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

ValuEngine 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 To unsubscribe from this free email newsletter list, please click

http://www.valuengine.com/pub/Unsubscribe? October 3, 2011 The monthly charts are negative, but stocks remain cheap. What do you do when the monthly charts turn negative, but ValuEngine shows that 90.8% of all stocks are undervalued? In terms of the Dow Industrial Average you play the trading range between the 120-month simple moving average at 10,593, which held in both August and September and my annual pivot at 11,491, which was a magnet in both August and September. The yield on the 10-Year US Treasury should trade between this months value level at 2.222 and my annual risky level at 1.672, which was tested in September. Gold should continue to trade around my semiannual pivot at $1644.8 with semiannual value level at $1469.9 and this quarters risky level at $1738.4 with monthly risky level at $1811.4. For oil I do not show a value level with a negative monthly chart and the 120-month SMA at $61.85. The euro should weaken into year end to my new quarterly value level at 1.2598. 10-Year Note (1.905) Monthly, semiannual, quarterly and annual value levels are 2.222, 2.414, 2.669 and 2.690 with daily, semiannual and weekly risky levels at 1.857, 1.672 and 1.465. My semiannual risky level at 1.672 was tested on September 23rd.

Courtesy of Thomson / Reuters

Comex Gold ($1623.0) Daily, semiannual and annual value levels are $1508.9, $1469.9 and $1,356.5 with my semiannual pivot at $1644.8, and quarterly, monthly, and weekly risky levels at $1738.4, $1811.4 and $1866.8, and the September all time high at $1923.7. The monthly chart continues to show the parabolic bubble.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($78.72) My daily value level is $75.60 with a weekly pivot at $80.30 with monthly, quarterly and annual risky levels at $98.51, $100.34, $99.91 and $101.92. The monthly chart is negative with the 120-month simple moving average at $61.85 and 200-week at $83.63.

Courtesy of Thomson / Reuters

The Euro (1.3388) My quarterly value level is 1.2598 with daily and weekly pivots at 1.3349 and 1.3511, and monthly and semiannual risky levels at 1.4579, 1.4752 and 1.4872. The monthly chart is negative with the 120-month simple moving average at 1.2698 with the 200-week at 1.4003.

Courtesy of Thomson / Reuters

Monthly Dow - (10,913) Weekly and daily value levels are 10,713 and 10,559 with the 200-week and 120-month simple moving averages at 10,664 and 10,593, the 50-day at 11,393, my annual pivot at 11,491, and monthly and quarterly risky levels at 12,091 and 12,507. Semiannual value levels are 9,635 and 8,468.

Courtesy of Thomson / Reuters

S&P 500 (1131.4) Weekly, daily, and semiannual value levels are 1116.9, 1096.9, 981.3 and 855.7 with annual, monthly, quarterly and annual risky levels at 1210.7, 1259.8, 1303.7 and 1562.9. NASDAQ (2415) Daily, annual, and semiannual value levels are 2375, 2335, 2199 and 2049 with monthly, quarterly and annual risky levels at 2680, 2807 and 3243. NASDAQ 100 (NDX) (2139) Daily, semiannual and annual value levels are 2112, 1951, 1861 and 1723 with a weekly pivot at 2140, and monthly, quarterly and annual risky levels at 2312, 2440 and 2590. Dow Transports (4189) Weekly, daily and semiannual value levels are 4058, 3995, and 3868 with my semiannual pivot at 4335, and monthly, annual and quarterly risky levels at 4980, 5179 and 5359. Russell 2000 (644.15) Weekly, daily, and semiannual value levels are 630.55, 623.24, 577.47 and 530.04 with monthly, annual and quarterly risky levels at 778.77, 784.16 and 802.96. The SOX (338.82) Daily, annual and semiannual value levels at 335.56, 270.98, 258.97 and 204.67 with weekly, monthly and quarterly risky levels at 346.91, 363.01 and 417.63. Equity Fundamentals Stocks are extremely undervalued. 90.8% of all stocks are undervalued / 9.2% of all stocks are overvalued. In March 2009 we saw 91.1% of all stocks undervalued. On September 23rd we showed 91.8% undervalued. All sixteen sectors are undervalued by double-digit percentages, fifteen by 22.3% to 35.4%. 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.