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November 27, 2009

UNIVERSE OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued 57.15%
Stocks Overvalued 42.85%
Stocks Undervalued by 20% 30.58%
Stocks Overvalued by 20% 21.77%

SECTOR OVERVIEW

Sector Change MTD YTD Valuation Last 12- P/E Ratio

MReturn
Basic Industries 1.26% 9.10% 76.95% 13.44% overvalued 96.72% 25.7
Capital Goods 0.15% 4.67% 35.67% 6.33% overvalued 52.62% 21.52
Consumer Durables 0.60% 6.78% 72.50% 8.87% overvalued 60.44% 25.61
Consumer Non-Durables 0.05% 4.15% 49.76% 5.05% overvalued 64.41% 20.3
Consumer Services 0.17% 3.18% 55.34% 1.23% undervalued 75.73% 21.1
Energy 1.35% 8.90% 48.12% 11.11% overvalued 60.28% 18.76
Finance -0.14% 1.53% 22.42% 2.37% undervalued 31.56% 18.61
Health Care -0.04% 4.26% 54.17% 10.66% undervalued 63.15% 19.68
Public Utilities 0.50% 4.98% 21.97% 1.57% undervalued 40.70% 17.19
Technology 0.23% 5.16% 68.99% 7.54% undervalued 74.55% 25.51
Transportation 0.28% 8.00% 23.96% 1.08% overvalued 52.88% 20.02
 Sector Talk
--Rating the DJIA
For our abbreviated Thanksgiving holiday edition of the free weekly newsletter, we provide
the key ValuEngine data points for the DJIA.

Dow Component VE Data Points

Last
Forecast Forecast
Mkt Valuation VE 12-M P/E
Ticker Name 1-Month 1-Yr Industry
Price (%) Rating Retn Ratio
Retn(%) Retn(%)
(%)
NONFERROUS
AA ALCOA INC. 13 14.04 3 38 -0.4 -12.35 N/A
BASE METALS
AMERICAN EXPRESS FINANCIAL
AXP 41.72 -25.75 5 102.13 -0.05 11.36 33
COMPANY SERVICES
BA BOEING COMPANY 52.93 -12.01 3 36.84 -0.18 -4.15 115.32 DEFENSE
BANK OF AMERICA
BAC 15.95 94.13 2 10.69 -3.42 -20.06 93.09 BANKING
CORP
CATERPILLAR
CAT 59.04 124.42 3 65.42 0.92 8.86 23.04 MACHINERY
INCORPORATED
OFFICE/COMM
CSCO CISCO SYS INC 23.74 -6.13 4 53.96 -0.27 -3.71 18.4
EQUIP
CVX CHEVRON CORP 79.64 19.82 3 8.05 1.44 9.88 15.01 OIL
EI DU PONT DE
DD 35.15 5.22 3 54.17 -0.15 -4.27 22.68 CHEMICALS
NEMOURS & CO
DIS WALT DISNEY COMPANY 30.61 2.72 3 41.06 -0.27 -6.61 16.89 LEISURE
MULTI-IND CAP
GE GENERAL ELECTRIC CO 16.18 11.04 3 9.18 0.09 -0.97 15.22
GOOD
HD HOME DEPOT INC 27.85 18.44 3 30.32 -0.29 -7.93 17.52 RETAILING - GOODS
HPQ HEWLETT PACKARD CO 50.05 7.56 4 50.3 -0.32 -2.24 13.03 COMPUTER MFRS
INTERNATIONAL
IBM 127.28 5.5 4 60.97 -0.46 -2.31 13.04 COMPUTER MFRS
BUSINESS MACHINES
SEMICONDUCTORS
INTC INTEL CORPORATION 19.34 -22.44 4 52.28 -0.71 -7.24 37.14
COMPONENT
JNJ JOHNSON & JOHNSON 63.3 -1.33 4 11.46 -0.16 1.44 13.88 DRUGS
JPMORGAN CHASE &
JPM 42.16 1.35 3 43.99 -0.35 -3.22 23.95 BANKING
CO.
FOOD
KFT KRAFT FOODS, INC. 26.8 -18.36 4 4.44 0.63 0.99 13.45
PROCESSORS
KO COCA-COLA CO 58.11 12.45 3 33.62 -0.57 -0.31 19.13 BEVERAGES
MCD MCDONALDS CORP 64.45 -7.57 3 17.5 -0.45 -5.31 16.66 RETAILING - FOODS
UNDESIGNATED
MMM 3M CO 77.91 -3.53 3 26.56 -0.17 -7.04 17.63
CONR SVC
Ticker Name Mkt Valuation VE Last Forecast Forecast P/E Industry
Price (%) Rating 12-M 1-Month 1-Yr Ratio
Retn Retn(%) Retn(%)
(%)
MRK MERCK & CO INC 36.57 -4.05 4 50 -0.25 0.59 11.04 DRUGS
SOFTWARE AND
MSFT MICROSOFT CORP 29.79 15.6 3 52.53 -0.55 -3.26 18
EDP SERVICES
PFE PFIZER INC 18.59 -18.68 4 22.87 0.25 2.03 8.73 DRUGS
PG PROCTER & GAMBLE CO 62.87 3.21 3 2.66 -0.24 0.52 14.88 HOME PRODUCTS
TELEPHONE
T AT&T INC 27.08 -4.88 4 5.62 -0.49 2.19 12.26
UTILITIES
TRV TRAVELERS COS INC 52.76 9.56 3 34.22 -0.58 -11.3 9.18 INSURANCE
UNITED TECHNOLOGIES MULTI-IND CAP
UTX 68.31 6.9 3 49.08 -0.29 -2.79 16.38
CP GOOD
VERIZON TELEPHONE
VZ 32.03 -7.56 4 11.22 -0.89 1.71 13
COMMUNICATION UTILITIES
WMT WAL-MART STORES INC 54.96 7.4 3 2.63 -0.41 -5.79 15.61 RETAILING - GOODS
XOM EXXON MOBIL CORP 76.47 2.04 3 0.17 1.06 11.81 18.28 OIL

What's Hot
--The ValuEngine Quarterly FDIC Report

Our Chief Market Strategist Richard Suttmeier is an expert on the banking system, and he
has been closely following the banking and credit crisis for several years now. In fact, he
predicted the current difficulties YEARS before they began. Every quarter, he takes the
FDIC's own Quarterly Banking profile, combines it with VE's powerful quant tools, adds
additional proprietary data from the FDIC on loan exposures, and collates the info into an
exhaustive report on the state of the US banking system.

Suttmeier now predicts that several hundred more US banks will fail in the next few years
due to a variety of factors--in fact, many banks highlighted in past FDIC reports have
already failed. In addition to the valuable VE and FDIC data, the report also contains critical
ValuEngine data points on the home building industry, technical levels for a variety of banking
and housing indices, policy prescriptions, and other analysis.
 This quarter's report will be available for purchase soon. It will provide subscribers with
critical VE datapoints and FDIC loan exposure data for more than 700 tickers. It will also
contain the ValuEngine List of Problem Banks--which is a compendium of banks in danger of
failing based on their fundamentals and their FDIC loan data.

For more on the ValuEngine Quarterly FDIC Report, Click the Image Below
Suttmeier Says
--Commentary and Analysis from Chief Market Strategist Richard Suttmeier

If you have any comments or questions, send them to Rsuttmeier@Gmail.com

US Treasury yields and commodities declined as the dollar

stabilized and global equities markets took it on the chin as Dubai
World asks creditors for a postponement of debt repayments on
about $60 billion worth of debt until May 2010. This surprise led to
fears of potential defaults around the global financial system,
particularly in emerging markets. This could be the catalyst to end
the Bear Market Rally that began back in March.
Treasuries

The yield on the 10-Year Treasury plummeted below its 200-day simple moving average at
3.30. This yield had been above its 200-day since May 18th. Global uncertainty with regard
to Dubai World debt led to a flight to quality into US Treasuries trumping increasing supply.
Risk aversion pushed the yield on the 10-Year to 3.15 with the October 2nd low yield at 3.10.

Commodities and Forex

Comex gold reached a new all time high at $1195, as the Dollar Index slipped below uptrend
support. This morning gold is between quarterly and weekly pivots at $1170 and $1135.

Comex copper reached a new high for the move at 318.50 then failed to hold my weekly
pivot at 315.90. The 200-week simple moving average is support at 295.50. There are reports
of global stockpiling.

Nymex crude oil has avoided the positives of the dollar carry trade with lower highs in each
of the past six weeks after peaking at $82 on October 21st. Today crude oil traded as low as
$72.39, and a close today below its 200-week simple moving average at $75.57 and its five-
week modified moving average at $75.16 shifts the weekly chart profile to negative. This
would mean that reduced demand resulting from “The Great Credit Crunch” has trumped the
Dollar Carry Trade.
 The Dollar Index tested $74.21, which is below the uptrend connecting the lows of April and
July of 2008. This morning the dollar is back above the uptrend level at $74.55. With the
dollar oversold, a weekly close above the five-week modified moving average at $76.09 is
required to shift the weekly chart to positive.

The Euro traded to a new high for the year at 1.5143, but returned to my weekly pivot at
1.4972. A close today below the five-week modified moving average at 1.48 shifts the weekly
chart to negative, and identifies a weekly key reversal.

The dollar versus Japanese yen broke below its December 20, 2008 low of 87.15 to as low
as 84.92, which is above my quarterly support at 82.72.

Major Indices
The SOX is the low index on the totem pole being well below a double-top at 337, which was
a failed test of my semiannual resistance on September 26th and October 17th. The SOX
lead off the bottom with a low of 167.55 back on November 22, 2008. Other indices did not
bottom until March. A close today below the five-week modified moving average at 311.29
keeps the weekly chart negative.

The Russell 2000 has a double top at 624 / 625 set on September 26th and October 24th.
The Transports have failed several tests between annual resistances at 4037 and 4199 since
Sept. 19th. The NASDAQ has stayed below its 200-week simple moving average at 2211, and
now has a negative divergence in weekly MOJO. The S&P 500 needs to close Friday above
1115 to break the multi-year bear market down trend that goes back to October 2007. This
trend drops to 1111 (snake eyes) next week. The March bottom was the devilish 666.

The Dow is at the top of the totem pole with overbought MOJO. Ascending Wedge
resistance is 10,520 with down trend resistance back to October 2007 at 10,612. These
trends converge next week around 10,600 give or take twenty points or so. My weekly pivot is
10,327 with last week’s close at 10,318.
--The ValuTrader Model Portfolio Newsletter
The ValuTrader Model Portfolio Newsletter is based on ValuEngine Chief Market Strategist
Richard Suttmeier's proprietary market analytics. Suttmeier combines his technical analysis
expertise with ValuEngine's proprietary valuation, forecast, and ratings data for more than
4000 equities trading on US markets to come up with a 20 stock portfolio tailored to current
market conditions. With ValuTrader, subscribers access Suttmeier's "Buy and Trade" strategy
with a portfolio designed to function well in both up and down markets.

For more on the Suttmeier ValuTrader Newsletter Portfolio, Click the Logo Below