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AFTER MARKET UPDATE - THURSDAY, OCTOBER 3RD, 2013
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Indices NYSE Nasdaq
DOW  -136.66 14,996.48 -0.90% Volume 703,311,600 +2% Volume 1,793,707,710 +5%
NASDAQ -40.68 3,774.34 -1.07% Advancers 642 21% Advancers 659 25%
S&P 500 -15.21 1,678.66 -0.90% Decliners 2,378 77% Decliners 1,859 71%
Russell 2000 -11.65 1,070.90 -1.08% 52 Wk Highs 97   52 Wk Highs 120  
S&P 600 -6.79 604.51 -1.11% 52 Wk Lows 42   52 Wk Lows 21  

Major Averages Fall Again as Distributional Pressure Rises

The major averages ended trading near Thursday's session lows as lawmakers made little headway to end the partial closure of the U.S. government. Volume totals on were higher on the NYSE and on the Nasdaq exchange versus the prior session's volume totals, indicating more serious selling conviction from the institutional crowd. Breadth was negative as decliners led advancers by a nearly a 4-1 margin on the NYSE and by nearly 3-1 on the Nasdaq exchange. Leadership contracted as there were 43 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, down from the total of 60 stocks on the prior session. Healthly leadership is critical to any sustained rally, while waning leadership (fewer stocks hitting new highs) does not bode well for the broader market outlook. The list of stocks hitting new 52-week highs still outnumbered new lows on the NYSE and on the Nasdaq exchange. There were gains for only 3 of the 21 high-ranked companies currently included on the Featured Stocks Page.

 

Economic data also weighed on market action. Shortly after the open, a report showed service sector activity expanded at a slower-than-expected pace in September. An earlier release revealed weekly jobless claims rose by 1,000 to 308,000, less than the consensus projection for 315,000.

All 10 sectors in the S&P 500 were down at least -0.5% in the session. Utilities and industrials were the worst performing groups as Southern Co (SO -1.86%) and Exelon Corp (EXC -1.8%) fell, Boeing Co (BA -2.6%) fell, and United Technologies (UTX -1.2%) fell after saying it could furlough as many as 5,000 employees due to the government shutdown. PVH Corp (PVH +4.37%) was a notable gainer in the S&P 500. Shares of the maker of Calvin Klein clothing advanced after it agreed to sell a unit for $50 million. Constellation Brands (STZ +3.24%) was higher after posting quarterly results above analyst estimates. Homebuilders retreated with Pulte Group Inc (PHM -2.4%) down.  Tenet Healthcare Corp (THC +5.4%) was a notable gainer.

Treasuries were little changed with the 10-year note up 2/32 to yield 2.61%.

Distributional action is weighing on the market (M criteria) and putting the rally under pressure. New buying efforts may only be justified in candidates meeting the fact-based system's strict guidelines. Stay familiar with companies listed on the CANSLIM.net Featured Stocks Page - a page showing the most action-worthy candidates' latest notes and links to additional resources including detailed analysis with data-packed graphs which are annotated by a Certified expert.  The Premium Member Homepage - includes "dynamic archives" to all prior pay reports published. Watch for an announcement via email concerning the next WEBCAST.

PICTURED: The S&P 500 Index ended a point below its 50-day moving average (DMA) line with its 9th loss in the span of 11 sessions.


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, Financial, Tech, Defensive, and Commodity-Linked Groups Fell

The Retail Index ($RLX -1.08%) was a negative influence on the major averages along with financial shares as the Broker/Dealer Index ($XBD -1.25%) and Bank Index ($BKX -0.45%) fell on Thursday. The tech sector saw unanimous losses from the Networking Index ($NWX -0.98%), Internet Index ($IIX -1.29%), and the Biotechnology Index ($BTK -1.17%) while the Semiconductor Index ($SOX -0.26%) did a better job of holding its ground. Energy-related shares were lower as the Integrated Oil Index ($XOI -0.73%) and the Oil Services Index ($OSX -0.28%) suffered modest losses. Defensive groups including the Gold & Silver Index ($XAU -1.33%) and Healthcare Index ($HMO -0.25%) also lost ground, rounding out the mostly negative session.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX -0.26%) is consolidating near prior highs and well above its 50-day moving average (DMA) line. Tech sector strength has helped the Nasdaq Composite Index avoid the deterioration which meanwhile has allowed the Dow and S&P 500 to both slump below their respective 50 DMA lines.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  275.56 -0.77 -0.28% +25.16%
Healthcare $HMO  3,519.99 -8.91 -0.25% +40.01%
Integrated Oil $XOI  1,401.69 -10.35 -0.73% +12.87%
Semiconductor $SOX  493.80 -1.30 -0.26% +28.57%
Networking $NWX  300.71 -2.97 -0.98% +32.73%
Internet $IIX  418.15 -5.47 -1.29% +27.87%
Broker/Dealer $XBD  134.99 -1.70 -1.25% +43.11%
Retail $RLX  852.98 -9.31 -1.08% +30.61%
Gold & Silver $XAU  90.55 -1.22 -1.33% -45.32%
Bank $BKX  62.22 -0.28 -0.45% +21.33%
Biotech $BTK  2,189.52 -26.00 -1.17% +41.53%


Encountering Distributional Pressure While Consolidating Above Prior Highs

Bancorp Inc (TBBK  +$0.04 or +0.23% to $17.57) encountered distributional pressure this week with losses on higher volume. Its color code has been changed to yellow after consolidating back below its "max buy" level.  However, odds are less favorable for investors buying stocks on pullbacks rather when they are in the midst of a technical breakout.  Recent pressure weighing on the broader market (M criteria) also could hurt its ability to make headway, since 3 out of 4 stocks typically move in the same direction as the major averages. 

Prior highs and its 50-day moving average (DMA) line define important support to watch on pullbacks. It tallied multiple volume-driven gains for new highs immediately after last shown in this FSU section on 9/04/13 with an annotated graph under the headline, "Forming Sound Set-Up While 'M' Correction Remains Overriding Concern" as the broader market resumed its rally. It was highlighted in yellow with pivot point cited based on its 7/17/13 high plus 10 cents while building on an 8-week base in the earlier mid-day report (read here). The old resistance level now is expected to be a support area.

It reported +25% earnings for the Jun '13 quarter. Quarterly earnings increases above the +25% guideline satisfy the C criteria. Its annual earnings (A criteria) history has been steadily improving after an abrupt downturn and loss in FY '08. It completed a new Public Offering on 12/18/12. The number of top-rated funds owning its share rose from 169 in Sep '12 to 187 in Jun '13, a reassuring sign concerning the I criteria.  Its small supply (S criteria) of only 32.9 million shares in the public float can contribute to greater price volatility in the event of institutional buying or selling.


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
AVG - NYSE
A V G Technologies N.V.
INTERNET - Internet Software and Services  
$23.25 -0.85
-3.53%

$24.12

971,027
105.15% of 50 DAV
50 DAV is 923,500
$26.56
-12.45%
9/13/2013 $23.06 PP = $23.88
MB = $25.07
Most Recent Note - 10/3/2013 5:58:41 PM
Y - Color code is changed to yellow while consolidating near prior highs in the $23 area defining support to watch above its 50 DMA line ($22.79 now). Subsequent damaging violations may trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/13/2013. Click here.

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BITA - NYSE
Bitauto Hldgs Ltd Ads
INTERNET - Internet Information Providers  
$19.12 -0.10
-0.52%

$19.93

830,848
174.15% of 50 DAV
50 DAV is 477,100
$19.60
-2.45%
9/24/2013 $16.40 PP = $17.31
MB = $18.18
Most Recent Note - 10/3/2013 12:20:16 PM
G - Color code is changed to green after getting extended from its prior base and rallying beyond its "max buy" level to new 52-week highs with considerable volume-driven gains. Prior highs in the $18 area define define initial support 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 10/2/2013. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$152.62 -3.31
-2.12%

$155.95

2,798,746
112.08% of 50 DAV
50 DAV is 2,497,200
$157.50
-3.10%
9/12/2013 $149.50 PP = $150.02
MB = $157.52
Most Recent Note - 9/30/2013 12:08:55 PM
Y - Hitting another new 52-week high today. Finished strong on Friday with +53% above average volume while rising above its previously cited pivot point confirming a technical buy signal. Its 50 DMA line ($143.44 now) defines near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/20/2013. Click here.

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EGBN - NASDAQ
Eagle Bancorp Inc
BANKING - Regional - Mid-Atlantic Banks  
$28.08 -0.10
-0.35%

$28.21

68,257
91.74% of 50 DAV
50 DAV is 74,400
$28.48
-1.40%
9/16/2013 $27.48 PP = $27.77
MB = $29.16
Most Recent Note - 10/1/2013 6:04:28 PM
Y - Inched to new high territory with light volume behind today's 4th consecutive gain. Stubbornly held its ground after a recent spurt of volume-driven gains and it remains below its "max buy" level.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/16/2013. Click here.

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FLT - NYSE
Fleetcor Technologies
DIVERSIFIED SERVICES - Business/Management Services  
$111.15 -2.45
-2.16%

$113.61

727,262
111.15% of 50 DAV
50 DAV is 654,300
$113.68
-2.23%
8/19/2013 $99.01 PP = $100.97
MB = $106.02
Most Recent Note - 10/3/2013 5:51:30 PM
G - Hovering near all-time highs after wedging higher since completing a Secondary Offering on 9/11/13. Its 50 DMA line defines important near term support to watch on pullbacks. FLT has traded up as much as +59.8% since first featured in yellow in the mid-day report on 3/21/13 (read here).
>>> The latest Featured Stock Update with an annotated graph appeared on 9/6/2013. 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
GNRC - NYSE
Generac Hldgs Inc
CONSUMER DURABLES - Electronic Equipment  
$42.13 -0.25
-0.59%

$42.49

550,966
69.24% of 50 DAV
50 DAV is 795,700
$44.30
-4.90%
9/12/2013 $41.40 PP = $43.27
MB = $45.43
Most Recent Note - 9/30/2013 11:55:20 AM
Y - Pulling back near its 50 DMA line today. It stalled after triggering a technical buy signal on 9/20/13. Disciplined investors limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/23/2013. Click here.

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JAZZ - NASDAQ
Jazz Pharmaceuticals Plc
DRUGS - Biotechnology  
$89.53 -0.75
-0.83%

$91.37

898,130
134.11% of 50 DAV
50 DAV is 669,700
$93.84
-4.59%
9/30/2013 $93.20 PP = $89.10
MB = $93.56
Most Recent Note - 9/30/2013 6:04:16 PM
Y- Finished strong today with a solid gain backed by +160% above average volume while rallying above the pivot point cited based its 9/03/13 high plus 10 cents after an advanced "3-weeks tight" base. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/30/2013. Click here.

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KORS - NYSE
Michael Kors Hldgs Ltd
RETAIL - Apparel Stores  
$74.83 -1.06
-1.40%

$76.97

2,466,014
70.91% of 50 DAV
50 DAV is 3,477,500
$78.62
-4.82%
8/6/2013 $69.66 PP = $66.28
MB = $69.59
Most Recent Note - 9/27/2013 5:21:05 PM
G - Extended from its prior base and consolidating near its 52-week high. Its 50 DMA line (now $71.33) defines support above prior highs in the $66 area. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/27/2013. Click here.

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LOPE - NASDAQ
Grand Canyon Education
DIVERSIFIED SERVICES - Education and; Training Services  
$40.05 -0.66
-1.62%

$40.72

249,556
64.89% of 50 DAV
50 DAV is 384,600
$41.33
-3.10%
6/19/2013 $31.47 PP = $34.17
MB = $35.88
Most Recent Note - 10/3/2013 5:53:22 PM
G - Pulling back from new all-time high with small losses on light or average volume. Fundamental concerns remain while technical action has been reassuring.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/12/2013. Click here.

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MRLN - NASDAQ
Marlin Business Services
DIVERSIFIED SERVICES - Rental and Leasing Services  
$24.38 -0.08
-0.33%

$24.50

12,021
33.21% of 50 DAV
50 DAV is 36,200
$26.96
-9.57%
9/9/2013 $23.75 PP = $24.03
MB = $25.23
Most Recent Note - 10/2/2013 7:47:19 PM
G - Finished well above the session low today but tallied its 5th consecutive loss with light volume while retreating from its 52-week high. Gains lacked great volume conviction since recently paying a $2.00 per share Special Dividend.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/9/2013. 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
PCLN - NASDAQ
Priceline.Com Inc
INTERNET - Internet Software and Services  
$1,049.31 -18.07
-1.69%

$1,074.89

726,517
118.15% of 50 DAV
50 DAV is 614,900
$1,073.00
-2.21%
9/13/2013 $966.82 PP = $995.08
MB = $1,044.83
Most Recent Note - 10/2/2013 7:52:26 PM
G - Volume was +92% above average pace today, enough to clinch a technical buy signal while quickly rising beyond its "max buy" level and getting extended from its prior base.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/19/2013. Click here.

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PRAA - NASDAQ
Portfolio Recovery Assoc
DIVERSIFIED SERVICES - Business/Management Services  
$58.86 -0.73
-1.23%

$59.92

442,440
86.79% of 50 DAV
50 DAV is 509,800
$61.60
-4.45%
7/31/2013 $51.43 PP = $54.72
MB = $57.46
Most Recent Note - 9/27/2013 4:12:31 PM
G - Small gap down today on light volume, pulling back from new 52-week highs after 4 consecutive gains on light volume, wedging higher and getting more extended from its prior base. See the latest FSU analysis for more details and an annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/26/2013. Click here.

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PRLB - NYSE
Proto Labs Inc
MANUFACTURING - Small Tools and Accessories  
$77.91 -1.76
-2.21%

$80.05

396,686
97.54% of 50 DAV
50 DAV is 406,700
$80.66
-3.41%
7/29/2013 $64.86 PP = $67.50
MB = $70.88
Most Recent Note - 10/2/2013 7:44:49 PM
G - Ended at a best-ever close with today's 3rd consecutive gain backed by light volume. Extended from any sound base. Support to watch is at its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/25/2013. Click here.

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SFUN - NYSE
Soufun Hldgs Ltd Ads A
INTERNET - Internet Information Providers  
$47.42 -4.30
-8.31%

$53.64

3,138,644
286.92% of 50 DAV
50 DAV is 1,093,900
$53.77
-11.81%
7/16/2013 $29.54 PP = $27.90
MB = $29.30
Most Recent Note - 10/3/2013 12:45:51 PM
G - Reversed into the red after early gains today challenged its 52-week high. It has not formed a new base of sufficient length. The 50 DMA line and prior highs coincide in the $42 area defining important near-term support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/1/2013. Click here.

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SSNC - NASDAQ
S S & C Technologies
COMPUTER SOFTWARE and SERVICES - Application Software  
$37.19 -0.95
-2.49%

$38.14

452,223
104.85% of 50 DAV
50 DAV is 431,300
$39.94
-6.89%
9/5/2013 $36.01 PP = $38.90
MB = $40.85
Most Recent Note - 9/27/2013 5:23:22 PM
Y - Volume totals have been cooling while holding its ground in a tight range near its 52-week high and near the pivot point cited based on its 8/02/13 high plus 10 cents. Completed a Secondary Offering on 9/20/13 while perched at all-time highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/5/2013. 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
SSYS - NASDAQ
Stratasys Ltd
COMPUTER HARDWARE - Computer Peripherals  
$99.81 -3.69
-3.57%

$103.81

1,062,225
97.08% of 50 DAV
50 DAV is 1,094,200
$113.49
-12.05%
7/8/2013 $91.44 PP = $95.00
MB = $99.75
Most Recent Note - 10/3/2013 5:59:50 PM
G - Pulled back today on average but higher volume while testing its 50 DMA line again. Completed a new Public Offering on 9/13/13. It has not formed a sound base.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/10/2013. Click here.

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STMP - NASDAQ
Stamps.Com Inc
INTERNET - Internet Software and Services  
$44.65 -1.18
-2.57%

$46.00

80,466
66.89% of 50 DAV
50 DAV is 120,300
$46.80
-4.59%
9/24/2013 $45.54 PP = $46.57
MB = $48.90
Most Recent Note - 10/1/2013 6:05:51 PM
Y - Finished at a best-ever close with today's 4th consecutive small gain on light volume. A new pivot point was cited based on its 8/01/13 high plus 10 cents. Recently found encouraging support at its 50 DMA line. Volume-driven gains to new highs may trigger a new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/24/2013. Click here.

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TBBK - NASDAQ
Bancorp Inc
BANKING - Regional - Mid-Atlantic Banks  
$17.57 +0.04
0.23%

$17.66

178,448
92.99% of 50 DAV
50 DAV is 191,900
$18.61
-5.59%
9/4/2013 $16.26 PP = $16.79
MB = $17.63
Most Recent Note - 10/3/2013 5:54:51 PM
Y - Color code is changed to yellow while consolidating just below its "max buy" level. Prior highs and its 50 DMA line define important 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 10/3/2013. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$23.65 -0.47
-1.95%

$24.18

745,045
134.68% of 50 DAV
50 DAV is 553,200
$24.60
-3.85%
9/12/2013 $21.30 PP = $23.15
MB = $24.31
Most Recent Note - 10/3/2013 5:56:06 PM
Y - Pulled back today with above average volume, encountering distributional pressure. Convincing volume-driven gains above its pivot point cited based on its May 2012 high plus 10 cents may signal the beginning of a substantial leg higher.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/17/2013. Click here.

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VRX - NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$111.40 +1.60
1.46%

$113.79

2,856,007
248.26% of 50 DAV
50 DAV is 1,150,400
$109.84
1.42%
9/11/2013 $100.26 PP = $105.50
MB = $110.78
Most Recent Note - 10/3/2013 12:58:09 PM
Y- Today's 3rd consecutive gain with ever-increasing and above average volume has it rallying further above the pivot point and trading slightly above its "max buy" level. Gains above the pivot point with volume at least +40% above average are needed to trigger a proper technical buy signal. Recent insider buying while trading near its highs has been noted as an encouraging sign.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/11/2013. 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
YNDX - NASDAQ
Yandex N V Class A
INTERNET - Internet Information Providers  
$38.38 +0.63
1.67%

$39.44

3,330,973
142.00% of 50 DAV
50 DAV is 2,345,800
$38.10
0.73%
9/5/2013 $34.24 PP = $34.79
MB = $36.53
Most Recent Note - 10/3/2013 1:06:46 PM
G - Hit another new all-time high with today's volume-driven gain, getting more extended from its prior base. Prior highs in the $34 area and its 50 DMA line define support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/18/2013. Click here.

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