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AFTER MARKET UPDATE - MONDAY, OCTOBER 1ST, 2012
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Indices NYSE Nasdaq
DOW  +77.98 13,515.11 +0.58% Volume 672,662,000 -19% Volume 1,707,469,420 -4%
NASDAQ -2.70 3,113.53 -0.09% Advancers 1,886 60% Advancers 1,397 54%
S&P 500 +3.82 1,444.49 +0.27% Decliners 1,166 37% Decliners 1,073 41%
Russell 2000 +2.86 840.31 +0.34% 52 Wk Highs 226   52 Wk Highs 120  
S&P 600 +1.66 469.93 +0.35% 52 Wk Lows 13   52 Wk Lows 28  

Major Averages End Off Highs, Mixed With Lighter Volume Totals

The major averages headed higher in the first trading day of the fourth-quarter, yet they finished off their session highs and ended mixed on Monday. The volume totals were reported lighter on the NYSE and on the Nasdaq exchange versus the prior session totals. Advancers led decliners by a 3-2 ratio on the NYSE and by a 7-5 ratio on the Nasdaq exchange. The total number of new 52-week highs solidly outnumbered new 52-week lows on the NYSE on the Nasdaq exchange. There were 65 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 32 stocks. There were gains for 11 of the 22 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks rallied early on after a better-than-expected manufacturing reading. The ISM factory index showed manufacturing expanded in September for the first time in four months, with the gauge rising to 51.5. It was projected to increase to 49.7 from August's reading of 49.6. U.S. construction spending continued to fall in August, posting the biggest decline since July 2011.  Fed Chairman Bernanke delivered a speech about monetary policy in Indianapolis defending the new round of open-ended quantitative easing and regional president Evans said the central bank should keep policy loose until the unemployment rate falls below 7%. Overseas data was also in focus as Purchasing Manager Indices in China and the euro zone remained in contraction mode, but showed some signs of stabilization.

In company news, Ceradyne Inc (CRDN +43.14%) rallied after 3M Co (MMM +0.94%) said it will acquire the ceramic products manufacturer in a deal worth $670 million. Tenet Healthcare Corp (THC +3.35%) also gained ground after the company announced a one-for-four reverse stock split. 

Nearly all sectors were higher. Both crude oil and copper advanced to one-week highs, helping material and energy stocks gain ground. Utilities and telecommunication shares lagged behind due to their defensive characteristics and losses in technology weighed on the Nasdaq.

In fixed-income, Treasuries were higher with the 10-year note up 6/32 to yield 1.61%.

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 via email concerning the Q3 2012 WEBCAST. The webcast will also be available via an updated link highlighted at the top of the Premium Member Homepage

PICTURED: The Dow Jones Industrial Average found support near prior 2012 highs while consolidating. 


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.


Medical-Related and Financial Shares Rose

Medical related issues had a positive bias as the Biotechnology Index ($BTK +0.65%) and the Healthcare Index ($HMO +0.59%) tallied modest gains. The Bank Index ($BKX +0.26%) and the Broker/Dealer Index ($XBD +0.53%) were also positive influences on the major averages.  The Networking Index ($NWX -1.03%), Semiconductor Index ($SOX -0.30%), and Internet Index ($IIX -0.11%) edged lower and the Retail Index ($RLX +0.05%) finished flat.  The Oil Services Index ($OSX +0.07%) ended unchanged while the Integrated Oil Index ($XOI +0.42%) and Gold & Silver Index ($XAU +0.58%) inched higher.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK +0.65%) found support while recently consolidating above its July highs.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  224.24 +0.15 +0.07% +3.68%
Healthcare $HMO  2,426.34 +14.19 +0.59% +6.34%
Integrated Oil $XOI  1,263.46 +5.34 +0.42% +2.80%
Semiconductor $SOX  381.12 -1.15 -0.30% +4.58%
Networking $NWX  205.20 -2.14 -1.03% -4.63%
Internet $IIX  320.90 -0.35 -0.11% +13.90%
Broker/Dealer $XBD  83.02 +0.44 +0.53% -0.29%
Retail $RLX  656.67 +0.32 +0.05% +25.51%
Gold & Silver $XAU  192.10 +1.10 +0.58% +6.34%
Bank $BKX  49.71 +0.13 +0.26% +26.23%
Biotech $BTK  1,568.37 +10.14 +0.65% +43.70%


Extended From Buyable Range Following Merger & Acquisition News

China Kanghui Hldgs Ads (KH +$0.05 or +0.16% to $30.40) held its ground today. It gapped up for a considerable gain and new all-time high on 9/28/12 following news it will be acquired by Medtronic Inc (MDT). Disciplined investors might sooner look for a fresh buy candidate fitting within the investment system's parameters. Look on the Featured Stocks page for more ideal buy candidates before they have risen beyond their "max buy" levels.

The last time it appeared in the FSU section was on 8/30/12 under the headline, "Medical Product Firm Challenging Prior Resistance Area". This Chinese Medical - Products firm was trading at $24.19 then, and it had just tallied a gain with more than 3 times average volume on the prior session which technically helped it break out of an orderly flat base pattern above its 50-day moving average (DMA) line. The prior resistance area acted as a support level in the weeks that followed. It was noted that - "Its small supply (S criteria) of only 22.8 million outstanding shares and low daily average volume can contribute to greater volatility in the event of institutional buying or selling so proper discipline is especially important. It reported earnings +41% on +26% sales revenues for the quarter ended June 30, 2012 versus the year ago period. The Dec '11 and Mar '12 quarters showed strong sales revenues and earnings increases above the +25% minimum guideline (C criteria), improving following a streak of 3 sub par quarterly comparisons.  Management's 19% ownership interest keeps them motivated to build and maintain shareholder value."


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  
$116.00 +1.60
1.40%

$117.65

1,519,958
129.27% of 50 DAV
50 DAV is 1,175,800
$116.43
-0.37%
8/23/2012 $103.70 PP = $110.06
MB = $115.56
Most Recent Note - 9/26/2012 5:15:16 PM
Y - Pulled back from its 52 week high today. Color code is changed to yellow after retreating below its "max buy" level. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/26/2012. Click here.

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ASPS - NASDAQ
Altisource Ptf Sltns Sa
REAL ESTATE - Property Management/Developmen  
$88.49 +2.24
2.60%

$88.59

189,310
144.95% of 50 DAV
50 DAV is 130,600
$92.29
-4.12%
9/24/2012 $87.24 PP = $92.39
MB = $97.01
Most Recent Note - 10/1/2012 6:38:00 PM
Y - Today's 3rd consecutive gain had above average volume while rallying up from its 50 DMA line in the $82 area. 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 9/11/2012. Click here.

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CFNL - NASDAQ
Cardinal Financial Corp
BANKING - Regional - Southeast Banks  
$14.27 -0.03
-0.21%

$14.53

168,595
239.48% of 50 DAV
50 DAV is 70,400
$14.79
-3.52%
8/17/2012 $12.84 PP = $13.31
MB = $13.98
Most Recent Note - 10/1/2012 12:22:07 PM
G - Still consolidating near its 52-week high today, holding its ground stubbornly after a spurt of volume-driven gains. Extended from its prior base, and its prior highs and 50 DMA line define support to watch on pullbacks near the $13 level.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/25/2012. Click here.

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CMCSA - NASDAQ
Comcast Corp Cl A
MEDIA - CATV Systems  
$35.38 -0.20
-0.57%

$36.16

11,387,581
88.82% of 50 DAV
50 DAV is 12,820,500
$36.90
-4.12%
6/11/2012 $29.94 PP = $30.98
MB = $32.53
Most Recent Note - 9/27/2012 3:53:47 PM
G - Consolidating above prior highs after recently rallying 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.
>>> 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  
$103.44 -0.17
-0.16%

$105.73

1,000,920
139.29% of 50 DAV
50 DAV is 718,600
$103.97
-0.51%
9/5/2012 $102.92 PP = $100.62
MB = $105.65
Most Recent Note - 9/27/2012 3:55:19 PM
Y - Gain today with light volume has it poised for a best-ever close. Considerable gain on 9/21/12 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  
$28.85 +0.59
2.09%

$28.86

186,942
140.66% of 50 DAV
50 DAV is 132,900
$30.91
-6.66%
8/3/2012 $29.91 PP = $30.45
MB = $31.97
Most Recent Note - 10/1/2012 6:51:23 PM
Y - Color code is changed to yellow after today's rebound above its 50 DMA line with a gain on higher volume. 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  
$56.94 -0.90
-1.56%

$58.30

1,788,075
54.73% of 50 DAV
50 DAV is 3,267,100
$60.29
-5.56%
4/27/2012 $41.80 PP = $35.57
MB = $37.35
Most Recent Note - 9/27/2012 3:58:26 PM
G - Holding its ground perched near its 52-week high. No overhead supply remains to hinder its progress, however weak industry group action and iffy fundamentals were noted 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  
$19.44 +0.12
0.62%

$19.75

48,716
64.52% of 50 DAV
50 DAV is 75,500
$20.67
-5.95%
6/29/2012 $18.01 PP = $18.15
MB = $19.06
Most Recent Note - 9/26/2012 1:15:39 PM
G - Consolidating -6.9% off its 52-week high today after 6 consecutive losses, now testing support at its 50 DMA line. More damaging losses would raise concerns and trigger a technical sell signal.
>>> 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  
$30.40 +0.05
0.16%

$30.48

817,591
1,023.27% of 50 DAV
50 DAV is 79,900
$30.53
-0.43%
8/30/2012 $24.19 PP = $22.90
MB = $24.05
Most Recent Note - 10/1/2012 12:35:33 PM
G - Holding its ground today. Gapped up for a considerable gain and new all-time high on 9/28/12 following news it will be acquired by Medtronic Inc (MDT).
>>> The latest Featured Stock Update with an annotated graph appeared on 10/1/2012. Click here.

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LKQ - NASDAQ
L K Q Corp
WHOLESALE - Auto Parts  
$18.57 +0.09
0.51%

$18.70

2,608,805
190.48% of 50 DAV
50 DAV is 1,369,600
$20.02
-7.22%
8/9/2012 $18.97 PP = $18.72
MB = $19.66
Most Recent Note - 10/1/2012 6:29:56 PM
G - Posted a gain on higher volume today but it remains below its 50 DMA line which may now act as resistance. Color code is changed to green. Do not be confused by a 2:1 share split effective 9/19/12 (Featured Price, Pivot Point and Max Buy were adjusted).
>>> 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  
$117.94 -2.46
-2.04%

$120.97

1,736,654
70.27% of 50 DAV
50 DAV is 2,471,500
$125.50
-6.02%
9/5/2012 $113.25 PP = $113.10
MB = $118.76
Most Recent Note - 10/1/2012 6:31:28 PM
G - Consolidating -6.0% off its 52-week and all-time highs today with volume totals cooling in recent weeks. 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  
$117.22 +1.58
1.37%

$118.42

87,822
85.35% of 50 DAV
50 DAV is 102,900
$122.57
-4.36%
8/9/2012 $118.60 PP = $104.92
MB = $110.17
Most Recent Note - 10/1/2012 5:59:10 PM
G - Perched -4.4% off its 52-week high after a gain today with higher (near average) volume. Extended from its prior base, and its 50 DMA line and recent lows define near-term chart support to watch.
>>> 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  
$62.68 -1.12
-1.76%

$64.20

625,315
96.71% of 50 DAV
50 DAV is 646,600
$64.26
-2.46%
8/20/2012 $55.88 PP = $59.32
MB = $62.29
Most Recent Note - 9/27/2012 3:46:19 PM
G - Rallying above its "max buy" level with today's gain and its color code is changed to green. Prior highs near $59 define initial support above its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/24/2012. Click here.

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NSM - NYSE
Nationstar Mtg Hldgs Inc
FINANCIAL SERVICES - Credit Services  
$34.89 +1.71
5.15%

$36.12

3,197,021
322.35% of 50 DAV
50 DAV is 991,800
$34.90
-0.03%
8/29/2012 $27.96 PP = $28.85
MB = $30.29
Most Recent Note - 10/1/2012 12:37:58 PM
G - Hit another new 52-week high today. After a spurt of volume-driven gains it is extended from its prior base. 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  
$76.66 -1.18
-1.52%

$78.93

142,702
110.79% of 50 DAV
50 DAV is 128,800
$78.88
-2.81%
9/5/2012 $74.39 PP = $75.10
MB = $78.86
Most Recent Note - 9/27/2012 3:39:13 PM
Y - Hitting a new 52-week high today with a volume-driven gain, approaching 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  
$39.27 +0.51
1.32%

$39.95

429,093
98.82% of 50 DAV
50 DAV is 434,200
$40.05
-1.95%
7/27/2012 $29.58 PP = $30.60
MB = $32.13
Most Recent Note - 9/27/2012 3:47:40 PM
G - Gapped up today, rebounding after a volume-driven loss on the prior session. It is 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  
$54.52 -1.22
-2.19%

$56.52

1,190,062
106.23% of 50 DAV
50 DAV is 1,120,300
$60.95
-10.55%
7/25/2012 $47.82 PP = $47.89
MB = $50.28
Most Recent Note - 10/1/2012 6:59:04 PM
G - Slumped under its 50 DMA line today with a loss on near average volume. A subsequent violation of the 9/26/12 low ($53.78) would raise more serious concerns.
>>> 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  
$141.69 -0.18
-0.13%

$142.83

453,224
108.74% of 50 DAV
50 DAV is 416,800
$146.72
-3.43%
8/16/2012 $132.23 PP = $136.44
MB = $143.26
Most Recent Note - 9/27/2012 12:58:09 PM
Y - Consolidating below its "max buy" level with volume running at an above average pace behind today's 2nd consecutive loss. Its 50 DMA line and prior highs define near-term 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  
$96.81 +0.51
0.52%

$97.97

460,451
57.39% of 50 DAV
50 DAV is 802,300
$103.52
-6.48%
9/4/2012 $93.17 PP = $98.52
MB = $103.45
Most Recent Note - 9/26/2012 1:11:16 PM
Y - Slumping further below its pivot point with a loss on light volume today, 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  
$102.87 +0.77
0.75%

$103.05

217,806
132.57% of 50 DAV
50 DAV is 164,300
$106.40
-3.32%
8/27/2012 $98.36 PP = $99.19
MB = $104.15
Most Recent Note - 9/27/2012 6:01:25 PM
Y - Today's solid gain with higher volume has halted a streak of 7 consecutive small losses. Prior chart highs define initial support to watch above its 50 DMA line. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/27/2012. 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  
$57.74 -0.58
-0.99%

$58.80

278,002
76.29% of 50 DAV
50 DAV is 364,400
$61.83
-6.61%
6/29/2012 $54.93 PP = $55.03
MB = $57.78
Most Recent Note - 9/27/2012 3:43:38 PM
G - Overcame early weakness today and managed a positive reversal. 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  
$85.14 -0.02
-0.02%

$86.20

994,847
92.36% of 50 DAV
50 DAV is 1,077,100
$86.07
-1.08%
8/24/2012 $82.90 PP = $81.10
MB = $85.16
Most Recent Note - 9/28/2012 12:36:43 PM
G - Hitting a new 52-week high with today's volume-driven gain lifting it above the "max buy" level. Color code is changed to green after getting extended from its prior base. Prior highs in the $81 area and its 50 DMA line define important support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/28/2012. Click here.

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