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? October 27, 2011 Daily charts remain overbought, but with negative divergences. The daily charts for the major equity averages remain overbought, but less so, as stocks approach this months risky levels at: 12,091 Dow Industrials, 1259.8 SPX, 2680 NASDAQ, 4980 Dow Transports, and 778.77 Russell 2000. The weekly charts remain positive given closes on Friday above the five-week modified moving averages at: 11,402 Dow Industrials, 1195.3 SPX, 2561 NASDAQ, 4575 Dow Transports, and 694.66 Russell 2000. The Dow and SPX remain above annual pivots at 11,491 and 1210.7 respectively. The status of the monthly charts wont be known until Mondays closes versus the five-month modified moving averages at: 11,749 Dow Industrials, 1245.5 SPX, 2631 NASDAQ, 4894 Dow Transports, and 756.59 Russell 2000. The yield on the 10-Year US Treasury moved above my monthly pivot at 2.222. Gold is shy of its 50day simple moving average at $1736.8. Crude oil is below its 200-day SMA at $94.77. The euro is between its 50-day and 200-day SMAs at 1.3847 and 1.4097. 10-Year Note (2.209) 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 2.056, and daily, weekly, and semiannual risky levels at 2.126, 1.915 and 1.672, which was tested on September 23rd.

Courtesy of Thomson / Reuters

Comex Gold ($1722.0) Daily, semiannual, weekly, semiannual and annual value levels are $1660.2, $1644.8, $1606.4, $1469.9 and $1,356.5 with quarterly and monthly risky levels at $1738.4 and $1811.4, and the September 6th all time high at $1923.7. The 200-day simple moving average is $1552.0 with the 50-day at $1738.4.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($90.81) The October 4th year-to-date low is $74.95 with my weekly value level at $84.81, a daily pivot at $90.56, the 50-day at $85.53 with the 200-day at $94.78, and monthly, quarterly and annual risky levels at $98.51, $100.34, $99.91 and $101.92.

Courtesy of Thomson / Reuters

The Euro (1.3905) Weekly, and quarterly value levels are 1.2966 and 1.2598 with a daily pivot at 1.3796, and monthly and semiannual risky levels at 1.4579, 1.4752 and 1.4872. The 50-day simple moving average is 1.3852 with the 200-day at 1.4094.

Courtesy of Thomson / Reuters

Daily Dow - (11,869) The October 4th YTD low is 10,404.49 with annual and weekly value levels at 11,491 and 11,336, a daily pivot at 11,731, and monthly and quarterly risky levels at 12,091 and 12,507 with the YTD high at 12,876.00. Semiannual value levels are 9,635 and 8,468. The 50-day is 11,274 with the 200-day at 11,968.

Courtesy of Thomson / Reuters

S&P 500 (1242.0) The October 4th YTD low is 1074.77 with semiannual value levels at 981.3 and 855.7, annual and weekly value levels at 1210.7 and 1194.0, a daily pivot at 1232.5, and monthly, quarterly and annual risky levels at 1259.8, 1303.7 and 1562.9. The YTD high is 1370.58. NASDAQ (2651) The October 4th YTD low is 2298.89 with my annual value level at 2335, semiannual value levels at 2199 and 2049, daily and weekly pivots at 2610 and 2607, and monthly, and quarterly risky levels at 2680, and 2807, and the YTD high at 2887.75. My annual risky level is 3243. NASDAQ 100 (NDX) (2335) The YTD low is 2034.92 with semiannual and annual value levels at 1951, 1861 and 1723, my monthly value level at 2312, daily and weekly pivots at 2305 and 2334, and quarterly risky level at 2359 and 2440, the YTD high at 2437.42 and annual risky level at 2590. Dow Transports (4809) The October 4th YTD low is 3950.66 with weekly, semiannual value levels at 4554, 4335 and 3868, and a daily pivot at 4805, and monthly, annual and quarterly risky levels at 4980, 5179 and 5359, and the YTD high at 5627.85. Russell 2000 (727.15) The October 4th YTD low is 601.71 with semiannual value levels at 577.47 and 530.04, a weekly value level at 677.48, a daily pivot at 710.89, monthly, annual and quarterly risky levels at 778.77, 784.16 and 802.96, and the YTD high at 868.57. The SOX (379.48) The October 4th YTD low is 322.24 with annual and semiannual value levels at 270.98, 258.97 and 204.67, daily, weekly and monthly pivots at 369.39, 379.60 and 363.01, and quarterly risky level at 417.63, and the YTD high at 450.79. Equity Fundamentals Stocks are extremely undervalued. 77.5% of all stocks are undervalued / 22.5% of all stocks are overvalued. On October 4th 93.5% of all stocks were undervalued. All sixteen sectors are undervalued, fourteen by double-digit percentages, only two by 20.7% and 21.4%. 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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