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

ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEngine

covers over 7,000 stocks every day.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock

picks, and commentary can be found HERE.

August 31, 2010 – Previewing the FDIC Quarterly Banking Profile.

The yield on the 10-Year US Treasury is trading around my quarterly pivot at 2.495. Gold
remains overbought on its daily chart and is trading between my annual pivot at $1218.7 and
my semiannual risky level at $1260.8. Crude oil remains below my annual pivot at $77.05. The
euro remains below its 50-day simple moving average at 1.2781. The Dow is still oversold on its
daily chart with today’s value level at 9,788. The FDIC Quarterly Banking Profile for the second
quarter will likely show continued stress relative to commercial real estate loans.
10-Year Note – (2.545) My annual pivots are 2.813 and 2.999 with a weekly pivot at 2.648, and daily,
quarterly and semiannual risky levels at 2.488, 2.495 and 2.249 versus last week’s low yield at 2.419.
Note that the decline in yield is no longer overdone on the daily chart.

Courtesy of Thomson / Reuters

Comex Gold – ($1238.7) Semiannual, weekly, quarterly, monthly, and annual value levels are
$1218.7, $1211.5, $1140.9, $1133.2 and $1115.2 with a daily pivot at $1240.1, and semiannual risky
level at $1260.8. Note that gold is still overbought on its daily chart.

Courtesy of Thomson / Reuters

Nymex Crude Oil – ($74.21) My daily value level is $71.96 with annual, monthly, weekly and
semiannual risky levels at $77.05, $80.02, $81.35 and $83.94. Note that crude oil is no longer
oversold on the daily chart profile.

Courtesy of Thomson / Reuters

The Euro – (1.2661) Daily, quarterly and monthly value levels are 1.2542, 1.2167, 1.1486 and 1.1424
with weekly and semiannual risky levels at 1.3170 and 1.4733. Note that the euro is still oversold
on its daily chart.

Courtesy of Thomson / Reuters

Daily Dow: (10,010) Daily and quarterly value levels are 9,788 and 7,812 with my annual pivot at
10,379, and monthly, semiannual, weekly and annual risky levels at 10,439, 10,558, 10,904 and
11,235. My annual risky level at 11,235 was tested at the April 26th high of 11,258.01. Note that
the daily chart remains oversold with the 21-day, 50-day and 200-day simple moving averages
at 10,366, 10,269 and 10,452.

Courtesy of Thomson / Reuters

Here are some statistics from the FDIC for the Second Quarter 2010:
There were 45 bank failures in the second quarter, and we likely ended the quarter with less than
7,900 FDIC-insured financial institutions.
• 2504 or 31.7% are thus overexposed to Commercial Real Estate loans.
• 3939 of 49.9% of all banks have a pipeline that’s 80% or more funded.
Half the community banks in America remain overleveraged to Commercial Real Estate and the
possible losses remain about $1.5 trillion.
• We will publish a new list of the ValuEngine List of Problem Banks next week.
Assets among banks with a CRE pipeline of 80% or more funded increased to $3.84 trillion
including $121.3 billion in Construction & Development loans.
• The average pipeline for 3939 banks is 92.0%. Among this list are four big banks that will likely
see waves of write-offs in upcoming quarters.
• JP Morgan Chase (JPM) with $1.72 trillion in assets has a pipeline of 80%.
• SunTrust Banks (STI) has $160.5 billion in assets with an 83% pipeline.
• BB&T Corp (BBT) has $149.2 billion in assets with an 84% pipeline.
• Fifth Third Bank (FITB) has 100.0 billion in assets with an 84% pipeline.
That’s today’s Four in Four. Have a great day.

Richard Suttmeier
Chief Market Strategist
ValuEngine.com
(800) 381-5576

Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our products
and services visit www.ValuEngine.com
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. You can go HERE to review sample issues and find out more about my research.

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