Stocks React Negatively to Cash Neutral Operation Twist

8/4/2019 Stocks React Negatively to Cash Neutral Operation Twist

1/5

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

September 22, 2011 Stock s React Negat i vely to Cash Neutra l Operat ion Tw ist

We had a tug or war between an overbought NASDAQ 100 (NDX) and overbought Philadelphia

Semiconductor Index (SOX) versus negative daily charts for the Dow Transports and Russell2000. NDX closed just above its 50-day simple moving average at 2246 with the SOX on thecusp of its 50-day at 365.89. These key levels will not hold at todays open. Transports andRussell 2000 stayed well below their 50-day SMAs at 4750 and 732.64. In-between are the DowIndustrial Average and S&P 500, which are also well below their 50-day simple movingaverages at 11,615 and 1221.0. The tech-heavy NASDAQ broke below its 50-day at 2594 inreaction to the Feds Operation Twist announced Wednesday afternoon. Again the Dow andS&P 500 failed to hold my annual pivots at 11,491 and 1210.7. Seems to me that the FedsOperation Twist was factored into the recent stock market strength!

10-Year Note (1.952) Daily, semiannual, annual, monthly and quarterly value levels are 2.023,2.414, 2.690, 2.715 and 3.053 with the September 22nd all time low yield at 1.793, and semiannual

and weekly risky levels at 1.672 and 1.460.

Courtesy of Thomson / Reuters


2/5

Comex Gold ($1788.6) A daily value level is $1752.9 with the 50-day at $1738.6, monthly, quarterlyand semiannual value levels are $1702.3, $1655.8 and $1644.8 with weekly risky level at $1970.8.


Nymex Crude Oil ($85.20) My weekly value level at $74.97 with the 200-week simple movingaverage at $83.77, a daily pivot at $87.73, the 50-day at $89.75, my annual pivots at $99.91 and

$101.92 and quarterly, semiannual and monthly risky levels at $102.40, $103.92 and $104.23.



3/5

The Euro (1.3605) No value levels with daily and quarterly pivots at 1.3745 and 1.3728, the 200-daysimple moving average at 1.4042, and weekly, semiannual and monthly risky levels at 1.3906, 1.4752

and 1.4872.


Daily Dow - (11,125) My weekly value level is 10,032 with the 200-week and 120-month simplemoving averages at 10,678 and 10,595, my annual pivot at 11,491, and daily and monthly risky levelsat 11,545 and 12,779. Semiannual value levels are 9,635 and 8,468 with the 50-day and 200-day SMAdeath cross at 11,615 and 12,002.



4/5

S&P 500 (1166.8) Weekly and semiannual value levels are 1039.6, 981.3 and 855.7 with my annuapivot at 1210.7, the 50-day at 1221.0 and daily and monthly risky levels at 1221.0 and 1342.1.

NASDAQ (2538) Annual, weekly, and semiannual value levels are 2335, 2210, 2199 and 2049 withthe 50-day at 2594, and daily and monthly risky levels at 2667 and 2827.

NASDAQ 100 (NDX) (2258) Weekly, semiannual and annual value levels are 1989.0, 1951, 1861and 1723 with the 50-day at 2246, and daily and monthly risky levels at 2365 and 2431.

Dow Transports (4281) Weekly value levels are 3868 and 3755 with m y semiannual pivot at 4335,a daily risky level at 4625, the 50-day at 4750, and annual and monthly risky levels at 5179 and 5190.

Russell 2000 (664.58) Weekly and semiannual value levels are 566.76, 577.47 and 530.04 with adaily risky level at 709.32, the 50-day at 732.64, and annual and monthly risky levels at 784.16 and825.19.

The SOX (365.37) Weekly, annual and semiannual value levels at 306.68, 270.98, 258.97 and204.67 with the 50-day SMA at 365.89, and daily and monthly risky levels at 394.90 and 418.07.

Equity Fundamentals Stocks are extremely undervalued.

88.6% of all stocks are undervalued / 11.4% of all stocks are overvalued. In March 2009, 91.1%of all stocks were undervalued. Stocks are cheaper given lower prices and lower 30-Yearbond yield.

All sixteen sectors are undervalued by double-digit percentages, fifteen by 20.3% to 33.0%%.Back in March 2009 the sectors were undervalued by 33% to 45%. Check out and subscribeto www.ValuEngine.com.

VE Morning Briefing If you want expanded analysis of the US Capital Markets including a FearlessPrediction 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

ValuTrader Performance - At the market lows on Monday, September 12th we added six stocks to themodel portfolio bringing the total to twenty portfolio members. This increased the long positions to 29for a hypothetical 36.25% allocation to stocks. This was up from a 27.5% allocation to the long side ofthe market, which was an aggressive call. We booked some gains on September 14 th and 15th endinglast week with 24 long positions in 17 stocks, which is a hypothetical investment of a 30.0% allocationto the long side of the market. Yesterday another long was removed at the open so we reducedthe allocation to 28.75%. We continue to have 8 short positions in 3 ETFs; three shorts in Diamonds(DIA), two in NASDAQ 100 Shares (QQQQ) and three in S&P 500 Sector SPDRs (SPY). We have a10.0% allocation to the short side of the market. This is what Buy and Trade is all about!

ETF Weekly If you want my Value Levels and Risky Levels for 30 Electronically Traded Funds usethis 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


5/5

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 slowstochastic readings from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0is 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 priceweakness. 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 multiplelong position on share price strength. This is done on a GTC Limit Order to sell strength tothe Risky Level.

Buy and Trade Strategies for Short Positions

Value Level The price at which you remove a single short position or reduce a multipleshort position on share price weakness. This is done on a GTC Limit Order to buy weaknesto the Value Level.

Risky Level The price at which you establish an addition short position on share pricestrength. This is done on a GTC Limit Order to sell strength to the Risky Level.

Richard SuttmeierChief Market StrategistValuEngine.com(800) 381-5576

To unsubscribe from this free email newsletter list, please clickhttp://www.valuengine.com/pub/Unsubscribe?

Send your comments and questions to [email protected]. For more information on our productsand 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, andquarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. Mynewest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go tohttp://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.

Documents

Stocks React Negatively to Cash Neutral Operation Twist