Dow Transports trades below its 50-day SMA at 5150
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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in N ewtown, PA. V aluEngine 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 T o unsubscribe from this free email newsletter list, please click http://www.valuengine.com/pub/Unsubscribe? Februar y 24, 2012 – Dow Transport s t rades below it s 50-day SMA at 5150 As I outlined on Thursday , Dow Transports are well below its all time high set at 5627.85 on July 7, 2011. Crude oil is testing a year to date high at $108.70 per barrel. Transports fell below its 50-day simple moving average at 5150 but closed Thursday above it. The other market drag is small caps with the Russell 2000 below its all time high set at 868.57 on May 2, 2011. The Dow Industrial Average is attempting to reach weekly and daily risky levels at 13,027 and 13,035. The S&P 500 lags versus its May 2, 2011 high at 1370.58. The NASDAQ is above 2011 and 2007 highs as re-inflating tech bubble continues. Stocks are overvalued fundamentally and overbought technically with the Computer & Technology sector overvalued by 19.6% with a P/E ratio of 43.2 times. The yield on the 10-Year US Treasury is trading around 2.0%. Gold reached a year to date high at $1789.5 closing in on my monthly risky level at $1816.4. If gold fails, the next decline below $1700 will likely cause a 50-day / 200-day SMA “death cross” as these moving averages are converged at $1669.5 and $1663.5. The Euro versus the dollar has been a stock stabilizing force and traded above 1.34 this morning. 10-Year Note – (1.988) My annual value is 2.502 with a daily pivot at 2.006, and annual, weekly, quarterly and monthly risky levels at 1.903, 1.874, 1.687 and 1.347. Courtesy of Thomson / Reuters
Dow Transports trades below its 50-day SMA at 5150
