined investors avoid chasing extended stocks, and they limit losses if any stock ever falls more than -7% from its purchase price. The best buy candidates identified by CANSLIM.net's experts are always viewable on the Featured Stocks page.  

The Q2 2012 WEBCAST is available "ON DEMAND" - CLICK HERE. Upgraded members now get access to these informative *Quarterly Webcasts included at no additional cost. (*Previously sold separately at $99 per webcast.)  Links to archived webcasts and all prior reports are on the Premium Member Homepage

PICTURED: The S&P 500 Index's 4th consecutive loss on below average volume led to a pullback near its 50-day moving average (DMA) line. Volume totals were above average behind prior gains after it found support near its longer term 200 DMA line and halted the prior market "correction". More damaging losses on above average volume would be a more worrisome sign of institutional selling pressure.


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 Weakness Drags All Groups Lower

The Broker/Dealer Index ($XBD -1.29%) and Bank Index ($BKX -0.89%) were a negative influence on the major averages and the Retail Index ($RLX -0.69%) also suffered a small loss. The Semiconductor Index ($SOX -2.28%), Internet Index ($IIX -1.34%), Networking Index ($NWX -1.24%), and Biotechnology Index ($BTK -1.27%) ended with unanimous losses. Weakness in energy-related shares led to losses for the Oil Services Index ($OSX -2.01%) and Integrated Oil Index ($XOI -1.17%).  The Healthcare Index ($HMO -0.54%) also edged lower.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU -3.28%) was a standout decliner on Tuesday. It has slumped below its 50-day moving average (DMA) line again.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  199.35 -4.09 -2.01% -7.83%
Healthcare $HMO  2,376.46 -12.91 -0.54% +4.16%
Integrated Oil $XOI  1,140.35 -13.52 -1.17% -7.22%
Semiconductor $SOX  363.01 -8.46 -2.28% -0.39%
Networking $NWX  201.20 -2.52 -1.24% -6.49%
Internet $IIX  290.97 -3.95 -1.34% +3.28%
Broker/Dealer $XBD  84.18 -1.10 -1.29% +1.09%
Retail $RLX  611.68 -4.25 -0.69% +16.91%
Gold & Silver $XAU  151.18 -5.13 -3.28% -16.31%
Bank $BKX  44.55 -0.40 -0.89% +13.13%
Biotech $BTK  1,472.74 -18.94 -1.27% +34.94%


Fifth Straight Loss With Higher Volume Tests 50-Day Average

Expedia Inc (EXPE -$1.75 or -3.69% to $45.72) slumped with higher volume today for its 5th consecutive loss, testing important support at its 50-day moving average (DMA) line just above prior lows. It still remains a bit extended from its prior highs in the $43 area which define support below that important short-term average. Its last appearance in this FSU section was on 6/08/12 with an annotated graph under the headline, "Wedging Higher While M Criteria Still Urges Caution", as gains into new high territory without great volume conviction were noted as "wedging", which calls attention to the lack of robust buying demand from the institutional crowd. Only its 6/18/12 gain afterward was marked by above average volume as it approached its high

EXPE was highlighted in yellow in the 4/27/12 mid-day breakouts report (read here) after its considerable "breakaway gap" up above the pivot point cited based on its 3/26/12 high (shown on the chart below).  It reported earnings +63% on +12% sales revenues for the quarter ended March 31, 2012 versus the year ago period. Quarterly earnings have been above the +25% minimum guideline in 3 of the past 4 comparisons (the Dec '11 comparison was flat) and its annual earnings (A criteria) history has been good.  The number of top-rated funds owning its shares rose from 916 in Jun '11 to 972 in Mar '12, a reassuring sign concerning the I criteria. The Leisure - Travel Booking industry group has earned a high Group Relative Strength Rating of 88/A+, a reassuring sign concerning the L criteria. 

A breakaway gap has been repeatedly noted as the one exception where the usual limit can be stretched to allow for disciplined investors to buy as much as +10% above the pivot point. Longtime readers know that the regular limit above the pivot point is +5%, and the further one chases a stock above its pivot point will increase the likelihood that an ordinary pullback of -7-8% might prompt them to sell based on the fact-based system's strict selling rules.


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
ALXN - NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$98.11 -2.32
-2.31%

$101.85

1,392,748
63.65% of 50 DAV
50 DAV is 2,188,100
$104.38
-6.01%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 7/10/2012 4:49:04 PM
Y - Color code is changed to yellow after quietly pulling back below its "max buy" level today with a 5th consecutive loss on below average volume. Prior highs in the $95 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/29/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$73.16 -1.20
-1.61%

$74.97

111,946
85.07% of 50 DAV
50 DAV is 131,600
$76.20
-3.99%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 7/9/2012 4:44:22 PM
G - Still stubbornly holding its ground near its 52-week high, extended from its prior base. Prior highs in the $65 area define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/3/2012. Click here.

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CERN - NASDAQ
Cerner Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$81.82 -0.99
-1.20%

$83.97

830,797
53.75% of 50 DAV
50 DAV is 1,545,600
$88.32
-7.36%
6/7/2012 $78.36 PP = $84.20
MB = $88.41
Most Recent Note - 7/9/2012 7:00:02 PM
G - Holding its ground since rebounding back above its 50 DMA line helping its technical stance. It has not formed a proper base since negating its prior breakout. See the latest FSU analysis for more details and a new annotated daily graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/9/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$31.35 +0.08
0.26%

$31.96

12,800,244
91.81% of 50 DAV
50 DAV is 13,941,900
$32.50
-3.54%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 7/10/2012 5:02:53 PM
Y - Still consolidating in a tight range near its 52-week high, holding ground above its pivot point. No overhead supply remains to act as resistance and it is still trading below its "max buy" level.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/11/2012. Click here.

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CSTR - NASDAQ
Coinstar Inc
DIVERSIFIED SERVICES - Personal Services  
$67.00 -1.93
-2.80%

$70.07

1,175,907
110.75% of 50 DAV
50 DAV is 1,061,800
$71.82
-6.71%
6/26/2012 $64.05 PP = $67.00
MB = $70.35
Most Recent Note - 7/10/2012 4:50:49 PM
Y - Pulled back today to its pivot point with slightly higher volume behind its 3rd consecutive loss. Disciplined investors always limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/26/2012. 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
DG - NYSE
Dollar General Corp
RETAIL - Discount, Variety Stores  
$55.60 +0.74
1.35%

$56.04

3,324,296
87.61% of 50 DAV
50 DAV is 3,794,500
$55.30
0.54%
5/7/2012 $48.51 PP = $47.69
MB = $50.07
Most Recent Note - 7/5/2012 4:00:34 PM
G - Posted a small gain today with average volume, hovering near its all-time high, extended from its prior base. Completed another Secondary Offering on 6/05/12, its 4th Secondary Offering since September '11.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/12/2012. Click here.

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ECHO - NASDAQ
Echo Global Logistics
DIVERSIFIED SERVICES - Business/Management Services  
$19.00 +0.11
0.58%

$19.04

164,895
142.77% of 50 DAV
50 DAV is 115,500
$19.48
-2.46%
6/22/2012 $18.98 PP = $19.48
MB = $20.45
Most Recent Note - 7/10/2012 4:46:14 PM
Y - Posted a 4th consecutive gain today with higher volume and closed near the session high. Recent volume-driven gains were followed by a gap down on 7/03/12 with higher volume after not quite triggering a technical buy signal under the fact-based system.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/22/2012. Click here.

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EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$45.72 -1.75
-3.69%

$48.58

4,956,644
108.23% of 50 DAV
50 DAV is 4,579,800
$50.66
-9.75%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 7/10/2012 4:44:04 PM
G - Slumped with higher volume today for its 5th consecutive loss, testing important support at its 50 DMA line. It is extended from its prior highs in the $43 area which define support below that important short-term average.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/10/2012. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$39.89 -2.05
-4.89%

$42.29

3,355,836
142.14% of 50 DAV
50 DAV is 2,361,000
$42.70
-6.58%
6/29/2012 $39.20 PP = $40.00
MB = $42.00
Most Recent Note - 7/10/2012 4:40:50 PM
Y - Color code is changed to yellow after today's loss with higher volume led to a pullback just under its pivot point. Disciplined investors always limit losses if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/5/2012. Click here.

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GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$17.84 +0.05
0.28%

$18.31

36,447
63.28% of 50 DAV
50 DAV is 57,600
$18.99
-6.06%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 7/9/2012 4:54:04 PM
Y - Today's 3rd consecutive loss on lighter volume undercut prior highs and led to a finish back below its old high close. The damaging loss completely negated the recent breakout and raised concerns while closing near the session low.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/6/2012. 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
MLNX - NASDAQ
Mellanox Technologies
ELECTRONICS - Semiconductor - Broad Line  
$69.03 -4.37
-5.95%

$74.92

1,395,664
238.58% of 50 DAV
50 DAV is 585,000
$77.69
-11.15%
6/18/2012 $70.90 PP = $67.30
MB = $70.67
Most Recent Note - 7/10/2012 12:30:05 PM
G - Pulling back for a 3rd consecutive loss today, retreating from its all-time high after getting extended from its prior base with a spurt of volume-driven gains. Recent chart lows define important support to watch nearly coinciding with its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$50.08 -1.08
-2.11%

$52.11

765,844
136.59% of 50 DAV
50 DAV is 560,700
$56.06
-10.67%
6/20/2012 $51.83 PP = $51.88
MB = $54.47
Most Recent Note - 7/10/2012 4:52:56 PM
Y - Above average volume was behind today's 4th consecutive damaging loss. It undercut its pivot point and negated its recent breakout raising concerns. Disciplined investors always limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/20/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$24.30 -0.30
-1.22%

$24.78

486,985
62.13% of 50 DAV
50 DAV is 783,800
$24.72
-1.70%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 7/9/2012 4:57:51 PM
G - Hit yet another new 52-week high today with lighter volume behind an 8th consecutive gain, getting more extended from its prior base. Prior highs in the $20 area define important support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/27/2012. Click here.

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NTES - NASDAQ
Netease Inc Adr
INTERNET - Internet Information Providers  
$57.91 -0.78
-1.33%

$59.02

819,424
111.88% of 50 DAV
50 DAV is 732,400
$65.54
-11.64%
3/19/2012 $56.18 PP = $55.10
MB = $57.86
Most Recent Note - 7/9/2012 4:59:39 PM
G - Sank below its 50 DMA line with today's loss on lighter volume again hurting its technical stance. Chart support to watch is near prior lows in the $55 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/19/2012. Click here.

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SXCI - NASDAQ
S X C Health Solutions
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$93.02 -1.96
-2.06%

$96.81

1,441,628
121.27% of 50 DAV
50 DAV is 1,188,800
$104.79
-11.23%
6/14/2012 $94.71 PP = $100.60
MB = $105.63
Most Recent Note - 7/10/2012 4:57:32 PM
Y - Ended near the session low today, testing its 50 DMA line with its 6th consecutive small loss. Churning above average volume recently while not making headway above its pivot point. Reversed and closed in the red after trading up on a few prior sessions, and the "negative reversals" were noted as signs of distributional pressure.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/14/2012. 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
TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$130.03 -0.93
-0.71%

$133.89

216,573
39.60% of 50 DAV
50 DAV is 546,900
$136.34
-4.63%
6/18/2012 $127.00 PP = $132.79
MB = $139.43
Most Recent Note - 7/10/2012 4:59:03 PM
Y - Reversed early gains today and closed near the session low with a loss on light volume. It has held its ground since recently noted when its 6/29/12 gain above its pivot point was backed by only +32% above average volume, below the minimum threshold need to trigger a proper new (or add-on) technical buy signal. Its 50 DMA line defines important support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/18/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$20.84 -0.12
-0.57%

$21.61

365,304
67.94% of 50 DAV
50 DAV is 537,700
$23.05
-9.59%
6/27/2012 $21.70 PP = $23.15
MB = $24.31
Most Recent Note - 7/10/2012 5:00:40 PM
Y - Sputtering near its 50 DMA line with a 4th consecutive loss today on light volume. Gains above the pivot point backed by +40% above average volume or greater could trigger a new technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/28/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$57.14 +0.40
0.70%

$58.22

560,274
109.36% of 50 DAV
50 DAV is 512,300
$57.52
-0.65%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 7/9/2012 4:49:33 PM
Y - Gain today with near average volume led to a finish near its 52-week high. Recent gains helped it trade above the new pivot point based on its 6/22/12 high after forming an 8-week cup-with-handle base, but the gains have lacked the volume required to trigger a proper new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/2/2012. Click here.

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WFM - NASDAQ
Whole Foods Market Inc
RETAIL - Grocery Stores  
$95.12 +1.00
1.06%

$95.75

1,828,474
90.90% of 50 DAV
50 DAV is 2,011,500
$97.25
-2.19%
6/13/2012 $89.90 PP = $91.60
MB = $96.18
Most Recent Note - 7/5/2012 1:12:05 PM
G - Color code is changed to green after inching above its "max buy" level. Recently hovering near its 52-week high with no resistance remaining due to overhead supply. Its prior highs in the $91.50 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 6/13/2012. Click here.

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