THE DAILY BRIEF

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Tuesday 12.22.2009

CURRENT MARKET SENTIMENT

A Festive mood, the market started the week by the retailers? Technically, the downside is
vaulting up 128 points to finish at 10414 (Dow) limited by no selling pressure and the pivot
and 1114(S&P). All eyes are on the retail sales points. After a larger move yesterday, market
numbers. Will it be black or red Christmas for may slow down in moving forward.

PRISM CALL
Countdown to the New Year has begun, with seven trading days left. Futures are pointing up, yet
follow through from yesterday may be waning as investors are contemplating on the consumer
confidence and taking in consideration a downward revision of GDP. After such a large move,
shorting up in the opening is likely to yield greater profit. Once again, volume is light and selling
pressure is non existent. Be cautious!

ECONOMIC CALENDAR INDU & SPUZ TECHNICALS

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL INDICES S2 S1 PIVOT R1 R2

8:30 GDP QoQ 2.5% to 2.8% 2.8% 2.2% INDU
am 3.7% 10272 10321 10401 10480 10529
(DOW)
8:30 Personal 0.6% to 2.9% 2.9% 2.8% SPUZ
am Consumption 3.0% (S&P) 1100 1105 1112 1120 1125
8:30 GDP Price 0.5% to 0.5% 0.5%
am Index 0.6%

8:30 Core PCE QoQ 1.3% to 1.3% 1.3% 1.2%

am 1.3%

10:00 Richmond Fed 2 to 5 4 1

am Mfg Index

10:00 House Price -0.4% to 0.2% 0.0%

am Index MoM 0.2%

10:00 Existing Home 5.20M to 6.25M 6.10M

am Sales 6.50M

10:00 Existing Home -14.8% to 2.5% 10.1%

am Sales MoM 6.6%

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 FOREIGN MARKETS NEWS

States' jobless funds are being

MARKET PRICE
 %
drained in recession - Washington
Post
FTSE 5336.32 42.3296 0.8

DAX 5942.66 12.13 0.2 UK Q3 GDP revised up less than

expected – Reuters
HANG SENG 21092.04 143.94 0.69
Moody's cuts Greece ratings –
NIKKEI 10378.03 194.56 1.91
Reuters
CHINA 3050.52 72.453 -2.32 China's banks aim to boost capital -
Financial Times

DOW STOCKS TO WATCH COMMODITY PRICES BA Boeing acquires Alenia North

America's interest in Global
STRONG WEAK COMMODITY PRICE
 Aeronautica (54.30 )

AA JNJ C Citigroup: FBI probes hack at

OIL 73.11 0.61 Citibank - WSJ (3.42 )
HPQ PG
TM Toyota Motor presses suppliers
JPM UTX
GOLD 1086.8 8.60 to slash prices - FT (82.36 )
WMT XOM
AMR AMR Corp: Fare warning
over BA's deal with American
Airlines - Times of London (7.64 )
UPGRADES & DOWNGRADES
MYL Mylan Labs receives tentative
FDA approval under PEPFAR for
STOCKS UPGRADED
Matrix Laboratories' New Drug
BROKERAGE Application for Efavirenz Tablets
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
(18.91 )
Atlas Pipeline
Citigroup Sell » Hold
Holdings (AHD) POT BPC reaches agreement on
TD Ameritrade Keefe $21 » 2010 Chinese potash contract price
Mkt Perform » Outperform per industry sources- RBC
(AMTD) Bruyette $22.50
$22.50 WSM Williams-Sonoma initiated
IAMGOLD (IAG) UBS Neutral » Buy » with an Equal Weight at Morgan
$21.50 Stanley (22.18 )

STOCKS DOWNGRADED Bonds are signaling a stronger

BROKERAGE recovery – WSJ
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
Imax (IMAX) Morgan Joseph Buy » Hold DVA DaVita: Study finds dramatic
improvement in patient outcomes
XTO Energy KeyBanc in dialysis clinics after being
Buy » Hold
(XTO) Capital Mkts acquired by DaVita (59.26 -0.34)
Warnaco Group
JP Morgan Overweight » Neutral CEPH Cephalon provides update on
(WRC) regulatory review of NUVIGIL;
GigaMedia (GIGM) Roth Capital Buy » Hold $8 » $4 FDA extends action date to March
29, 2010 (59.75 +0.71)

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 EARNINGS

TWI Titan Intl sees FY10 revs $770-820 mln vs $859.55 mln 2 analyst estimate (8.12 -0.11)

TRV Travelers announces catastrophe reinsurance transaction with Longpoint Re II (48.67 +0.53)

NAV Navistar beats by $0.25, beats on revs (35.51 +0.33)

AMKR Amkor raises Q4 guidance above consensus (6.51 +0.03)

STT State Street to acquire Intesa Sanpaolo's Securities Services business in Italy and Luxembourg; transaction
expected to be accretive to FY10 EPS (42.26 )

PKE Park Electrochem reports Q3 EPS of $0.35 vs the $0.24 two est avg; revs fell 6% YoY to $46.1 mln vs $45.07
mln single est (24.93 )

OSIP OSI Pharm sees mid-teen rev growth for FY10 vs the +13.7% consensus; reaffirms 10%+ EPS growth for
FY10; gives update on convertible debt repurchases (30.44 )

AEO FBR Capital Mkts discusses high promotion levels at retailers

It believes there are still a few winners for holiday, with its favorite holiday names AEO and CHS. Firm also notes
that it has continued to see strength at Old Navy (GPS), but this strength could be somewhat offset by the Gap
division, particularly Adult, which has not shown the strength that it has seen at Old Navy this season. FBR
does note that it has seen an increasing amount of markdown at JCG in recent visits, as well as weakness in
traffic levels at PSUN stores.

LNN Lindsay Corp beats by $0.29, beats on revs (37.91 )

CPY CPI Corp reports Q3 EPS of ($0.97) vs the ($0.66) two est avg; revs fell 7% YoY to $107.3 mln vs $109.60
mln single est (12.30 )

CMC Commercial Metals misses by $0.24, reports revs in-line (17.17 )

CYN City National: Imperial asset acquisition is low risk and financially compelling, but it potentially leaves CYN
short on common equity to repay TARP (47.32 )

PJC Piper Jaffray est and tgt raised to $55 at FBR Capital following Advisory Research acquisition (49.69 )

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1087.61 1092.33 1095.25 1099.98 1104.70 1106.16 1107.62 1112.35 1117.08 1118.53 1119.99 1124.72 1129.44 1132.36 1137.09
INDU 10144.16 10193.15 10223.42 10272.41 10321.40 10336.54 10351.61 10400.66 10449.72 10464.79 10479.92 10528.91 10577.90 10608.17 10657.16
NDX 1794.17 1800.52 1804.44 1810.78 1817.13 1819.09 1821.04 1827.39 1833.75 1835.70 1837.66 1844.00 1850.35 1854.27 1860.61
XBD 110.67 111.22 111.56 112.10 112.65 112.82 112.99 113.53 114.08 114.25 114.42 114.96 115.51 115.85 116.39
BKX 41.78 42.03 42.18 42.44 42.69 42.77 42.84 43.10 43.35 43.43 43.50 43.76 44.01 44.16 44.42
TRAN 4046.33 4068.28 4081.83 4103.78 4125.73 4132.51 4139.26 4161.23 4183.20 4189.96 4196.73 4218.68 4240.63 4254.18 4276.13
OIX 659.22 663.37 665.93 670.07 674.22 675.50 676.77 680.92 685.07 686.35 687.63 691.77 695.92 698.48 702.62
OSX 185.93 187.55 188.55 190.17 191.79 192.29 192.78 194.41 196.03 196.53 197.03 198.65 200.27 201.27 202.89
XNG 520.39 524.16 526.50 530.27 534.04 535.21 536.37 540.15 543.93 545.09 546.26 550.03 553.80 556.14 559.91
CYC 794.17 800.50 804.41 810.73 817.06 819.01 820.96 827.29 833.63 835.57 837.53 843.85 850.18 854.09 860.41
UTY 417.50 418.86 419.70 421.06 422.42 422.84 423.25 424.62 425.98 426.40 426.82 428.18 429.54 430.38 431.74
DRG 302.79 304.14 304.97 306.32 307.67 308.09 308.50 309.85 311.20 311.62 312.03 313.38 314.73 315.56 316.91
RLX 398.56 401.18 402.80 405.43 408.05 408.86 409.67 412.30 414.92 415.73 416.54 419.17 421.79 423.41 426.04

Tradeables

SPY 109.38 109.74 109.96 110.32 110.68 110.79 110.90 111.26 111.62 111.73 111.84 112.20 112.56 112.78 113.14
DIA 102.19 102.52 102.73 103.06 103.39 103.50 103.60 103.93 104.26 104.37 104.47 104.80 105.13 105.34 105.67
QQQQ 44.00 44.18 44.28 44.46 44.64 44.69 44.74 44.92 45.10 45.15 45.20 45.38 45.56 45.66 45.84
QLD 55.01 55.44 55.71 56.15 56.58 56.72 56.85 57.29 57.72 57.86 57.99 58.43 58.86 59.13 59.57
IWM 60.93 61.11 61.23 61.42 61.60 61.66 61.72 61.91 62.09 62.15 62.21 62.40 62.58 62.70 62.89
OIH 114.68 115.59 116.15 117.06 117.97 118.25 118.53 119.44 120.35 120.63 120.91 121.82 122.73 123.29 124.20
XLE 55.70 55.91 56.04 56.25 56.46 56.53 56.59 56.80 57.01 57.08 57.14 57.35 57.56 57.69 57.90
FAZ 18.67 18.86 18.99 19.18 19.37 19.44 19.49 19.69 19.89 19.95 20.01 20.20 20.39 20.52 20.71
FAS 69.93 70.61 71.03 71.71 72.39 72.60 72.81 73.49 74.17 74.38 74.59 75.27 75.95 76.37 77.05
SRS 7.30 7.38 7.42 7.49 7.57 7.59 7.61 7.68 7.76 7.78 7.80 7.87 7.95 7.99 8.06
SDS 34.02 34.25 34.39 34.62 34.85 34.92 34.99 35.22 35.45 35.52 35.59 35.82 36.05 36.19 36.42
USO 34.50 34.87 35.11 35.48 35.85 35.97 36.09 36.46 36.83 36.95 37.07 37.44 37.81 38.05 38.42
SKF 23.58 23.74 23.84 24.01 24.17 24.22 24.27 24.44 24.60 24.65 24.70 24.87 25.03 25.13 25.30

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