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

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http://www.valuengine.com/pub/Unsubscribe? Sept 30, 2011 Stocks are Cheap, but below 50-day Simple Moving Averages We are at month end and quarter end with a stock market thats extremely cheap fundamentally with neutral to negative weekly charts technically and with monthly charts that become negative at todays closes below five-month modified moving averages at 11,954 Dow Industrials, 1273.5 SPX, 2683 NASDAQ, 2273 NDX, 5066 Dow Transports, 784.22 Russell 2000 and 400.23 SOX. The near-term strength straddled 50-day simple moving averages at 11,429 Dow Industrials, 1200.8 SPX, 2557 NASDAQ, 2227 NDX, 4618 Dow Transports, 711.82 Russell 2000 and 361.64 SOX with Thursdays closes below all. With new weekly value levels and new monthly and quarterly risky levels out next week, there does not seem to be a catalyst to take stocks out of the extremely choppy trading ranges set off the August 9th lows. 10-Year Note (1.976) Semiannual, annual, monthly and quarterly value levels are 2.414, 2.690, 2.715 and 3.053 with daily, semiannual and weekly risky levels at 1.871, 1.672 and 1.369. My semiannual risky level at 1.672 was tested last Friday.

Courtesy of Thomson / Reuters

Comex Gold ($1620.7) Daily, semiannual and annual value levels are $1575.5, $1469.9 and $1,356.5 with quarterly, semiannual and monthly pivots at $1655.8, $1644.8 and $1702.3 and weekly risky level at $1915.0. The daily chart shows a double-top with the 200-day simple moving average as important support at $1526.5 and the 50-day as resistance at $1744.7.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($82.66) Daily and weekly value levels are $79.41 and $73.58 with the 200-week simple moving average at $83.65, my annual risky levels at $99.91 and $101.92, and quarterly, semiannual and monthly risky levels at $102.40, $103.92 and $104.23.

Courtesy of Thomson / Reuters

The Euro (1.3583) My daily value level is 1.3449 with weekly and quarterly pivots at 1.3646 and 1.3728, the 200-day simple moving average at 1.4050, and semiannual and monthly risky levels at 1.4752 and 1.4872.

Courtesy of Thomson / Reuters

Daily Dow - (11,154) Daily and weekly value levels are 10,731 and 10,101 with the 200-week and 120-month simple moving averages at 10,665 and 10,595, the 50-day at 11,429, and annual and monthly risky levels at 11,491 and 12,779. Semiannual value levels are 9,635 and 8,468.

Courtesy of Thomson / Reuters

S&P 500 (1160.4) Daily, weekly and semiannual value levels are 1117.0, 1040.1, 981.3 and 855.7 with the 50-day at 1200.8 and my annual pivot at 1210.7. NASDAQ (2481) Daily, annual, weekly, and semiannual value levels are 2406, 2335, 2221, 2199 and 2049 with the 50-day at 2557 and monthly risky level at 2827. NASDAQ 100 (NDX) (2198) Daily, weekly, semiannual and annual value levels are 2147, 1999, 1951, 1861 and 1723 with the 50-day and 20-day SMAs at 2227 and 2292 and monthly risky level at 2431. Dow Transports (4342) Daily, semiannual and weekly value levels are 4035, 3868 and 3686 with my semiannual pivot at 4335, the 50-day at 4618, and annual and monthly risky levels at 5179 and 5190. Russell 2000 (662.80) Daily, weekly and semiannual value levels are 625.28, 565.64, 577.47 and 530.04 with the 50-day at 711.82, and annual and monthly risky levels at 784.16 and 825.19. The SOX (350.82) Daily, weekly, annual and semiannual value levels at 341.04, 317.42, 270.98, 258.97 and 204.67 with the 50-day at 361.64, the 200-day at 412.89, and monthly risky level at 418.07. Equity Fundamentals Stocks are extremely undervalued. 89.3% of all stocks are undervalued / 10.7% 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 21.0% to 33.2%. 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.