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? Sept 27, 2011 Reversals in Yields and Gold as Undervalued Stocks rebound. Last Friday the yield on the 10-Year US Treasury tested my semiannual risky level at 1.672, which should be the cycle low yield that fully discounts the Feds operation twist. Gold failed to hold my quarterly and semiannual pivots at $1655.8 and $1644.8 trading as low as $1535.0 on Monday versus its 200-day simple moving average at $1523.0. Gold has been above its 200day since January 2009, so this strong moving average up trend held. The parabolic bubble on the monthly chart has popped, and we have a double-top on the daily chart. Oil remains above its August 9th low at $75.71 and below its 200-week at $83.68. SPX, NASDAQ, NDX and SOX are above their August 9th lows. Dow Industrials, Dow Transports and Russell 2000 set new year to date lows last week at 10,597.14, 4095.81 and 634.71. The Dow Industrials remain above its 200week and 120-month simple moving averages at 10,662 and 10,590 as key supports. 10-Year Note (1.897) Semiannual, annual, monthly and quarterly value levels are 2.414, 2.690, 2.715 and 3.053 with daily, semiannual and weekly risky levels at 1.815, 1.672 and 1.369. My semiannual risky level at 1.672 was tested last Friday.

Courtesy of Thomson / Reuters

Comex Gold ($1622.0) Semiannual and annual value levels are $1469.9 and $1,356.5 with quarterly, semiannual and monthly pivots at $1655.8, $1644.8 and $1702.3 and weekly risky level at $1915.0. The daily chart shows a double-top with the 200-day simple moving average as important support at $1523.0. The 200-day has held since January 2009.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($81.26) My weekly value level at $73.58 with the 200-week simple moving average at $83.68, a daily pivot at $79.89, my annual risky levels at $99.91 and $101.92 and quarterly, semiannual and monthly risky levels at $102.40, $103.92 and $104.23.

Courtesy of Thomson / Reuters

The Euro (1.3513) No value levels with daily, weekly and quarterly pivots at 1.3506, 1.3646 and 1.3728, the 200-week simple moving average at 1.4009, and semiannual and monthly risky levels at 1.4752 and 1.4872.

Courtesy of Thomson / Reuters

Daily Dow - (11,044) My weekly value level is 10,101 with the 200-week and 120-month simple moving averages at 10,675 and 10,590, and a daily pivot at 11,080, and annual and monthly risky levels at 11,491 and 12,779. Semiannual value levels are 9,635 and 8,468.

Courtesy of Thomson / Reuters

S&P 500 (1163.0) Weekly and semiannual value levels are 1040.1, 981.3 and 855.7 with a daily pivot at 1164.6, and annual risky level at 1152.8 and 1210.7. NASDAQ (2517) Annual, weekly, and semiannual value levels are 2335, 2221, 2199 and 2049 with a daily pivot at 2526, and monthly risky level at 2827. NASDAQ 100 (NDX) (2234) Weekly, semiannual and annual value levels are 1999.0, 1951, 1861 and 1723 with daily and monthly risky levels at 2262 and 2431. Dow Transports (4311) Semiannual and weekly value levels are 3868 and 3686 with daily and semiannual pivot at 4222 and 4335, and annual and monthly risky levels at 5179 and 5190. Russell 2000 (665.62) Weekly and semiannual value levels are 565.64, 577.47 and 530.04 with a daily pivot at 654.03, and annual and monthly risky levels at 784.16 and 825.19. The SOX (359.50) Weekly, annual and semiannual value levels at 317.42, 270.98, 258.97 and 204.67 with a daily pivot at 359.90 and monthly risky level at 418.07. Equity Fundamentals Stocks are extremely undervalued. 89.2% of all stocks are undervalued / 10.8% of all stocks are overvalued. In March 2009 we saw 91.1% of all stocks undervalued. All sixteen sectors are undervalued by double-digit percentages, fifteen by 20.7% to 33.9%. 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.

I Hold No Positions in the Stocks I Cover.