daily charts remain overbought, but with negative divergences

8/3/2019 Daily charts remain overbought, but with negative divergences.

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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEnginecovers over 7,000 stocks every day.

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Oct ober 27, 2011 Dai ly chart s remain overbought, but w i t h negat ive d ivergences

The daily charts for the major equity averages remain overbought, but less so, as stocks

approach this months risky levels at: 12,091 Dow Industrials, 1259.8 SPX, 2680 NASDAQ, 4980Dow Transports, and 778.77 Russell 2000. The weekly charts remain positive given closes onFriday above the five-week modified moving averages at: 11,402 Dow Industrials, 1195.3 SPX,2561 NASDAQ, 4575 Dow Transports, and 694.66 Russell 2000. The Dow and SPX remain aboveannual pivots at 11,491 and 1210.7 respectively. The status of the monthly charts wont beknown until Mondays closes versus the five-month modified moving averages at: 11,749 DowIndustrials, 1245.5 SPX, 2631 NASDAQ, 4894 Dow Transports, and 756.59 Russell 2000. Theyield on the 10-Year US Treasury moved above my monthly pivot at 2.222. Gold is shy of its 50-day simple moving average at $1736.8. Crude oil is below its 200-day SMA at $94.77. The eurois between its 50-day and 200-day SMAs at 1.3847 and 1.4097.

10-Year Note (2.209) Semiannual, quarterly and annual value levels are 2.414, 2.669 and 2.690with my monthly pivot at 2.222, the 50-day simple moving average at 2.056, and daily, weekly, andsemiannual risky levels at 2.126, 1.915 and 1.672, which was tested on September 23 rd.

Courtesy of Thomson / Reuters


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Comex Gold ($1722.0) Daily, semiannual, weekly, semiannual and annual value levels are $1660.2$1644.8, $1606.4, $1469.9 and $1,356.5 with quarterly and monthly risky levels at $1738.4 and

$1811.4, and the September 6

th

all time high at $1923.7. The 200-day simple moving average is$1552.0 with the 50-day at $1738.4.


Nymex Crude Oil ($90.81) The October 4th year-to-date low is $74.95 with my weekly value level at

$84.81, a daily pivot at $90.56, the 50-day at $85.53 with the 200-day at $94.78, and monthly,quarterly and annual risky levels at $98.51, $100.34, $99.91 and $101.92.



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The Euro (1.3905) Weekly, and quarterly value levels are 1.2966 and 1.2598 with a daily pivot at1.3796, and monthly and semiannual risky levels at 1.4579, 1.4752 and 1.4872. The 50-day simple

moving average is 1.3852 with the 200-day at 1.4094.


Daily Dow - (11,869) The October 4th YTD low is 10,404.49 with annual and weekly value levels at11,491 and 11,336, a daily pivot at 11,731, and monthly and quarterly risky levels at 12,091 and12,507 with the YTD high at 12,876.00. Semiannual value levels are 9,635 and 8,468. The 50-day is

11,274 with the 200-day at 11,968.



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S&P 500 (1242.0) The October 4th YTD low is 1074.77 with semiannual value levels at 981.3 and855.7, annual and weekly value levels at 1210.7 and 1194.0, a daily pivot at 1232.5, and monthly,

quarterly and annual risky levels at 1259.8, 1303.7 and 1562.9. The YTD high is 1370.58.NASDAQ (2651) The October 4th YTD low is 2298.89 with my annual value level at 2335,semiannual value levels at 2199 and 2049, daily and weekly pivots at 2610 and 2607, and monthly,and quarterly risky levels at 2680, and 2807, and the YTD high at 2887.75. My annual risky level is3243.

NASDAQ 100 (NDX) (2335) The YTD low is 2034.92 with semiannual and annual value levels at1951, 1861 and 1723, my monthly value level at 2312, daily and weekly pivots at 2305 and 2334, andquarterly risky level at 2359 and 2440, the YTD high at 2437.42 and annual risky level at 2590.

Dow Transports (4809) The October 4th YTD low is 3950.66 with weekly, semiannual value levels a4554, 4335 and 3868, and a daily pivot at 4805, and monthly, annual and quarterly risky levels at4980, 5179 and 5359, and the YTD high at 5627.85.

Russell 2000 (727.15) The October 4th YTD low is 601.71 with semiannual value levels at 577.47and 530.04, a weekly value level at 677.48, a daily pivot at 710.89, monthly, annual and quarterly riskylevels at 778.77, 784.16 and 802.96, and the YTD high at 868.57.

The SOX (379.48) The October 4th YTD low is 322.24 with annual and semiannual value levels at270.98, 258.97 and 204.67, daily, weekly and monthly pivots at 369.39, 379.60 and 363.01, andquarterly risky level at 417.63, and the YTD high at 450.79.

Equity Fundamentals Stocks are extremely undervalued. 77.5% of all stocks are undervalued / 22.5% of all stocks are overvalued. On October 4 th 93.5%

of all stocks were undervalued. All sixteen sectors are undervalued, fourteen by double-digit percentages, only two by 20.7%

and 21.4%. Back in March 2009 the sectors were undervalued by 33% to 45%. Check outand subscribe to www.ValuEngine.com.

VE Morning Briefing If you want expanded analysis of the US Capital Markets including a FearlessPrediction of the Week and a Stock of the Day go to this link and sign up:http://www.valuengine.com/nl/mainnl?nl=D

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ValuEngine FDIC Evaluation Report In this report I slice and dice the FDIC Quarterly BankingProfile. 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 slowstochastic readings from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0


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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 priceweakness. 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 tothe 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 weaknesto the Value Level.

Risky Level The price at which you establish an addition short position on share pricestrength. This is done on a GTC Limit Order to sell strength to the Risky Level.

Richard SuttmeierChief Market StrategistValuEngine.com(800) 381-5576

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As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I have daily, weekly, monthly, andquarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. Mynewest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go tohttp://www.valuengine.com/nl/mainnl to review sample issues and find out more about my research.

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daily charts remain overbought, but with negative divergences

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