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AFTER MARKET UPDATE - TUESDAY, DECEMBER 6TH, 2011
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Indices NYSE Nasdaq
DOW  +52.30 12,150.13 +0.43% Volume 801,869,140 -10% Volume 1,444,845,800 -12%
NASDAQ -6.20 2,649.56 -0.23% Advancers 1,500 48% Advancers 1,093 41%
S&P 500 +1.39 1,258.47 +0.11% Decliners 1,495 48% Decliners 1,413 53%
Russell 2000 -0.25 746.78 -0.03% 52 Wk Highs 74   52 Wk Highs 37  
S&P 600 -0.49 414.05 -0.12% 52 Wk Lows 13   52 Wk Lows 45  

Major Indices Finish Mixed With Lighter Volume Totals

The major averages finished mixed on Tuesday. Volume totals were reported slightly lower on the NYSE and on the Nasdaq exchange. Advancers and decliners were evenly mixed on the NYSE while decliners led advancers by about a 7-5 ratio on the Nasdaq exchange. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows led new highs on the Nasdaq exchange. There were 27 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 prior session total of 62 stocks. There were gains for 7 of the 17 high-ranked companies currently included on the Featured Stocks Page.

 

Monday's move by ratings agency Standard and Poor's still had markets searching for direction. Specifically, 15 of the 17 Euro nations were placed on credit watch-negative, indicating that rating action was under review and could take place within 90 days. U.S. Treasury Secretary Timothy Geithner and Eurozone officials are gearing up for two days of meetings in Brussels to discuss solutions on taming the bloc's debt crisis.

The S&P warnings dragged financial stocks lower and there were small losses for JP Morgan Chase & Co (JPM -0.84%) and Citigroup Inc (C -0.27%). Olive Garden restaurant operator Darden Restaurants (DRI -12.38%) sank after the company cut its full year sales and profit forecasts. Analyst upgrades helped shares of General Electric (GE +2.39%).

Overseas trade finished mixed with London's FTSE up +0.1% and the German DAX lower by -1.3%. Asian markets were weak with the Nikkei in Tokyo closing -1.4% lower.

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 Dow Jones Industrial Average faces near-term resistance at prior highs and it is now perched -5.6% off its 2011 high.


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.


Gold & Silver Index Posts Standout Gain

The tech sector had a negative bias as the Networking Index ($NWX -1.39%), Biotechnology Index ($BTK -0.94%), Internet Index ($IIX -0.87%), and Semiconductor Index ($SOX -0.19%) ended with unanimous losses. Financial stocks also dragged the major averages lower as the Bank Index ($BKX -0.91%) and Broker/Dealer Index ($XBD -0.43%) lost ground. The Retail Index ($RLX -0.42%) also had a negative influence on the market.  The Healthcare Index ($HMO -0.23%) and energy-linked shares edged lower as the Oil Services Index ($OSX -0.31%) and Integrated Oil Index ($XOI -0.02%) finished with small losses.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU +1.65%) was a standout gainer.  It is consolidating between its 50-day and 200-day moving average (DMA) lines.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  235.03 -0.73 -0.31% -4.12%
Healthcare $HMO  2,287.81 -5.17 -0.23% +35.21%
Integrated Oil $XOI  1,241.14 -0.30 -0.02% +2.31%
Semiconductor $SOX  377.41 -0.71 -0.19% -8.36%
Networking $NWX  226.82 -3.20 -1.39% -19.15%
Internet $IIX  288.74 -2.55 -0.87% -6.17%
Broker/Dealer $XBD  86.81 -0.37 -0.43% -28.56%
Retail $RLX  536.34 -2.24 -0.42% +5.50%
Gold & Silver $XAU  204.77 +3.33 +1.65% -9.63%
Bank $BKX  39.27 -0.36 -0.91% -24.78%
Biotech $BTK  1,067.54 -10.13 -0.94% -17.73%


Little Resistance Remains Due To Overhead Supply

Transdigm Group Inc (TDG -$0.68 or -0.70% to $96.14) rebounded back above its pivot point with a volume-driven gain on 11/30/11. It stayed well above its 50-day moving average (DMA) line during its recent consolidation since its negative reversal after hitting a new all-time high on 11/17/11. Little resistance remains due to overhead supply. A subsequent slump below the recent low and its 50 DMA line would trigger more worrisome technical sell signals. 

Its last appearance in this FSU section was on 11/09/11 with an annotated graph under the headline, "Strong Characteristics Shown In High-Ranked Aerospace/Defense Firm." A volume-driven gain on 11/08/11 had helped it break out from a 19-week base. It reported earnings +42% on +54% sales revenues for the quarter ended September 30, 2011 versus the year ago period. Prior earnings comparisons near or above the +25% guideline and its strong annual earnings history satisfy the C and A criteria. In recent years it had rebounded and rallied to new highs following a deep consolidation after it was dropped from the Featured Stocks list 1/17/08.

The number of top-rated funds owning its shares rose from 352 in Dec '10 to 396 in Sep '11, a somewhat reassuring trend concerning the I criteria. Its Up/Down Volume Ratio of 1.5 currently hints at near-term accumulation as well. Its small supply of only 43.3 millions shares (S criteria) in the public float can also make is a big mover in the event of institutional accumulation or distribution.


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  
$103.07 -1.91
-1.82%

$104.51

612,971
64.53% of 50 DAV
50 DAV is 949,900
$107.33
-3.97%
10/21/2011 $97.94 PP = $101.15
MB = $106.21
Most Recent Note - 12/6/2011 12:46:36 PM
Y - Small gap down today after touching a new all-time high on the prior session while capping a streak of 6 consecutive gains.
>>> 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  
$65.05 -0.05
-0.08%

$66.05

977,629
64.26% of 50 DAV
50 DAV is 1,521,300
$70.42
-7.63%
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  
$62.21 +0.90
1.47%

$62.50

3,822,975
99.51% of 50 DAV
50 DAV is 3,841,700
$68.25
-8.85%
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  
$41.12 +0.01
0.02%

$41.33

194,311
44.47% of 50 DAV
50 DAV is 436,900
$42.25
-2.67%
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  
$27.02 -0.67
-2.42%

$27.91

909,265
70.80% of 50 DAV
50 DAV is 1,284,300
$28.50
-5.19%
10/26/2011 $24.60 PP = $24.80
MB = $26.04
Most Recent Note - 12/6/2011 4:16:51 PM
G - Pulled back on light volume today, finishing -5.2% off 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  
$30.83 +0.26
0.85%

$31.00

877,703
129.34% of 50 DAV
50 DAV is 678,600
$31.99
-3.63%
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  
$439.95 +3.52
0.81%

$440.43

421,954
102.24% of 50 DAV
50 DAV is 412,700
$449.06
-2.03%
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  
$94.62 +3.58
3.93%

$95.48

2,574,914
386.97% of 50 DAV
50 DAV is 665,400
$92.75
2.02%
12/5/2011 $91.08 PP = $92.83
MB = $97.47
Most Recent Note - 12/6/2011 12:29:22 PM
Y - Hit a new 52-week high today with a 2nd consecutive volume-driven gain, trading above the new pivot point cited in the 12/05/11 mid-day report. 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  
$24.40 -0.29
-1.17%

$25.28

126,165
60.92% of 50 DAV
50 DAV is 207,100
$25.24
-3.33%
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  
$29.25 +1.24
4.43%

$29.47

259,127
107.03% of 50 DAV
50 DAV is 242,100
$31.45
-7.00%
10/28/2011 $29.79 PP = $31.05
MB = $32.60
Most Recent Note - 12/6/2011 12:43:07 PM
G - Rallying up from support at its 50 DMA line with a gain on higher volume today. 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  
$47.65 -0.20
-0.42%

$48.05

70,594
47.57% of 50 DAV
50 DAV is 148,400
$49.04
-2.83%
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  
$43.20 -0.14
-0.32%

$43.58

1,046,294
65.78% of 50 DAV
50 DAV is 1,590,600
$46.50
-7.09%
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  
$32.90 +0.02
0.06%

$33.55

1,037,143
88.48% of 50 DAV
50 DAV is 1,172,200
$33.14
-0.72%
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  
$96.14 -0.68
-0.70%

$97.22

162,289
39.30% of 50 DAV
50 DAV is 413,000
$102.73
-6.41%
11/9/2011 $98.45 PP = $95.14
MB = $99.90
Most Recent Note - 12/6/2011 5:32:15 PM
Y - Small loss today on light volume. 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. See the latest FSU analysis for more details and a new annotated graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/6/2011. Click here.

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UA - NYSE
Under Armour Inc Cl A
CONSUMER NON-DURABLES - Textile - Apparel Clothing  
$82.63 -1.42
-1.69%

$83.89

660,094
49.69% of 50 DAV
50 DAV is 1,328,400
$87.40
-5.46%
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  
$72.93 -0.97
-1.31%

$74.09

741,996
70.11% of 50 DAV
50 DAV is 1,058,400
$75.70
-3.66%
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  
$95.37 -0.69
-0.72%

$96.28

3,533,773
66.61% of 50 DAV
50 DAV is 5,305,100
$98.60
-3.28%
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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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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