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AFTER MARKET UPDATE - TUESDAY, JULY 31ST, 2012
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Indices NYSE Nasdaq
DOW  -64.33 13,008.68 -0.49% Volume 887,918,780 +35% Volume 1,729,926,330 +20%
NASDAQ -6.32 2,939.52 -0.21% Advancers 1,234 39% Advancers 1,022 39%
S&P 500 -5.98 1,379.32 -0.43% Decliners 1,779 57% Decliners 1,466 56%
Russell 2000 -4.64 786.94 -0.59% 52 Wk Highs 177   52 Wk Highs 53  
S&P 600 -1.81 441.72 -0.41% 52 Wk Lows 24   52 Wk Lows 55  

Major Averages Finish Down With Volume Ticking Higher

The major averages ended near Tuesday's session lows. The volume totals were reported higher on the NYSE and on the Nasdaq exchange versus the prior session totals.  Declining issues led advancing issues by about a 3-2 margin on the NYSE and by about 2-1 on the Nasdaq exchange. The total number of new 52-week highs led new 52-week lows on the NYSE, but new lows held a small lead on the Nasdaq exchange. There were 48 high-ranked companies from the CANSLIM.net Leaders List made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, matching the prior session total of 48 stocks. The expansion in leadership coupled with the major indices' volume-driven and sizable gains was an encouraging shift concerning the M criteria.  There were gains for 6 of the 15 high-ranked companies currently included on the Featured Stocks Page.

 

Investors overlooked a batch of encouraging economic reports ahead of policy decisions from the U.S. Fed and the ECB. Housing data showed improvement as the S&P/Case-Shiller Home Price Index posted the smallest year-over-year decline since September 2010. Gauges on the consumer were also better than expected. Consumer confidence increased for the first time in five months and June personal income rose +0.5% while consumer spending was unchanged. The Chicago PMI also bested expectations as the pace of business activity rose in July to its highest level since April.

Despite the positive data, investors remained cautious and turned to the defensive characteristics of telecom with AT&T Inc (T +1.31%). On the downside, consumer discretionary stocks lost ground led by a drop in Coach Inc (COH -18.57%) shares after the company posted weak fourth-quarter sales results. Energy also gave up ground due to a retreat in crude oil prices and as BP PLc (BP -4.59%) posted a disappointing profit tally leading its shares to decline.

In bondland, Treasuries finished higher with the 10-year note up 8/32 to yield 1.47%.

In terms of the M criteria, last week's gains brought technical improvements to the major indices' trend coupled with an expansion in leadership (stocks hitting new 52-week highs).  Any sustainable rally requires a healthy crop of strong leaders hitting new 52-week highs.

Earnings season has led numerous stocks to experience greater than usual daily volume and greater price volatility which can surprise and frustrate investors. ALWAYS do your best to limit losses by first making only disciplined entries, then quickly limiting losses if any stock ever falls more than -7% from the purchase price. 

In August we will begin providing all currently upgraded members access to new monthly webcasts!  A new "Market's Leading Groups" archives tab will also soon be added on the Premium Member Homepage. These changes are aimed at satisfying member requests and improving the service.  If you have questions, comments or suggestions please let us know via the inquiry form here.  The most recent WEBCAST (Q2 2012) is available "ON DEMAND" - CLICK HERE

PICTURED: The S&P 500 Index ended Tuesday's session with a small loss on higher volume. Last week it rallied from support at its 50-day moving average (DMA) line with volume-driven gains.


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.


Defensive, Energy, Retail, and Financial Groups Fell

Defensive and commodity-linked groups lagged on Tuesday as the Healthcare Index ($HMO -2.70%), Gold & Silver Index ($XAU -1.90%), and energy-related groups including Oil Services Index ($OSX -2.19%) and Integrated Oil Index ($XOI -1.20%)  the lost ground. The Networking Index ($NWX +1.66%) and Semiconductor Index ($SOX +0.82%) were bright spots while other tech indexes including the Biotechnology Index ($BTK -2.08%) and the Internet Index ($IIX -0.46%) lost ground. Weakness from the Retail Index ($RLX -1.75%) and losses in financial shares were a negative influience on the major averages as the Broker/Dealer Index ($XBD -1.31%) and Bank Index ($BKX -0.44%) ended lower.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX -1.75%) is consolidating above its 50-day moving average (DMA) line.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  216.65 -4.85 -2.19% +0.17%
Healthcare $HMO  2,273.76 -63.21 -2.70% -0.34%
Integrated Oil $XOI  1,196.76 -14.49 -1.20% -2.63%
Semiconductor $SOX  383.72 +3.11 +0.82% +5.29%
Networking $NWX  196.40 +3.21 +1.66% -8.72%
Internet $IIX  302.37 -1.41 -0.46% +7.32%
Broker/Dealer $XBD  82.03 -1.09 -1.31% -1.49%
Retail $RLX  618.52 -10.99 -1.75% +18.22%
Gold & Silver $XAU  150.90 -2.92 -1.90% -16.46%
Bank $BKX  45.52 -0.20 -0.44% +15.59%
Biotech $BTK  1,456.09 -30.92 -2.08% +33.41%


Trading Near High After Forming Handle

Rentech Nitrogen Ptnr LP (RNF +$0.24 or +0.80% to $30.37) is still perched near its high today. In the 7/27/12 mid-day report it was highlighted again in yellow with new pivot point cited based upon its 7/17/12 high while noted - "Subsequent volume-driven gains above the pivot may trigger a technical buy signal, meanwhile it is ideal for investors to have on their watchlist. Rebounding toward its 52-week high while working on a cup-with-high handle base pattern. Fundamentals remain strong. Rebounded impressively from a deep consolidation below its 50 DMA line. It was dropped from the Featured Stocks list on 5/10/12 due to damaging technical action."

There are 42 top-rated funds of of Jun '11 that own an interest in its shares, and concerning the I criteria, its current Up/Down Volume Ratio of 1.6 is an unbiased indication that its shares have been under accumulation over the past 50 days. Without confirming gains with at least +40% above average volume while rising above its pivot point, however, disciplined investors would continue to wait for proof of fresh institutional buying demand before taking action. That kind of action is always reassuring but no guarantee that a stock will go on to produce great gains, so disciplined investors always limit losses if any stock falls more than -7% from its purchase price.



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  
$104.59 -4.38
-4.02%

$109.90

2,138,926
91.99% of 50 DAV
50 DAV is 2,325,200
$109.96
-4.88%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 7/30/2012 3:58:47 PM
G - Down today with below average volume, pulling back near prior highs. Reported earnings +62% on +48% sales revenues for the quarter ended June 30, 2012 versus the year ago period.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/25/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$77.49 +3.56
4.82%

$79.20

265,165
201.80% of 50 DAV
50 DAV is 131,400
$76.40
1.43%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 7/30/2012 11:56:10 AM
G - Hitting a new 52-week high today following a brief consolidation, getting more extended from its prior base. Recent low and its 50 DMA line define near-term support to watch. Reported earnings +117% on +55% sales revenues for the quarter ended June 30, 2012 versus the year ago period.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/3/2012. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$12.76 -0.21
-1.62%

$13.04

22,525
27.91% of 50 DAV
50 DAV is 80,700
$13.21
-3.41%
7/20/2012 $12.85 PP = $12.41
MB = $13.03
Most Recent Note - 7/26/2012 5:05:24 PM
Y - Today was its best volume-driven gain above its pivot point thus far. It encountered distributional pressure after featured in the 7/20/12 mid-day report. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/26/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$32.21 -0.08
-0.23%

$32.56

9,696,272
71.95% of 50 DAV
50 DAV is 13,475,700
$32.78
-1.74%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 7/25/2012 5:55:05 PM
Y - Volume totals have been quiet or average while recently holding its 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 7/11/2012. Click here.

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DG - NYSE
Dollar General Corp
RETAIL - Discount, Variety Stores  
$50.95 -0.04
-0.08%

$51.64

3,375,873
83.96% of 50 DAV
50 DAV is 4,020,800
$56.04
-9.08%
7/16/2012 $54.68 PP = $56.14
MB = $58.95
Most Recent Note - 7/25/2012 5:57:33 PM
Y - Gapped down today for as loss but rebounded to finish near the session high and closed just above its 50 DMA line after encountering distributional pressure. It did not register volume-driven gains above its new pivot point to trigger a new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2012. 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
EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$56.12 +1.22
2.22%

$56.68

5,274,353
131.60% of 50 DAV
50 DAV is 4,007,800
$58.40
-3.90%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 7/30/2012 12:15:13 PM
G - Holding its ground today following a considerable gap up gain on 7/27/12 for a new 52-week high from below its 50 DMA line. Reported earnings +24% on +14% sales revenues for the quarter ending June 30, 2012 versus the year ago period, just below the +25% minimum earnings guideline for buy candidates.
>>> 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  
$39.27 +1.06
2.77%

$39.31

2,404,322
96.09% of 50 DAV
50 DAV is 2,502,100
$42.70
-8.03%
6/29/2012 $39.20 PP = $40.00
MB = $42.00
Most Recent Note - 7/30/2012 4:01:34 PM
Y - Color code is changed to yellow again while trading up above its 50 DMA line today. Reported earnings +59% on +19% sales revenues for the quarter ended June 30, 2012 versus the year ago period, beating expectations, and it also raised guidance for FY '12. 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  
$17.46 -0.34
-1.91%

$18.00

30,799
56.31% of 50 DAV
50 DAV is 54,700
$18.99
-8.06%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 7/26/2012 3:50:30 PM
Y - Volume totals have been cooling while consolidating above its 50 DMA line. Recent losses completely negated the prior breakout and raised concerns. Disciplined investors always limit losses by selling any stock if it falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/6/2012. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$34.43 +0.08
0.23%

$35.51

968,906
98.02% of 50 DAV
50 DAV is 988,500
$35.98
-4.31%
7/27/2012 $33.91 PP = $34.83
MB = $36.57
Most Recent Note - 7/27/2012 5:13:32 PM
Y - Reported earnings +35% on +34% sales revenues for the quarter ended June 30, 2012 versus the year ago period. It was highlighted in yellow with new pivot point based on its 7/10/12 high in the mid day report (read here). No resistance remains due to overhead supply. It tried to rally from a 6-month cup-with-handle base pattern but finished below its pivot point today while posting a considerable gain with more than 2 times average volume. Subsequent volume-driven gains above its pivot may trigger a technical buy signal. It went through a deep consolidation below its 200 DMA line then rebounded impressively since dropped from the Featured Stocks list on 3/02/12. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/27/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$56.22 -0.73
-1.28%

$57.76

796,199
128.07% of 50 DAV
50 DAV is 621,700
$58.56
-4.00%
6/20/2012 $51.83 PP = $51.88
MB = $54.47
Most Recent Note - 7/27/2012 12:30:25 PM
G - Gapped up and hit a new 52-week high today after finding support at its 50 DMA line. Color code was changed to green after rallying well above its "max buy" level. Reported earnings +200% on +29% sales revenues for the quarter ended June 30, 2012 versus the year ago period.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2012. 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
NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$22.30 +0.40
1.83%

$22.88

559,236
68.80% of 50 DAV
50 DAV is 812,900
$25.11
-11.19%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 7/27/2012 1:18:45 PM
Y - Color code is changed to yellow while pulling back under its "max buy" level today with a 4th consecutive loss since proposing an Offering of $100 million of Senior Notes. Prior highs and its 50 DMA line 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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RNF - NYSE
Rentech Nitrogen Ptnr Lp
CHEMICALS - Agricultural Chemicals  
$30.13 +0.53
1.79%

$31.23

645,057
197.39% of 50 DAV
50 DAV is 326,800
$31.34
-3.86%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 7/30/2012 12:46:59 PM
Y - Pulling back from earlier highs above its pivot point following a gap up gain today. In the 7/27/12 mid-day report it was highlighted again in yellow with new pivot point cited based upon its 7/17/12 high while noted -"Subsequent volume-driven gains above the pivot may trigger a technical buy signal, meanwhile it is ideal for investors to have on their watchlist. Rebounding toward its 52-week high while working on a cup-with-high handle base pattern. Fundamentals remain strong. Rebounded impressively from a deep consolidation below its 50 DMA line. It was dropped from the Featured Stocks list on 5/10/12 due to damaging technical action."

>>> The latest Featured Stock Update with an annotated graph appeared on 5/2/2012. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$53.41 -0.03
-0.06%

$53.95

1,026,725
92.03% of 50 DAV
50 DAV is 1,115,700
$53.97
-1.04%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 7/30/2012 6:18:32 PM
G - Paused today following 3 consecutive volume-driven gains for new all-time highs. Prior highs in the $48 area define initial 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 7/30/2012. Click here.

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$120.88 -0.75
-0.62%

$121.72

307,164
62.61% of 50 DAV
50 DAV is 490,600
$136.34
-11.34%
6/18/2012 $127.00 PP = $132.79
MB = $139.43
Most Recent Note - 7/25/2012 5:51:08 PM
G - Held its ground today following a damaging loss on 7/24/12 with heavy volume that violated its 50 DMA line triggering a technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/18/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$57.81 -0.60
-1.03%

$58.55

217,508
59.20% of 50 DAV
50 DAV is 367,400
$58.88
-1.82%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 7/26/2012 12:50:18 PM
Y - Erased most of today's early gain after touching a new high and briefly trading above its "max buy" level. Found support at its 50 DMA line this week, but any damaging violation would raise concerns and trigger a technical sell signal. Recent gains after forming an 8-week cup-with-handle base 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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C A N S L I M   Daily Graphs Online Stock Checkup IBD Graphs
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

THESE ARE NOT BUY RECOMMENDATIONS!  Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. This site is not an investment advisor, hence it does not endorse or recommend any securities or other investments. 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. All trademarks, service marks and trade names appearing in this report are the property of their respective owners, and are likewise used for identification purposes only.

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Kenneth J. Gruneisen founded Gruneisen Growth Corp. (2003), which prior to May 11, 2015, operated CANSLIM.net and CANSLIM.com both under license from Data Analysis Inc. / Investor's Business Daily. Kenneth has passed the CAN SLIM® Master's Exam. Gruneisen Growth Corp. now continues over two decades of fact based market analysis via FactBasedInvesting.com.

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