THE DAILY BRIEF

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Monday 12.21.2009

CURRENT MARKET SENTIMENT

Quadruple Witching did have an effect this with eight trading days left in the year,
time around as the indices fell at the first level Investors are focusing on the sales figures and
of support only to rally and finish positive at durable goods number. Technically, the
10329 (Dow) and 1102 (S&P) within striking downside is limited to the 10300 (Dow) and
distance of the weekly pivot. Given that there 1099 (S&P) level while the upside is far more
is limited economic data of significance and promising.

PRISM CALL

Futures are pointing up after the witching. With light volume and limited trading sessions, protecting
yearly profit is the only concern for money managers. We are very likely to move up slowly, yet
shorting stocks up might be the best strategy. Oil and retail are the best sectoral play as the weather
had a hold on both. Be cautious and trade carefully!

ECONOMIC CALENDAR INDU & SPUZ TECHNICALS

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

8:30 Chicago Fed -1.08 INDU

am Nat Activity
10213 10255 10322 10489 10430
(DOW)
Index SPUZ
(S&P) 1090 1092 1100 1106 1110

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 FOREIGN MARKETS NEWS

MRK Merck files automatic debt

MARKET PRICE
 %
securities shelf in an S-3ASR
(37.40 +0.12)
FTSE 5260.99 64.18 1.23

DAX 5878.48 47.27 0.81 TEX Terex agrees to sell mining

business to Bucyrus for $1.3 bln
HANG SENG 20948.1 227.78 -1.08 (19.21 )
NIKKEI 10183.47 41.42 0.41
JP Morgan, Bank of America,
Wells Fargo and Citigroup
CHINA 3122.973 9.087 0.29 mentioned positively in Barron's

MOS Mosaic mentioned positively

DOW STOCKS TO WATCH COMMODITY PRICES in Barron's (55.22 )

STRONG WEAK COMMODITY PRICE
 RDS.A Shell eyes asset sales in

Nigeria - WSJ (58.07 )
BA IBM
OIL 73.38 0.02 Japan exports show double-dip
HD HPQ recession less likely – Reuters
KO JPM
GOLD 1116.8 5.30 Dubai World to make no precise
TRV WMT debt proposal: Source – Reuters

CELG Celgene: Merriman notes

CELG nails two in a row -- CALGB
UPGRADES & DOWNGRADES trial hits on primary PFS endpoint
(55.95 )
STOCKS UPGRADED
SNY Sanofi-Aventis stops
BROKERAGE development of two drugs - Reuters
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
(39.11 )
BMO Capital
City National (CYN) Underperform » Market Perform $45
Markets
DTV DIRECTV tgt raised to $40 at
BMO Capital
Mattel (MAT) Market Perform » Outperform $24 Kaufman as the Liberty
Markets
transaction enhances the
BMO Capital
Hasbro (HAS) Underperform » Market Perform investment proposition for DTV
Markets
(33.04 )
Sonoco Products (SON) Argus Hold » Buy $35
CVS CVS Caremark taking an
Palm (PALM) Morgan Joseph Sell » Hold increased ownership interest in
Generation Health (31.18 )
Intel (INTC) Barclays Capital Equal Weight » Overweight $24

Alcoa (AA) Barclays Capital Equal Weight » Overweight $22 CF CF Industries: Agrium extends
exchange offer for CF Industries to
Seagate Tech (STX) Robert W. Baird Neutral » Outperform $22 » $25 Jan 22, 2010 (86.44 )

STOCKS DOWNGRADED MELI MercadoLibre profiled in

BROKERAGE New America section of IBD
COMPANY RATINGS CHANGE PRICE TARGET (49.07 )
FIRM
Nokia (NOK) Argus Buy » Hold
China considers extra $200 bln for
Gap Inc (GPS) Jesup & Lamont Buy » Hold CIC sovereign wealth fund – FT

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 EARNINGS

LLY Eli Lilly and Incyte announce collaboration for development and commercialization of oral anti-
nflammatory and autoimmune therapies; reconfirms FY09 EPS guidance

CNX CONSOL Energy ests and tgt raised to $70 at FBR Capital Mkts (46.57 )

CAG ConAgra beats by $0.05, misses on revs; raises FY10 EPS guidance (22.16 )

ROP Roper Inds announces a 2.3 mln share common stock offering, being made in conjunction with the its
inclusion in the S&P 500 (54.19 )

PJC Piper Jaffray announces significant expansion of its asset management business (46.73 )

ARW Arrow Elec raises Q4 guidance, sees EPS of $0.57-0.63 vs $0.52 First Call consensus, up from $0.44-0.56;
sees revs of $3.8-4.2 bln vs $4.01 bln First Call consensus, up from $3.65-4.25 bln previously

IAG IAMGOLD announces positive results from Westwood development project Preliminary Assessment Study
(15.67 )

TRH Transatlantic Hldngs announces a $200 mln share repurchase program (50.59 )

VSH Vishay raises Q4 sales guidance to $580-600 mln vs $557.87 mln First Call consensus, up from $530-570 mln
previously

VSH Vishay raises Q4 rev guidance driven by higher than anticipated demand for both discrete semiconductors
and passive components (7.54 )

CLF Merriman sees record seaborne coking coal demand in 2010; raises '10 coking coal international settlement
price forecast as well as hot-rolled sheet price forecast (43.98 )

MA MasterCard initiated with a Overweight at Thomas Weisel; tgt $305 (254.84 )

V Visa initiated with a Overweight at Thomas Weisel; tgt $102 (88.97 )

SON Sonoco Products upgraded to Buy at Argus; tgt $35 (29.18 )

DFT Dupont Fabros Tech tgt raised to $21 as recent financings set the stage for growth (17.58 )

AET Senate bill brings holiday cheer to HMOs; targets raised at Credit Suisse
AET to $31 from $26; AGP to $28 from $26; CI to $40 from $32; HUM to $50 from $40; MOH to $18 from $15;
UNH to $37 from $34; and WCG to $36 from $28.

ORCL Oracle tgt raised to $30 at Argus as sales, margins, and earnings gain traction

SPG Simon Properties ests and target raised to $87 at Credit Suisse following Prime Outlets acquisition (77.78 )

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1080.31 1084.08 1086.40 1090.17 1093.94 1095.10 1096.26 1100.03 1103.80 1104.96 1106.12 1109.89 1113.66 1115.98 1119.75
INDU 10104.81 10146.24 10171.84 10213.26 10254.69 10267.49 10280.23 10321.71 10363.20 10375.94 10388.74 10430.16 10471.59 10497.19 10538.61
NDX 1765.68 1772.60 1776.88 1783.80 1790.72 1792.86 1794.99 1801.92 1808.85 1810.98 1813.12 1820.04 1826.96 1831.24 1838.16
XBD 108.33 109.11 109.59 110.38 111.16 111.40 111.64 112.43 113.21 113.45 113.69 114.48 115.26 115.74 116.53
BKX 40.41 40.78 41.01 41.37 41.74 41.85 41.97 42.33 42.70 42.81 42.93 43.29 43.66 43.89 44.25
TRAN 4021.64 4043.60 4057.17 4079.14 4101.10 4107.89 4114.64 4136.64 4158.63 4165.39 4172.17 4194.14 4216.10 4229.67 4251.64
OIX 655.74 659.19 661.32 664.77 668.22 669.29 670.35 673.80 677.26 678.32 679.38 682.83 686.28 688.41 691.86
OSX 185.84 187.11 187.90 189.18 190.45 190.85 191.24 192.52 193.79 194.19 194.58 195.86 197.13 197.92 199.20
XNG 515.51 519.10 521.31 524.89 528.48 529.58 530.69 534.27 537.86 538.96 540.07 543.65 547.24 549.45 553.03
CYC 792.75 797.05 799.71 804.02 808.32 809.65 810.98 815.29 819.60 820.92 822.25 826.56 830.86 833.52 837.83
UTY 410.74 413.02 414.43 416.70 418.98 419.68 420.38 422.66 424.94 425.64 426.35 428.62 430.90 432.31 434.58
DRG 302.39 303.47 304.13 305.20 306.28 306.61 306.94 308.01 309.09 309.42 309.75 310.82 311.90 312.56 313.63
RLX 391.85 394.46 396.07 398.68 401.29 402.10 402.90 405.51 408.12 408.93 409.73 412.34 414.95 416.56 419.17

Tradeables

SPY 107.89 108.28 108.52 108.91 109.30 109.42 109.54 109.93 110.32 110.44 110.56 110.95 111.34 111.58 111.97
DIA 100.65 101.11 101.40 101.86 102.32 102.47 102.61 103.07 103.53 103.68 103.82 104.28 104.74 105.03 105.49
QQQQ 43.35 43.54 43.65 43.83 44.02 44.07 44.13 44.31 44.50 44.55 44.61 44.79 44.98 45.09 45.27
QLD 53.45 53.89 54.16 54.60 55.04 55.18 55.31 55.75 56.19 56.32 56.46 56.90 57.34 57.61 58.05
IWM 59.16 59.49 59.69 60.03 60.36 60.46 60.56 60.90 61.23 61.33 61.43 61.77 62.10 62.30 62.64
OIH 113.52 114.41 114.95 115.84 116.73 117.00 117.27 118.16 119.05 119.32 119.59 120.48 121.37 121.91 122.80
XLE 54.67 54.97 55.15 55.45 55.75 55.84 55.93 56.23 56.53 56.62 56.71 57.01 57.31 57.49 57.79
FAZ 18.83 19.15 19.35 19.68 20.00 20.10 20.20 20.53 20.85 20.95 21.05 21.38 21.70 21.90 22.23
FAS 65.14 66.18 66.83 67.88 68.92 69.25 69.57 70.62 71.66 71.99 72.31 73.36 74.40 75.05 76.10
SRS 7.36 7.47 7.53 7.63 7.74 7.77 7.80 7.90 8.01 8.04 8.07 8.17 8.28 8.34 8.44
SDS 34.74 34.99 35.15 35.41 35.66 35.74 35.82 36.08 36.33 36.41 36.49 36.75 37.00 37.16 37.42
USO 34.82 35.19 35.41 35.78 36.15 36.26 36.37 36.74 37.11 37.22 37.33 37.70 38.07 38.29 38.66
SKF 23.75 24.02 24.18 24.44 24.71 24.79 24.87 25.13 25.40 25.48 25.56 25.82 26.09 26.25 26.51

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