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AFTER MARKET UPDATE - WEDNESDAY, AUGUST 7TH, 2013
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Indices NYSE Nasdaq
DOW  -48.07 15,470.67 -0.31% Volume 628,918,140 -4% Volume 1,618,842,970 +9%
NASDAQ -11.76 3,654.01 -0.32% Advancers 901 29% Advancers 817 32%
S&P 500 -6.46 1,690.91 -0.38% Decliners 2,098 67% Decliners 1,663 64%
Russell 2000 -7.80 1,044.34 -0.74% 52 Wk Highs 56   52 Wk Highs 90  
S&P 600 -3.93 588.91 -0.66% 52 Wk Lows 173   52 Wk Lows 24  

Breadth Negative While Leadership Contracts

The major averages finished lower on Wednesday, albeit off their worst levels. The volume totals were reported mixed, higher than the prior session total on the Nasdaq exchange and lower on the NYSE. Breadth was negative as decliners led advancers by greater than 2-1 on the Nasdaq exchange and on the NYSE.  There were 22 high-ranked companies from the CANSLIM.net Leaders List made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, down abruptly from the prior session total of 72 stocks. The list of stocks hitting new 52-week highs continued to contract yet still outnumbered new 52-week lows on the Nasdaq exchange, however new lows outnumbered new highs on the NYSE for the 2nd consecutive session. There were gains for only 3 of the 18 high-ranked companies currently included on the Featured Stocks Page.

  

Equities were lower from the opening bell on fears the Fed may be closer to reducing their bond purchases. Concerns resurfaced late Tuesday after regional Fed Presidents Lockhart and Evans said the central bank would likely start tapering as early as September.

Eight of the 10 sectors on the S&P finished in the red. Financials were one of the worst performing groups while Bank of America Corp (BAC -0.75%) led the decline. On the earnings front, The Walt Disney Company (DIS -1.7%) fell after the company's weaker-than-expected revenue report. Also on the downside, Ralph Lauren Corp (RL -8.64%) fell despite posting in-line earnings and reaffirming its revenue forecast.

Turning to fixed income markets, Treasuries ended higher along the curve. The benchmark 10-year note was up 3/8 of a point to yield 2.60% and the 30-year bond added 3/4 of a point to yield 3.69%.

The market (M criteria) has endured a number of distributional sessions yet remains in a confirmed rally.  For any rally to be sustained it is absolutely crucial to have a healthy crop of new leaders, so it would be most favorable to see the list of stocks hitting new highs and appearing on the BreakOuts Page continue to include many companies.  A recent evaporation of leadership is enough to raise concerns, and during these times individual holding should be closely monitored for any worrisome technical sell signals. 

Stay familiar with companies listed on the CANSLIM.net Featured Stocks Page - a page showing the most action-worthy candidates' latest notes and links to additional resources including detailed analysis with data-packed graphs which are annotated by a Certified expert.  The Premium Member Homepage - includes "dynamic archives" to all prior pay reports published. Watch for an announcement via email concerning the next WEBCAST.

PICTURED: The S&P 500 Index is consolidating near prior highs and up +18.5% year-to-date.


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.


Retail Index Fell Most Amid Widespread Weakness

The Retail Index ($RLX -1.29%) pulled back and was a negative influence on the major averages and weakness in finanical shares also was a factor as the Bank Index ($BKX -0.94%) and Broker/Dealer Index ($XBD -0.35%) both edged lower. The tech sector saw losses from the Semiconductor Index ($SOX -0.95%), Biotechnology Index ($BTK -0.69%), and the Internet Index ($IIX -0.51%) while the Networking Index ($NWX +0.20%) eked out a small gain. Commodity-liniked groups had a slightlyu negative bias as the Gold & Silver Index ($XAU -0.37%) and the Integrated Oil Index ($XOI -0.42%) fell and the Oil Services Index ($OSX -0.08%) finished flat.  The Healthcare Index ($HMO +0.23%) eked out a small gain, bucking the mostly negative bias in the broader market.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX -1.29%) is consolidating well above prior highs and its 50-day moving average (DMA) line.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  262.75 -0.22 -0.08% +19.35%
Healthcare $HMO  3,402.21 +7.82 +0.23% +35.32%
Integrated Oil $XOI  1,374.08 -5.75 -0.42% +10.65%
Semiconductor $SOX  474.12 -4.56 -0.95% +23.45%
Networking $NWX  291.80 +0.59 +0.20% +28.80%
Internet $IIX  405.88 -2.06 -0.51% +24.12%
Broker/Dealer $XBD  134.13 -0.47 -0.35% +42.19%
Retail $RLX  836.47 -10.91 -1.29% +28.08%
Gold & Silver $XAU  88.51 -0.33 -0.37% -46.55%
Bank $BKX  65.40 -0.62 -0.94% +27.54%
Biotech $BTK  2,115.77 -14.66 -0.69% +36.76%


Found Prompt Support After Undercutting 50-Day Average

Bitauto Hldgs Ltd Ads (BITA -$0.13 or -1.07% to $12.00) was highlighted in yellow with pivot point based on its 5/08/13 high plus 10 cents in the earlier mid-day report (read here). It found prompt support after undercutting its 50-day moving average (DMA) line following today's gap down. This China-based Internet-Content firm is due to report Second Quarter 2013 financial results before the open on Thursday, August 8, 2013. Volume and volatility often increase near earnings news.

BITA churned above average volume without making price progress on the right side of its choppy 13-week base pattern, a sign of distributional pressure. Volume driven gains are needed to to trigger a technical buy signal.

Quarterly and annual earnings (C and A criteria) history through Mar '13 has been strong. Its small supply (S criteria) of only 13.9 million shares in the public float can contribute to great volatility in the event of institutional buying or selling. There are 23 top-rated mutual funds that currently own an interest in the company, a reassuring sign concerning the I criteria. Its Up/Down Volume Ratio of 1.5 is an unbiased indication that its shares have been under accumulation over the past 50 days.


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
AMBA - NASDAQ
Ambarella Inc
ELECTRONICS - Semiconductor - Specialized  
$15.95 -0.10
-0.62%

$16.13

779,088
66.98% of 50 DAV
50 DAV is 1,163,200
$19.44
-17.95%
7/15/2013 $17.87 PP = $18.68
MB = $19.61
Most Recent Note - 8/6/2013 4:33:09 PM
G - Slumped further below its 50 DMA line which acted as resistance following the technical violation which triggered a sell signal last week. A rebound above that important short-term average would help its outlook improve.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/17/2013. Click here.

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BITA - NYSE
Bitauto Hldgs Ltd Ads
INTERNET - Internet Information Providers  
$12.00 -0.13
-1.07%

$12.09

153,350
154.90% of 50 DAV
50 DAV is 99,000
$13.20
-9.09%
8/7/2013 $12.01 PP = $13.30
MB = $13.97
Most Recent Note - 8/7/2013 6:08:37 PM
Y - Highlighted in yellow with pivot point based on its 5/08/13 high plus 10 cents in the earlier mid-day report (read here). This China-based Internet-Content firm is due to report Second Quarter 2013 financial results before the open on Thursday, August 8, 2013. Found prompt support after undercutting its 50 DMA line following today's gap down. Churned above average volume without making price progress on the right side of its choppy 13-week base pattern, a sign of distributional pressure. Quarterly and annual earnings (C and A criteria) history through Mar '13 has been strong. Its small supply (S criteria) of only 14.4 million shares in the public float can contribute to great volatility in the event of institutional buying or selling. Volume driven gains are needed to to trigger a technical buy signal. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/7/2013. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$142.65 +0.91
0.64%

$144.11

2,812,122
97.82% of 50 DAV
50 DAV is 2,874,800
$149.92
-4.85%
7/11/2013 $133.25 PP = $131.92
MB = $138.52
Most Recent Note - 8/6/2013 4:14:26 PM
G - Retreated from its 52-week and all-time highs with near average but higher volume today. Extended from its prior base and support at old highs in the $131 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/29/2013. Click here.

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FLT - NYSE
Fleetcor Technologies
DIVERSIFIED SERVICES - Business/Management Services  
$97.94 -0.25
-0.25%

$98.50

409,865
56.60% of 50 DAV
50 DAV is 724,200
$100.87
-2.90%
5/29/2013 $86.02 PP = $85.66
MB = $89.94
Most Recent Note - 8/2/2013 12:47:14 PM
G- Reported earnings +37% on +29% sales revenues for the Jun '13 quarter. Finally making meaningful progress after forming a new late-stage base, it finished strong on the prior session and gapped up today hitting new 52-week and all-time highs with a 3rd consecutive gain backed by above average volume. Found support near its 50 DMA during its latest consolidation.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/18/2013. Click here.

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GNRC - NYSE
Generac Hldgs Inc
CONSUMER DURABLES - Electronic Equipment  
$41.76 -0.45
-1.07%

$42.15

734,963
60.69% of 50 DAV
50 DAV is 1,211,100
$44.30
-5.73%
7/30/2013 $42.60 PP = $42.10
MB = $44.21
Most Recent Note - 8/2/2013 12:49:56 PM
Y - Gapped down today after pricing a Secondary Offering. It recently rallied from an advanced "3-weeks tight" base. Disciplined investors always limit losses by selling if any stock falls more than -7% from its purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/30/2013. 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
KORS - NYSE
Michael Kors Hldgs Ltd
RETAIL - Apparel Stores  
$69.53 -0.86
-1.22%

$70.53

3,125,411
78.06% of 50 DAV
50 DAV is 4,004,100
$71.50
-2.76%
8/6/2013 $69.66 PP = $66.28
MB = $69.59
Most Recent Note - 8/6/2013 6:24:08 PM
Y - Hit new 52-week and all-time highs with today's considerable gain backed by 4 times average volume clinching a technical buy signal while quickly rallying to a finish above its "max buy" level. It was highlighted in yellow with pivot point based on its 5/30/13 high plus 10 cents in the earlier mid-day report (read here). Relative Strength rating is currently 78, slightly below the 80+ minimum guideline for buy candidates. It has maintained high ranks due to its strong earnings history (meeting C and A criteria) including earnings +79% on +54% sales for the Jun '13 quarter just reported. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2013. Click here.

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LOPE - NASDAQ
Grand Canyon Education
DIVERSIFIED SERVICES - Education and; Training Services  
$35.50 -0.28
-0.78%

$36.00

364,824
83.66% of 50 DAV
50 DAV is 436,100
$37.17
-4.49%
6/19/2013 $31.47 PP = $34.17
MB = $35.88
Most Recent Note - 7/30/2013 6:37:23 PM
Y - Reported its second quarter results following today's market close after enduring mild distributional pressure near its 52-week high. Finished still perched above its pivot point and below its "max buy" level. Prior highs in the $34 area define support along with its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2013. Click here.

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PCLN - NASDAQ
Priceline.Com Inc
INTERNET - Internet Software and Services  
$927.58 -7.80
-0.83%

$932.72

869,634
132.61% of 50 DAV
50 DAV is 655,800
$940.00
-1.32%
7/8/2013 $878.28 PP = $847.43
MB = $889.80
Most Recent Note - 8/7/2013 1:31:08 PM
G - Hovering near its 52-week high, extended from any sound base. Due to report earnings August 8th. Its 50 DMA line and prior highs in the $847 area define important support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/25/2013. Click here.

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PRAA - NASDAQ
Portfolio Recovery Assoc
DIVERSIFIED SERVICES - Business/Management Services  
$50.55 -1.20
-2.32%

$51.75

573,388
142.35% of 50 DAV
50 DAV is 402,800
$54.62
-7.46%
7/31/2013 $51.43 PP = $54.72
MB = $57.46
Most Recent Note - 8/7/2013 5:45:00 PM
Y - Pulled back today with above average volume, slumping near its 50 DMA line. Recently rallied above its 50 DMA line with volume-driven gain but it has not triggered a proper technical buy signal since returning to the Featured Stocks list highlighted in yellow with new pivot point cited based on its 6/17/13 high plus 10 cents in the 7/31/13 mid-day report (read here) with caution - "It faces some resistance and needs additional volume-driven gains to trigger a proper new technical buy signal. Reported earnings +37% on +24% sales revenues for the Jun '13 quarter. Showing resilience since dropped from the Featured Stocks list on 7/10/13 due to technical weakness."
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2013. Click here.

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PRLB - NYSE
Proto Labs Inc
MANUFACTURING - Small Tools and Accessories  
$63.44 -2.59
-3.92%

$65.86

748,164
157.54% of 50 DAV
50 DAV is 474,900
$72.08
-11.99%
7/29/2013 $64.86 PP = $67.50
MB = $70.88
Most Recent Note - 8/7/2013 5:40:31 PM
Y - Slumped on lighter but still above average volume today, testing support near its 50 DMA line and prior lows again after making only limited progress above prior highs and encountering recent distributional pressure. Disciplined investors always limit losses if any stock falls more than -7% from their purchase price. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/5/2013. 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
QCOR - NASDAQ
Questcor Pharmaceuticals
DRUGS - Biotechnology  
$64.56 -1.51
-2.29%

$66.85

1,197,232
56.19% of 50 DAV
50 DAV is 2,130,800
$70.55
-8.49%
7/31/2013 $66.46 PP = $59.01
MB = $61.96
Most Recent Note - 8/7/2013 5:41:53 PM
G - Pulling back with lighter volume totals after an impressive streak of volume-driven gains. Quickly got extended beyond its "max buy" level after highlighted in yellow in the 7/31/13 mid-day report (read here) with a weekly graph which illustrated its powerful long-term breakout to new highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/1/2013. Click here.

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RRTS - NYSE
Roadrunner Trans Systems
TRANSPORTATION - Air Delivery and Freight Service  
$29.81 -0.45
-1.49%

$30.23

74,286
52.91% of 50 DAV
50 DAV is 140,400
$30.98
-3.79%
4/3/2013 $22.77 PP = $23.75
MB = $24.94
Most Recent Note - 8/6/2013 4:19:53 PM
G - Hovering near its 52-week high, technically extended from any sound base. Fundamentally, it reported earnings +19% on +26% in the Jun '13 quarter, raising more concerns with its 2nd consecutive quarterly comparison with earnings increasing below the +25% minimum guideline (C criteria).
>>> The latest Featured Stock Update with an annotated graph appeared on 7/22/2013. Click here.

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SFUN - NYSE
Soufun Hldgs Ltd Ads A
INTERNET - Internet Information Providers  
$34.91 +0.06
0.17%

$35.70

399,100
112.01% of 50 DAV
50 DAV is 356,300
$36.43
-4.17%
7/16/2013 $29.54 PP = $27.90
MB = $29.30
Most Recent Note - 8/1/2013 12:55:58 PM
G - Extended from its latest base following volume-driven gains. Prior highs in the $28-29 area define initial support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/16/2013. Click here.

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SSNC - NASDAQ
S S & C Technologies
COMPUTER SOFTWARE and SERVICES - Application Software  
$35.27 -0.37
-1.04%

$35.59

831,665
207.19% of 50 DAV
50 DAV is 401,400
$38.80
-9.10%
7/11/2013 $35.80 PP = $34.54
MB = $36.27
Most Recent Note - 8/7/2013 1:36:10 PM
Y - Rebounded from earlier lows as it found prompt support after undercutting its 50 DMA line with today's loss on above average volume. Prior highs in the $34 area also help define important near-term support. Disciplined investors always limit losses if ever any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/12/2013. Click here.

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SSYS - NASDAQ
Stratasys Ltd
COMPUTER HARDWARE - Computer Peripherals  
$86.16 -0.86
-0.99%

$87.12

1,045,933
143.32% of 50 DAV
50 DAV is 729,800
$96.44
-10.66%
7/8/2013 $91.44 PP = $95.00
MB = $99.75
Most Recent Note - 8/6/2013 4:22:04 PM
Y - Fell on higher but below average volume today, slumping near its 50 DMA line and a prior low ($85.95 on 7/24/13) defining important near-term support to watch. More damaging losses could raise greater concerns and trigger worrisome technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/24/2013. 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
STMP - NASDAQ
Stamps.Com Inc
INTERNET - Internet Software and Services  
$39.65 -0.65
-1.61%

$40.30

161,189
112.17% of 50 DAV
50 DAV is 143,700
$46.47
-14.68%
7/31/2013 $40.00 PP = $42.98
MB = $45.13
Most Recent Note - 8/6/2013 4:24:51 PM
Y - Encountered more distributional pressure with today's 3rd consecutive loss on higher above average volume while slumping toward its 50 DMA line. Disciplined investors limit losses if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/31/2013. Click here.

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VRX - NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$97.59 +1.87
1.95%

$97.70

2,001,093
108.48% of 50 DAV
50 DAV is 1,844,700
$97.02
0.59%
4/30/2013 $60.24 PP = $76.66
MB = $80.49
Most Recent Note - 8/6/2013 4:30:21 PM
Y- Hovering near its 52-week high after wedging higher with recent gains lacking great volume conviction while rising from a 9-week cup-with-handle base. Due to report Q2 results before the open on August 7, 2013, and volume and volatility often increase near earnings news. No new pivot point has been cited while members were repeatedly cautioned - "Concerns were raised by its Mar '13 earnings report with only a +14% earnings increase, below the +25% minimum guideline (C criteria) for buy candidates."
>>> The latest Featured Stock Update with an annotated graph appeared on 7/23/2013. Click here.

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YNDX - NASDAQ
Yandex N V Class A
INTERNET - Internet Information Providers  
$32.76 -0.59
-1.77%

$32.94

1,564,588
62.86% of 50 DAV
50 DAV is 2,489,100
$34.27
-4.41%
7/10/2013 $29.29 PP = $29.59
MB = $31.07
Most Recent Note - 8/6/2013 4:31:29 PM
G - Holding its ground stubbornly near its 52-week high with small losses on light volume following volume-driven gains into new high territory. Prior highs in the $28-29 area define near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/26/2013. Click here.

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