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DAILY MARKET HIGHLIGHTS

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Friday 10.30.2009

CURRENT MARKET SENTIMENT

Will the revised Michigan Sentiment follow the however, all other sectors are too far to
Consumer Confidence Index? Last week an contribute to a greater up move. Consequently,
unexpected fall of 47.7 spooked the market. The the market should be range bound prior to the
street is relieved from the GDP and is hoping FOMC meeting next week.
that the consumer is feeling the same. The Dow
is within the range of the weekly pivot 10002;

PRISM CALL

Market is trading down a little following yesterday’s extreme run. The market seems to be waiting for the
results of the Michigan Sentiment report to decide on a direction today. A bad number will bring about a
sharp decline and a retracement of some of yesterdays gains (maybe most). A positive reading will continue
the march towards 10,200. Watch casinos, transportation and healthcare on the upside, but if the market
falls due to a bad number, nothing will be immune to the sell-off.

ECONOMIC CALENDAR INDU & SPUZ TECHNICALS

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL INDICES S2 S1 PIVOT R1 R2


8:30 Personal -0.2% 0.0% 0.2%
am Income to 0.2%
INDU
9686 9766 9897 10062 10107
(DOW)
8:30 Personal -1.1% -0.5% 1.3%
am Spending to 0.5% SPUZ
8:30 PCE -0.7% -0.5% -0.5%
(S&P) 1035 1036 1058 1073 1082
am Deflator to 0.1%
(YoY)
8:30 PCE Core -0.2% 0.2% 0.1%
am (MoM) to 0.2%
8:30 PCE Core 1.2% to 1.3% 1.3%
am (YoY) 1.4%
9:45 Chicago 47.0 to 49.0 46.1
am Purchasing 52.5
Manager
9:55 Univ of 68.0 to 70.0 69.4
am Michigan 74.0
Confidence
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Trading School, LLC (“Prism”) and all individuals affiliated with Prism assume no responsibilities for your trading and investment results. The indicators, strategies, articles and all other features are for educational
purposes only and should not be construed as investment advice. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely
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typos or incorrect information from sources that generate fundamental and technical information. Prism does not warrant the completeness or accuracy of such information, and does not warrant any results from the
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otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.
FOREIGN MARKETS
NEWS

MARKET PRICE   %
Bank of Japan holds rates
FTSE 5142.04 4.32 0.08
steady – WSJ

DAX 5542.24 45.21 -0.81 SNE Sony swings to loss -


WSJ (30.54 )
HANG SENG 21752.87 487.88 2.29

NIKKEI 10034.74 143.64 1.45


OMX OfficeMax raised to
Buy from Neutral at
CHINA 2995.848 35.382 1.2
Goldman- Reuters
(10.92 )

DOW STOCKS TO WATCH COMMODITY PRICES


Euro-zone unemployment
STRONG WEAK hits highest since January
COMMODITY PRICE  
1999 – DJ
CAT MMM
OIL 79.42 0.45
JPM MCD
U.S. junk bond demand
AXP MRK hits fresh record –
GOLD 1043.3 3.80 Reuters
TRV WMT
CIT CIT seen filing for
bankruptcy in coming
UPGRADES & DOWNGRADES days - Reuters (0.95 )

Stocks sizzle as China


STOCKS UPGRADED debuts start-ups market
BROKERAGE
– Reuters
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
MET MetLife: Color on
Dish Network (DISH) Deutsche Bank Hold >> Buy 17.73 17 >> 21
Quarter (36.84 )
Equity Residential Citigroup Sell >> Hold 18.50 >>
18.50
(EQR) 31 Asia markets close; China
Barnes & Noble (BKS) BofA/Merrill Underperform >> and HK shares gain on
16.79
Neutral earnings: Shanghai
SunTrust Banks (STI) Morgan Stanley Underweight >> Composite +1.2%, Hang
19.65 26 to 30
Equal-Weight Seng +2.29%, Nikkei
Toll Brothers (TOL) Citigroup Hold>>Buy
17.22
+1.45%, Sensex -0.97%

AK Steel (AKS) UBS Sell>>Neutral U.S. economy stabilized


16.85
but credit risk remains,
BHP Billiton (BHP) ING Group Hold>>Buy
69.14 Geithner says -
Coach (COH) Jeferies Hold>>Buy Reuters.com
32.87 38 to 40

STOCKS DOWNGRADED
European market
summary; banks and
BROKERAGE miners higher: FTSE
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
+0.10%, CAC -0.44%,
99 Cents Stores Only Neutral >>
BofA 12.00 16 to 10 DAX -0.61%
(NDN) Underperform

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EARNINGS

AEE Ameren beats by $0.13; lowers top end of previous guidance (25.33 )

DCM NTT DoCoMo net drops 20% on call revenue decline - WSJ (14.60 )

PGN Progress Energy beats by $0.03, beats on revs; guides FY09 EPS in-line (37.74 )

FBR Capital notes MET last night reported 3Q09 operating EPS of $0.87, in line with consensus.
After adjusting for non-recurring items (mainly market impacts and lower variable income), the core
result was closer to $0.95.

CMS CMS Energy misses by $0.02; guides FY09 EPS in-line (13.74 )

EL Estee Lauder beats by $0.51, reports revs in-line; guides Q2 EPS in-line; guides FY10 EPS above
consensus (41.14 )

D Dominion beats by $0.09, misses on revs; guides Q4 EPS below consensus; reaffirms FY10 EPS
guidance (34.63 )

CMI Cummins beats by $0.19, beats on revs; raises FY09 sales guidance (45.92 )

THI Tim Hortons misses by C$0.12, beats on revs (29.64 )

UPL Ultra Petroleum beats by $0.05, misses on revs (52.94

PAG Penske Auto beats by $0.06, beats on revs (16.99 )

CPN Calpine reports Q3 (Sep) results, misses on revs (10.82 )

DUK Duke Energy beats by $0.02, misses on revs; reaffirms FY09 EPS guidance (16.11 )

AOC Aon misses by $0.01, misses on revs (41.19 )

CVH Coventry Health Care beats by $0.14, reports revs in-line; raises FY09 EPS guidance (20.91 )

CEG Constellation Energy beats by $0.16; guides FY09 EPS above consensus; reaffirms FY10 EPS
guidance (31.13 )

MDC MDC Holdings misses by $0.32, misses on revs (33.85 )

AGP Amerigroup misses by $0.02, misses on revs (22.74 )

GAS NICOR beats by $0.26, misses on revs (37.53 )

NYX NYSE Euronext beats by $0.07, misses on revs (27.58 )

GXP Great Plains Engy misses by $0.10; guides FY09 EPS in-line (17.65 )

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CW Curtiss-Wright misses by $0.11, misses on revs; guides FY09 EPS below consensus, revs below
consensus (33.76 )

MSTR MicroStrategy beats by $0.79, beats on revs (73.44 )

DRC Dresser-Rand beats by $0.30, beats on revs (30.20 +2.20)

UHS Universal Health beats by $0.15, beats on revs; raises FY09 EPS range to above consensus
(60.72 +2.97)

DTE DTE Energy misses by $0.04, misses on revs; reaffirms FY09 EPS guidance (38.48 )

MTW Manitowoc misses by $0.12, misses on revs (10.45 +0.99)

ELY Callaway Golf reports EPS in-line, revs in-line; guides FY09 EPS below consensus (7.40 +0.23)

CPT Camden Property beats by $0.01; raises FY09 FFO above consensus (36.35 +1.11

CLF Cliffs Natural Resources beats by $0.52, beats on revs (34.87 +1.70)

BMC BMC Software beats by $0.08, reports revs in-line; guides FY10 EPS above consensus
(37.22 +0.80)

KLAC KLA-Tencor beats by $0.13, beats on revs (34.28 +1.03)

MHK Mohawk beats by $0.08, misses on revs; guides Q4 EPS below consensus (46.48 +2.48)

MET MetLife prelim $0.87 vs $0.87 First Call consensus; revs $12.41 bln vs $12.25 bln First Call
consensus

LVS Las Vegas Sands beats by $0.04, misses on revs (14.75 +1.59)

ACI Arch Coal beats by $0.12, beats on revs; guides FY09 EPS above consensus (23.10 )

AEM Agnico-Eagle Mines upgraded to Buy from Neutral at UBS; tgt $68 (57.18 )

WY Weyerhaeuser Q3 prelim $0.00 vs ($0.45) First Call consensus; revs $1.41 bln vs $1.42 bln First Call
consensus

SPG Simon Properties beats by $0.06, beats on revs; guides FY09 FFO in-line (68.17 )

LVS Las Vegas Sands gets HK listing OK for $2 bln Macau IPO. sources say - DJ (14.76 )

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TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1012.60 1021.44 1026.90 1035.74 1044.58 1047.31 1050.03 1058.88 1067.73 1070.45 1073.18 1082.02 1090.86 1096.32 1105.16
INDU 9475.65 9556.16 9605.91 9686.43 9766.94 9791.82 9816.58 9897.21 9977.83 10002.60 10027.47 10107.99 10188.50 10238.25 10318.77
NDX 1653.41 1663.22 1669.28 1679.09 1688.90 1691.93 1694.95 1704.77 1714.59 1717.61 1720.64 1730.45 1740.26 1746.32 1756.13
XBD 107.45 108.79 109.62 110.96 112.30 112.72 113.13 114.47 115.81 116.23 116.64 117.98 119.32 120.15 121.49
BKX 40.32 41.00 41.41 42.09 42.77 42.98 43.18 43.86 44.54 44.75 44.95 45.63 46.31 46.72 47.40
TRAN 3538.74 3566.79 3584.12 3612.17 3640.22 3648.89 3657.51 3685.60 3713.69 3722.32 3730.98 3759.03 3787.08 3804.41 3832.46
OIX 649.24 655.69 659.68 666.12 672.57 674.56 676.55 683.00 689.46 691.44 693.44 699.88 706.33 710.32 716.76
OSX 181.55 183.98 185.48 187.91 190.34 191.09 191.83 194.27 196.70 197.45 198.20 200.63 203.06 204.56 206.99
XNG 470.76 478.01 482.49 489.74 496.99 499.23 501.46 508.72 515.98 518.21 520.45 527.70 534.95 539.43 546.68
CYC 670.98 682.18 689.09 700.28 711.48 714.93 718.38 729.58 740.79 744.23 747.69 758.88 770.08 776.99 788.18
UTY 378.92 380.61 381.65 383.34 385.03 385.55 386.07 387.76 389.45 389.97 390.49 392.18 393.87 394.91 396.60
DRG 284.84 285.93 286.60 287.70 288.79 289.13 289.46 290.56 291.65 291.99 292.32 293.42 294.51 295.18 296.28
RLX 367.36 371.35 373.81 377.79 381.78 383.01 384.23 388.22 392.21 393.44 394.67 398.65 402.64 405.10 409.08

Tradeables

SPY 102.31 103.04 103.50 104.23 104.96 105.19 105.42 106.15 106.88 107.11 107.34 108.07 108.80 109.26 109.99
DIA 95.73 96.38 96.77 97.42 98.07 98.27 98.46 99.11 99.76 99.96 100.15 100.80 101.45 101.84 102.49
QQQQ 40.64 40.89 41.04 41.29 41.54 41.62 41.69 41.94 42.19 42.27 42.34 42.59 42.84 42.99 43.24
QLD 47.04 47.61 47.97 48.54 49.12 49.30 49.48 50.05 50.63 50.81 50.98 51.56 52.14 52.49 53.07
IWM 55.52 55.94 56.21 56.64 57.06 57.20 57.33 57.76 58.19 58.32 58.45 58.88 59.30 59.57 60.00
OIH 114.89 116.14 116.91 118.16 119.41 119.79 120.18 121.43 122.68 123.06 123.45 124.70 125.95 126.72 127.97
XLE 54.13 54.68 55.02 55.58 56.13 56.30 56.47 57.03 57.58 57.75 57.92 58.48 59.03 59.37 59.93
FAZ 17.09 17.83 18.29 19.04 19.78 20.01 20.24 20.99 21.73 21.96 22.19 22.94 23.68 24.14 24.89
FAS 63.69 65.94 67.33 69.58 71.83 72.53 73.22 75.47 77.73 78.42 79.11 81.36 83.61 85.00 87.25
SRS 8.63 8.92 9.10 9.38 9.67 9.76 9.85 10.13 10.42 10.51 10.60 10.88 11.17 11.35 11.63
SDS 36.68 37.24 37.59 38.15 38.72 38.89 39.07 39.63 40.20 40.37 40.55 41.11 41.68 42.02 42.59
USO 38.56 38.97 39.22 39.63 40.04 40.16 40.29 40.70 41.11 41.23 41.36 41.77 42.18 42.43 42.84
SKF 22.37 22.95 23.31 23.90 24.48 24.66 24.84 25.43 26.01 26.19 26.37 26.96 27.54 27.90 28.49

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