DAILY MARKET HIGHLIGHTS

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Wednesday 10.21.2009

CURRENT MARKET SENTIMENT

All will depend on the Beige Book. Whether excuse for the down trend. Take this number
the street takes profit in lump sum or drip and to be the demarcation line. On the opposite
drop as in the past few sessions. After a fierce side, constraints by profit taking, limited
defense of the 10,000 mark, the Dow closed at buyers and no surprises are on the economic
10041 and S&P 1091. The rolling pivot has front. The Crawling Tiger continues to be the
shown a retreat which indicates the move may preferred mode of forward movement.
have reached its limit. What is needed is an

PRISM CALL

While Yahoo is not Apple, the futures failed to move significantly to the upside. This reaffirmed the
street's present strategy is “sell the earning”. In addition, these upside surprises seem to remain in
play with downside follow through. The financial sector will be the center of attention this morning
as Wells Fargo, Morgan Stanley and USB report earnings. Equally, the bank of England starting to
prime the market for expected rates hikes may lead the fed to rethink its quantitative easing policy.
Sell the spike and buy the pull back should be your motto.

INDU & SPUZ TECHNICALS ECONOMIC CALENDAR

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL

INDICES S2 S1 PIVOT R1 R2
10:30 US Crude -1000K 1500K 334K
INDU am Oil to
9938 9961 10044 10109 10149
(DOW) Inventories 4000K
SPUZ 10:30 US -3500K -850K -
am Gasoline to 5230K
(S&P) 1079 1084 1091 1099 1104 2750K
Inventories
10:30 US -2000K -1000K -
am Distillate to 1084K
Inventory 500K
10:30 US -1.00% 0.50% -
am Refinery to 4.10%
Utilization 1.30%
2:00 Fed’s Beige Book
pm
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 FOREIGN MARKETS NEWS

%
Fed's Plosser calls for stricter
MARKET PRICE

rules on policy - Reuters.com
FTSE 5200.03 43.37 -0.83

DAX 5768.39 43.38 -0.75

Corporate tax breaks get scrutiny
– WSJ
HANG SENG 22318.11 66.85 -0.3

NIKKEI 10333.39 3.45 -0.03 SEC mulls ways to shed light on

dark pools - Reuters.com
CHINA 3070.589 13.865 -0.45
EAT Brinker cut to Neutral from
Buy at Goldman- DJ (14.65 )

DOW STOCKS TO WATCH COMMODITY PRICES Bank of England voted 9-0 for
record low rate – AFP
STRONG WEAK However the minutes noted
COMMODITY PRICE

"differences of view among
UTX IBM members of the Committee on
OIL 77.92 1.20 the balance of risks to the
PG XOM
medium-term outlook for
WMT BAC inflation, and how it had shifted
GOLD 1052.1 6.50 in recent months."
DD
Pound up as BOE shows no asset-
purchase split – WSJ

ECONX MBA Mortgage

UPGRADES & DOWNGRADES Applications -13.7% vs -1.8%
Prior

STOCKS UPGRADED European market summary:

BROKERAGE FTSE lower, oil majors higher:
COMPANY RATINGS CHANGE PRICE TARGET
FIRM FTSE -0.83%, CAC -1.27, DAX -
Neutral >> 1.02%
Forest Labs (FRX) Cowen 28.96
Outperform

STOCKS DOWNGRADED
Asian markets close: China and
HK shares lower ahead of data:
BROKERAGE
COMPANY
FIRM
RATINGS CHANGE PRICE TARGET Shanghai Composite -0.45%,
Overweight >> Hang Seng -0.30%, Nikkei -
Devon Energy (DVN) Morgan Stanley 71.99
Equal-weight 0.03%, Sensex -200 pts
El Paso (EP) Citigroup Buy >> Hold
11.18
DB Deutsche Bank profit jumps;
Novartis (NVS) Morgan Stanley Overweight >> 52.16
helped by tax benefits - WSJ
Equal-weight
(82.03 )

Fed's Yellen: No tightening in

next several months – Reuters

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 EARNINGS

BA Boeing: Correction, Co misses Q3 results by $0.11, misses on revs; lowers FY09 EPS guidance as
expected and reaffirms FY09 revs guidance (51.89 )

ATI Allegheny Tech misses by $0.02, misses on revs (37.99 )

USB US Bancorp beats by $0.03, beats on revs (23.80 )

FLIR FLIR Systems beats by $0.03, beats on revs; anticipates FY09 EPS to be slightly above its recent
outlook (28.95 )

STJ St. Jude Medical beats by $0.01, reports revs in-line; guides Q4 and FY09 EPS below consensus
(33.16 )

MAN Manpower beats by $0.09, beats on revs; guides Q4 EPS below consensus (60.75 )

SWK Stanley Works beats by $0.15, misses on revs; issues upside FY09 EPS guidance (46.34 )

MO Altria beats by $0.01, misses on revs; guides FY09 EPS in-line (18.66 )

PENN Penn Natl Gaming misses by $0.02, misses on revs; guides Q4 EPS below consensus, revs below
consensus; guides FY09 EPS below consensus, revs below consensus (27.35 )

AAI Air Tran Holdings reports EPS in-line, revs in-line (5.40 )

LLY Eli Lilly beats by $0.18, beats on revs; raises FY09 EPS above consensus (35.24 )

KEY KeyCorp misses by $0.09 (6.54 )

CAL Continental Air beats by $0.08, reports revs in-line (15.92 )

APD Air Products beats by $0.02, beats on revs; guides Q1 EPS in-line; guides FY10 EPS in-line
(83.24 )

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
spx.xo 1066.99 1071.76 1074.71 1079.47 1084.24 1085.71 1087.18 1091.95 1096.73 1098.19 1099.67 1104.43 1109.20 1112.15 1116.91
indu.x 9833.07 9873.40 9898.32 9938.65 9978.98 9991.44 10003.84 10044.23 10084.61 10097.02 10109.48 10149.81 10190.14 10215.06 10255.39
NDX.x 1714.42 1722.41 1727.34 1735.33 1743.32 1745.79 1748.24 1756.24 1764.24 1766.70 1769.16 1777.15 1785.14 1790.07 1798.06
xbd.x 117.81 118.89 119.56 120.63 121.71 122.04 122.37 123.45 124.53 124.86 125.20 126.27 127.35 128.02 129.09
bkx.x 45.44 45.73 45.91 46.20 46.49 46.58 46.67 46.96 47.25 47.34 47.43 47.72 48.01 48.19 48.48
tran.x 3920.95 3942.20 3955.33 3976.58 3997.83 4004.39 4010.93 4032.21 4053.49 4060.02 4066.59 4087.84 4109.09 4122.22 4143.47
oix.xo 676.34 681.58 684.82 690.06 695.30 696.92 698.53 703.78 709.03 710.64 712.26 717.50 722.74 725.98 731.22
osx.x 192.31 195.26 197.08 200.03 202.98 203.89 204.80 207.75 210.71 211.61 212.52 215.47 218.42 220.24 223.19
xng.x 518.09 522.70 525.54 530.15 534.76 536.18 537.60 542.21 546.82 548.24 549.66 554.27 558.88 561.72 566.33
cyc.x 752.47 758.35 761.98 767.87 773.75 775.57 777.38 783.27 789.16 790.97 792.78 798.67 804.55 808.18 814.07
uty.x 389.09 391.58 393.11 395.60 398.09 398.86 399.62 402.11 404.60 405.37 406.13 408.62 411.11 412.64 415.13
drg.x 290.49 291.98 292.90 294.40 295.89 296.35 296.81 298.31 299.80 300.26 300.72 302.22 303.71 304.63 306.13
rlx.xo 376.21 379.33 381.26 384.37 387.49 388.45 389.41 392.53 395.65 396.61 397.58 400.69 403.81 405.74 408.85

Tradeables

SPY 106.68 107.18 107.49 107.99 108.49 108.64 108.79 109.29 109.79 109.94 110.10 110.60 111.10 111.40 111.90
DIA 90.06 92.36 93.77 96.06 98.36 99.06 99.77 102.06 104.36 105.06 105.77 108.06 110.36 111.77 114.06
QQQQ 42.17 42.37 42.49 42.69 42.89 42.95 43.01 43.21 43.41 43.47 43.53 43.73 43.93 44.05 44.25
QLD 50.70 51.18 51.48 51.95 52.43 52.58 52.73 53.20 53.68 53.83 53.98 54.45 54.93 55.23 55.70
IWM 58.89 59.39 59.71 60.22 60.72 60.88 61.04 61.55 62.06 62.21 62.37 62.88 63.38 63.70 64.21
OIH 119.79 121.48 122.53 124.22 125.91 126.44 126.96 128.65 130.34 130.87 131.39 133.08 134.77 135.82 137.51
XLE 56.31 56.88 57.23 57.80 58.37 58.55 58.72 59.29 59.86 60.04 60.21 60.78 61.35 61.70 62.27
FAZ 17.66 17.92 18.09 18.36 18.62 18.71 18.79 19.06 19.32 19.41 19.49 19.76 20.02 20.19 20.46
FAS 79.46 80.69 81.45 82.68 83.91 84.29 84.67 85.90 87.13 87.51 87.89 89.12 90.35 91.11 92.34
SRS 8.77 8.94 9.04 9.20 9.37 9.42 9.47 9.63 9.80 9.85 9.90 10.06 10.23 10.33 10.49
SDS 35.77 36.10 36.31 36.64 36.97 37.08 37.18 37.51 37.84 37.95 38.05 38.38 38.71 38.92 39.25
USO 38.79 39.11 39.30 39.61 39.92 40.02 40.12 40.43 40.74 40.84 40.93 41.25 41.56 41.75 42.07
SKF 22.59 22.82 22.96 23.19 23.42 23.49 23.56 23.79 24.02 24.09 24.16 24.39 24.62 24.76 24.99

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