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AFTER MARKET UPDATE - FRIDAY, SEPTEMBER 21ST, 2012
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Indices NYSE Nasdaq
DOW  -17.46 13,579.47 -0.13% Volume 1,801,530,730 +166% Volume 2,279,063,920 +29%
NASDAQ +4.00 3,179.96 +0.13% Advancers 1,777 57% Advancers 1,526 58%
S&P 500 -0.11 1,460.15 -0.01% Decliners 1,258 40% Decliners 993 38%
Russell 2000 +4.00 855.51 +0.47% 52 Wk Highs 299   52 Wk Highs 183  
S&P 600 +1.57 478.10 +0.33% 52 Wk Lows 6   52 Wk Lows 25  

Major Average Ended Mixed Following Afternoon Sell-Off

For the week, the Dow Jones Industrial Average and the Nasdaq Composite Index were each down -0.1%, and the S&P 500 Index gave up -0.4%. On Friday the indices closed with mixed results after fading in a late session sell-off. The volume totals were reported higher on the NYSE and on the Nasdaq exchange versus the prior session totals, as options expirations played a factor in the session by increasing the volume of equity trades. Advancers led decliners by about a 3-2 ratio on the NYSE and on the Nasdaq exchange. The total number of new 52-week highs still outnumbered new 52-week lows on the NYSE on the Nasdaq exchange. There were 106 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, more than doubling the prior session total of 41 stocks. There were gains for 15 of the 22 high-ranked companies currently included on the Featured Stocks Page.

 

Five of the 10 sectors on the S&P finished higher. On the earnings front, Darden Restaurants Inc (DRI +4.55%) was in the green after better than expected earnings. KB Home (KBH +16.40%) rose after it also topped analysts' expectations in the quarter. Shares of Oracle Corp (ORCL +0.65%) edged higher despite posting quarterly revenues below estimates. In other news, Apple Inc (AAPL +0.20%) inched higher following the release of their new iPhone 5. Meanwhile, Vivus Inc (VVUS -11.47%) was a standout decliner after saying it expected the EU to reject approval of its diet drug.

Turning to fixed income, Treasuries were modestly higher along the curve. The benchmark 10-year note was up 5/32 to yield 1.75% and the 30-year bond added 1/32 to yield 2.95%.

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 and a new "Market's Leading Groups" archives tab soon to be added on the Premium Member Homepage. These changes are aimed at satisfying member requests and improving the service.  We are sorry for the delay while working out the final programming necessary and we appreciate you patience.  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 is holding its ground near its 2012 high. It finished Friday's session +16.15% year-to-date, and it is now perched only -7.4% off its all-time high from October 2007.


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.


Commodity-Linked Groups And Medical Groups Led Gainers

The Oil Services Index ($OSX +1.01%) and Gold & Silver Index ($XAU +0.88%) were among Friday's better gainers while the Integrated Oil Index ($XOI +0.05%) finished flat.   Medical related shares also had a positive bias as the Biotechnology Index ($BTK +0.95%) and the Healthcare Index ($HMO +1.09%) tallied gains. The Networking Index ($NWX -0.40%) edged lower while the Internet Index ($IIX -0.10%) and the Semiconductor Index ($SOX +0.13%) were little changed on the session.  Weakness for the Retail Index ($RLX -0.43%) limited the major averages' ability to rally. The Broker/Dealer Index ($XBD +0.12%) inched higher.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX -0.46%) pulled back on Friday, consolidating this week after recently reaching new 2012 highs.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  234.10 +2.33 +1.01% +8.24%
Healthcare $HMO  2,423.72 +26.10 +1.09% +6.23%
Integrated Oil $XOI  1,281.32 +0.61 +0.05% +4.25%
Semiconductor $SOX  395.16 +0.53 +0.13% +8.43%
Networking $NWX  216.53 -0.88 -0.40% +0.64%
Internet $IIX  323.96 -0.34 -0.10% +14.98%
Broker/Dealer $XBD  85.28 +0.11 +0.12% +2.42%
Retail $RLX  662.77 -2.89 -0.43% +26.68%
Gold & Silver $XAU  195.20 +1.70 +0.88% +8.06%
Bank $BKX  50.22 -0.23 -0.46% +27.53%
Biotech $BTK  1,599.94 +15.06 +0.95% +46.59%


Technically Strong, But Fundamental Flaws Raised Concerns

Comcast Corp Cl A (CMCSA -$0.17 or -0.48% to $34.19) rallied today for a 3rd consecutive gain with above average volume and hit new 52-week highs, rising from an orderly flat base with no resistance remaining due to overhead supply. No new pivot point was cited, however, because of fundamental concerns that were raised by sub par sales and earnings growth in the Jun '12 quarter. Its last appearance in this FSU section with an annotated daily graph was on 8/15/12 under the headline, "Decelerating Sales and Earnings Growth a Concern Following Sub Par Quarter".  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. 

Those who own it may give it the benefit of the doubt until there are any technical sell signals. However, buy candidates' earnings increases should be above the +25% guideline (C criteria) in 3 of the past 4 comparisons and, most ideally, they show signs of recent acceleration. In this case, decelerating sales revenues and earnings increases in the recent sequential quarters is cause for concern, fundamentally. Investors might find better odds in a buy candidate without any fundamental shortcomings.

Its annual earnings (A criteria) history has been strong and leadership from other firms in the Telecom Services - Cable/Satellite industry group is a reassuring sign concerning the L criteria. The number of top-rated funds owning its shares rose from 1,916 in Jun '11 to 2,107 in Jun '12, a reassuring sign concerning the I criteria.  Its huge supply of 2.093 billion shares in the float could make it less likely to be a great sprinter, meanwhile, the S criteria calls for investors to usually look at small-cap or mid-cap companies.


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  
$114.21 +0.48
0.42%

$114.96

1,978,304
168.75% of 50 DAV
50 DAV is 1,172,300
$114.37
-0.14%
8/23/2012 $103.70 PP = $110.06
MB = $115.56
Most Recent Note - 9/18/2012 5:45:29 PM
Y - Volume totals have been below average for the past 4 sessions while wedging into new 52-week high territory. Gains above a stock's pivot point backed by a minimum of +40% above average volume are necessary to trigger a proper 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  
$89.23 -1.23
-1.36%

$91.40

98,213
76.02% of 50 DAV
50 DAV is 129,200
$92.29
-3.32%
6/5/2012 $60.01 PP = $63.00
MB = $66.15
Most Recent Note - 9/17/2012 3:58:14 PM
G - Quietly consolidating in a tight range perched -2.5% from its all-time high today. Recent lows define near-term support along with its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/11/2012. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$14.55 +0.21
1.46%

$14.65

161,793
256.00% of 50 DAV
50 DAV is 63,200
$14.53
0.14%
8/17/2012 $12.84 PP = $13.31
MB = $13.98
Most Recent Note - 9/21/2012 12:17:00 PM
G - Today's small gap up gain helped it touch another new 52-week high, getting more extended from its prior base. Prior highs and its 50 DMA line define support to watch on pullbacks near the $13 level.
>>> 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  
$36.23 +0.27
0.76%

$36.54

24,168,064
192.86% of 50 DAV
50 DAV is 12,531,400
$35.97
0.71%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 9/21/2012 6:04:19 PM
G - Today's 3rd consecutive gain with above average volume for a new 52-week high helped it rise from an orderly flat base. No new pivot point was cited because of fundamental concerns raised by sub par sales and earnings growth in the Jun '12 quarter. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/21/2012. Click here.

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DVA - NYSE
Davita Inc
HEALTH SERVICES - Specialized Health Services  
$101.50 +2.84
2.88%

$101.65

2,415,129
361.71% of 50 DAV
50 DAV is 667,700
$103.97
-2.38%
9/5/2012 $102.92 PP = $100.62
MB = $105.65
Most Recent Note - 9/21/2012 4:09:41 PM
Y - Considerable gain today and new high close above its pivot point was backed by more than 3 times average volume confirming a technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/5/2012. 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  
$29.84 +0.62
2.12%

$30.04

324,124
263.94% of 50 DAV
50 DAV is 122,800
$30.91
-3.46%
8/3/2012 $29.91 PP = $30.45
MB = $31.97
Most Recent Note - 9/21/2012 4:28:01 PM
Y - Posted a solid gain today with above average volume, but its slump back into the prior base on the prior session raised concerns. Disciplined investors always limit losses if ever a stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/12/2012. Click here.

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EXPE - NASDAQ
Expedia Inc
INTERNET - Internet Information Providers  
$59.37 +2.28
3.99%

$60.29

5,994,266
181.42% of 50 DAV
50 DAV is 3,304,100
$59.50
-0.22%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 9/21/2012 4:04:25 PM
G - Gapped up today and hit a new 52-week high with a volume-driven gain. No overhead supply remains to hinder its progress,however weak industry group action and iffy fundamentals were noted in the latest FSU as causes for concern.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/19/2012. Click here.

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GPX - NYSE
G P Strategies Corp
DIVERSIFIED SERVICES - Education and Training Services  
$19.53 -0.15
-0.76%

$19.82

113,415
159.74% of 50 DAV
50 DAV is 71,000
$20.67
-5.52%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 9/20/2012 5:54:45 PM
G - Still consolidating in a very tight trading range perched -4.8% off its 52-week high today with volume totals cooling. It may be forming a base-on-base pattern, meanwhile its 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 9/13/2012. Click here.

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KH - NYSE
China Kanghui Hldgs Ads
HEALTH SERVICES - Medical Appliances and Equipment  
$25.34 +0.24
0.96%

$25.40

11,563
40.15% of 50 DAV
50 DAV is 28,800
$27.47
-7.75%
8/30/2012 $24.19 PP = $22.90
MB = $24.05
Most Recent Note - 9/17/2012 3:56:18 PM
G - Consolidating in a healthy fashion above prior highs defining chart support above its 50 DMA line. It is extended from its prior base.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/30/2012. Click here.

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LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$18.87 -0.03
-0.16%

$19.24

3,626,449
281.16% of 50 DAV
50 DAV is 1,289,800
$20.02
-5.72%
8/9/2012 $37.93 PP = $37.44
MB = $39.31
Most Recent Note - 9/19/2012 8:59:35 AM
Y - Do not be confused by a 2:1 share split effective before the market open today (Featured Price, Pivot Point and Max Buy will be adjusted soon to account for the split). Loss on the prior session with more than twice average volume indicated distributional pressure as it sank near prior highs and its 50 DMA line previously noted as important chart support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/17/2012. 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
LNKD - NYSE
Linkedin Corp Class A
INTERNET - Internet Information Providers  
$122.84 +0.06
0.05%

$124.20

1,969,284
79.49% of 50 DAV
50 DAV is 2,477,500
$125.50
-2.12%
9/5/2012 $113.25 PP = $113.10
MB = $118.76
Most Recent Note - 9/21/2012 4:12:00 PM
G - Hovering near its 52-week and all-time highs after today's 4th consecutive small gain on below average volume. Prior highs near $113 define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/6/2012. Click here.

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MIDD - NASDAQ
Middleby Corp
MANUFACTURING - Diversified Machinery  
$116.74 -0.27
-0.23%

$118.98

91,735
89.67% of 50 DAV
50 DAV is 102,300
$122.57
-4.76%
8/9/2012 $118.60 PP = $104.92
MB = $110.17
Most Recent Note - 9/18/2012 5:25:56 PM
G - Perched -3.3% off its 52-week high today. Extended from its prior base, and its 50 DMA line and recent lows define near-term chart support to watch. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/18/2012. Click here.

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N - NYSE
Netsuite Inc
DIVERSIFIED SERVICES - Business/Management Services  
$61.91 +0.15
0.24%

$62.46

650,846
103.10% of 50 DAV
50 DAV is 631,300
$63.25
-2.12%
8/20/2012 $55.88 PP = $59.32
MB = $62.29
Most Recent Note - 9/18/2012 5:47:10 PM
Y - Holding its ground near its 52-week high today. Rally above its pivot point with +85% above average volume on 9/12/12 triggered a new (or add-on) technical buy signal. 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  
$31.80 +0.72
2.32%

$32.00

1,330,117
152.26% of 50 DAV
50 DAV is 873,600
$31.80
0.00%
8/29/2012 $27.96 PP = $28.85
MB = $30.29
Most Recent Note - 9/20/2012 5:50:01 PM
G - Rallied to a new 52-week high above its "max buy" level today and its color code is changed to green. Its prior gain with nearly 4 times average volume triggered a technical buy signal. Disciplined investors avoid chasing stocks more than +5% above their pivot point.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/7/2012. Click here.

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OSIS - NASDAQ
O S I Systems Inc
ELECTRONICS - Semiconductor Equipment and Mate  
$77.55 +0.56
0.73%

$78.58

370,063
323.48% of 50 DAV
50 DAV is 114,400
$77.30
0.33%
9/5/2012 $74.39 PP = $75.10
MB = $78.86
Most Recent Note - 9/21/2012 4:14:30 PM
Y - Today's 5th consecutive gain was backed by nearly 3 times average volume. Its rally above its pivot point clinched a new (or add-on) technical buy signal, yet it has not risen beyond its "max buy" level. Near term support is at its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/14/2012. 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  
$39.23 +1.01
2.64%

$39.24

399,067
92.31% of 50 DAV
50 DAV is 432,300
$38.61
1.61%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 9/19/2012 6:14:44 PM
G - Hit another new 52-week high and finished near the session high today with above average volume behind its gain, getting more extended from its prior base. An upward trendline defines near-term chart support that comes into play above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/31/2012. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$59.75 +0.09
0.15%

$60.48

1,562,252
146.68% of 50 DAV
50 DAV is 1,065,100
$60.95
-1.97%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 9/19/2012 6:21:05 PM
G - Volume totals have been cooling while still holding its ground near its all-time high. Its 50 DMA line defines important chart support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/29/2012. Click here.

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$144.51 +2.44
1.72%

$146.72

338,201
92.51% of 50 DAV
50 DAV is 365,600
$146.21
-1.17%
8/16/2012 $132.23 PP = $136.44
MB = $143.26
Most Recent Note - 9/21/2012 6:06:15 PM
G - Color code is changed to green again after rallying back above its "max buy" level. Its 50 DMA line defines support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/20/2012. Click here.

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ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$97.92 -0.58
-0.59%

$99.08

518,176
64.91% of 50 DAV
50 DAV is 798,300
$103.52
-5.41%
9/4/2012 $93.17 PP = $98.52
MB = $103.45
Most Recent Note - 9/18/2012 5:29:17 PM
Y - Small gap down and loss today on light volume led to a close below its pivot point, raising concerns. Disciplined investors always limit losses if ever any stock falls -7% or more from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/4/2012. Click here.

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ULTI - NASDAQ
Ultimate Software Group
INTERNET - Internet Software and Services  
$99.00 -1.06
-1.06%

$101.31

195,111
123.41% of 50 DAV
50 DAV is 158,100
$106.40
-6.95%
8/27/2012 $98.36 PP = $99.19
MB = $104.15
Most Recent Note - 9/21/2012 4:19:29 PM
Y - Today marked is 4th consecutive small loss while consolidating near its all-time high. Prior chart highs define initial support to watch above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/27/2012. 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
VSI - NYSE
Vitamin Shoppe Inc
SPECIALTY RETAIL - Specialty Retail, Other  
$59.29 +0.53
0.90%

$59.51

466,983
129.04% of 50 DAV
50 DAV is 361,900
$61.83
-4.10%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 9/21/2012 4:21:01 PM
G - Today marked its 4th consecutive small gain. It has not formed a sound new base. Prior lows near $52 define important chart support below its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/10/2012. Click here.

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WPI - NYSE
Watson Pharmaceuticals
DRUGS - Drugs - Generic  
$83.90 -0.32
-0.38%

$84.59

939,656
81.30% of 50 DAV
50 DAV is 1,155,800
$84.36
-0.55%
8/24/2012 $82.90 PP = $81.10
MB = $85.16
Most Recent Note - 9/18/2012 5:42:38 PM
Y - Posted a gain today with below average volume. Still holding its ground in a tight range near its 52-week high 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.
>>> The latest Featured Stock Update with an annotated graph appeared on 8/28/2012. Click here.

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