Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.

ValuEngine is a fundamentally-based quant research firm in Princeton, NJ. ValuEngine

covers over 5,000 stocks every day.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks,
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July 27, 2010 – The Dow is approaching my Semiannual Risky Level at 10,558

The yield on the 10-Year note ended Monday on my annual pivot at 2.999. Any strength in gold
should remain shy of my semiannual pivot at $1218.7. On crude oil a daily close above my
monthly pivot at $79.36 targets semiannual risky level at $83.94. This week’s pivot for the euro
is 1.2797. The Dow shows a weekly value level at 10,212 with my annual pivot at 10,379 and my
semiannual risky level at 10,558. Don’t trust New Home Sales for June. I will be covering the
banking system among other subjects at my presentation in NYC on Monday, August 9th at
Bloomberg Headquarters at 5:30 PM.
10-Year Note – (3.000) This yield has returned to my annual pivot at 2.999 with my weekly, daily and
annual risky levels at 2.875, 2.871 and 2.813. Semiannual and quarterly value levels are 3.479 and
3.486 with quarterly and semiannual risky levels at 2.495 and 2.249. The US Treasury auctions $39
billion in 2-Year notes today. The low yield for the move was 2.853 set on July 21st, and was a
failed test of my 2.999 and 2.813 annual risky levels.

Courtesy of Thomson / Reuters

Comex Gold – ($1181.4) Daily, quarterly and annual value levels are $1172.5, $1140.9 and $1115.2
with my semiannual pivot at $1218.7, and weekly, semiannual and monthly risky levels at $1222.3,
$1260.8 and $1279.3. The all time high of $1266.5 set on June 21st was a test of June’s monthly
resistance, as a significant top for gold.

Courtesy of Thomson / Reuters

Nymex Crude Oil – ($78.97) Weekly and annual pivots are $77.89 and $77.05 with daily and monthly
pivots at $78.56 and $79.36 and semiannual risky level at $83.94. My quarterly value level is $56.63.

Courtesy of Thomson / Reuters

The Euro – (1.2990) My weekly value level is 1.2797 with a daily risky level at 1.3085. Monthly and
quarterly value levels are 1.2035 and 1.1424 with semiannual risky level at 1.4733.

Courtesy of Thomson / Reuters

Daily Dow: (10,525) Daily and weekly value levels are 10,247 and 10,212 with my annual pivot at
10,379, and semiannual and monthly risky levels at 10,558 and 10,891. The 200-day simple moving
average is 10,399. My quarterly value level is 7,812 with my annual risky level at 11,235, which was
tested at the April 26th high at 11,258. This test marked the end of the bear market rally that began in
March 2009. We are in the second leg of the multi-year bear market that began in October 2007
targeting 8,500 before 11,500.

Courtesy of Thomson / Reuters

Don’t Trust the Bounce Back in New Home Sales - If the National Association of Home Builders
viewed the 23.6% rise in new home sales in June as “encouraging” why wasn’t that news reflected in
the NAHB Housing Market Index, which plunged to 14 from 17 in July? A reading of 330,000 units
annualized is still quite low. It seems that some of the new home sales were generated by move-up
buyers who sold their homes going to contract before April 30th. The buyer of their home got the tax
credit. The seller got the price he wanted then bought a new home in June. If you believe Fed Chief
Bernanke it will be tough for the home builders to sustain momentum in an economy that’s operating
under “unusual uncertainty”. Mortgage rates may be historically low, but there’s a lack of production
financing available from community banks. Inventories are light and declined to 210,000 units the
thinnest since September 1968.
Richard Suttmeier Presentation – Monday, August 9, 2010: I will be the speaker at the Market
Technicians Association Meeting to be held at Bloomberg Headquarters at 5:30 PM on Monday,
August 9, 2010.
• Home Prices are Set to Fall to the Levels of 1999 / 2000
• Community Banks remain Vulnerable for Failure
• US Stocks have begun the Second Leg of a Multi-Year Bear Market
• "Buy and Trade' Replaces "Buy and Hold"

To attend please reply to rsuttmeier@gmail.com and include: first and last name, company name,
address, email and phone number so that you can be pre-registered into the Bloomberg security
systems for this event.
That’s today’s Four in Four. Have a great day.
Richard Suttmeier
Chief Market Strategist
www.ValuEngine.com
(800) 381-5576
As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I
have daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters as
well as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the
ValuTrader Model Portfolio newsletter. I hope that you will go to www.ValuEngine.com and review some of the sample
issues of my research.

“I Hold No Positions in the Stocks I Cover.”