Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com. ValuEngine is a fundamentally-based quant research firm in Newtown, PA.

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http://www.valuengine.com/pub/Unsubscribe? Oct 13, 2011 Wednesdays Closes Straddled Annual Pivots at 11,491 Dow and 1210.7 SPX We traded above my annual pivots at 11,491 on the Dow Industrial Average and 1210.7 on the S&P 500 on Wednesday, but we need weekly closes above to challenge those post-August 9th highs at: 11,716.84 Dow Industrials, 1230.71 SPX, 2643.37 NASDAQ, 2337.7 NDX, 4778.76 Transports, 737.64 Russell 2000 and 385.84 SOX. This months risky levels are: 12,091 Dow Industrials, 1259.8 SPX, 2680 NASDAQ, 2312 NDX, 4980 Transports, 778.77 Russell 2000 and 363.01 SOX. The NDX and SOX traded above their monthly pivots and their quarterly risky levels are 2440 and 417.63 respectively. The monthly charts stay negative on closes in October below the five-month modified moving averages at: 11,749 Dow Industrials, 1245.5 SPX, 2631 NASDAQ, 2244 NDX, 4894 Transports, 756.59 Russell 2000 and 388.20 SOX. We could have monthly closes straddling these levels, which to me would confirm that we have seen both the highs and the lows for 2011 as the fundamentals and technicals balance each other out. 10-Year Note (2.219) Semiannual, quarterly and annual value levels are 2.414, 2.669 and 2.690 with my monthly pivot at 2.222, the 50-day simple moving average at 2.079, and daily, weekly, and semiannual risky levels at 2.034, 1.776 and 1.672, which was tested on September 23rd.

Courtesy of Thomson / Reuters

Comex Gold ($1678.2) Semiannual and annual value levels are $1469.9 and $1,356.5 with semiannual and daily pivots at $1644.8 and $1689.9, and quarterly, weekly and monthly risky levels at $1738.4, $1760.1 and $1811.4, and the September 6th all time high at $1923.7. The 200-day simple moving average is $1538.4 with the 50-day at $1750.5.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($84.93) The October 4th year-to-date low is $74.95 with my weekly value level at $82.35, my daily pivot at $85.81, the 50-day at $85.01, the 200-week at $83.57, and monthly, quarterly and annual risky levels at $98.51, $100.34, $99.91 and $101.92.

Courtesy of Thomson / Reuters

The Euro (1.3789) Weekly, and quarterly value levels are 1.3345 and 1.2598 with a daily pivot at 1.3635, and monthly and semiannual risky levels at 1.4579, 1.4752 and 1.4872. The daily chart shows the 50-day simple moving average at 1.3945 trading below the 200-day at 1.4063 in whats called a Death Cross.

Courtesy of Thomson / Reuters

Daily Dow - (11,519) The new YTD low is 10,404.49 with the 200-week and 120-month simple moving averages at 10,650 and 10,609, my weekly value level at 10,894, the 50-day at 11,204, daily and annual pivots at 11,424 and 11,491, and monthly and quarterly risky levels at 12,091 and 12,507. Semiannual value levels are 9,635 and 8,468.

Courtesy of Thomson / Reuters

S&P 500 (1207.3) The October 4th YTD low is 1074.77 with semiannual value levels at 981.3 and 855.7, my weekly value level at 1137.5, a daily pivot at 1200.3, the 50-day at 1173.3, my annual pivot at 1210.7, and monthly, quarterly and annual risky levels at 1259.8, 1303.7 and 1562.9. NASDAQ (2605) The October 4th YTD low is 2298.89 with my annual pivot at 2335, semiannual value levels at 2199 and 2049, my weekly value level at 2436, my daily pivot at 2595, the 50-day at 2503, and monthly, quarterly and annual risky levels at 2680, 2807 and 3243. NASDAQ 100 (NDX) (2307) The YTD low is 2034.92 with semiannual and annual value levels at 1951, 1861 and 1723, my weekly value levels at 2171, my daily pivot at 2307, the 50-day and 200-day at 2196 and 2291, my monthly pivot at 2312, and quarterly and annual risky levels at 2440 and 2590. Dow Transports (4618) The October 4th YTD low is 3950.66 with my semiannual value level at 3868, semiannual and weekly value levels at 4335 and 4108, my daily pivot at 4630, the 50-day at 4459, and monthly, annual and quarterly risky levels at 4980, 5179 and 5359. Russell 2000 (700.38) The October 4th YTD low is 601.71 with semiannual value levels are 577.47 and 530.04, my weekly value level at 641.17, my daily pivot at 693.80, the 50-day at 685.24, and monthly, annual and quarterly risky levels at 778.77, 784.16 and 802.96. The SOX (369.18) The October 4th YTD low is 322.24 with annual and semiannual value levels at 270.98, 258.97 and 204.67, my weekly value level at 345.74, my monthly and daily pivots at 363.01 and 372.32, the 50-day at 354.08, and quarterly risky level at 417.63. Equity Fundamentals Stocks are extremely undervalued. 82.4% of all stocks are undervalued / 17.6% of all stocks are overvalued. In March 2009 we saw 91.1% of all stocks undervalued. All sixteen sectors are undervalued, fifteen by double-digit percentages, but only six by 20.1% to 25.2, as the 30-Year bond yield starts to rise putting a drag on valuations. Back in March 2009 the sectors were undervalued by 33% to 45%. Check out and subscribe to www.ValuEngine.com. VE Morning Briefing If you want expanded analysis of the US Capital Markets including a Fearless Prediction of the Week and a Stock of the Day go to this link and sign up: http://www.valuengine.com/nl/mainnl?nl=D ValuTrader Model Portfolio If you want to learn how to Buy and Trade use this link and sign up: http://www.valuengine.com/nl/mainnl?nl=V ETF Weekly If you want my Value Levels and Risky Levels for 30 Electronically Traded Funds use this link and sign up: http://www.valuengine.com/nl/mainnl?nl=U ValuEngine FDIC Evaluation Report In this report I slice and dice the FDIC Quarterly Banking Profile. We publish a ValuEngine List of Problem Banks in this publication: http://www.valuengine.com/nl/mainnl?nl=C Definition of MOJO This is my term for technical momentum. I use whats called 12x3x3 slow stochastic readings from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0

is overbought and below 2.0 is oversold. Buy and Trade Strategies for Long Positions Value Level The price at which you establish an additional long position on share price weakness. This is done on a GTC Limit Order to buy weakness to the Value Level. Risky Level The price at which you remove a single long position or reduce a multiple long position on share price strength. This is done on a GTC Limit Order to sell strength to the Risky Level. Buy and Trade Strategies for Short Positions Value Level The price at which you remove a single short position or reduce a multiple short position on share price weakness. This is done on a GTC Limit Order to buy weakness to the Value Level. Risky Level The price at which you establish an addition short position on share price strength. This is done on a GTC Limit Order to sell strength to the Risky Level. Richard Suttmeier Chief Market Strategist ValuEngine.com (800) 381-5576 To unsubscribe from this free email newsletter list, please click http://www.valuengine.com/pub/Unsubscribe? 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 to http://www.valuengine.com/nl/mainnl to review sample issues and find out more about my research.

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