Richard Suttmeier is the Chief Market Strategist at
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December 16, 2010 – Overvalued / Overbought Stocks are Vulnerable in 2011
The rise in the 10-Year yield is overdone and under the influence of my semiannual pivot at3.479 after a high of 3.565 on Wednesday.
A rising 30-Year bond yield is a drag on equity valuations.
Comex Gold remains between this week’s value level at $1377.4 and my monthlyrisky level at $1443.5. Nymex Crude oil remains influenced by my weekly pivot at $88.76. Theeuro is back below my quarterly pivot at 1.3318. The Dow Industrial Average traded as high as11,519 on Wednesday then closed below my weekly pivot at 11,467. Stocks are overvaluedaccording to ValuEngine and overbought technically on both daily and weekly charts. Themajor averages straddle this week’s risky levels / pivots at 1242.9 SPX, 2643 NASDAQ, 5141Transports, 770.13 Russell 2000, and 428.02 Sox. The NAHB Housing Market Index remainsdepressed at 16, well below the neutral 50. We now have 123 Deadbeat community banksreneging on TARP dividend payments.10-Year Note
– (3.512) My daily value level is 3.555 with a semiannual pivot at 3.479, and weeklypivot at 3.176, annual pivots at 2.999 and 2.813, and quarterly, semiannual and monthly risky levels at2.265, 2.249 and 1.949.
Courtesy of Thomson / Reuters