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AFTER MARKET UPDATE - FRIDAY, AUGUST 17TH, 2012
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Indices NYSE Nasdaq
DOW  +25.09 13,275.20 +0.19% Volume 675,841,760 +13% Volume 1,589,152,910 -16%
NASDAQ +14.20 3,076.59 +0.46% Advancers 1,838 59% Advancers 1,593 62%
S&P 500 +2.65 1,418.16 +0.19% Decliners 1,128 36% Decliners 859 33%
Russell 2000 +6.81 819.89 +0.84% 52 Wk Highs 179   52 Wk Highs 86  
S&P 600 +3.66 461.19 +0.80% 52 Wk Lows 11   52 Wk Lows 27  

Dow Jones Industrials Ended 4 Point Off Best Finish of 2012

For the week, the Dow Jones Industrial Average rose +0.5%, the S&P 500 Index gained +0.9%, and the tech-heavy Nasdaq Composite Index posted a +1.8% gain. The major averages ended with gains on Friday while the volume totals were mixed, higher on the NYSE and lower on the Nasdaq exchange versus the prior session totals. Advancing issues led decliners by a 3-2 margin on NYSE and advancers led decliners by almost 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 67 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 58 stocks. There were gains for 13 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks traded in a narrow range throughout Friday's session after positive economic readings on consumer sentiment and leading economic indicators had only a minor effect. Looking at the data, the University of Michigan's consumer sentiment index unexpectedly rose to 73.6 in the August reading, topping the projected reading of 72.

Five of the 10 sectors on the S&P ended higher, led by gains in the tech space. Apple Inc (AAPL +1.85%) hit a new high following some positive analysts' comments surrounding upcoming releases of an Apple TV and the iPad mini in their product pipeline. Consumer stocks also showed strength with Foot Locker Inc (FL +1.74%)  and Gap Inc (GPS +4.80%) advancing after both retailers posted better-than-expected quarterly earnings results. The J.M. Smucker Co (SJM +5.05%) also rose on good earnings news. On the downside, chipmaker Marvell Technology Group Ltd (MRVL -14.17%) fell as the company lowered their current quarter earnings guidance and received several analysts' downgrades. In other news, shares of Facebook Inc (FB -4.13%) were under pressure again  as inside investors continued to liquidate positions following expiration of a lockup.

Treasuries were higher along the curve. The benchmark 10-year note was up 1/8 of a point to yield 1.82% and the 30-year bond was higher by 11/32 to yield 2.93%.

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 Dow Jones Industrial Average ended just 4 points off its best ever 2012 close from May 1, 2012.


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 and Financial Groups Underpinned Major Indices' Gains

The Retail Index ($RLX +0.73%) was among Friday's best gainers, and the Broker/Dealer Index ($XBD +0.23%) and Bank Index ($BKX +0.55%) posted smaller gains. There was not a great deal of decisiveness behind any group. The Semiconductor Index ($SOX -0.76%) lost ground and the Biotechnology Index ($BTK -0.21%) edged lower, meanwhile the Internet Index ($IIX +0.34%) and the Networking Index ($NWX +0.65%) tallied modest gains.  The Healthcare Index ($HMO +0.32%) edged higher and the Gold & Silver Index ($XAU -0.40%) edged lower.  Energy-related shares were mixed as the Oil Services Index ($OSX +0.42%) posed a small gain while the Integrated Oil Index ($XOI -0.51%) ended with a small loss.

Charts courtesy www.stockcharts.com

PICTURED 1: The Bank Index ($BKX +0.55%) has been gradually rising above prior highs. It is above its 50-day and 200-day moving average (DMA) lines, in healthy shape chart-wise.

Charts courtesy www.stockcharts.com

PICTURED 2: The Broker/Dealer Index ($XBD +0.23%) is still sputtering below its 50-day and 200-day moving average (DMA) lines, in poor shape chart-wise.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  229.85 +0.96 +0.42% +6.27%
Healthcare $HMO  2,346.72 +7.39 +0.32% +2.85%
Integrated Oil $XOI  1,238.06 -6.34 -0.51% +0.73%
Semiconductor $SOX  405.14 -3.12 -0.76% +11.17%
Networking $NWX  215.00 +1.39 +0.65% -0.08%
Internet $IIX  318.66 +1.08 +0.34% +13.11%
Broker/Dealer $XBD  80.86 +0.18 +0.23% -2.89%
Retail $RLX  644.43 +4.68 +0.73% +23.17%
Gold & Silver $XAU  160.01 -0.64 -0.40% -11.42%
Bank $BKX  47.24 +0.26 +0.55% +19.96%
Biotech $BTK  1,449.26 -3.11 -0.21% +32.79%


Finish Above New Pivot Point Backed By 86% Above Average Volume

Transdigm Group Inc (TDG +$5.44 or +4.11% to $137.77) posted a 7th consecutive gain, hitting new 52-week and all-time highs today. It finished above the new pivot point cited based on its 7/02/12 high plus 10 cents with a considerable gain backed by +86% above average volume clinching a new (or add-on) technical buy signal.

The high-ranked Aerospace/Defense firm's last appearance in this FSU section was on 7/18/12 with an annotated graph under the headline, "Found Support at 50-Day Average After Breakout Attempt Lacked Volume". Subsequent losses undercut that short-term average and an earlier chart low raising concerns and triggering technical sell signals, however it then immediately halted it slide and gradually repaired the damage. The number of top-rated funds owning its share rose from 387 in Sep '11 to 450 in Jun '12, a reassuring trend concerning the I criteria.  It reported earnings +55% on +42% sales revenues for the quarter ended June 30, 2012 versus the year ago period. Earnings comparisons above the +25% minimum guideline for earnings growth have solidly satisfied the C criteria. Its strong annual earnings history also satisfies the A criteria. In recent years it had rebounded and rallied to new highs following a deep consolidation after it was dropped from the Featured Stocks list 1/17/08. Members may review prior analysis via the "view all notes" link on any stocks highlighted in CANSLIM.net reports.


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  
$102.31 -1.30
-1.25%

$103.82

1,210,416
82.25% of 50 DAV
50 DAV is 1,471,700
$109.96
-6.96%
5/1/2012 $91.73 PP = $95.11
MB = $99.87
Most Recent Note - 8/17/2012 4:14:32 PM
G - Volume rose behind today's loss but remained below average as it slumped near support defined by its 50 DMA line (now $100.05).
>>> 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  
$90.79 +1.48
1.66%

$90.92

117,487
92.51% of 50 DAV
50 DAV is 127,000
$89.49
1.45%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 8/17/2012 4:15:06 PM
G - Hit another new all-time high today with a 3rd consecutive 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  
$12.87 +0.30
2.39%

$12.87

56,218
75.36% of 50 DAV
50 DAV is 74,600
$13.21
-2.57%
8/17/2012 $12.84 PP = $13.31
MB = $13.98
Most Recent Note - 8/17/2012 4:08:47 PM
Y - Found support near its 50 DMA line this week, tallying 3 consecutive gains with below average volume. New pivot point is cited based on its 7/19/12 high after a short yet orderly base pattern. Subsequent volume-driven gains above its pivot point may trigger a new (or add-on) technical buy signal.
>>> 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  
$34.02 -0.12
-0.35%

$34.28

10,603,566
76.17% of 50 DAV
50 DAV is 13,921,500
$35.16
-3.24%
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  
$51.35 +0.13
0.25%

$51.76

1,999,597
61.38% of 50 DAV
50 DAV is 3,257,600
$56.04
-8.37%
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  
$29.32 +0.06
0.21%

$29.52

87,573
56.14% of 50 DAV
50 DAV is 156,000
$30.47
-3.77%
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  
$51.62 -0.60
-1.15%

$53.55

3,232,901
83.95% of 50 DAV
50 DAV is 3,850,900
$59.50
-13.24%
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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GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$20.27 +0.76
3.90%

$20.30

92,162
132.23% of 50 DAV
50 DAV is 69,700
$20.08
0.95%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 8/17/2012 4:00:44 PM
G - Up today for a new 52-week high, getting more extended from its prior base. Prior highs and its 50 DMA line define chart support in the $18 area.
>>> 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  
$36.20 -0.01
-0.01%

$36.37

669,396
76.98% of 50 DAV
50 DAV is 869,600
$37.19
-2.66%
7/27/2012 $33.91 PP = $34.83
MB = $36.57
Most Recent Note - 8/17/2012 4:10:31 PM
Y - Hovering near its 52-week high today with volume totals cooling. 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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LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$38.74 +0.54
1.41%

$38.77

663,714
87.78% of 50 DAV
50 DAV is 756,100
$38.78
-0.10%
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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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
MIDD - NASDAQ
Middleby Corp
MANUFACTURING - Diversified Machinery  
$117.68 +1.11
0.95%

$118.72

60,780
61.39% of 50 DAV
50 DAV is 99,000
$119.74
-1.72%
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  
$56.93 +0.42
0.74%

$57.66

276,657
37.29% of 50 DAV
50 DAV is 742,000
$59.22
-3.87%
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  
$28.24 -0.18
-0.63%

$28.75

666,179
80.19% of 50 DAV
50 DAV is 830,800
$28.53
-1.02%
6/27/2012 $20.29 PP = $20.46
MB = $21.48
Most Recent Note - 8/17/2012 4:16:09 PM
G - Touched a new 52-week high today but reversed and closed with a small loss on below average volume. It is 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  
$73.96 +0.13
0.18%

$74.17

124,357
107.39% of 50 DAV
50 DAV is 115,800
$75.00
-1.39%
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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RNF - NYSE
Rentech Nitrogen Ptnr Lp
CHEMICALS - Agricultural Chemicals  
$34.11 +0.37
1.10%

$34.60

396,628
93.79% of 50 DAV
50 DAV is 422,900
$34.75
-1.84%
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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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
SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$56.61 +0.54
0.96%

$56.94

631,030
51.70% of 50 DAV
50 DAV is 1,220,600
$56.80
-0.33%
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  
$137.77 +5.44
4.11%

$137.96

772,606
185.77% of 50 DAV
50 DAV is 415,900
$136.34
1.05%
8/16/2012 $132.23 PP = $136.44
MB = $143.26
Most Recent Note - 8/17/2012 4:40:59 PM
Y - Today's 7th consecutive gain helped it hit a new 52-week high and trade above the new pivot point cited based on its 7/02/12 high plus 10 cents. The considerable gain backed by +86% above average volume clinched a new (or add-on) 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 8/17/2012. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$20.93 +0.47
2.30%

$21.00

172,937
41.60% of 50 DAV
50 DAV is 415,700
$23.05
-9.20%
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  
$54.79 -0.05
-0.09%

$55.10

430,054
110.13% of 50 DAV
50 DAV is 390,500
$61.83
-11.38%
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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