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AFTER MARKET UPDATE - THURSDAY, AUGUST 16TH, 2012
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Indices NYSE Nasdaq
DOW  +85.33 13,250.11 +0.65% Volume 595,979,550 +20% Volume 1,886,425,670 +27%
NASDAQ +31.46 3,062.39 +1.04% Advancers 2,167 69% Advancers 1,697 67%
S&P 500 +9.98 1,415.51 +0.71% Decliners 829 26% Decliners 739 29%
Russell 2000 +8.82 813.08 +1.10% 52 Wk Highs 146   52 Wk Highs 84  
S&P 600 +4.77 457.53 +1.05% 52 Wk Lows 10   52 Wk Lows 20  

Major Averages Finished Strong With Higher Volume Behind Gains

The major averages posted gains on Thursday and ended near their session highs. The volume totals were higher on the NYSE and on the Nasdaq exchange versus the prior session totals, indicating that institutional investors had a better appetite for buying stocks. Advancing issues led decliners by an 11-4 margin on NYSE and advancers led decliners by more than a 2-1 ratio on the Nasdaq exchange. The total number of new 52-week highs led new 52-week lows on the NYSE on the Nasdaq exchange. There were 58 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 42 stocks. There were gains for 11 of the 20 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks were shaky in early action after economic data failed to impress. Despite this, equities managed to gradually build gains into the closing bell. Early reports on housing and unemployment were largely in-line with expectations, while the Philly Fed's survey of business conditions fell short of expectations.

There were gains for 7 of the 10 sectors on the S&P. Cisco Systems Inc (CSCO +9.63%) helped inspire gains in the tech sector after reporting a stronger-than-expected result in their quarterly earnings. Sears Holdings Corp (SHLD +6.52%) rallied after the company posted a quarterly loss that met analysts' expectations. Wal-Mart Stores Inc (WMT -3.09%) fell after the company reported in-line results, but forecasted full-year earnings below analysts' expectations. In other news, shares of Facebook Inc (FB -6.27%) fell as inside holders of the stock sold shares following the expiration of the lockup period. 

Turning to fixed income, Treasuries were lower along the curve. The benchmark 10-year note was down 3/16 of a point to yield 1.84% and the 30-year bond was off over a half a point to yield 2.96%

The major averages are perched within close striking distance their 2012 high. In terms of the M criteria, the major indices recently have been in a confirmed rally coupled with an expansion in leadership (stocks hitting new 52-week highs). 

Watch for an announcement soon via email concerning new monthly webcasts starting in August and a new "Market's Leading Groups" archives tab to 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 benchmark S&P 500 Index finished -0.5% off its 2012 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.


Biotech Index Lagged While Networking Index Led Tech Sector

The Bank Index ($BKX +0.53%) and Broker/Dealer Index ($XBD +0.71%) posted modest gains and the Retail Index ($RLX +1.20%) was also a positive influence on the major averages. The Networking Index ($NWX +3.00%) led the tech sector with a solid gain, followed by gains from the Internet Index ($IIX +1.86%) and the Semiconductor Index ($SOX +1.69%).  The Biotechnology Index ($BTK -0.70%) edged lower, yet the Healthcare Index ($HMO +1.40%) was on the rise. Commodity-linked groups traded up as the Gold & Silver Index ($XAU +3.23%) posted a standout gain, and the Oil Services Index ($OSX +1.67%) and Integrated Oil Index ($XOI +0.82%) also closed higher.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK -0.70%) was a laggard as it lost ground and slumped below its 50-day moving average.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  228.89 +3.76 +1.67% +5.83%
Healthcare $HMO  2,339.33 +32.41 +1.40% +2.53%
Integrated Oil $XOI  1,244.40 +10.13 +0.82% +1.24%
Semiconductor $SOX  408.26 +6.78 +1.69% +12.02%
Networking $NWX  213.61 +6.22 +3.00% -0.72%
Internet $IIX  317.59 +5.79 +1.86% +12.72%
Broker/Dealer $XBD  80.68 +0.57 +0.71% -3.11%
Retail $RLX  639.75 +7.56 +1.20% +22.28%
Gold & Silver $XAU  160.65 +5.03 +3.23% -11.07%
Bank $BKX  46.98 +0.25 +0.53% +19.30%
Biotech $BTK  1,452.38 -10.30 -0.70% +33.07%


Slump Further Below 50-Day Moving Average Raises Concerns

Dollar General Corp (DG -$0.54 or -1.04% to $51.22) slumped below its 50-day moving average (DMA) line with a higher volume total behind its loss today. The weakness raised some concerns, however its finish in the upper third of its intra-day range was an encouraging indication that it was attracting some support. Prior lows near $49 define important near-term support to watch while it may be forming a new base. More damaging losses would raise greater concerns.

It failed to trigger a new (or add-on) technical buy signal after its last appearance in this FSU section with an annotated graph on 7/12/12 under the headline, "Advanced '3-Weeks Tight' Base Pattern Possibly Forming."  The high-ranked Retail - Discount/Variety firm completed a Secondary Offering on 6/05/12, its 4th Secondary Offering since September '11. It recently reported earnings +31% on +13% sales revenues for the quarter ended April 30, 2012 versus the year ago period. Its fundamentals (C & A criteria) have been noted as resembling past great winners. The number of top-rated funds owning its shares rose from 377 in Jun '11 to 784 in Jun '12, a reassuring sign concerning the I criteria.  As previously noted, often times companies attract additional institutional interest with the help of underwriters when such offerings are completed.


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  
$103.61 -1.74
-1.65%

$105.24

838,083
56.54% of 50 DAV
50 DAV is 1,482,200
$109.96
-5.77%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 8/15/2012 12:39:42 PM

G - Still holding its ground with volume totals cooling since last noted on 8/03/12 when it gapped up for a gain with above average volume. Chart support is defined by its 50 DMA line (now $99.55).


>>> 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  
$89.31 +4.62
5.46%

$89.49

263,935
209.81% of 50 DAV
50 DAV is 125,800
$84.97
5.11%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 8/16/2012 12:22:54 PM
G - Hitting another new all-time high today with higher volume behind its gain. It is extended from its prior base, and its 50 DMA line defines near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/3/2012. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$12.57 +0.13
1.05%

$12.59

51,642
68.95% of 50 DAV
50 DAV is 74,900
$13.21
-4.84%
7/20/2012 $12.85 PP = $12.41
MB = $13.03
Most Recent Note - 8/15/2012 12:47:16 PM
Y - Trading up after early weakness below its 50 DMA line. Volume totals have been cooling in recent weeks.
>>> 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  
$34.14 -0.05
-0.15%

$34.39

10,193,018
72.90% of 50 DAV
50 DAV is 13,982,300
$35.16
-2.90%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 8/15/2012 4:30:37 PM
G - Edged lower with a 3rd consecutive loss on below average volume today, still trading in a tight range near its 52-week high. Recently reported earnings +19% on +6% sales revenues for the Jun '12 quarter, below the fact-based investment system's +25% minimum guideline for the C criteria. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/15/2012. Click here.

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DG - NYSE
Dollar General Corp
RETAIL - Discount, Variety Stores  
$51.22 -0.54
-1.04%

$51.55

3,888,819
107.02% of 50 DAV
50 DAV is 3,633,800
$56.04
-8.60%
7/16/2012 $54.68 PP = $56.14
MB = $58.95
Most Recent Note - 8/16/2012 5:28:02 PM
G - Finished in the upper third of its intra-day range but suffered a loss on higher volume and sank further below its 50 DMA line today. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/16/2012. 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
ECPG - NASDAQ
Encore Capital Group Inc
FINANCIAL SERVICES - Credit Services  
$29.26 +1.02
3.61%

$29.48

138,437
88.80% of 50 DAV
50 DAV is 155,900
$30.47
-3.97%
8/3/2012 $29.91 PP = $30.45
MB = $31.97
Most Recent Note - 8/16/2012 3:50:02 PM
Y - Color code is changed to yellow after rebounding above its 50 DMA line with today's gain, improving its technical stance. Completed a Secondary Offering on 8/08/12. Subsequent volume-driven gains for a close above its pivot point would trigger a technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2012. Click here.

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EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$52.22 -0.69
-1.30%

$52.83

3,297,762
86.04% of 50 DAV
50 DAV is 3,832,800
$59.50
-12.24%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 8/14/2012 5:55:40 PM
G - Down today for a 5th losing session in a row after its 8/08/12 gap down amid weakness in travel-related stocks after Priceline.com Inc (PCLN) and Orbitz Worldwide Inc (OWW) reported disappointing results. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/14/2012. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$35.78 -1.42
-3.82%

$36.28

5,936,121
219.44% of 50 DAV
50 DAV is 2,705,100
$42.70
-16.21%
6/29/2012 $39.20 PP = $40.00
MB = $42.00
Most Recent Note - 8/16/2012 3:47:23 PM
Gapped down today, raising more serious concerns and slumping further below its 50 DMA line. Prior lows and 200 DMA line define the next important support level to watch, meanwhile it faces resistance due to overhead supply up through the $42 area now. It will be dropped from the Featured Stocks list tonight. Recently completed a Secondary Offering of ten million shares sold by Ares Corporate Opportunities Fund II, L.P. ("Ares") and Ontario Teachers' Pension Plan Board, underwritten by Goldman, Sachs & Co. Also announced that it completed the repurchase of six million shares of its Class A common stock directly from Ares in a private, non-underwritten transaction.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/8/2012. Click here.

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GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$19.51 -0.07
-0.36%

$19.58

89,057
129.82% of 50 DAV
50 DAV is 68,600
$20.08
-2.84%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 8/13/2012 5:39:34 PM
G - Up today with above average volume, finishing -4.1% off its 52-week high. Color code is changed to green after closing back above its "max buy" level.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/7/2012. Click here.

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HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$36.21 -0.43
-1.16%

$36.78

586,111
67.11% of 50 DAV
50 DAV is 873,400
$37.19
-2.65%
7/27/2012 $33.91 PP = $34.83
MB = $36.57
Most Recent Note - 8/13/2012 5:40:27 PM
Y - Hit another new 52-week high today with near average volume behind its gain. Gains above a stock's pivot point must have at least +40% above average volume, preferably greater, to trigger a proper technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/27/2012. 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
LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$38.20 +0.45
1.19%

$38.54

522,828
69.19% of 50 DAV
50 DAV is 755,600
$38.78
-1.50%
8/9/2012 $37.93 PP = $37.44
MB = $39.31
Most Recent Note - 8/15/2012 12:09:31 PM
Y - Small gap down today from its 52-week high after a streak of 8 consecutive gains. Prior highs in the $37 area define initial support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/10/2012. Click here.

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MIDD - NASDAQ
Middleby Corp
MANUFACTURING - Diversified Machinery  
$116.57 -0.31
-0.27%

$117.12

99,284
100.80% of 50 DAV
50 DAV is 98,500
$119.74
-2.65%
8/9/2012 $118.60 PP = $104.92
MB = $110.17
Most Recent Note - 8/14/2012 12:57:07 PM
G - Holding its ground today, extended after 3 consecutive volume-driven gains into new high territory. Prior highs 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 8/13/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$56.51 +0.28
0.50%

$56.89

416,222
55.99% of 50 DAV
50 DAV is 743,400
$59.22
-4.58%
6/20/2012 $51.83 PP = $51.88
MB = $54.47
Most Recent Note - 8/15/2012 1:12:12 PM
G - Consolidating -5.3% off its 52-week high today, holding its ground with volume totals cooling. Found support near its 50 DMA line when encountering recent distributional pressure.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/19/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$28.42 +1.11
4.06%

$28.53

621,789
74.67% of 50 DAV
50 DAV is 832,700
$28.03
1.39%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 8/16/2012 3:52:14 PM

G - Hitting another new 52-week high with a gain today, getting more extended from any sound base pattern. Prior highs in the $25 area define near-term support to watch on pullbacks.


>>> The latest Featured Stock Update with an annotated graph appeared on 8/1/2012. Click here.

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OSIS - NASDAQ
O S I Systems Inc
ELECTRONICS - Semiconductor Equipment and Mate  
$73.83 +0.27
0.37%

$74.30

114,087
97.51% of 50 DAV
50 DAV is 117,000
$75.00
-1.56%
8/9/2012 $67.71 PP = $67.48
MB = $70.85
Most Recent Note - 8/15/2012 12:10:30 PM
G - Hitting another new 52-week high today with another volume-driven gain, getting more extended from its prior base. Prior highs in the $67-68 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/9/2012. 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
RNF - NYSE
Rentech Nitrogen Ptnr Lp
CHEMICALS - Agricultural Chemicals  
$33.74 +0.02
0.06%

$34.75

474,039
113.27% of 50 DAV
50 DAV is 418,500
$34.48
-2.15%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 8/15/2012 1:14:52 PM
G - Color code is changed to green after trading back up above its "max buy" level today. Encountered distributional pressure after its prior breakout, and it found support above prior highs in the $30-31 area noted as initial support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/31/2012. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$56.07 +0.31
0.56%

$56.61

565,051
46.08% of 50 DAV
50 DAV is 1,226,200
$56.80
-1.29%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 8/15/2012 4:02:37 PM
G - Volume totals have been cooling in recent weeks while holding its ground stubbornly near its all-time high. Prior highs in the $48 area define initial support to watch on pullbacks.
>>> 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  
$132.33 +3.86
3.00%

$132.52

454,634
108.79% of 50 DAV
50 DAV is 417,900
$136.34
-2.94%
8/16/2012 $132.23 PP = $136.44
MB = $143.26
Most Recent Note - 8/16/2012 3:56:24 PM
Y - Color code is changed to yellow with new pivot point cited based on its 7/02/12 high plus 10 cents. Subsequent volume-driven gains above its point point may trigger a new (or add-on) technical buy signal. Today's 6th consecutive gain has it rallying within close striking distance of its best-ever close.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/18/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$20.46 +0.37
1.84%

$20.56

253,113
59.85% of 50 DAV
50 DAV is 422,900
$23.05
-11.24%
8/9/2012 $21.30 PP = $23.10
MB = $24.26
Most Recent Note - 8/16/2012 3:58:12 PM
G - Rebounding near its 50 DMA line with today's gain on light volume. It still faces resistance up to the $23 level which has been a stubborn resistance area in recent months. Volume-driven gains above its pivot point are needed to trigger a proper technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 7/24/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$54.84 -0.71
-1.28%

$55.71

699,082
182.77% of 50 DAV
50 DAV is 382,500
$61.83
-11.30%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 8/16/2012 3:59:11 PM
G - Down today with higher volume, trading near its 50 DMA line and upward trendline previously noted as defining near-term chart support to watch. More damaging losses would trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2012. 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

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