US Treasury Yields

Comex Gold and Nymex Crude Oil

The US Dollar vs the Japanese Yen, the Euro, and British Pound
The Major Equity Averages
The ValuEngine Stock of the Day

Support@ValuEngine.com
 Market Overview
October 27, 2009
Japanese
Daily 10-Year Gold Crude Oil Euro The Dow Nasdaq
Yen
10/26/2009 3.554 1039.2 78.66 1.4864 92.17 9,868 2142
10/23/2009 3.473 1055.3 79.78 1.4997 92.07 9,972 2154
Daily Chg 0.081 -16.1 -1.12 -0.0133 0.1 -104 -12
12/31/2008 2.227 870.1 40.42 1.4384 87.45 8,776 1577
YTD Change 1.327 169.1 38.24 0.048 4.72 1092 565
Supports 3.677 M 991.7 S 72.71 W 1.4787 Q 88.49 W 9,750 A 1938 M
4.000 S 978.8 M 68.81 A 1.4036 A 82.72 Q 9,306 M 1635 Q
4.176 S 891.0 A 66.51 A 6,546 Q 1506 A

Pivots 1043.3 D 2144 D

Resistances 3.466 D 1091.9 W 82.98 M 1.4956 D 93.23 D 9,969 D 2183 M

3.332 W 1094.4 Q 83.16 Q 1.5022 M 99.80 M 9,973 W 2188 W
2.753 Q 1101.9 S 83.46 D 1.5129 W 105.58 A 10,012 A 2227 S
2.640 A 1.5394 S 105.85 S
Five-Week 3.425 1017.8 73.24 1.4669 91.53 9,699 2093
Five- Month 3.318 943.8 67.23 1.4068 94.80 9,089 1895
Int Sent 7.1 / 6.8 8.1 / 8.3 7.3 / 7.6 8.4 / 8.6 1.9 / 2.2 9.0 / 9.0 8.9 / 8.8
LT Sent 4.7 / 4.4 7.4 / 7.7 2.7 / 3.1 4.2 / 5.1 3.5 / 3.3 3.2 / 3.9 3.8 / 4.7

Supports – Levels that are likely to hold on weakness.

Pivots – Levels that could be tested as magnets.
Resistances – Levels that are likely to restrain strength (D-Daily, W-Weekly, M-Monthly, Q-Quarterly,
S-Semiannual and A-Annual)
Five-Week – The five-week modified moving average.
Five-Month – The five-month modified moving average.
Int Sent – 12x3x3 weekly slow stochastic reading on a scale of 0.0 and 10.0.
LT Sent – 12x3x3 monthly slow stochastic reading. (Below 2.0 is oversold, above 8.0 is overbought.
Rising is positive. Declining is negative)
Weekly Chart Profiles – Above the Five-Week with rising Int Sent is positive. Below the Five-Week
with declining Int Sent is negative.
Monthly Chart Profiles – Above the Five-Month with rising LT Sent is positive. Below the Five-
Month with declining LT Sent is negative.
 ValuEngine Sector Overview
Last 12- P/E
Sector Change MTD YTD Valuation
MReturn Ratio
Basic Industries -1.38% 6.22% 68.68% 17.33% overvalued 75.07% 26.97
Capital Goods -1.34% 5.88% 39.73% 16.76% overvalued 32.71% 20.94
Consumer Durables -1.12% 5.94% 65.43% 3.52% overvalued 42.88% 28.38
Consumer Non-Durables -1.00% 4.92% 50.03% 12.93% overvalued 40.65% 22.28
Consumer Services -1.57% 4.84% 62.50% 7.68% overvalued 51.34% 22.64
Energy -1.92% 8.65% 45.16% 20.86% overvalued 33.03% 19.82
Finance -0.83% 1.97% 25.37% 3.97% overvalued 15.92% 19.16
Health Care -1.35% 2.05% 58.55% 8.26% undervalued 41.92% 19.77
Public Utilities -1.22% 3.74% 21.11% 2.39% undervalued 35.90% 15.81
Technology -1.00% 3.37% 67.09% 2.21% undervalued 48.55% 26.64
Transportation -2.01% 2.76% 23.71% 10.00% overvalued 19.82% 16.94

ValuEngine Universe Valuation

Stocks Undervalued 52.2%
Stocks Overvalued 47.8%
Stocks Undervalued by 20% 27.07%
Stocks Overvalued by 20% 26.95%

The ValuEngine Universe consists of over 4500 US, foreign, and ADR tickers traded on
US markets. “Normal” ranges for universe over and undervaluation typically run between 35-
65%. Of course, readings in excess of this range are no guarantee that a correction is imminent
and extreme conditions may persist for a very long time.
10-Year Note – Monthly and semiannual supports are 3.677, 4.000 and 4.176 with daily and weekly
resistances at 3.466 and 3.332.

Courtesy of Thomson / Reuters

Comex Gold – Semiannual and monthly supports are $991.7 and $978.8 with a daily pivot at $1043.3,
and weekly, quarterly and semiannual resistances at $1091.9, $1094.4 and $1,101.9.

Courtesy of Thomson / Reuters

Nymex Crude Oil – Weekly and annual supports are $72.71, $68.81 and $66.51 with monthly,
quarterly and daily resistances at $82.98, $83.16 and $83.46.

Courtesy of Thomson / Reuters

The Euro – Quarterly and annual supports are 1.4787 and 1.4036 with daily, monthly, weekly and
semiannual resistances at 1.4956, 1.5022, 1.5129, and 1.5394.

Courtesy of Thomson / Reuters

The Dollar versus Japanese Yen – Weekly and quarterly supports are 88.49 and 82.72 with daily and
monthly resistance at 93.23 and 99.80.

Courtesy of Thomson / Reuters

The British Pound – Weekly support is 1.6182 with daily and monthly resistances at 1.6822 and
1.6833.

Courtesy of Thomson / Reuters

 The Major Equity Averages
26-Oct YTD 2008 52 Wk Cycle Date of % High % Off % Off
Market Price Gains Closes Lows Highs Highs To Lows Lows Highs
The Dow 9,868.00 12.4% 8,776.00 6,469.95 14,198.10 Oct-07 -54.4% 52.5% 30.5%
S&P 500 1,067.00 18.1% 903.30 666.92 1,576.06 Oct-07 -57.7% 60.0% 32.3%
Nasdaq 2,142.00 35.8% 1,577.00 1,265.52 2,861.51 Oct-07 -55.8% 69.3% 25.1%
Utilities 372.71 0.5% 370.76 288.66 555.71 Jan-08 -48.1% 29.1% 32.9%
Transports 3,773.00 6.7% 3,537.00 2,134.21 5,536.57 May-08 -61.5% 76.8% 31.9%
Russell 2000 593.68 18.9% 499.45 342.59 862.00 Jul-07 -60.3% 73.3% 31.1%
Semis (SOX) 317.44 49.6% 212.17 167.55 549.39 Jul-07 -69.5% 89.5% 42.2%

Dow – Annual, monthly and quarterly supports are 9,750, 9,306 and 6,546 with daily, weekly and
annual resistances at 9,969, 9,973 and 10,012.
S&P 500 – Monthly support is 1033.3 with daily and weekly resistances at 1077.1 and 1085.6. Annual
supports are 967.1 and 910.8. Quarterly support is 688.9 with semiannual resistance at 1237.6.
NASDAQ – Monthly support is 1938 with a daily pivot at 2144, and weekly and monthly resistances at
2188 and 2183. Annual and quarterly supports are 1506 and 1408 with semiannual resistances at 2227
and 2296.
Dow Utilities – Monthly and quarterly supports are 337.79 and 336.94 with a weekly pivot at 374.16
and daily resistance at 382.60.
Dow Transports – Monthly and quarterly supports are 3615 and 3158 with daily, weekly, and annual
resistances at 3816, 3994, 4037 and 4199.
Russell 2000 – Monthly support is 589.03 with a daily pivot at 594.28, and weekly annual and
semiannual resistances at 618.79, 670.80 and 695.55.
The SOX – Daily support is 311.69 with weekly, semiannual and monthly resistances at 325.97, 337.39
and 343.37.
 Bear Tracks
Dow: The Dow is well below its 200-week simple moving average at 11,212 with overbought
momentum. The weekly chart stays POSITIVE but OVERBOUGHT on a close this week above its
5-week modified moving average at 9,730. Note the ascending wedge on the weekly chart, as that
pattern typically is broken to the downside. The Dow is well below its 120-month simple moving
average at 10,478, which is a multi-year Bear Market. The monthly chart is POSITIVE with the 38.2%
Retracement line as a pivot at 9,389.

Courtesy of Thomson / Reuters

Courtesy of Thomson / Reuters

 ValuEngine Stock of the Day
Ryland Group (RYL)
Ryland Group (RYL) – is rated a SELL according to ValuEngine with fair value at $20.43, which
makes the stock slightly undervalued. The Ryland Group, Inc. operates as a homebuilder in the United
States. The company also provides mortgage-finance and related services.
Analysis – The daily chart for Ryland shows declining MOJO, with the 21-day simple moving average
at $21.08 and the 200-day as support at $18.89. My weekly value level is $19.55 with a monthly pivot
at $22.26 and quarterly risky level at $23.46. Ryland is a short position in the ValuTrader model
portfolio from $24.09 on September 17th.

Courtesy of Thomson / Reuters

Mkt Fair Forecast 1- Forecast 1- Last 12-Mon 5-Yr Avg P/E
Ticker Company Name
Price Value Mon Retn(%) Yr Retn(%) Retn (%) Retn (%) Ratio
RYL RYLAND GROUP 20.08 20.43 -1.69 -16.33 33.35 -14.09 n/a