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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in Princeton, NJ. ValuEngine

covers over 5,000 stocks every day.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks,and commentary can be found HERE.

June 28, 2010 Yie lds Near Low s, Gold Near Highs, Symbol ic of Risk Avers ion

The yield on the 10-Year Treasury is just above 3.061 tested on May 25th and June 24th. Goldcontinues to consolidate off last Mondays all time high at $1266.5. Crude is above my annualpivot at $77.05 on the site if Tropical Storm Alex. The euro rebounded to my quarterly resistanceat 1.2450 a week ago. The Dow is below its daily moving averages. On Thursday, July 1st I willhave new monthly, quarterly and semiannual levels from my proprietary analytics, so stay tunedfor new risk / reward parameters for the second half of 2010. The FDIC closed three banks onBank Failure Friday.

US Treasury Yields The daily chart for the 10-Year shows the longer-term trading range between the200-day simple moving average at 3.537 and 3.061. Todays resistance is 3.037, and annualresistances are the floor at 2.999 and 2.813. The low end of the yield range was last tested on May 25 th

and June 24th.

Chart Courtesy of Thomson / Reuters

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Comex Gold The daily chart shows MOJO turning up again with last Mondays all time high of$1266.5 in sight. This test was a failed test of my monthly resistance at $1265.9. The 21-day and 50-day simple moving averages provide key supports at $1232.6 and $1204.8.

Courtesy of Thomson / Reuters

Nymex Crude Oil The daily chart still shows overbought MOJO with oil back above its 50-day and200-day simple moving averages and annual pivot at $76.75, $77.11 and $77.05. The 21-day issupport at $75.17. Todays resistance is $85.93.

Courtesy of Thomson / Reuters

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The Euro The daily chart shows rising but flattening MOJO as strength reached my quarterlyresistance at 1.2450 a week ago today. The 21-day simple moving average is support at 1.2214.Todays pivot is 1.2343.

Courtesy of Thomson / Reuters

Daily Dow:Weekly support is 9,483 with todays pivot at 10,211. The Dow is below the 21-day, 50-dayand 200-day simple moving averages at 10,196, 10,517 and 10,356, and my annual pivot at 10,379.

MOJO is declining eliminating on the daily chart. My call remains that the April 26th high at 11,258ended the bear market rally since March 2009, and starts the second leg of the multi-year bear market.

Courtesy of Thomson / Reuters

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Bank Failure Friday There were three bank failures last Friday, and all were private banks that wereextremely overexposed to C&D and CRE lending. Their real estate loan pipelines were 89.7% to 98.4%funded. The FDIC Deposit Insurance Fund (DIF) ended the first quarter of 2010 in arrears by $20.7billion after closing 41 community banks and costing the Deposit Insurance Fund (DIF) $6.5 billion. TheFDIC closed 45 community banks in the second quarter draining the $11.1 billion from the DIF. For thefirst half of 2010 bank failures cost the FDIC $17.6 billion versus the total year member bankassessments of $15.33 billion. I estimate that the cumulative loss on June 30th is $31.8 billion. If youfactor in the 2010 pre-paid DIF fees the balance is in arrears by $20.3 billion with a half year of bankfailures that need to be covered.

Only 25 banks failed in 2008, as the FDIC was slow closing community and regional banks. There were 140 bank failures in 2009 with a peak of 50 in the third quarter. In the first quarter of 2010 there were 41 failures, and now 45 for the second quarter for a half

year total of 86.

At this pace bank closures in 2010 will be within my 150 to 200 estimate range for 2010. Since the end of 2007, the FDIC has closed 251 banks on the way to my predicted 500 to

800 by the end of 2012 into 2013.

Thats todays Four in Four. Have a great day.

Richard SuttmeierChief Market Strategistwww.ValuEngine.com(800) 381-5576

As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. Ihave daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters aswell as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as theValuTrader Model Portfolio newsletter. I hope that you will go to www.ValuEngine.com and review some of the sampleissues of my research.

I Hold No Positions in the Stocks I Cover.