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AFTER MARKET UPDATE - WEDNESDAY, AUGUST 29TH, 2012
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Indices NYSE Nasdaq
DOW  +4.49 13,107.48 +0.03% Volume 509,403,250 -1% Volume 1,231,824,920 -7%
NASDAQ +4.05 3,081.19 +0.13% Advancers 1,781 57% Advancers 1,467 57%
S&P 500 +1.19 1,410.49 +0.08% Decliners 1,168 38% Decliners 966 38%
Russell 2000 +3.56 817.84 +0.44% 52 Wk Highs 116   52 Wk Highs 65  
S&P 600 +2.13 460.91 +0.46% 52 Wk Lows 22   52 Wk Lows 23  

Indices Post Gains With Even Lighter Summer Volume Totals

The major averages posted small gains on Wednesday. The volume totals reported were even lighter on the NYSE and on the Nasdaq exchange versus the prior session totals. Advancing issues led decliners by a 3-2 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 on the Nasdaq exchange. There were 32 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, up from the prior session total of 25 stocks. There were gains for 13 of the 19 high-ranked companies currently included on the Featured Stocks Page.

 

The major averages finished slightly higher as investors weighed generally positive economic data ahead of the Fed Chairman Bernanke's speech on Friday. Before the open, second quarter GDP was revised upward to 1.7% from the initial 1.5% reading. On the housing front, pending home sales unexpectedly rose 2.4% in July. The Fed's Beige Book report showed the U.S. economy expanded at a gradual pace.

Retailers led consumer stocks higher. Jos. A. Bank Clothiers Inc (JOSB +13.96%) rallied after posting positive earnings results. Sears Holdings Corp (SHLD +4.53%) gained after the company's board approved the spin-off of its Hometown and Outlet Stores units. Health care outperformed with WellPoint Inc (WLP +7.68%) up following the resignation of its CEO. Energy was the worst performing sector with Baker Hughes (BHI +2.32%) down after a report showed an unexpected increase in crude inventories.

The 10-year note was down 5/32 to yield 1.65%.

The M criteria is still favorable as the major indices have maintained their previously confirmed rally with a healthy level of 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 S&P 500 Index has seen its volume totals cooling in recent weeks while holding its ground and remaining perched very near its 2012 high and 4-year highs.


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.


Financial, Retail, Healthcare Groups Led Gainers; Commodity-Linked Groups Fell

The Bank Index ($BKX +0.55%) and Broker/Dealer Index ($XBD +0.63%) posted modest gains and the Retail Index ($RLX +0.77%) was also a positive influence behind the major averages' gains on Wednesday. The Healthcare Index ($HMO +1.11%) was among the session's leading group gainers, impacted by an enthusiastic response to M&A activity in the industry. The Networking Index ($NWX +0.62%) led the tech sector and the Internet Index ($IIX +0.19%) and the Semiconductor Index ($SOX +0.10%) inched higher, but the Biotechnology Index ($BTK -0.04%) finished essentially flat. Commodity-linked groups had a negative bias as the Gold & Silver Index ($XAU -1.03%), Oil Services Index ($OSX -0.97%), and Integrated Oil Index ($XOI -0.46%) lost ground on the quiet but otherwise positive session.

Charts courtesy www.stockcharts.com

PICTURED: The Integrated Oil Index ($XOI -0.46%) is consolidating above its 50-day and 200-day moving average (DMA) lines.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  223.43 -2.18 -0.97% +3.31%
Healthcare $HMO  2,428.93 +26.58 +1.11% +6.46%
Integrated Oil $XOI  1,230.34 -5.72 -0.46% +0.10%
Semiconductor $SOX  397.42 +0.38 +0.10% +9.05%
Networking $NWX  215.11 +1.33 +0.62% -0.02%
Internet $IIX  315.09 +0.59 +0.19% +11.84%
Broker/Dealer $XBD  80.95 +0.50 +0.63% -2.79%
Retail $RLX  649.48 +4.98 +0.77% +24.14%
Gold & Silver $XAU  164.49 -1.71 -1.03% -8.94%
Bank $BKX  47.36 +0.26 +0.55% +20.26%
Biotech $BTK  1,476.47 -0.66 -0.04% +35.28%


No Overhead Supply as Resistance, But No New Base Yet

Solarwinds Inc (SWI $0.18 or -0.33% to $55.10) has been holding its ground stubbornly in a tight range near its all-time high. No overhead supply remains to act as resistance, however it has not formed a sound new base of sufficient length. Prior highs and its 50-day moving average line (the red line) coincide in the $48 area defining an important chart support level to watch on pullbacks. Its last appearance in this FSU section was on 7/30/12 with an annotated graph under the headline, "Pause Following Spurt of Volume-Driven Gains to New Highs".   It had gapped up and spiked to a new 52-week high on 7/25/12 with a considerable gain backed by 4 times average volume rallying from a "double bottom" base pattern. Then it quickly rallied beyond its "max buy" level with above average volume behind gains indicative of heavy institutional buying demand.

It reported earnings +50% on +40% sales revenues for the quarter ended June 30, 2012 versus the year ago period. In 3 of the 4 most current quarterly comparisons its earnings increases were above the +25% guideline meeting the C criteria of the fact-based system. It also has a good annual earnings (A criteria) history. The number of top-rated funds owning its shares rose from 346 in Jun '11 to 463 in Jun '12, a reassuring sign concerning the I criteria of the fact-based investment system. Its relatively small supply of only 59.4 million shares outstanding (S criteria) can contribute to greater price volatility in the event of institutional buying or selling.  Disciplined investors do not chase extended stocks, they know to wait for a new base or secondary buy point to potentially develop and be noted.


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  
$106.57 -0.97
-0.90%

$107.94

913,046
66.84% of 50 DAV
50 DAV is 1,366,000
$109.96
-3.08%
8/23/2012 $103.70 PP = $110.06
MB = $115.56
Most Recent Note - 8/28/2012 4:29:06 PM
Y - Posted a 3rd consecutive gain today and it is perched within close striking distance of its 52-week high. 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 8/23/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$85.59 +0.10
0.12%

$86.79

94,534
70.03% of 50 DAV
50 DAV is 135,000
$92.29
-7.26%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 8/27/2012 3:31:20 PM
G - Above average volume was behind losses last week while retreating from its all-time high. It has been repeatedly noted - "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  
$13.09 +0.19
1.47%

$13.10

55,369
81.67% of 50 DAV
50 DAV is 67,800
$13.30
-1.58%
8/17/2012 $12.84 PP = $13.31
MB = $13.98
Most Recent Note - 8/29/2012 6:03:06 PM
Y - Finished near the session high today for a best-ever close with a gain on below average volume. Disciplined investors know to watch for signs of fresh institutional buying demand as a reassurance. Previously noted - "Volume-driven gains above its pivot point may trigger a new (or add-on) technical buy signal, meanwhile its 50 DMA line defines important support."
>>> The latest Featured Stock Update with an annotated graph appeared on 8/21/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$33.95 +0.00
0.00%

$34.16

6,946,648
53.69% of 50 DAV
50 DAV is 12,937,800
$35.16
-3.44%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 8/28/2012 4:17:57 PM
G - Consolidating in a very tight trading range for the past few weeks. Fundamental concerns were raised as it 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.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/15/2012. Click here.

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ECPG - NASDAQ
Encore Capital Group Inc
FINANCIAL SERVICES - Credit Services  
$28.01 -0.07
-0.25%

$28.18

95,871
65.44% of 50 DAV
50 DAV is 146,500
$30.47
-8.07%
8/3/2012 $29.91 PP = $30.45
MB = $31.97
Most Recent Note - 8/27/2012 3:29:37 PM
G - Color code is changed to green while sputtering below its 50 DMA line and -8% off its 52-week high today. Completed a Secondary Offering on 8/08/12. Gains above its 50 DMA line are needed for its outlook to improve.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/6/2012. 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
EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$52.86 -0.02
-0.04%

$53.28

1,357,800
37.92% of 50 DAV
50 DAV is 3,580,400
$59.50
-11.16%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 8/27/2012 3:14:08 PM
G - Volume totals have been below average while recently consolidating above prior highs and its 50 DMA line defining important near-term chart support in the $50 area.
>>> 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  
$20.10 -0.08
-0.40%

$20.67

64,518
83.03% of 50 DAV
50 DAV is 77,700
$20.30
-0.99%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 8/27/2012 12:20:04 PM
G - Still perched near its 52-week high today, slightly extended from its prior base. Churned above average volume recently without making much meaningful price progress, a sign of distributional pressure. 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  
$35.01 +0.48
1.39%

$35.18

405,476
43.53% of 50 DAV
50 DAV is 931,400
$37.19
-5.86%
7/27/2012 $33.91 PP = $34.83
MB = $36.57
Most Recent Note - 8/29/2012 5:58:53 PM
Y - Volume totals have been light behind 3 consecutive gains since it halted its slide after dipping below its 50 DMA line as distributional action raised concerns. Color code is changed to yellow but no new pivot point is cited. Volume-driven gains into new high territory would be a reassuring sign disciplined investors may wait for as an indication of fresh institutional accumulation.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/22/2012. Click here.

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LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$38.72 +0.25
0.65%

$38.77

388,180
52.01% of 50 DAV
50 DAV is 746,300
$39.20
-1.22%
8/9/2012 $37.93 PP = $37.44
MB = $39.31
Most Recent Note - 8/28/2012 4:26:17 PM
Y - Quietly consolidating near its 52-week high, still trading above its pivot point and yet below its "max buy" level. 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  
$113.28 +0.25
0.22%

$114.12

92,616
93.55% of 50 DAV
50 DAV is 99,000
$119.74
-5.40%
8/9/2012 $118.60 PP = $104.92
MB = $110.17
Most Recent Note - 8/28/2012 12:30:08 PM
G - Still quietly consolidating -5.6% off its 52-week high today, extended from its prior base. Its 50 DMA line and prior highs in the $104 area define important chart support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/13/2012. 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
N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$55.75 +0.32
0.58%

$55.97

248,580
34.24% of 50 DAV
50 DAV is 725,900
$59.22
-5.86%
8/20/2012 $55.88 PP = $59.32
MB = $62.29
Most Recent Note - 8/27/2012 3:18:14 PM
Y - Volume totals have been cooling while consolidating in a tight range near its 52-week high. A volume-driven gain above its pivot point may trigger a new (or add-on) technical buy signal. Meanwhile, its 50 DMA line defines important near-term support.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/20/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$27.87 +0.55
2.01%

$28.37

1,102,596
135.89% of 50 DAV
50 DAV is 811,400
$28.75
-3.06%
8/29/2012 $27.96 PP = $28.85
MB = $30.29
Most Recent Note - 8/29/2012 12:41:18 PM
Y - Trading up and nearly challenging its 52-week high with today's 3rd consecutive gain backed by above average volume. Color code is changed to yellow with new pivot point cited based on its 8/17/12 high plus 10 cent while working on an advanced "ascending base" pattern. Managed an impressive a "positive reversal" on 8/27/12 while finding support near prior highs in the $25 area. Subsequent volume-driven gains above the pivot point may trigger a new (or add-on) technical buy signal.
>>> 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  
$73.60 +0.37
0.51%

$73.80

132,189
117.71% of 50 DAV
50 DAV is 112,300
$75.00
-1.87%
8/9/2012 $67.71 PP = $67.48
MB = $70.85
Most Recent Note - 8/27/2012 3:22:13 PM
G - Still hovering near its 52-week high in a tight trading range with volume totals cooling. It is slightly extended from its previous base, and 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  
$33.84 +0.62
1.87%

$34.10

198,672
44.40% of 50 DAV
50 DAV is 447,500
$34.75
-2.62%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 8/29/2012 6:05:36 PM
G - Holding its ground perched near its high with volume totals cooling in recent weeks. It is extended from its prior base with near-term support at prior highs in the $30-31 area and its 50 DMA line.
>>> 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  
$55.10 +0.18
0.33%

$55.43

790,803
64.88% of 50 DAV
50 DAV is 1,218,800
$56.94
-3.23%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 8/29/2012 6:51:18 PM
G - Volume totals have been cooling in recent weeks while still holding its ground stubbornly near its all-time high. Its 50 DMA line and prior highs coincide in the $48 area defining important chart support to watch on pullbacks. See latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/29/2012. 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  
$138.76 +0.78
0.57%

$139.36

197,595
48.41% of 50 DAV
50 DAV is 408,200
$143.15
-3.07%
8/16/2012 $132.23 PP = $136.44
MB = $143.26
Most Recent Note - 8/27/2012 12:45:26 PM
Y - Hit a new 52-week high today and challenged its "max buy" level, however it is now trading well off its earlier highs. Disciplined investors do not chase extended stocks and they always limit losses if ever any stock falls -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/17/2012. Click here.

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ULTI - NASDAQ
Ultimate Software Group
INTERNET - Internet Software and Services  
$98.04 +0.43
0.44%

$98.30

106,682
64.03% of 50 DAV
50 DAV is 166,600
$100.83
-2.77%
8/27/2012 $98.36 PP = $99.19
MB = $104.15
Most Recent Note - 8/28/2012 1:01:23 PM

Y - Touched another new 52-week high today then reversed into the red. On the prior session it gapped up and posted a volume-driven gain, however it did not finish above the pivot point cited based on its 8/01/12 high plus 10 cents. A volume-driven gain and strong close above its pivot point may trigger technical buy signal. See the latest FSU analysis for more details and an annotated graph.


>>> The latest Featured Stock Update with an annotated graph appeared on 8/27/2012. Click here.

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VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$54.29 +0.05
0.09%

$54.95

207,414
52.34% of 50 DAV
50 DAV is 396,300
$61.83
-12.19%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 8/28/2012 4:24:40 PM
G - The longer it lingers below its 50 DMA line the worse its outlook gets following recent technical sell signals. Prior low ($52.41 on 7/23/12) defines a near-term support level where any further deterioration would raise more serious concerns.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/2/2012. Click here.

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WPI - NYSE
Watson Pharmaceuticals
DRUGS - Drugs - Generic  
$82.12 -0.81
-0.98%

$83.00

1,237,256
92.06% of 50 DAV
50 DAV is 1,344,000
$83.83
-2.04%
8/24/2012 $82.90 PP = $81.10
MB = $85.16
Most Recent Note - 8/28/2012 6:16:14 PM
Y - Holding its ground since triggering a technical buy signal on 8/24/12 when highlighted in the mid-day report with a gap up gain backed by above average volume. Prior highs in the $81 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 8/28/2012. Click here.

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