You are on page 1of 5

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

ValuEngine covers over 7,000 stocks every day. A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks, and commentary can be found http://www.valuengine.com/nl/mainnl To unsubscribe from this free email newsletter list, please click

http://www.valuengine.com/pub/Unsubscribe? August 25, 2011 The Dow & S&P 500 Upside Limits should be 11,491 & 1210.7 I expected my annual value level at 2335 on the NASDAQ to be the low end of the trading range. Now I am looking for my annual pivots at 11,491 Dow and 1210.7 SPX to be the high end for a second time since the August 9th post-FOMC lows. Stocks remain cheap, but not as cheap as on Monday; 83.2% of all stocks are undervalued and all 16 sectors are undervalued, 15 by double-digit percentages, 7 between 21.0% and 28.5% undervalued. Higher stock prices and higher 30-Year bond yield pull down valuations. The parabolic bubble in gold has popped with a decline of $212.5 the Troy ounce from $1917.9 on Tuesday to $1705.4 this morning. Crude oil remains above its 200-week simple moving average at $83.90. The euro continues to have a problem taking out this weeks risky level at 1.4492. 10-Year Note (2.298) Semiannual, weekly, annual and quarterly value levels are 2.414, 2.428, 2.690 and 3.053 with daily and semiannual risky levels at 2.126 and 1.672.

Courtesy of Thomson / Reuters

Comex Gold ($1767.0) Quarterly, semiannual and monthly value levels are $1655.8, $1644.8 and $1604.1 with weekly and daily risky levels at $1825.1 and $1872.0 and Tuesdays all time high at $1917.9. Note the key reversal day on the daily chart.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($85.03) The 200-week simple moving average is $83.90 with daily and weekly risky levels at $85.05 and $91.54, my annual pivots at $99.91 and $101.92 and quarterly and semiannual risky levels at $102.40 and $103.92.

Courtesy of Thomson / Reuters

The Euro (1.4416) My quarterly value level is 1.3728 with weekly, daily and semiannual risky levels at 1.4492, 1.4558 and 1.4752.

Courtesy of Thomson / Reuters

Daily Dow: (11,321) The 200-week and 120-month simple moving averages are 10,714 and 10,568 with a daily value level at 11,127, my annual pivot at 11,491, and weekly risky level at 11,819. Semiannual value levels are 9,635 and 8,468.

Courtesy of Thomson / Reuters

S&P 500 (1177.6) Semiannual value levels are 981.3 and 855.7 with a daily value level at 1153.8 and annual risky level at 1210.7. NASDAQ (2468) Daily and annual value levels are 2390 and 2335 with weekly risky level at 2637. NASDAQ 100 (NDX) (2145) Semiannual and annual value levels are 1951, 1861 and 1723 with a daily value level at 2077 and weekly risky level at 2309. Dow Transports (4428) Daily and semiannual value levels are 4227 and 3868 with my semiannual pivot at 4335, and weekly and annual risky levels at 4744 and 5179. Russell 2000 (692.57) Daily and semiannual value levels are 671.64, 577.47 and 530.04 with weekly and annual risky levels at 730.16 and 784.16. The SOX (345.69) Annual and semiannual value levels are 270.98, 258.97 and 204.67 with a daily value level at 332.41 and weekly risky level at 357.94. Equity Fundamentals Stocks are extremely undervalued. 83.2% of all stocks are undervalued / 16.8% of all stocks are overvalued. In March 2009, 91.1% of all stocks were undervalued. All sixteen sectors are undervalued, fifteen by double-digit percentages, seven by 21.0% to 28.5%. 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. My August report will be published today. 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.

I Hold No Positions in the Stocks I Cover.

You might also like