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AFTER MARKET UPDATE - WEDNESDAY, DECEMBER 7TH, 2011
Previous After Market Report Next After Market Report >>>
Indices NYSE Nasdaq
DOW  +46.24 12,196.37 +0.38% Volume 968,397,350 +21% Volume 1,615,067,090 +12%
NASDAQ -0.35 2,649.21 -0.01% Advancers 1,573 50% Advancers 1,168 44%
S&P 500 +2.54 1,261.01 +0.20% Decliners 1,418 45% Decliners 1,330 51%
Russell 2000 -0.64 746.14 -0.09% 52 Wk Highs 86   52 Wk Highs 31  
S&P 600 +0.34 414.39 +0.08% 52 Wk Lows 13   52 Wk Lows 50  

Major Averages End Mixed Again

The major averages again finished the session with mixed results at the closing bell. Volume totals were reported slightly higher on the NYSE and on the Nasdaq exchange. On the NYSE advancers bested decliners on issues 9-8, while the Nasdaq exchange was 7-6 negative. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows led new highs on the Nasdaq exchange. There were 21 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 27 stocks. There were gains for 7 of the 17 high-ranked companies currently included on the Featured Stocks Page.

 

Stocks found their catalyst in the closing minutes of trade despite mostly negative headlines. Markets staged a rally after the Nikkei reported that the Group of 20 nations was considering a $600 billion IMF lending program to halt the European debt crisis. The late breaking news provided enough relief from the overhang of seemingly pessimistic meetings between European officials in Brussels.

Financial stocks led the blue-chip index to higher ground with JP Morgan Chase & Co (JPM +2.32%) rising after CEO Jamie Dimon hinted at intensified share repurchases. Bank of America Corp (BAC +1.9%) also rose. Retailer The Men's Wearhouse Inc (MW +19.57%) jumped after posting profits ahead of consensus estimates. First Solar Inc(FSLR +4.08%) led gainers on the S&P 500, after the company agreed to sell its $2 billion Topaz solar farm to Warren Buffett's MidAmerican Energy Holdings.

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 Nasdaq Composite Index finished -8.3% off its 2011 high.  It faces near-term resistance at prior highs and its 200-day moving average (DMA) line.


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 and Financial Shares Edged Higher

The Retail Index ($RLX +0.76%) and financial shares posted influential gains as the Bank Index ($BKX +0.97%) and Broker/Dealer Index ($XBD +1.56%) rose on Wednesday. The Semiconductor Index ($SOX +1.18%) also posted a gain while the Biotechnology Index ($BTK -0.77%), Networking Index ($NWX -0.49%), and Internet Index ($IIX -0.28%) ended with small losses. Energy-related shares also were a drag on the major averages as the Oil Services Index ($OSX -1.81%) and Integrated Oil Index ($XOI -0.29%) lost ground. Defensive groups held their ground and the Gold & Silver Index ($XAU +0.07%) and Healthcare Index ($HMO +0.32%) were little changed.

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK -0.77%) encountered resistance near its 50-day moving average (DMA) line when rebounding following a slump to new 2011 lows.


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  230.77 -4.26 -1.81% -5.85%
Healthcare $HMO  2,295.19 +7.38 +0.32% +35.65%
Integrated Oil $XOI  1,237.53 -3.60 -0.29% +2.01%
Semiconductor $SOX  381.85 +4.44 +1.18% -7.28%
Networking $NWX  225.71 -1.11 -0.49% -19.55%
Internet $IIX  287.94 -0.80 -0.28% -6.43%
Broker/Dealer $XBD  88.17 +1.36 +1.56% -27.44%
Retail $RLX  540.43 +4.09 +0.76% +6.30%
Gold & Silver $XAU  204.92 +0.15 +0.07% -9.56%
Bank $BKX  39.65 +0.38 +0.97% -24.06%
Biotech $BTK  1,059.31 -8.23 -0.77% -18.37%


Little Resistance Remains But Proof of Fresh Demand is Needed

Rackspace Hosting Inc (RAX -$0.42 or -0.97% to $42.78) is quietly perched within close striking distance of its 52-week and all-time high. A volume-driven breakout may trigger a new technical buy signal. It found support near its closely coinciding 50-day and 200-day moving average (DMA) lines since its last appearance in this FSU section on 11/10/11 with an annotated weekly graph under the headline, "Encountering Distributional Pressure After 19-Week Cup Shaped Base ."  Subsequent violations would trigger damaging technical sell signals. Little resistance remains due to overhead supply. Still, disciplined investors should watch for it to first prove that there is truly strong buying demand lurking from institutional investors, otherwise a sustained and meaningful advance is considered unlikely.

The past 4 quarterly earnings comparisons showed better than +25% increases. Its annual earnings history (A criteria) since trading began in 2008 has been good. Increasing institutional ownership (I criteria) is a reassuring sign, as the number of top-rated funds owning its shares rose from 407 in Dec '10 to 477 in Sep '11. 

RAX traded up as much as +103.5% within 8 months of when it was featured in yellow in the 9/21/10 mid-day report (read here) when noted - "Trading pennies from its 52-week high, with no overhead supply remaining to hinder its progress. A solid gain on the prior session reconfirmed a recent technical breakout above prior chart highs. Subsequent gains into new high territory with volume conviction could signal the beginning of a meaningful price 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  
$103.29 +0.22
0.21%

$103.72

856,335
90.15% of 50 DAV
50 DAV is 949,900
$107.33
-3.76%
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  
$64.45 -0.60
-0.92%

$64.99

1,353,877
88.99% of 50 DAV
50 DAV is 1,521,300
$70.42
-8.48%
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  
$62.65 +0.44
0.71%

$62.99

2,448,182
63.73% of 50 DAV
50 DAV is 3,841,700
$68.25
-8.21%
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  
$41.41 +0.29
0.71%

$41.50

198,357
45.40% of 50 DAV
50 DAV is 436,900
$42.25
-1.99%
12/7/2011 $41.41 PP = $42.35
MB = $44.47
Most Recent Note - 12/7/2011 6:15:01 PM
Y - Finished near the session high today with a 3rd consecutive small gain on below average volume. Little resistance remains due to overhead supply. Color code is changed to yellow with new pivot point cited based on its 52-week high plus 10 cents.
>>> 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  
$26.81 -0.21
-0.78%

$27.02

651,912
50.76% of 50 DAV
50 DAV is 1,284,300
$28.50
-5.93%
10/26/2011 $24.60 PP = $24.80
MB = $26.04
Most Recent Note - 12/7/2011 6:17:25 PM
G - Finished near the session high today with a 3rd consecutive small loss on below average volume, finishing -5.9% 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  
$30.95 +0.12
0.39%

$31.00

537,727
79.24% of 50 DAV
50 DAV is 678,600
$31.99
-3.25%
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  
$439.88 -0.07
-0.02%

$441.54

240,590
58.30% of 50 DAV
50 DAV is 412,700
$449.06
-2.04%
10/19/2011 $424.69 PP = $415.29
MB = $436.05
Most Recent Note - 12/7/2011 6:40:21 PM
Y - Still perched within close striking distance of its all-time high. 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  
$93.69 -0.93
-0.98%

$94.97

893,136
134.23% of 50 DAV
50 DAV is 665,400
$95.48
-1.87%
12/5/2011 $91.08 PP = $92.83
MB = $97.47
Most Recent Note - 12/7/2011 12:19:37 PM
Y - Perched at its 52-week high today after 2 consecutive volume-driven gains, trading just 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  
$23.96 -0.44
-1.80%

$24.31

73,715
35.59% of 50 DAV
50 DAV is 207,100
$25.28
-5.22%
10/28/2011 $22.49 PP = $23.61
MB = $24.79
Most Recent Note - 12/7/2011 11:32:24 AM
Y - Small gap down today, slumping back near its pivot point. A solid gain and strong close on 12/05/11 with +55% above average volume triggered a technical buy signal. Prior highs in the $23 area define initial chart support to watch.
>>> 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  
$28.79 -0.46
-1.57%

$29.23

393,881
162.69% of 50 DAV
50 DAV is 242,100
$31.45
-8.46%
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  
$47.83 +0.18
0.38%

$47.92

46,925
31.62% of 50 DAV
50 DAV is 148,400
$49.04
-2.47%
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  
$42.78 -0.42
-0.97%

$43.11

1,260,497
79.25% of 50 DAV
50 DAV is 1,590,600
$46.50
-7.99%
11/8/2011 $44.28 PP = $46.27
MB = $48.58
Most Recent Note - 12/7/2011 6:37:22 PM
Y - Quietly perched within close striking distance of its 52-week and all-time high. Support to watch is at its closely coinciding 50 and 200 DMA lines. Subsequent violations would trigger damaging technical sell signals. See the latest FSU analysis for more details and a new annotated daily graph.
>>> The latest Featured Stock Update with an annotated graph appeared on 12/7/2011. Click here.

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SWI - NYSE
Solarwinds Inc
COMPUTER SOFTWARE and SERVICES - Application Software  
$32.07 -0.83
-2.52%

$32.75

672,627
57.38% of 50 DAV
50 DAV is 1,172,200
$33.55
-4.41%
10/27/2011 $27.78 PP = $25.62
MB = $26.90
Most Recent Note - 12/7/2011 5:49:27 PM
G - Down today with below average volume, pulling back from its all-time high. Extended from its prior base, its 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  
$95.02 -1.12
-1.16%

$96.21

223,944
54.22% of 50 DAV
50 DAV is 413,000
$102.73
-7.51%
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  
$82.22 -0.41
-0.50%

$82.83

634,190
47.74% of 50 DAV
50 DAV is 1,328,400
$87.40
-5.93%
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  
$73.13 +0.20
0.27%

$74.19

898,621
84.90% of 50 DAV
50 DAV is 1,058,400
$75.70
-3.39%
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  
$97.07 +1.70
1.78%

$97.45

4,013,754
75.66% of 50 DAV
50 DAV is 5,305,100
$98.60
-1.55%
10/24/2011 $94.21 PP = $94.85
MB = $99.59
Most Recent Note - 12/7/2011 6:38:53 PM
Y - Still perched near its 52-week high. 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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