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 25, 2011 Equity Averages Versus October Risky Levels. The major equity averages are approaching or testing this months risky levels / pivots: 12,091 Dow Industrials, 1259.8 SPX, 2680 NASDAQ, 2312 NDX, 4980 Dow Transports, 778.77 Russell 2000, and 363.01 SOX. Next Tuesday we will have new monthly levels, which are likely to be value levels or pivots, and such a configuration would favor additional strength to quarterly risky levels at: 12,507 Dow Industrials, 1303.7 SOX, 2807 NASDAQ, 2440 NDX, 5179 S / 5359 Q Dow Transports, 784.16 A / 802.96 Q Russell 2000, and 417.63 SOX. The yield on the 10-Year US Treasury should continue to rise. Gold should continue to trade around my semiannual pivot at $1644.8 with my quarterly risky level at $1738.4. Crude oil could still trade up to my annual pivots at $99.91 and $101.92 by years end. The euro versus the dollar will be the wild card with my quarterly value level at 1.2598 and semiannual risky level at 1.4752. 10-Year Note (2.234) Semiannual, quarterly and annual value levels are 2.414, 2.669 and 2.690 with daily and monthly pivots at 2.178 and 2.222, the 50-day simple moving average at 2.058, and weekly, and semiannual risky levels at 1.915 and 1.672, which was tested on September 23rd.

Courtesy of Thomson / Reuters

Comex Gold ($1654.00) Daily, weekly, semiannual and annual value levels are $1633.3, $1606.4, $1469.9 and $1,356.5 with my semiannual pivot at $1644.8, and 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 $1548.8 with the 50-day at $1741.0.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($91.52) The October 4th year-to-date low is $74.95 with my weekly value level at $84.81, a daily pivot at $90.55, the 50-day at $85.32 with the 200-day at $94.75, and monthly, quarterly and annual risky levels at $98.51, $100.34, $99.91 and $101.92.

Courtesy of Thomson / Reuters

The Euro (1.3926) Weekly, and quarterly value levels are 1.2966 and 1.2598 with a daily pivot at 1.3863, and monthly and semiannual risky levels at 1.4579, 1.4752 and 1.4872. The 50-day simple moving average is 1.3874 with the 200-day at 1.4090.

Courtesy of Thomson / Reuters

Daily Dow - (11,914) 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 11,765, 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 11,263 with the 200-day at 11,967.

Courtesy of Thomson / Reuters

S&P 500 (1254.2) 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 1243.1, and monthly, quarterly and annual risky levels at 1259.8, 1303.7 and 1562.9. The YTD high is 1370.58. NASDAQ (2699) The October 4th YTD low is 2298.89 with my annual value level at 2335, semiannual value levels at 2199 and 2049, a weekly, daily and monthly pivots at 2607, 2684 and 2680, and quarterly risky level at 2807, and the YTD high at 2887.75. My annual risky level is 3243. NASDAQ 100 (NDX) (2384) The YTD low is 2034.92 with semiannual and annual value levels at 1951, 1861 and 1723, my monthly value level at 2312, weekly and daily pivots at 2334 and 2387, and quarterly risky level at 2440, the YTD high at 2437.42 and annual risky level at 2590. Dow Transports (4902) The October 4th YTD low is 3950.66 with daily, weekly, semiannual value levels at 4827, 4554, 4335 and 3868, and monthly, annual and quarterly risky levels at 4980, 5179 and 5359, and the YTD high at 5627.85. Russell 2000 (735.97) The October 4th YTD low is 601.71 with semiannual value levels at 577.47 and 530.04, daily and weekly value levels at 718.37 and 677.48, and monthly, annual and quarterly risky levels at 778.77, 784.16 and 802.96, and the YTD high at 868.57. The SOX (384.58) 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 382.32, 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. 76.2% of all stocks are undervalued / 23.8% 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 20.2% and 20.5%, as the 30-Year bond yield starts to rise putting a drag on valuations. 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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