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AFTER MARKET UPDATE - MONDAY, DECEMBER 5TH, 2011
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Indices NYSE Nasdaq
DOW  +78.41 12,097.83 +0.65% Volume 892,767,480 +2% Volume 1,645,901,600 +2%
NASDAQ +28.83 2,655.76 +1.10% Advancers 2,357 76% Advancers 1,758 66%
S&P 500 +12.80 1,257.08 +1.03% Decliners 682 22% Decliners 779 29%
Russell 2000 +12.01 747.03 +1.63% 52 Wk Highs 117   52 Wk Highs 66  
S&P 600 +5.81 414.54 +1.42% 52 Wk Lows 8   52 Wk Lows 34  

Stocks Pare Gains on Eurozone Credit Watch

An afternoon slump restricted the major averages' progress yet they still finished Monday's session with unanimous gains.  Advancers beat decliners by mre than 3-1 on the NYSE and more than 2-1 on the Nasdaq exchange. Volume was reported slightly higher on the NYSE and on the Nasdaq exchange indicating an increase in institutional accumulation. New 52-week highs outnumbered new 52-week lows both on the NYSE and on the Nasdaq exchange for a second consecutive session. There were 62 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 53 stocks. There were gains for 12 of the 17 high-ranked companies currently included on the Featured Stocks Page.

 

All major U.S. averages closed the session in the green, adding to last week's rally. Positive developments out of the Eurozone buoyed markets in early action, despite weaker than expected U.S. economic data. Markets fell from session highs in late day action as ratings agency Standard and Poor's announced that all European nations were put on credit watch-negative and at risk of a credit downgrade within 90 days.

Financials including Bank of America Corp (BAC +2.66%) and JP Morgan Chase & Co (JPM +3.65%) led the markets higher, despite pulling back after the S&P announcement.  Shares of global insurer MetLife (MET +3.65%) rose after raising 2012 earnings guidance on improved results in U.S. retirement products and improved international operations.  M&A activity also helped the market's positive bias as shares of SuccessFactors Inc. (SFSF +51.43%) rose sharply after SAP AG (SAP -1.95%) agreed to buy the company for $40 per share.

Our monthly newsletter CANSLIM.net News will be published soon with an informative review of current market conditions, leading groups, and best buy candidates.  Via the Premium Member Homepage links to all prior reports and webcasts are always available.

PICTURED: The S&P 500 Index faces near-term resistance at its 200-day moving average (DMA) line and recent chart 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, Tech, Retail, and Energy-Related Groups Rose

Financial stocks helped underpin the major averages' advance as the Bank Index ($BKX +2.69%) and Broker/Dealer Index ($XBD +3.33%) tallied solid gains.  Strength in energy-related stocks boosted the Oil Services Index ($OSX +2.44%) and Integrated Oil Index ($XOI +1.36%). The Retail Index ($RLX +1.22%) gained ground and the tech sector saw unanimous gains from the Networking Index ($NWX +1.38%), Internet Index ($IIX +1.48%), Biotechnology Index ($BTK +0.81%), and Semiconductor Index ($SOX +0.95%). Meanwhile, defensive groups were laggards as the Gold & Silver Index ($XAU -0.42%) edged lower, and the Healthcare Index ($HMO -0.03%) finished flat.  

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX +0.95%) faces resistance at its 200-day moving average (DMA) line and prior chart highs.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  235.76 +5.61 +2.44% -3.82%
Healthcare $HMO  2,292.98 -0.76 -0.03% +35.52%
Integrated Oil $XOI  1,241.44 +16.67 +1.36% +2.33%
Semiconductor $SOX  378.12 +3.55 +0.95% -8.18%
Networking $NWX  230.02 +3.13 +1.38% -18.01%
Internet $IIX  291.28 +4.26 +1.48% -5.34%
Broker/Dealer $XBD  87.19 +2.81 +3.33% -28.25%
Retail $RLX  538.58 +6.48 +1.22% +5.94%
Gold & Silver $XAU  201.44 -0.84 -0.42% -11.10%
Bank $BKX  39.63 +1.04 +2.69% -24.10%
Biotech $BTK  1,077.67 +8.62 +0.81% -16.95%


Challenging 52-week High After Rebounding From Deep Correction

Mercadolibre Inc (MELI +$5.70 or +6.68% to $91.04) challenged its 52-week high today and in the mid-day report it was color coded yellow with new pivot point cited based on its 52-week high plus 10 cents. It went through a deep consolidation below its 50-day and 200-day moving average (DMA) lines since dropped from the Featured Stocks list on 6/13/11. Its earnings history has remained strong, still satisfying the C and A criteria. Its last appearance in this FSU section was on 6/03/11 with an annotated daily graph under the headline, "Perched Near Highs While Negative Market Remains a Concern." It was then noted on 6/13/11 - "Down today with slightly higher volume after damaging losses last week violated its 50 DMA line and prior lows triggering technical sell signals. Based on its technical deterioration it will be dropped from the Featured Stocks list tonight." It subsequently fell from $77.31 to as low as $48.30 before making an impressive recovery in recent months.

The Latin American Internet - eCommerce firm has seen top-rated funds owning an interest wane from 323 in Mar '11 to 306 in Sep '11, which is a slightly discouraging sign concerning the I criteria. This is a reminder for disciplined investors to watch for a proper technical breakout free of all resistance as a reassuring sign that fresh institutional accumulation is occurring which may lead to a more sustained and significant advance. 


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
ADS - NYSE
Alliance Data Sys Corp
COMPUTER SOFTWARE and SERVICES - Information and Delivery Service  
$104.98 +0.13
0.12%

$107.33

908,761
95.67% of 50 DAV
50 DAV is 949,900
$107.18
-2.05%
10/21/2011 $97.94 PP = $101.15
MB = $106.21
Most Recent Note - 11/30/2011 11:54:10 AM
Y - Rebounding back above its 50 DMA line and rising toward prior highs. Color code is changed to yellow (no new pivot point cited) based on its resilience and another gap up today.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/17/2011. Click here.

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ALXN - NASDAQ
Alexion Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$65.10 -1.88
-2.81%

$68.34

1,641,447
107.90% of 50 DAV
50 DAV is 1,521,300
$70.42
-7.55%
11/30/2011 $68.66 PP = $70.52
MB = $74.05
Most Recent Note - 12/5/2011 5:00:04 PM
G - Pulled back today with slightly above average volume and slumped below its 50 DMA line raising concerns so its color code is changed to green. A repair of its 50 DMA violation and volume-driven gains are needed to trigger a new (or add-on) technical buy signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/14/2011. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$61.31 +0.10
0.16%

$62.31

4,352,208
113.29% of 50 DAV
50 DAV is 3,841,700
$68.25
-10.17%
9/16/2011 $61.21 PP = $62.59
MB = $65.72
Most Recent Note - 12/2/2011 7:56:45 PM
G - Slumped further below its 50 DMA line with a loss today on higher volume indicative of distributional pressure. Gains above its short-term average are needed for its outlook to improve. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/1/2011. Click here.

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FEIC - NASDAQ
F E I Co
ELECTRONICS - Diversified Electronics  
$41.11 +0.77
1.91%

$41.34

289,072
66.16% of 50 DAV
50 DAV is 436,900
$42.25
-2.70%
10/28/2011 $40.31 PP = $40.88
MB = $42.92
Most Recent Note - 11/30/2011 11:45:16 AM
G - Gapped up today, rebounding toward prior highs. It faces resistance due to overhead supply up through the $42 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/25/2011. Click here.

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GNC - NYSE
G N C Holdings Inc
RETAIL - Drug Stores  
$27.69 -0.17
-0.61%

$28.36

690,321
53.75% of 50 DAV
50 DAV is 1,284,300
$28.50
-2.84%
10/26/2011 $24.60 PP = $24.80
MB = $26.04
Most Recent Note - 11/30/2011 7:23:05 PM
G - Today it traded heavy volume but didn't make meaningful price progress while churning near its all-time high. Prior chart highs in the $25-26 area define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/21/2011. 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
HMSY - NASDAQ
H M S Holdings Corp
COMPUTER SOFTWARE and SERVICES - Healthcare Information Service  
$30.57 +0.65
2.17%

$30.99

601,244
88.60% of 50 DAV
50 DAV is 678,600
$31.99
-4.44%
10/27/2011 $26.44 PP = $28.37
MB = $29.79
Most Recent Note - 12/1/2011 6:51:08 PM
G - Pulled back today on light volume and finished near its "max buy" level. Prior highs in the $27-28 area acted as support during the recent pullback. See the latest FSU analysis for more details and a new annotated weekly graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/30/2011. Click here.

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ISRG - NASDAQ
Intuitive Surgical Inc
HEALTH SERVICES - Medical Appliances and Equipment  
$436.43 +2.58
0.59%

$444.82

296,584
71.86% of 50 DAV
50 DAV is 412,700
$449.06
-2.81%
10/19/2011 $424.69 PP = $415.29
MB = $436.05
Most Recent Note - 11/30/2011 7:26:55 PM
Y - Gapped up again today for a solid gain on above average. Found support recently well above its 50 DMA line near prior chart highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/15/2011. Click here.

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MELI - NASDAQ
Mercadolibre Inc
INTERNET - Internet Software and; Services  
$91.04 +5.70
6.68%

$92.75

1,553,755
233.51% of 50 DAV
50 DAV is 665,400
$92.73
-1.82%
12/5/2011 $91.08 PP = $92.83
MB = $97.47
Most Recent Note - 12/5/2011 6:06:50 PM
Y - Challenged its 52-week high today and its color code was changed to yellow with new pivot point cited based on its 52-week high plus 10 cents. Went through a deep consolidation below its 50 and 200 DMA lines since dropped from the Featured Stocks list on 6/13/11. Earnings history has remained strong, satisfying the C and A 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 12/5/2011. Click here.

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MG - NYSE
Mistras Group Inc
DIVERSIFIED SERVICES - Bulding and Faci;ity Management Services  
$24.69 +1.08
4.57%

$25.24

320,918
154.96% of 50 DAV
50 DAV is 207,100
$24.12
2.36%
10/28/2011 $22.49 PP = $23.61
MB = $24.79
Most Recent Note - 12/5/2011 12:19:59 PM
Y - Up today and hitting a new 52-week high, rallying near its "max buy" level. A strong close with sufficient volume may trigger a proper technical buy signal. Its 50 DMA line and prior highs acted as support.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/11/2011. Click here.

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MKTX - NASDAQ
Marketaxess Holdings Inc
FINANCIAL SERVICES - Investment Brokerage - Nationa  
$28.01 -0.86
-2.98%

$29.18

128,348
53.01% of 50 DAV
50 DAV is 242,100
$31.45
-10.94%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 12/5/2011 4:57:14 PM
G - Pulled back near its 50 DMA line today with a loss on light volume. It still faces previously stubborn resistance in the $31 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/23/2011. 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
OSIS - NASDAQ
O S I Systems Inc
ELECTRONICS - Semiconductor Equipment and Mate  
$47.85 +0.58
1.23%

$48.25

59,557
40.13% of 50 DAV
50 DAV is 148,400
$49.04
-2.43%
11/1/2011 $42.07 PP = $45.57
MB = $47.85
Most Recent Note - 12/1/2011 6:49:23 PM
Y - Pulled back today on lighter than average volume. Its gap gain with +44% above average volume on the prior session cleared its previously cited pivot point confirming a technical buy signal. The recent lows ($42.20 on 11/25/11) defines an important support level 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 11/28/2011. Click here.

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RAX - NYSE
Rackspace Hosting Inc
INTERNET - Internet Software and; Services  
$43.34 +0.33
0.77%

$44.03

1,611,454
101.31% of 50 DAV
50 DAV is 1,590,600
$46.50
-6.79%
11/8/2011 $44.28 PP = $46.27
MB = $48.58
Most Recent Note - 11/30/2011 7:08:06 PM
Y - Gapped up today for a 3rd consecutive gain with average volume, rallying from support at its closely coinciding 50 and 200 DMA lines. Subsequent violations would trigger damaging technical sell signals. Its color code is changed to yellow based on its resilience, however it still faces previously stubborn resistance in the $45 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/10/2011. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$32.88 +0.75
2.33%

$33.09

1,006,720
85.88% of 50 DAV
50 DAV is 1,172,200
$33.14
-0.78%
10/27/2011 $27.78 PP = $25.62
MB = $26.90
Most Recent Note - 12/5/2011 5:02:28 PM
G - Gain today with below average volume, finishing at a best-ever close, getting extended from its prior base. Prior highs in the $25-26 area define initial chart support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/22/2011. Click here.

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TDG - NYSE
Transdigm Group Inc
AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services  
$96.82 +0.28
0.29%

$98.34

268,005
64.89% of 50 DAV
50 DAV is 413,000
$102.73
-5.75%
11/9/2011 $98.45 PP = $95.14
MB = $99.90
Most Recent Note - 11/30/2011 11:57:21 AM
Y - Gapped up today, and it stayed well above its 50 DMA line during its recent consolidation. A subsequent slump below the recent low and its 50 DMA line would trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/9/2011. Click here.

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UA - NYSE
Under Armour Inc Cl A
CONSUMER NON-DURABLES - Textile - Apparel Clothing  
$84.05 +2.21
2.70%

$84.14

703,743
52.98% of 50 DAV
50 DAV is 1,328,400
$87.40
-3.83%
10/25/2011 $82.43 PP = $80.80
MB = $84.84
Most Recent Note - 12/5/2011 5:05:39 PM
G - Gapped up today and finished near the session high with a gain on lighter than average volume. Its 50 DMA line and recent low ($73.55 on 11/21/11) define important support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/29/2011. 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
ULTA - NASDAQ
Ulta Salon Cosm & Frag
SPECIALTY RETAIL - Specialty Retail, Other  
$73.90 -0.29
-0.39%

$75.70

1,325,246
125.21% of 50 DAV
50 DAV is 1,058,400
$75.69
-2.36%
12/2/2011 $72.88 PP = $75.79
MB = $79.58
Most Recent Note - 12/5/2011 12:30:58 PM
Y - Touching a new 52-week high today. No resistance remains due to overhead supply and it may be working on a late-stage "square box" type base pattern. Its fundamentals (C and A criteria) remain strong. Color code is changed to yellow with new pivot point based on its 52-week high plus 10 cents.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/2/2011. Click here.

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V - NYSE
Visa Inc Cl A
DIVERSIFIED SERVICES - Business/Management Services  
$96.06 -1.14
-1.17%

$98.29

4,182,821
78.85% of 50 DAV
50 DAV is 5,305,100
$98.60
-2.58%
10/24/2011 $94.21 PP = $94.85
MB = $99.59
Most Recent Note - 11/30/2011 12:48:14 PM
Y - Gapped up today challenging its 52-week high without great volume conviction helping it rally. Proof of serious institutional demand requires at least +50% heavier than average volume behind a meaningful gain.
>>> The latest Featured Stock Update with an annotated graph appeared on 11/18/2011. Click here.

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THESE ARE NOT BUY RECOMMENDATIONS!  Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. This site is not an investment advisor, hence it does not endorse or recommend any securities or other investments. 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. All trademarks, service marks and trade names appearing in this report are the property of their respective owners, and are likewise used for identification purposes only.

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Kenneth J. Gruneisen founded Gruneisen Growth Corp. (2003), which prior to May 11, 2015, operated CANSLIM.net and CANSLIM.com both under license from Data Analysis Inc. / Investor's Business Daily. Kenneth has passed the CAN SLIM® Master's Exam. Gruneisen Growth Corp. now continues over two decades of fact based market analysis via FactBasedInvesting.com.

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