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CURRENT MARKET SENTIMENT

We've got to get over 10,000 (Dow), and we've got to close over
1070 to 1075 (S&P) for this thing to sustain itself," that is the cry in
the street as the Dow and S&P headed south to finish 9748 and MARKET
1060 respectively, a far cry from the high. The precipitous drop
endangered the upward move; however, a bounce of the weekly
HIGHLIGHTS
pivot 9722 and 1059 for the second time within a week might do the 09/24/2009
tricks. In contrast, a break of the weekly pivot might abruptly end
the party. Be prepared for the street to use a better than expected
jobless number–below 550,000 and an improvement in existing home
sales to 5.35 million to help the cause. The Battle of the Titan is in PRISM CALL
the making!!!
Market is crazy.
ECONOMIC NUMBERS AND DATA Unemployment numbers
Time Indicator Date Actual Expectation Range Prior came out positive and
(ET)
market is rallying, although
8:30 Initial Jobless Sep 530K 550K 510K to 545K
AM Claims 24 565K not as much as one may
10:00 Existing Sep 5.35M 5.10M 5.24M expect. Today will be the
AM Home Sales 24 to classic bull bear fight. Bulls
5.55M
10:00 Existing Sep 2.1% -2.7% to 7.2% need to defend 9722 on the
AM Home Sales 24 5.9% dow and 1060 on the
MoM
10:30 Nat Gas Sep 68 61 to 78 66 futures, if they cant, then
AM Storage 24 this market is toast. We
Change
may remain in a tight range
TECHNICAL till tomorrow, with a bullish
Indices S2 S1 Pivot R1 R2 tinge. Today is a wait and
see environment. Need the
INDU 9743 9692 9802 9911 9979
(DOW)
market to prove a direction.

SPUZ 1047 1054 1067 1079 1086

(S&P)

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DOW STOCK TO WATCH
Strong Weak
MRK UTX

VZ CVX

HPQ AXP

MCD

COMMODITY PRICES
Commodity Price


OIL 68.45 0.52

GOLD 1016 1.50

FOREIGN MARKETS
Market Price
 %

FTSE 5140.22 0.85 0.02

DAX 5704.37 2.32 0.04

NIKKEI 10544.22 173.68 1.67

HANG SENG 21050.73 544.79 -2.52

CHINA 2853.554 10.833 0.38

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UPGRADES / DOWNGRADES
Stocks Upgraded


KLAC KLA-Tencor upgraded to Perform at Oppenheimer; tgt raised to $37 (35.65 )

Citigroup upgrades National Semi (NSM 14.89) to Buy from Hold

Citigroup upgrades Calpine (CPN 11.30) to Buy from Hold

Morgan Stanley upgrades Pioneer Natural (PXD 35.69) to Equal Weight from
Underweight

Morgan Stanley upgrades Apache (APA 90.99) to Overweight from Equal Weight

BofA/Merrill upgrades Red Hat (RHT 24.88) to Buy from Neutral and raises their tgt
to $29 from $23.50

AIMC Altra Holdings upgraded to Buy from Neutral at BofA/Merrill (10.22 )

Stocks Downgraded


Thomas Weisel downgrades Kinross Gold (KGC 21.75) to Market Weight from
Overweight

Deutsche Bank downgrades Domtar (UFS 38.00) to Hold from Buy...

Deutsche Bank downgrades Cardinal Health (CAH 27.73) to Hold from Buy

JP Morgan dowgrades Westar Energy (WR 20.39) to Neutral from Overweight and
lowers their tgt to $20 from $26..

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 NEWS ALERT
ANN AnnTaylor cut to Neutral from Buy at Goldman- DJ (16.28 )

MTH Meritage raised to Conviction Buy from Neutral by Goldman- DJ (20.15 )

LTD Limited initiated with a Neutral by Goldman- DJ (17.39

PALM Palm: Deal chatter engulfs Palm, but price tag high - Reuters.com (16.96 )

NZ Netezza: Sell-off provides buying opportunity as NZ’s strategic position

remains unchanged; TDC and NZ could be attractive acquisitions - Merriman
(10.82
NEWS ALERT
MKC McCormick beats by $0.03, misses on revs; raises low end of FY09 guidance
(34.75 )

SCHL Scholastic Corp prelim ($0.68) vs ($0.83) single estimate; revs $315.6 mln
vs $290.10 mln single estimate (24.52 )

SCHL Scholastic Corp sees FY10 $1.80-2.30 vs $1.81 single estimate (24.52 )

European market summary: FTSE -0.1%, CAC -0.2%, DAX -0.16%

Asia markets close; Nikkei hits 1-month closing high: Nikkei +1.67%, Hang Seng –
2.52%, Shanghai Composite +0.38%, Sensex +68 pts

Fed eyes tie-up with mutual funds - Financial Times

U.S. accounting change might help tech companies – Reuters

PPS Post Properties announces it has commenced a public offering of 3 mln

shares of common stock (19.28 -0.23)

ARE Alexandria RE announces public follow-on offering of 3,000,000 shares of

common stock (56.75 -3.40)

PAYX Paychex prelim $0.34 vs $0.34 First Call consensus; revs $500.2 mln vs
$502.91 mln First Call consensus

German Ifo index better in September, short of forecast – DJ

CTXS Citrix Systems added to Conviction Buy list at Goldman- Reuters (36.14 )

AM American Greetings prelim $0.40 vs $0.06 two analyst estimate; revs $356.4
mln vs $362.67 mln single estimate (14.98)

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NEWS ALERT
TCO Taubman Centers removed from Americas Conviction Buy list at Goldman -
Reuters (35.75 )

MTH Goldman Sachs raises U.S. homebuilders sector to Attractive – Reuters

SNY Sanofi-Aventis says HIV vaccine study shows effectiveness - DJ (37.21 )

OSUR OraSure Tech initiated with a Buy at ThinkEquity- tgt $5 (2.82

RAD Rite Aid beats by $0.02, misses on revs; guides FY10 EPS below consensus,
revs in-line (1.95 )

Ex-Fed Chief Volcker to urge limits for commercial banks – DJ

DJ reports commercial banks should be prohibited from running hedge funds or

private equity funds, and should be limited in the level of proprietary trading they
can engage in as part of an overhaul of financial regulation, former Federal Reserve
Board Chairman Paul Volcker will tell Congress.

HOT European RevPAR continues to get "less bad"; favors IHG - FBR Capital

China start-up IPOs set high prices, stir worries - Reuters.com

Pentagon launches 3rd try to buy refueling planes - Reuters.com

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